Item - 2021.PH23.9

The Planning and Housing Committee recommends that:  

1.  City Council request the Executive Director, Housing Secretariat, in consultation with the Executive Director, Corporate Real Estate Management, the General Manager, Parks, Forestry and Recreation, and CreateTO, to issue a Request For Proposals ("RFP") for 15 Denison Avenue to identify a non-profit development partner to design, build, finance and operate a new mixed-use affordable rental housing development including cultural space, a new park and a portion of a public lane at 15 Denison Avenue for 99 years under a long-term lease with the City, and to report back to Council on the results of the RFP including to request authority to provide any required financial contribution and Open Door incentives for the project.

2.  City Council authorize the Executive Director, Housing Secretariat to allocate up to $200,000.00 in funding, inclusive of the Harmonized Sales Tax and disbursements, from the Capital Revolving Reserve Fund for Affordable Housing (XR1058), for the purpose of completing pre-development activities and due diligence work related to 15 Denison Avenue and the potential redevelopment opportunities, or to work with the Chief Executive Officer, CreateTO to complete these pre-development and due diligence activities on a full cost-recovery basis, and on terms and conditions satisfactory to the Executive Director, Housing Secretariat, fully funded from the development at 324-332 Richmond Street West, secured for community benefits in the vicinity of the lands, in the amount of $200,000 (Source Account: XR3026-3701078).

3.  Pursuant to Part 2 above, City Council authorize the transfer of $200,000 from the Section 37 Reserve Fund (Source Account: XR3026-3701078) to the Capital Revolving Reserve Fund for Affordable Housing (XR1058).

4.  City Council amend the Approved 2021-2030 Capital Budget and Plan for Housing Secretariat through an increase of $200,000 in the project cost and 2021 cash flow for the Rental Development Project (WBS CAF003), to support the due diligence work related to 15 Denison Avenue and other nearby properties for potential redevelopment, fully funded from the Capital Revolving Reserve Fund for Affordable Housing (XR1058).

5. City Council request the Board of Directors of CreateTO to direct the Chief Executive Officer, CreateTO to work with the Toronto Parking Authority to identify new parking opportunities in both on and off street locations suitable for replacement of parking spaces within the vicinity of the proposed development, should an investment in parking on-site be deemed not feasible at 15 Denison Avenue.

6. City Council request the Executive Director, Housing Secretariat and the Executive Director, Corporate Real Estate Management to work with CreateTO to identify opportunities for any future development at 15 Denison Avenue to meet or exceed the Toronto Green Standards.

7. City Council request the Executive Director, Housing Secretariat and the Executive Director, Corporate Real Estate Management to work with CreateTO to explore options to include other properties, including City-owned properties, in the vicinity of 15 Denison Avenue that could be leveraged to increase city building opportunities.

In March 2021, City Council directed the Executive Director, Housing Secretariat, in consultation with the Chief Executive Officer, CreateTO and the General Manager, Economic Development and Culture, to accelerate plans to redevelop the property located at 15 Denison Avenue ("Subject Property") for affordable housing and cultural animation, with consideration given to partnering with a not-for-profit developer, and to report to the Planning and Housing Committee at its May meeting with an update and with recommendations to secure a development partner. The Subject Property (Attachment 1) is currently operated by the Toronto Parking Authority ("TPA") as a surface parking lot. 

This report responds to Council's request. Staff have undertaken preliminary planning work and have determined that the Subject Property would support a mid-rise development and could provide the opportunity for cultural animation at the site.  Additionally, CreateTO staff, in coordination with staff from the City's Parks, Forestry and Recreation Division, have considered opportunities to acquire adjacent properties for parkland. The City has entered into a conditional agreement of purchase and sale in respect of the adjacent property at 464-468 Queen Street West, and staff are currently exploring options for additional acquisitions to assemble properties that would further support a complete development.

This report also seeks Council's approval to issue a Request for Proposals to identify a non-profit development partner to develop and operate the Subject Property as affordable rental housing. Furthermore, it recommends that staff explore options to include other properties, including City-owned properties, in the vicinity of 15 Denison Avenue that could be leveraged to increase city building opportunities, and report back to Council in 2022 with findings and a set of recommendations.