Item - 2022.EX29.5

The Executive Committee recommends that:  

1. City Council authorize the Deputy City Manager, Infrastructure and Development Services, in consultation with the City Solicitor, to negotiate and execute an "Ontario Place Redevelopment Agreement" based substantially on the Toronto-Ontario Major Terms and Conditions document contained in Attachment 1 to the report (January 12, 2022) from the Deputy City Manager, Infrastructure and Development Services, and including such other terms and conditions as are satisfactory to the Deputy City Manager, Infrastructure and Development Services, in consultation with the Deputy City Manager, Corporate Services, Executive Director, Corporate Real Estate Management, Chief Executive Officer, Exhibition Place, and any other relevant Official, in a form acceptable to the City Solicitor.

2. City Council direct the Executive Director, Corporate Real Estate Management, in consultation with the Chief Planner and Executive Director, City Planning and the General Manager, Parks, Forestry and Recreation to continue negotiations with the Province of Ontario on a potential transaction with the Province of Ontario related to City-owned lands and water at Ontario Place, subject to a review of conformity with the Official Plan and appropriate compensation to the City.

3. City Council authorize the Executive Director, Corporate Real Estate Management, or their designate, in consultation with the Chief Planner and Executive Director, City Planning, the General Manager, Parks, Forestry and Recreation and Chief Executive Officer, Exhibition Place where the matters referred to in this Recommendation affect Exhibition Place lands, to approve, execute and administer temporary access agreements, licenses, easements or similar permissions over City-owned lands and water in favour of the Province in order to facilitate the required servicing, site preparation, preliminary testing and design for the redevelopment of the Ontario Place property, at nominal value, and on such other terms and conditions deemed appropriate by the Executive Director, Corporate Real Estate Management, and in a form acceptable to the City Solicitor.

4. City Council direct the Executive Director, Corporate Real Estate Management, to report back to City Council for the necessary approval prior to the execution of any real estate transaction with permanent impact on City-owned real estate interest.

5. City Council request that the Chief Planner and Executive Director, City Planning, in consultation with appropriate City Divisions, as well as stakeholders and the public, reinforce the "Guiding Principles for the Revitalization of Ontario Place" adopted by City Council on May 14, 2019, including the importance of heritage preservation and expansion of publicly accessible open spaces and parks, in all matters of municipal interest and authority with respect to redevelopment of the Ontario Place property.  

6. City Council request the Chief Planner and Executive Director, City Planning, working with other Divisions and Exhibition Place, to continue a robust public consultation and stakeholder engagement process to inform the City's review of the Ontario Place redevelopment including engagement with The Board of Governors of Exhibition Place and the Canadian National Exhibition Association.

7. City Council request the Chief Planner and Executive Director, City Planning to prepare a comprehensive preliminary report on the detailed planning applications anticipated to be submitted by the Province, along with a general update on progress of the Ontario Place redevelopment, for the first scheduled meeting of the Toronto and East York Community Council in the next term of City Council.

The purpose of this report is to address two June 2021 City Council directions for reports related to the Ontario Place redevelopment:

- A report on a formal Toronto-Ontario agreement on the priority areas for City and Provincial collaboration related to the Ontario Place redevelopment.

- A report on the process that will be utilized for Planning Act and Ontario Heritage Act approvals for the Ontario Place redevelopment.
 

This staff report summarizes City staff activity since June 2021 and outlines how City staff, including staff of Exhibition Place, will approach working with the Province on finalizing an agreement and reviewing project-related development applications. Descriptions of the three forthcoming development proposals, key dates and City priorities for the development of Ontario Place are also provided.

On July 30, 2021, the Province announced further details of its plans to redevelop Ontario Place, including the preferred participants from their 2019 Call for Development process (Therme Group, Live Nation and Écorécréo Group), that have been identified to develop new and/or expanded major attractions on the site. The Province is also continuing to work with the City and the Ontario Science Centre to explore opportunities to deliver science-related tourism and educational programming at the Cinesphere and Pod complex at Ontario Place.  

