Item - 2020.PH13.4

The Planning and Housing Committee recommends that:

1. City Council, in its capacity:

1. as Shareholder of Toronto Community Housing Corporation ("TCHC"), pursuant to Section 7.4.1 (c) of the City's Shareholder Direction to TCHC, approve TCHC proceeding with the Initial Development Proposal outlined in this report as a general concept for the revitalization of TCHC's properties located at 3, 36 Marsh Grassway; 5,10 and 40 Turf Grassway; 1, 2 and 8 Dune Grassway; 7 and 11 Blue Grassway; and 4 and 17 Cane Grassway ("Firgrove-Grassways");
    
2. as Service Manager under section 161(2) of the Housing Services Act, 2011 ("HSA") consent to Toronto Community Housing Corporation (TCHC) proceeding with the Initial Development Proposal outlined in this report as a general concept for the revitalization of Firgrove-Grassways;
    
3. as Shareholder of Toronto Community Housing Corporation (TCHC) and subject to approval of this report, direct TCHC to submit a Rental Housing Demolition and Conversion application to demolish the existing vacant 134 social housing units located at 1, 2, 8 Dune Grassway and 3, 36 Marsh Grassway and 7, 11 Blue Grassway ("Phase One Demolition") and address replacement obligations and provide an acceptable Tenant Relocation and Assistance Implementation Plan;
    
4. as Shareholder of Toronto Community Housing Corporation (TCHC) and subject to Council approval of the Zoning By-law Amendment and Draft Plan of Subdivision applications that are necessary to implement the Master Plan  and pursuant to Section 7.4.1 (c) of the City's Shareholder Direction to TCHC, direct TCHC to submit a Rental Housing Demolition and Conversion application to demolish the remaining 102 rent-geared-to-income (RGI) units at 5, 10, 40 Turf Grassway and 4 and 17 Cane Grassway ("Phase Two Demolition") and address replacement obligations and provide an acceptable Tenant Relocation and Assistance Implementation Plan; and
    
5. as Service Manager under the Housing Services Act, 2011 authorize the General Manager, Shelter, Support and Housing Administration, in consultation with the Executive Director, Housing Secretariat, to grant Service Manager consent, and grants shareholder consent pursuant to Section 7.4.1 (c) of the City's Shareholder Direction to Toronto Community Housing Corporation (TCHC) to the closure of 102 units at 5, 10, 40 Turf Grassway and 4 and 17 Cane Grassway subject to: i) recommendation 1(d) above; and ii) TCHC providing a Tenant Relocation and Assistance Implementation Plan outlining how impacted tenants will be supported and TCHC's obligations during the relocation and return to a replacement unit process including providing tenants with a right to return post-construction, to the satisfaction of the General Manager, Shelter, Support and Housing Administration. 

2. City Council authorize and  request the Chief Planner and Executive Director, City Planning, to defer payment of all planning application fees, exclusive of base fees, until such time as Toronto Community Housing Corporation submits a Site Plan Application.

3. City Council authorize the Chief Planner and Executive Director, City Planning to enter into an agreement with Toronto Community Housing Corporation setting out the terms and conditions of the deferral, in a form acceptable to the City Solicitor. 

4. City Council direct that the confidential information contained in Confidential Attachment 1 to the report (January 29, 2020) from the Deputy City Manager, Community and Social Services remain confidential in its entirety until such time as Toronto Community Housing Corporation agrees that the same may be disclosed to the public.

5. City Council direct the City Manager to forward the report (January 29, 2020) from the Deputy City Manager, Community and Social Services to the Ontario Minister of Municipal Affairs and Housing to request program and financial support for the implementation of the Firgrove-Grassways revitalization project.

6. City Council direct the City Manager to forward the report (January 29, 2020) from the Deputy City Manager, Community and Social Services to the Federal Minister of Families, Children and Social Development and Minister Responsible for Canada Mortgage and Housing Corporation, to request program and financial support for the implementation of the Firgrove-Grassways revitalization project.

7. City Council authorize staff from Toronto Community Housing Corporation, the City and CreateTO to submit an application for funding and financing consideration under the National Housing Strategy Co-Investment Fund and report to City Council on the progress prior to the 2021 budget process.

8. City Council request the Deputy City Manager, Community and Social Services to work directly with Toronto Community Housing Corporation to facilitate the relocation of the Firgrove tenants living in the remaining 92 apartments.

9. City Council request the Deputy City Manager, Community and Social Services to explore all opportunities available to increase the number of affordable rental units on the site.

At its meeting of July 16, 17, & 18, 2019, City Council adopted, with amendments, report PH7.4 – A New Approvals Framework for Toronto Community Housing Corporation Revitalization Projects. Council also directed staff to review the Initial Development Proposal for the revitalization of the Firgrove-Grassways community in line with the new approval framework (Attachment 4) and, if deemed satisfactory, recommend it to the Planning and Housing Committee for approval.

This report responds to Council's request and recommends that City Council endorse, in principle, TCHC's proposed plans to redevelop its ageing buildings in the Firgrove-Grassways community as outlined herein ("the Initial Development Proposal") as a general concept to begin the public consultation and the planning application submission processes.

The Initial Development Proposal envisions the replacement of 236 social housing units and the refurbishment of 152 other Toronto Community Housing ("TCHC") units onsite. In addition, it is proposed that up to 600 market rental and ownership units, approximately 10,000 square feet of retail/commercial space, and an additional 107 net new affordable rental units be added to the development. Other city-building objectives are also proposed to be achieved including: improved community amenities (replacement of the existing community space and outdoor pool); an expanded City-operated child care facility; a new park and road network; and an overall built form and public realm that will promote community safety and social cohesion.

Although the Initial Development Proposal outlined in this report is being recommended to City Council for endorsement in principle, through the development review and community consultation processes, an appropriate site plan and built form will be identified, which will ultimately determine the final number of rental and ownership units and amount of retail/commercial space and amenities at the site.

Approval of the recommendations in this report will allow TCHC to proceed with submitting planning applications, to conduct a public procurement process to assess market interest and to identify the best timing to secure a development partner for the site. Approval of the recommendations in this report will also allow TCHC to refine cost estimates, proceed with demolition of vacant units as required, and to pursue funding from other orders of government to help support the revitalization project.

Future relocation of tenants and demolition of vacant units will take place once the appropriate approvals have been obtained, including a tenant relocation and assistance plan as part of the approval of a Rental Housing Demolition and Conversion application. Details of the recommended development partner for the site, proposed partnership arrangement, identification of third-party funding sources and overall financial implications will be reported to City Council in late 2020 or early 2021 as part of the Council approved process for approving TCHC revitalizations. All project details will be assessed by an interdivisional City, CreateTO and TCHC staff team prior to being recommended to Council.

This report was developed with input from the following City divisions, agencies and corporations: the Housing Secretariat; TCHC; City Planning; Shelter, Support and Housing Administration; Social Development, Finance and Administration; Corporate Real Estate Management; CreateTO; and the office of the Chief Financial Officer and Treasurer.