Item - 2021.SC28.2

Scarborough Community Council recommends that:

1. City Council amend City of Toronto Zoning By-law 569-2013 for the lands at 3850 and 3900 Sheppard Avenue East and 2350 to 2362 Kennedy Road substantially in accordance with the Draft Zoning By-law Amendment in Attachment 5 to the report (November 4, 2021) from the Director, Community Planning, Scarborough District and the Director, Housing Policy and Strategy, Housing Secretariat.

2. City Council authorize the City Solicitor to make such stylistic and technical changes to draft Zoning By-law Amendments as may be required.

3. City Council accept an on-site parkland dedication (the "Parkland") pursuant to Section 42 of the Planning Act, by the owner having a total area of not less than 14,580 square metres, generally as shown as Blocks 8, 9 and 10 in the Draft Plan of Subdivision found in Attachment 17 to the report (November 4, 2021), with the exact size, location and configuration of the Parkland to be to the satisfaction of the General Manager, Parks, Forestry and Recreation, and such Parkland to be transferred to the City, free and clear, above and below-grade, of all easements, encumbrances and encroachments, in an acceptable environmental condition, and in a phased manner in accordance with Recommendation 4, below and pursuant to the registration of a phased plan of subdivision as set out in Recommendation 10, below.

4. City Council require that the Parkland be conveyed to the City in phases, and may be improved with Above Base Park Improvements, generally as follows:

a. Sheppard Park (2,480 square metres) generally as shown as Block 8 in Attachment 17 shall to be conveyed in Phase 1 prior to the issuance of above grade building permit for any residential use on Blocks 5, 6, and 7;

b. Central Park (12,100 square metres) is to be conveyed in 2 park blocks  generally as shown as Blocks 9 and 10 in Attachment 17 to the report (November 4, 2021) from the Director, Community Planning, Scarborough District and the Director, Housing Policy and Strategy, Housing Secretariat;

c. Block 9 shall be conveyed  prior to the issuance of any above grade building permits for residential uses on Blocks 1 or 2 generally as shown on Attachment 17 to the report (November 4, 2021) from the Director, Community Planning, Scarborough District and the Director, Housing Policy and Strategy, Housing Secretariat; and

d. Block 10 will be conveyed prior to the issuance of any above grade building permit for residential uses on Block 3 in Phase 3.

5. City Council require the Owner to design and construct Base Park Improvements, and may design and construct Above Base Park Improvements on each of the Blocks comprising the Parkland, which shall not exceed the Parks and Recreation component of the Development Charges. Should the General Manager, Parks, Forestry and Recreation and the Owner agree that the Owner shall design and construct Above Base Park Improvements, which election must be made prior to the issuance of the first above grade building permit for any part of the Development, then prior to the issuance of any above-grade building permit for any part of the Development, the owner shall submit a design and cost estimate for the Above Base Park Improvements, to be approved by the General Manager, Parks, Forestry and Recreation, and a letter of credit equal to 120 percent of the Parks and Recreation Development Charges payable for the development.

6. City Council approve a development charge credit against the Parks and Recreation component of the Development Charges for the design and construction by the owner of any Above Base Park Improvements to the satisfaction of the General Manager, Parks, Forestry and Recreation. The development charge credit shall be in an amount that is the lesser of the cost to the owner of designing and constructing  the Above Base Park Improvements, as approved by the General Manager, Parks, Forestry and Recreation, and the Parks and Recreation component of Development Charges payable for the development in accordance with the City's Development Charges By-law, as may be amended from time to time.

7. City Council approve a development charge credit against the Child Care component of the Development Charges for the design and construction by the owner of the Child Care Centre (as defined in Recommendation 10, below), to the satisfaction of the Chief Planner and Executive Director, City Planning, in consultation with the General Manager, Children's Services. The development charge credit shall be in an amount that is the lesser of (1) the cost to the owner of designing and constructing the Child Care Centre minus $3,666,719.00, and (2) the Child Care component of the Development Charges payable for the development in accordance with the City's Development Charges By-law, as may be amended from time to time

8. City Council approve a development charge credit against the Parks and Recreation component of Development Charges for the design and construction by the owner of the Community Agency Space (as defined in Recommendation 10), to the satisfaction of the Chief Planner and Executive Director, City Planning. The development charge credit shall be in amount that is the lesser of (1) the cost to the owner of designing and constructing the Community Space minus $1,000,000.00, and (2) the Parks and Recreation component of Development Charges payable for the development in accordance with the City's Development Charges By-law, as may be amended from time to time.