Toronto-Ontario Major Terms and Conditions

Further to the Terms of Reference adopted by City Council on June 8, 2021, staff entered into a structured engagement process with the Province to work on the next phase of the Ontario Place redevelopment, with a view to optimizing the potential of both the Ontario Place and Exhibition Place sites and other nearby City assets.

The June Terms of Reference set out a framework for cooperation, coordination and engagement, and identified the following areas for further collaboration between the City and Province: site planning, permitting and approvals; site servicing; land requirements; and Ontario Place / Exhibition Place linkages.

The attached document titled "Toronto-Ontario Major Terms and Conditions" (Attachment 1) reflects the work done to date through the tables established under the Terms of Reference, and is intended to confirm the ongoing collaboration in more detail. It deals with a number of issues, all of which are described below:

- A process for Planning Act and Ontario Heritage Act approvals.

- The approach that the Province will take to servicing the site, working with the City, Exhibition Place and relevant utilities.

- The status of negotiations of the proposed real estate transactions between the City and the Province.

- Enhanced integration between Ontario Place and Exhibition Place sites related to issues such as 'last mile' transit, joint programming, parking, parks and public realm connections and improvements, and other issues as identified.
 

Planning Act and Ontario Heritage Act Approvals

It is proposed that Planning Act and Ontario Heritage Act approvals by City Council be sought and processed in two phases. In phase one, the Province, working through Infrastructure Ontario, will submit an application for a site-wide Official Plan and Zoning By-law Amendment. The amendments are intended to seek development permissions for various uses to be described in full, in forthcoming planning applications. The Province is working through the procurement process to retain consultant teams to advance this work. Following the Official Plan and Zoning By-law Amendment application submissions, in phase two, the three proposed tenants will submit site plan applications for their individual projects as required.

The proposed process for Planning Act and Ontario Heritage Act approvals is described in some detail below, including in Attachment 2. The process will follow the City’s established standard review process for high-profile and complex development applications. This process is well understood by all commenting partners. Recognizing the short timelines, resourcing discussions are ongoing with the Province to enable an efficient and thorough review.

The majority of Ontario Place is owned by the Province and the site is considered a Provincial Heritage Property of Provincial Significance. As such, the development review process will consider heritage as part of the approval process. Provincial standards under the authority of the Ontario Heritage Act require that a Strategic Conservation Plan be prepared in accordance with the property's Statement of Cultural Heritage Value to provide guidance on the appropriate management and conservation of Provincial Heritage Properties. The Strategic Conservation Plan will include an assessment of the cultural heritage resources on the Ontario Place site and details how the property will be conserved consistent with the Standards and Guidelines for the Conservation of Provincial Heritage Properties. The Province has retained a consultant team that is currently engaged in this work; City staff will be consulted on this work at key milestones.  

In addition, the development review process will emphasize the importance of a comprehensive and holistic public realm. Development proposals and public realm concepts will be reviewed through the lens of inclusivity and accessibility, ensuring that public access to the shoreline is secured and enhanced. The Province recently retained a public realm design team, led by a landscape architect, to develop a public realm master plan and establish design standards to apply across the Ontario Place site to create a unified experience for the public, and to ensure integration between government and privately leased lands and to also ensure an integrated and comprehensive landscape approach is taken across the entire site. This work will also include soil management and remediation, engineering, grading and, shoreline repair works. This work will be guided by a number of considerations, including: ensuring continuous public access to the waterfront; a high-quality, cohesive and consistent public realm; and respect for the unique character of the original Zeidler/Hough design. Consistent with Official Plan (OP) policies contained in the Central Waterfront Secondary Plan, throughout the development review process the City will explore mechanisms to secure improved public access and a continuous waterfront park system.

