Item - 2022.GL32.21

The General Government and Licensing Committee recommends that:  

1. City Council grant authority to the Executive Director, Corporate Real Estate Management, to enter into an agreement to transfer a stratified portion of the property municipally known as 1978-2002 Lake Shore Boulevard West shown as Part A on Appendix 1 to the report (June 17, 2022) from the Executive Director, Corporate Real Estate Management, limited to 122 metres above-grade, including any agreements related thereto (the "Property"), to CreateTO's corporate entity known as Build Toronto Incorporated (the "Corporation") substantially on the terms and conditions set out in Appendix 2 to the report (June 17, 2022) from the Executive Director, Corporate Real Estate Management, and such other and amended terms and conditions that are acceptable to the Executive Director, Corporate Real Estate Management and in a form satisfactory to the City Solicitor.

2. City Council grant authority to fund any outstanding City expenses related to the transfer of the Property to the Corporation from the Approved Operating Budget for Corporate Real Estate Management, and once such expenses are known, to transfer the funding for these expenses from the Land Acquisition Reserve Fund (XR1012) with the appropriate adjustment to the Approved Operating Budget for Corporate Real Estate Management.

3. City Council authorize severally each of the Executive Director, Corporate Real Estate Management, and Director, Transactions Services to execute the documents required to complete the transfer transaction.

4. City Council authorize the public release of the information in Confidential Attachment 1 to the report (June 13, 2022) from the Chief Executive Officer, CreateTO following the closing of the transactions contemplated in the report (June 13, 2022) from the Chief Executive Officer, CreateTO and at the discretion of the Chief Executive Officer, CreateTO.

The purpose of this report is to seek authority for the transfer of an additional strata portion of City property municipally known as part of 1978-2002 Lake Shore Boulevard West (the "Property") to CreateTO's corporate entity, Build Toronto Incorporated.

In July 2013, City Council approved the transfer of the Property to Build Toronto Incorporated This initial transfer was capped at a height of 65 metres above ground on the site known as 1978-2002 Lake Shore Boulevard West and those lands were sold to a developer. 

As result of certain changes to the proposed built form of the development, CreateTO, on behalf of Build Toronto Incorporated, has requested that additional strata, from the point of 65 metres above grade to a point of 122 metres above grade of the Property (the "Additional Strata"), be conveyed to Build Toronto Incorporated and subsequently conveyed by it for development purposes.

It is also appropriate that this City staff report and the transmitted CreateTO Board report respecting this matter be considered jointly by City Council.

At its meeting on June 20, 2022, the Board of Directors of CreateTO considered item RA32.2 and RA32.2a and made a recommendation to City Council.

Summary from CreateTO report (June 6, 2022):

In May 2011, City Council approved the transfer of lands, located at 1978 and a portion of 2000 Lakeshore Boulevard West to Build Toronto, with the method of disposal to be by way of sale. 

On July 16, 2013, City Council approved the transfer of a stratified portion of the property municipally known as part of 2000 and 2002 Lakeshore Boulevard West to Build Toronto and that the previous transfer of 1978 Lake Shore Boulevard West and portion of 2000 Lakeshore Boulevard West be amended to provide that only a stratified portion of 1978 Lakeshore and a portion of 2000 Lakeshore Boulevard West, limited to 65 meters in height above grade, be transferred to Build Toronto. These properties are collectively referred to as the "Property".

On May 23, 2017, the Board of Directors of Build Toronto approved the sale of the Property to Marlin Spring (the "Purchaser") and the transaction closed on December 5, 2017. At closing, Marling Spring entered into a Development Agreement and a Density Participation Agreement with Build Toronto (the "Post-Closing Agreements") and an Affordable Housing Delivery Agreement with the City.

Subsequent to the closing, the Purchaser, working with the local councillor and City Planning, has engaged in a process of community consultation through public meetings and workshops. In November 2021, City Planning, the Housing Secretariat, the local councillor and the community arrived at consensus on a built form and the delivery of affordable rental units which include:

- total gross floor area of 504,408 square feet;

- two towers, 20 and 36 storeys on a 5-storey podium;

- 611 residential units;

- 262 parking spaces; and

- Open Door Affordable Rental Housing Program incentives to deliver 61 new affordable rental units.

To facilitate construction of the mixed-use development including the 61 affordable housing rental units on the Property, CreateTO management have proposed several actions contained within the report to the Build Toronto Inc. Board of Directors to be considered on June 20, 2022.

The purpose of this report is to advise the Board that, subject to the decision of the Build Toronto Inc. Board of Directors, the Chief Executive Officer will provide a further report to the June 20, 2022 CreateTO Board meeting with additional information, and a recommendation to City Council on the proposed actions.