9. Prior to introducing the necessary bills to City Council for enactment the owner shall, at its sole cost and expense,:

a. submit a revised Functional Servicing and Stormwater Management Report, Hydrogeological Report and supporting documents (the "Engineering Reports"), including confirmation of water and fire flow, sanitary and storm capacity, to the satisfaction of the Chief Engineer and Executive Director, Engineering and Construction Services in consultation with the General Manager, Toronto Water;

b. address all outstanding engineering issues identified in the Engineering Reports by the Chief Engineer and Executive Director, Engineering and Construction Services, in consultation with the General Manager, Toronto Water, and any other comments that may arise further to the review of materials submitted as part of the process to address the issues set out in the memorandum from Engineering and Construction Services, and the General Manager, Transportation Services.

10. Prior to introducing the necessary Bills for enactment, City Council require the Owner to enter into an Agreement pursuant to Section 37 of the Planning Act, to secure the following facilities or matters, which shall also be secured in the Zoning By-law Amendment, all to the satisfaction of the Chief Planner and Executive Director, City Planning and the City Solicitor:

a. the community benefits recommended to be secured in the Section 37 Agreement are as follows:

1. the design, construction, finishing, maintenance and provision of at least 272 affordable rental housing dwelling units comprised of at least 16,864 square metres of residential Gross Floor Area on the lands at 3850 and 3900 Sheppard Avenue East and 2350 to 2362  Kennedy Road (the "Affordable Housing Units"), provided that the Affordable Housing Units  approved for the City of Toronto’s Open Door Affordable Housing Program incentives all to the satisfaction of the Chief Planner and Executive Director, City Planning Division, and the Executive Director, Housing Secretariat, in accordance with the following terms:

aa. at least thirty (30) of the Affordable Housing Units shall be a three-bedroom or four-bedroom rental unit with a minimum unit size of 84 square metres and an average size of 92 square metres;

bb. at least eighty-six (86) of the affordable rental dwelling units shall be two-bedroom rental units with a minimum unit size of 60 square metres and an average size of 67 square metres;

cc. at least one hundred fifty-six (156) of the Affordable Housing Units shall be one-bedroom rental units with a minimum unit size of 48 square metres and an average size of 55 square metres;

dd. the Affordable Housing Units shall be phased such that a minimum of 114 of the Affordable Housing Units shall be provided on Blocks 5 and /or 6 as part of Phase 1, a minimum of 101 of the Affordable Housing Units shall be provided on Blocks 1, 2 and/or 3 as part of Phase 2 of the development, and any remaining Affordable Housing Units shall be provided on Block 4 as part of Phase 3 of the development; and notwithstanding the foregoing, the owner shall be permitted to deliver the Affordable Housing Units at an earlier stage of the development upon arrangements satisfactory to the Chief Planner and Executive Director, City Planning and the Executive Director, Housing Secretariat;

ee.  the location and layouts of the Affordable Housing Units shall be to the satisfaction of the Chief Planner and Executive Director, City Planning and the Executive Director, Housing Secretariat, provided that the City will not require the location of any such unit be on the sixth floor or higher in any Block;

ff. the owner shall provide and maintain the Affordable Housing Units as secured rental housing for a minimum period of 40 years beginning from the date that each such unit is first occupied (the "Affordability Period"). During the Affordability Period, no Affordable Housing Unit shall be registered as a condominium or any other form of ownership housing that provides a right to exclusive possession of a dwelling unit, including life-lease or co-ownership, and no application shall be made to demolish any Affordable Housing Unit or to convert any Affordable Housing Unit to a non-residential rental purpose. Upon the expiration of the Affordability Period, the owner shall continue to provide and maintain the units as rental dwelling units, unless and until such time as the owner has applied for, and obtained, all approvals necessary to do otherwise; 

