Item - 2022.CC45.23

City Council on June 15 and 16, 2022, adopted the following:

1. City Council adopt the confidential instructions to staff in Confidential Attachment 1 to the report (June 8, 2022) from the City Solicitor.

2. City Council authorize the public release of the confidential instructions to staff in Confidential Attachment 1 to the report (June 8, 2022) from the City Solicitor at the discretion of the City Solicitor.

3. City Council direct that the balance of Confidential Attachment 1 to the report (June 8, 2022) from the City Solicitor remain confidential, as it contains advice that is subject to solicitor-client privilege.

The confidential instructions to staff in Confidential Attachment 1 to the report (June 8, 2022) from the City Solicitor remain confidential at this time in accordance with the provisions of the City of Toronto Act, 2006, as they contain advice that is subject to solicitor-client privilege. The confidential instructions to staff in Confidential Attachment 1 to the report (June 8, 2022) from the City Solicitor will be made public at the discretion of the City Solicitor. 

The balance of Confidential Attachment 1 to the report (June 8, 2022) from the City Solicitor remains confidential in accordance with the provisions of the City of Toronto Act, 2006, as it contains advice that is subject to solicitor-client privilege. 

July 28, 2022

The confidential instructions to staff in Confidential Attachment 1 to the report (June 8, 2022) from the City Solicitor were adopted by City Council, and have been made public, the City Solicitor having exercised the City Solicitor's discretion to make them public:

1. City Council accept the with prejudice settlement offer dated June 8, 2022, set out in Public Appendix A to the report (June 8, 2022) from the City Solicitor (the "Revised Proposal") and support the Revised Proposal substantially in accordance with Public Appendix B to the report (June 8, 2022) from the City Solicitor, subject to the Parts set out below.

2. City Council authorize the City Solicitor and appropriate City staff to attend the Ontario Land Tribunal in support of the Revised Proposal as set out in the settlement offer dated June 8, 2022 in Public Appendix A to the report (June 8, 2022) from the City Solicitor, subject to Parts 3 and 4 below.

3. City Council instruct the City Solicitor to request the Ontario Land Tribunal to withhold its Order on the Zoning By-law Amendment until the earlier of August 12, 2022, or the Ontario Land Tribunal having been advised by the City Solicitor that the proposed Zoning By-law Amendment(s) are in a final form satisfactory to the Chief Planner and Executive Director, City Planning and the City Solicitor, which shall include, but not be limited to, the following provisions:

a. pursuant to Section 37 of the Planning Act, and subject to compliance with this By-law, the increase in height and density of the development is permitted beyond that otherwise permitted on the lands shown on Diagram 1 of this By-law, in return for the provision by the owner, at the owner’s expense of the facilities, services and matters set out in Schedule A hereof and which are secured by one or more agreements pursuant to Section 37(3) of the Planning Act that are in a form and registered on title to the lands to the satisfaction of the City Solicitor;

b. where Schedule A of this By-law requires the owner to provide certain facilities, services or matters prior to the issuance of a building permit, the issuance of such permit shall be dependent on satisfaction of the same;

c. the owner must not use, or permit the use of, a building or structure erected with an increase in height and density pursuant to exception [number to be inserted at time of drafting] of By-law 438-86, as amended, and 569-2013, as necessary unless the provisions of Schedule A of such By-law are satisfied;

d. the owner has entered into an Agreement pursuant to Section 37 of the Planning Act, and that agreement has been registered on title to 28 River Street and 550 Queen Street East, all to the satisfaction of the City Solicitor and the Chief Planner and Executive Director, City Planning,  for the purpose of securing appropriate community benefits, which will include requirements to:

i. provide a cash contribution of two million five hundred thousand dollars ($2,500,000.00) to be paid by the owner prior to the issuance of the first above-grade building permit for any building on the Site within the vicinity of the Site, at the discretion of the Chief Planner and Executive Director, City Planning in consultation with the Ward Councillor, and to be allocated as follows:

A. $1,250,000.00 to local area streetscape and parkland improvements; and

B. $1,250,000.00 to capital improvements for new or existing affordable housing, cultural, community and recreation space in the ward;

ii. the cash contributions referred to in Part 3.d.i. above shall be indexed upwardly in accordance with the Statistics Canada Residential or Non-Residential, as the case may be, Building Construction Price Index for the Toronto Census Metropolitan Area, reported quarterly by Statistics Canada in Building Construction Price Indexes Table 18-10-0135-01, or its successor, calculated from the date of the Agreement to the date of payment; and

iii. in the event the cash contributions referred to in Part 3.d.i. above have not been used for the determined purpose within three (3) years of the amending Zoning By-law coming into full force and effect, the cash contribution may be redirected for another purpose, at the discretion of the Chief Planner and Executive Director, City Planning, in consultation with the Ward Councillor, provided the purpose is identified in Official Plan; and

e. a holding provision in accordance with Part 4 below.

4. City Council instruct the City Solicitor to request that the final form of the Zoning By-law Amendment(s) to be issued by the Ontario Land Tribunal contain a Holding ('H') provision that will be lifted on satisfaction of the following pre-conditions:

a. the owner has entered into a Section 37 Agreement with the City, to the satisfaction of the City Solicitor;

b. a By-law under Part IV of the Ontario Heritage Act has been enacted designating the property at 550 Queen Street East as being of cultural heritage value or interest;

c. the owner has applied pursuant to Section 33 of the Ontario Heritage Act for heritage alterations to 550 Queen Street East to facilitate the Revised Proposal;

d. the owner has entered into a Heritage Easement Agreement with the City for the property at 550 Queen Street, to the satisfaction of the Senior Manager, Heritage Planning, Urban Design, City Planning including execution and registration of such agreement on title to the satisfaction of the City Solicitor;

e. the owner has, at its sole cost and expense, submitted a Functional Servicing and Stormwater Management Report, 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; and

f. in the event it is determined that improvements or upgrades are required to support the development as may be identified in the accepted Functional Servicing and Stormwater Management Report, the owners have entered into an agreement or have otherwise secured the design, construction, and provided financial securities for such upgrades to the existing municipal infrastructure to the satisfaction of the Chief Engineer and Executive Director, Engineering and Construction Services and the General Manager, Toronto Water.

5. City Council instruct the City Solicitor to request the Ontario Land Tribunal to render its Order on the Zoning By-law Amendment effective as of no later than August 12, 2022.

6. City Council authorize the City Solicitor and appropriate City staff to take any necessary steps to implement City Council's decision on this matter.