Throughout the development review process, City staff will make use of the Guiding Principles for the Revitalization of Ontario Place that were recommended by Toronto-East York Community Council and approved at the May 14, 2019 meeting of City Council. The guiding principles were based on the Central Waterfront Secondary Plan themes of:

- Removing Barriers/Making Connections
- Building a Network of Spectacular Waterfront Parks and Public Spaces
- Promoting a Clean and Green Environment
- Creating Dynamic and Diverse New Communities
- Openness and Transparenc
 

Real Estate Matters

To facilitate the redevelopment of Ontario Place, the Province has indicated that it requires some City-owned land and water at Ontario Place. The Province is interested in acquiring approximately six acres of City-owned land and approximately ten acres of City-owned water at Ontario Place. City staff are supportive of investigating opportunities for a potential transaction with the Province of Ontario related to City-owned land and water at Ontario Place, subject to a review of conformity with the Official Plan and appropriate compensation to the City. City staff would investigate the use of covenants or other mechanisms to ensure that any transferred lands would continue as publicly-accessible parkland and water. The City would maintain ownership of the majority of water to the west of the Ontario Place islands, known as the Western Water Course. Discussions with the Province are ongoing. City Council authority will be further sought in the event that a final real estate transaction is negotiated with the Province.

Public Engagement

The City is leading a public and stakeholder engagement program specific to its role as planning approval authority. Engagement activities will be robust and similar in format to other high-profile and complex applications. Public and stakeholder input will be vital to inform the review of the forthcoming applications.

City staff will seek the advice and guidance of the Indigenous Affairs Office in a parallel consultation approach early in the process. The Province has also initiated a public engagement process including its duty to consult; the process will include engagement with Indigenous rights holders -- with people and organizations that represent First Nations, Inuit and Métis peoples and all urban Indigenous communities, including Treaty and Territorial partners such as the Mississaugas of the Credit.

Key Dates

It is expected that ground leases with the tenants will be executed by the Province in the first quarter of 2022, recognizing that these lease agreements will not preclude substantive changes, revisions and addressing issues identified by the City through the development review process. The timelines outlined in this report, including all appendices, reflect this expectation. Should lease executions be delayed for any reason, the timelines contained herewith may also need to shift accordingly. The City and Province commit to continued collaboration prior to lease execution.

It is expected that the Province will submit a formal and complete development application for a site-wide Official Plan and Zoning By-law Amendment in October 2022. In the lead up to this formal submission, City staff will continue to engage the Province in a rigorous pre-submission consultation period, with City input to be assisted and informed by each of: a robust consultation program that includes a City-led Stakeholder Advisory Committee; numerous Design Review Panel presentations; and an internal Technical Working Group to be co-chaired by dedicated full-time City staff members from the City Planning Division's Community Planning and Waterfront Secretariat sections.

A preliminary report on the Province's October 2022 planning applications is anticipated for presentation at the first Toronto and East York Community Council meeting of the next Council term. This preliminary report will provide detailed feedback on the application materials submitted to date, and will summarize the various stakeholder and technical input recorded throughout the pre- and post-submission period for the planning applications. The three proponents, stakeholder groups and the public will also have the opportunity to make a public deputation on the preliminary report at Toronto and East York Community Council.

Following publication of the preliminary report, the applicant will undertake necessary revisions to their application before a formal resubmission is filed in June 2023. Applications for site plan control may be filed as early as summer 2023, potentially in conjunction with the anticipated June 2023 resubmission of the Official Plan Amendment and Zoning By-law Amendment applications.

A preliminary report on the land use planning applications is anticipated to be presented to Toronto and East York Community Council for the first meeting of the next City Council term; a final report will proceed to City Council by the end of 2023.

Next Steps and Reporting Back

City staff will continue to use the current pre-submission consultation period to engage with the Province and their tenants in collaborative and productive issues identification.  This will include identifying and addressing technical questions and concerns ahead of receipt of formal planning applications and will continue to engage various waterfront and project stakeholders in order to ensure a broad representation of interests and voices throughout this process.