gg. the owner shall provide and maintain the Affordable Housing Units with Affordable Rents for the Affordability Period. The initial rent (inclusive of utilities) charged to the first tenants of any Affordable Housing Units shall not exceed 100% of the average rent for the same bedroom type in the City of Toronto, as reported by Canada Mortgage and Housing Corporation in its most recent annual Rental Market Report;

hh. if an Affordable Housing Unit becomes vacant and is re-rented to a new tenant during the Affordability Period, the initial rent (inclusive of utilities) charged to the new tenant shall not exceed 100 percent of the average rent for the same bedroom type in the City of Toronto, as reported by Canada Mortgage and Housing Corporation in its most recent annual Rental Market Report;

ii. after the first year of occupancy of any Affordable Housing Units, the rent (inclusive of utilities) charged to the first tenants or new tenants occupying such unit may be escalated annually by not more than the annual provincial rent guideline, regardless of whether such guideline is applicable to the units under the Residential Tenancies Act or any successor legislation governing residential tenancies in Ontario, until the tenancy ends;

jj. notwithstanding the annual rent increases permitted in ii. above, the rent (inclusive of utilities) charged to any first tenants or new tenants occupying an Affordable Housing Unit shall not be increased to an amount that exceeds 100 percent of the average rent for the same unit type in the City of Toronto, as reported by Canada Mortgage and Housing Corporation in its most recent annual Rental Market Report;

kk. at least six months in advance of any new Affordable Housing Units being made available for rent to the general public, the owner shall develop and implement a Tenant Access Plan to ensure units are rented to eligible households in consultation with, and to the satisfaction of, the Executive Director, Housing Secretariat;

ll. the new Affordable Housing Units to be constructed as part of each phase shall be made ready and available for occupancy no later than the date by which seventy percent (70 percent) of the new dwelling units as part of the construction of that phase. above are available and ready for occupancy, or to the satisfaction of, the Chief Planner and Executive Director, City Planning and the Executive Director, Housing Secretariat.

mm. the owner shall provide all tenants of the affordable rental dwelling units with access to, and use of, all indoor and outdoor amenities in the building in which such tenant resides at no extra charge; access to, and use of, these amenities shall be provided on the same terms and conditions as any other resident of the building without the need to pre-book or pay a fee, unless specifically required as a customary practice for private bookings;

nn. access to, and use of, these amenities shall be provided on the same terms and conditions as any other resident of the building in which the Affordable Housing Units are located, without the need to pre-book or pay a fee, unless specifically required as a customary practice for private bookings;

oo. The owner shall provide all tenants of the Affordable Housing Units with laundry facilities on the same basis as other units within building in which the Affordable Housing Units are located at no extra charge; and

pp. the owner shall provide all tenants of the Affordable Housing Units with access to permanent and visitor bicycle parking/bicycle lockers on the same terms and conditions as any other resident of the building in which the Affordable Housing Units are located, and in accordance with the Zoning By-law;

2. the design, construction, finishing and equipping of a non-profit licensed child care facility to be located in the second floor of the building on Block 2, to the satisfaction of the Chief Planner and Executive Director, City Planning, and the General Manager, Children's Services, to accommodate at a minimum 62 children, including infants, toddlers and preschoolers, comprising a minimum of 1,060 square metres of interior space and approximately 347 square metres of exterior space adjacent to the interior space including outdoor storage and four (4) parking spaces reserved for the exclusive use of the child care facility for pick-up/drop-off operations, (the "Child Care Centre"), including:

aa. the conveyance of the Child Care Centre at no cost to the City, in fee simple, prior to first occupancy of the Building on Block 2;

bb. on, or prior to the conveyance of the Child Care Centre, the City and the owner shall enter into and register on title to, the appropriate lands, an Easement and Cost Sharing Agreement for nominal consideration and at no cost to the City, that is in a form satisfactory to the City Solicitor; the Easement and Cost Sharing Agreement shall address and/or provide for the integrated support, use, operation, maintenance, repair, replacement and reconstruction of certain shared facilities, and the sharing of costs in respect thereof, or portions of the subject lands to be owned by the City and the owner as they pertain to the Child Care Centre;

cc. a letter of credit in an amount sufficient to guarantee 120 percent of the estimated cost of the design, construction and handover of the Child Care Centre complying with the specifications and requirements of the Section 37 Agreement, to the satisfaction of the General Manager, Children's Services and the Chief Financial Officer and Treasurer, will be provided to the City prior to the issuance of the first above grade building permit for the building on Block 2, to secure the Child Care Centre;

dd. a one-time cash contribution in the amount of $150,000.00 to be used toward start-up costs to be paid prior to the issuance of the first above grade building permit for the building on Block 2;

ee. a one-time cash contribution in the amount of $150,000.00 to the Child Care Capital Reserve Fund, to replace appliances and large equipment due to wear and tear, to be paid prior to the issuance of the first above grade building permit for the building on Block 2;

ff. all cash contributions shall be indexed upwardly in accordance with the Statistics Canada Non-Residential Building Construction Price Index for Toronto calculated from the date of the Section 37 Agreement to the date of payment

gg. four (4) dedicated parking spaces will be provided free-of-charge for the exclusive use of the child care facility for pick-up/drop-off operations. These spaces to be assigned accordingly, and be located in close proximity to the elevators providing the shortest route between the underground parking garage and the Child Care Centre, which shall be barrier-free. A parking pass will be provided for officials conducting inspections of the child care facility; and

hh. any other details related to the Child Care Centre such as timing, location, obligations and any matters necessary to implement the Child Care Centre, which have not been addressed in the Recommendations of this report  will be finalized between the owner and the City and will be substantially in accordance with the City of Toronto's Child Care Development Guidelines (2021) and to the satisfaction of the Executive Director, Corporate and Real Estate Management, the General Manager, Children's Services, and the Chief Planner and Executive Director, City Planning, in consultation with the City Solicitor;

3. prior to the earlier of condominium registration and the first residential use of any residential building for Block 2, the owner shall substantially complete construction of 1,090 square metres of Community Agency Space to be located on the ground floor of the building on Block 2 (the "Community Agency Space"), which is to be provided to the City at no cost for public use and subject to the following:

aa. the Community Agency Space shall be delivered to the City in accordance with the City's Community Space Tenancy Policy and finished to Base Building Condition, with the terms and specifications to be secured in the Section 37 Agreement, all satisfactory to the Executive Director, Social Development, Finance and Administration, the Executive Director, Corporate Real Estate Management, the Chief Planner and Executive Director, City Planning and the City Solicitor, in consultation with the Ward Councillor;

bb. prior to the issuance of the first above grade building permit, the owner shall provide a letter of credit in the amount sufficient to guarantee 120 percent of the estimated cost of the design, construction and conveyance of the Community Agency Space complying with the specifications and requirements of the Section 37 Agreement, to the satisfaction of the Executive Director, Corporate Real Estate Management, the Executive Director, Social Development, Finance and Administration, the Chief Planner and Executive Director, City Planning and the City Solicitor; and

cc. on, or prior to the conveyance of the Community Agency Space, the City and the owner shall enter into and register on title to, the appropriate lands, an Easement and Cost Sharing Agreement for nominal consideration and at no cost to the City, that is in a form satisfactory to the City Solicitor; the Easement and Cost Sharing Agreement shall address and/or provide for the integrated support, use, operation, maintenance, repair, replacement and reconstruction of certain shared facilities, and the sharing of costs in respect thereof, or portions of the subject lands to be owned by the City and the owner as they pertain to the Community Agency Space;

4. the preparation of a public art plan, in accordance with City Planning's Percent for Public Art process, and with approval from City Council, including that:

aa. prior to the issuance of the first above-grade building permit for any residential use on Block 7, the owner shall submit a public art plan, to the satisfaction of the Chief Planner and Executive Director, City Planning, in consultation with the Ward Councillor, detailing the design and construction of an on-site public art installation with a minimum value of $250,000.00, with such value upwardly indexed in accordance with the Non-Residential Construction Price Index for the Toronto, calculated from the date of the Section 37 Agreement to the date of delivery of the financial security required by this Recommendation; and 

bb. prior to the issuance of the first above grade building permit for any residential use on Block 7, the owner shall provide a letter of credit in the amount sufficient to guarantee 120 percent of the estimated indexed cost of the design and construction of the public art to be installed in accordance with the public art plan;

b. the following matters are also recommended to be secured in the Section 37 Agreement as a legal convenience to support the development:

1. prior to the earlier of the issuance of the first above grade building permit for any residential use on Block 5, 6 and Block 7, the owner shall provide to the city the municipal services necessary for Phase 1, and convey to the City the Park Block 8, all associated with the first phase registration of the plan of subdivision pursuant to the approval of application 19 236443 ESC 22 SB;

2. prior to the earlier of the issuance of the first above grade building permit for any residential use on Block 1, Block 2 and Block 4, the owner shall provide to the city the municipal services necessary for Phase 2, and convey to the City the Park Block 9, all associated with the second phase registration of the plan of subdivision pursuant to the approval of application 19 236443 ESC 22 SB;

3. prior to the earlier of the issuance of the first above grade building permit for any residential use on Block 3 the owner shall provide to the city the municipal services necessary for Phase 3, and convey to the City the Park Block 10, all associated with the third phase registration of the plan of subdivision pursuant to the approval of application 19 236443 ESC 22 SB;

4. the owner shall develop the municipal services for the site in accordance with the following sequence, to the satisfaction of the Chief Engineer and Executive Director, Engineering and Construction Services:

aa. all municipal services necessary for Phase 1, as described in the Phasing Plan, shall be provided first;

bb. all municipal services necessary for Phase 2, as described in the Phasing Plan, shall be provided second;

cc. all municipal services necessary for Phase 3, as described in the Phasing Plan, shall be provided third; and 

dd. in any event, the construction of the municipal services for a subsequent phase Phase shall not commence prior to the owner having satisfied the requirements of Recommendation 10(b)1 through 10(b)3, inclusive;

5. the construction and maintenance, at the owner's expense, an area of not less than 2,348 square metres across the north side of Blocks 1 and 7, connecting Public Street "D" with Public Street "F," for use by the general public as Privately Owned Publicly Accessible Open Space with the specific location, configuration, and design to be determined and secured in the context of Site Plan Approval to the satisfaction of the Chief Planner and Executive Director, City Planning;

6. the construction and maintenance, at the owner's expense, an area of not less than 665 square metres at the south end of Block 7 near the intersection of Public Street "A" and Public Street "B," for use by the general public as Privately Owned Publicly Accessible Open Space with the specific location, configuration, and design, and programming to be determined and secured in the context of Site Plan Approval to the satisfaction of the Chief Planner and Executive Director, City Planning;

7. the construction and maintenance, at the owner's expense, an area of not less than 385 square metres at the southeast corner of Block 5 near the intersection of Kennedy Road and Sheppard Avenue East for use by the general public as Privately Owned Publicly Accessible Open Space  with the specific location, configuration, and design to be determined and secured in the context of Site Plan Approval to the satisfaction of the Chief Planner and Executive Director, City Planning;

8. the construction and maintenance, at the owner's expense, an area of not less than 2,366 square metres on the lands along the west side of Public Street "C," for use by the general public as Privately Owned Publicly Accessible Open Space with the specific location, configuration, and design to be determined and secured in the context of Site Plan Approval for Block 3 to the satisfaction of the Chief Planner and Executive Director, City Planning;

9. as a pre-approval condition to Site Plan Approval for residential use on any block on the development site which includes a Privately Owned Publicly Accessible Open Space as described in Recommendation 9a above, the Owner shall convey to the City, for nominal consideration, on terms set out in the Section 37 Agreement, easement(s) in favour of the City in perpetuity, including support rights as applicable, for public use of the Privately Owner Publicly Accessible Open Space, all to the satisfaction of the Chief Planner and Executive Directory, City Planning and the City Solicitor;

10. the Development Charge Credits referred to in Recommendations 6, 7 and 8 above;

11. the design and construction of any Above Base Park Improvements to the new parks by the owner in exchange for the Development Charge Credit against the Parks and Recreation component of the Development Charges;

12. prior to issuance of Notice of Approval Conditions for the first residential development of the lands the Owner shall produce Urban Design Guidelines to the satisfaction of the Chief Planner and Executive Director, City Planning Division that will ensure a high quality public realm, address the incremental development of each phase and foster design excellence including innovative architecture and landscape design;

13. prior to the issuance of the first building permit for a residential use any part of the site, including permits for excavation and shoring, the owner shall enter into a municipal capital facility agreement with the City ("Contribution Agreement"), for the Affordable Housing Units that are approved for Open Door incentives, on terms satisfactory to the Executive Director, Housing Secretariat and in a form satisfactory to the City Solicitor. The owner shall provide such Affordable Housing Units in accordance with such agreement(s);

14. the owner will construct and maintain the development of the site in accordance with Tier 1, Toronto Green Standard, and the owner will be encouraged to achieve Tier 2, Toronto Green Standard, or higher, where appropriate, consistent with the performance standards of Toronto Green Standards applicable at the time of the site plan application for each building on the site; and

15. the owner shall include warning clauses and signage of the Toronto Catholic District School Board and the Toronto District School Board in the conditions of site plan approval and subsequently within any agreements of purchase and sale or tenant lease agreements for the proposed units, to the satisfaction of the Chief Planner and Executive Director, City Planning.

11. City Council authorize the Executive Director, Housing Secretariat, to negotiate and execute a municipal capital facility agreement (Contribution Agreement) with the owner for the provision of Open Door Incentives, for 272 affordable rental dwelling units at 3850 and 3900 Sheppard Avenue East and 2350 to 2362  Kennedy Road to secure rents at or below 100 percent of the average rent by bedroom type in the City of Toronto, as reported by Canada Mortgage and Housing Corporation in its most recent annual Rental Market Report, for a minimum period of 40 years, together with any security, financing or other documents required, as well as any amendments thereto required from time to time, on terms and conditions acceptable to the Executive Director, Housing Secretariat, in a form satisfactory to the City Solicitor.

12. City Council approve the provision of financial incentives pursuant to the City's Open Door Affordable Housing Program in relation to the Affordable Housing Units as follows:

a. City Council exempt the 272 affordable rental dwelling units at 3850 and 3900 Sheppard Avenue East and 2350 to 2362  Kennedy Road from taxation for municipal and school purposes for the 40-year term of the municipal capital facility agreement; and

b. City Council exempt the 272 new affordable rental dwelling units at 3850 and 3900 Sheppard Avenue East and 2350 to 2362  Kennedy Road from the payment of development charges, planning application fees, park dedication payments and building permits fees under existing City policy and with the exception of fees already paid.

13. City Council authorize the City Solicitor to execute, postpone, confirm the status of and discharge any City security documents registered with respect to the delivery of the affordable rental housing dwelling units as required by normal business practices.

14. City Council authorize City staff to cancel or refund any taxes paid pursuant to the by-law exempting the property from taxation if authority is given for an exemption from taxation as set out in Recommendation 12 above.

15. City Council require the Owner to enter into a financially secured Subdivision Agreement to secure  the construction of any necessary improvements to the municipal infrastructure arising from the review of the material referenced in Recommendation 6a. above to the satisfaction of  the Chief Engineer and Executive Director, Engineering and Construction Services; and General Manager, Toronto Water.

Scarborough Community Council held a statutory public meeting on November 26, 2021 and notice was given in accordance with the Planning Act.

This application proposes to amend City of Toronto Zoning By-law 569-2013 to permit the redevelopment of the lands located at 3850 and 3900 Sheppard Avenue East and 2350 to 2362 Kennedy Road.

The subject lands currently contain the Agincourt Mall and are approximately 10.6 hectares in size. The subject applications are required to implement Site and Area Specific Policy 572 (SASP 572) adopted by City Council in 2018 which provides for the replacement of the existing mall with a new community that will include a new road network, residential, commercial, parks and community uses. The proposal would result in 4,372 dwelling units, 10,333 square metres of office space (2.8% of total floor area)  and 24,190 square metres of retail space (6.5% of total floor area) deployed in a number of mixed use buildings. The proposed total gross floor area of 371,325 square metres represents a density of approximately 3.5 times the lot area. A new 12,090 square metre public park is located at the west side of the site. A second park is located along Sheppard Avenue East and is 2,747 square metres in size. Four Privately-Owned Publicly Accessible Spaces (POPS) have been proposed to expand and enhance the public realm, creating additional open spaces and pedestrian/cycling connections through the site.

Staff have negotiated a number of community benefits which are recommended to be secured in an agreement pursuant to Section 37 of the Planning Act. The community benefits include: 

• 272 of the proposed units to be secured as affordable housing, representing 10% of the increased residential permissions or 6.2% of the total units. Open Door Affordable Rental Housing Program incentives would be applied to the units to extend the affordability period from 15 to 40 years;
• a child care facility (62 child spaces) to be constructed in accordance with Children's Services requirements and conveyed to the City;
• a 1,200 square metre community agency space; and
• a financial contribution of $250,000 to establish a public art program for the site.

The proposed development is consistent with the Provincial Policy Statement (2020) and conforms with A Place to Grow: Growth Plan for the Greater Golden Horseshoe (2020). It conforms to SASP 572, adding to the range and mix of residential units available in a compact form while maintaining a significant amount of non-residential space on the site. The redevelopment of the site from a mall with significant surface parking to a new neighbourhood is focused on public realm and pedestrian movement improvements. Further, the integration of significant retail and commercial uses into the new buildings insures these important functions continue to serve the broader community's day-to-day needs. Through the dedication of the parkland and securing of POPS space, the proposal creates a public realm around which the new complete community will emerge. Approval of the development would also secure a number of community benefits, outlined above, including a significant amount of new affordable housing units as provided for by Official Plan policies for sites greater than 5 hectares.

This report reviews and recommends approval of the application to amend the Zoning By-law, subject to the Bills being held from enactment to allow for the Owner to enter into a Section 37 Agreement and finalize matters to the satisfaction of Engineering and Construction Services. This report also recommends the approval of financial incentives pursuant to the City's Open Door Affordable Housing Program.

A Final Report dated November 4, 2021 was submitted by the Director, Community Planning to Scarborough Community Council and the Director, Housing Policy and Strategy, recommending approval of a comprehensive redevelopment of the lands at 3850 and 3900 Sheppard Avenue East and 2350 to 2362 Kennedy Road. The proposal would allow for the replacement of the existing mall with a new community that will include a new road network, residential, commercial, parks and community uses. In addition to reviewing and recommending approval of the proposed applications, the report contained a number of recommendations related to the implementation of the proposed development, including recommending securing a number of community benefits via Section 37 of the Planning Act.  The required Section 37 Agreement also was intended to secure matters related to implementation as a legal convenience.

Since the submission of the Final Report, City Planning staff have had discussions with the applicant about implementation.  In the course of those discussions, it was determined that some of the recommended terms that would have been finalized through City Council adoption of the Final Report required additional clarity.  As such, this Supplementary Report proposes minor and technical refinements to the recommendations in the November 4, 2021 Final Report on the subject applications to allow for a clearer and more certain path to implementation.  City staff from various commenting Divisions and Legal Services have reviewed and assisted with the preparation of the refined recommendations contained herein.

City Planning therefore recommends that the recommendations of the Final Report as amended by the recommendations of this Supplementary Report be adopted.