Item - 2022.SC33.3

Scarborough Community Council recommends that:

1. City Council amend the City of Toronto Official Plan, as amended, with respect to the lands municipally known as, 25 Borough Drive, substantially in accordance with the draft Official Plan Amendment attached as Attachment 6 to the report (June 10, 2022) from the Director, Community Planning, Scarborough District.

2. City Council amend former City of Scarborough Employment Districts Zoning By-law No. 24982 (Progress Employment District), as amended, with respect to the lands municipally known as 25 Borough Drive, substantially in accordance with the draft Zoning By-law Amendment attached as Attachment 7 to the report (June 10, 2022) from the Director, Community Planning, Scarborough District.

3. City Council authorize the City Solicitor to submit the necessary bill(s) to implement City Council's decision provided the City Solicitor is satisfied that the appropriate legal mechanisms are in place to ensure that no building permit will be issued until such time as the Section 37 Agreement is executed and registered.

4. City Council authorize the City Solicitor to make such stylistic and technical changes to the draft Official Plan Amendment and Zoning By-law Amendment as may be required.

5. City Council approve an on-site parkland dedication (the "Parkland") pursuant to Section 42 of the Planning Act, by the Owner prior to the issuance of the first above-grade building permit having a total area of not less than 2,041 square metres, substantially in accordance with the draft Official Plan Amendment attached as Attachment 6 to the report dated June 10, 2022 from the Director, Community Planning, Scarborough District, located at the south end of the site, to the satisfaction of the General Manager, Parks, Forestry and Recreation and the City Solicitor.

6. City Council approve the acceptance of the Parkland, subject to the Owner transferring the Parkland to the City free and clear, above and below grade, of all easements, encumbrances and encroachments, in an acceptable environmental condition; with the exception of the existing Toronto Water sanitary sewer and associated easement, deemed acceptable with compensation. The owner may also propose the exception of encumbrances of tiebacks, where such an encumbrance is deemed acceptable by the General Manager, Parks, Forestry and Recreation, in consultation with the City Solicitor; and such an encumbrance will be subject to the payment of compensation to the City, in an amount as determined by the General Manager, Parks, Forestry and Recreation and the Executive Director, Corporate Real Estate Management for which separate authority will be sought and agreement entered into.

7. City Council approve a cash-in-lieu payment for the portion of the Parkland that is encumbered pursuant to Section 42 of the Planning Act, by the Owner prior to the issuance of the first above-grade building permit to the satisfaction of the General Manager, Parks, Forestry and Recreation and the City Solicitor.

8. 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 the 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.

9. City Council agree that the Owner shall design and construct Base and Above Base Park Improvements on the Parkland. Prior to the issuance of any 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.

10. City Council direct that in consideration for and contingent on the conveyance of the realigned Borough Drive Lands to the City, the Owner be permitted to occupy the existing and newly conveyed Borough Drive, between Triton Road and Progress Avenue, in order to facilitate the staging of construction of the Development, and that any right-of-way occupancy fees that would otherwise be payable under Municipal Code Chapter 441, Fees and Charges, be waived for a maximum duration of one (1) year, commencing at any time within a five (5) year period following the completion and dedication of the realigned Borough Drive Lands, up to a maximum amount of $245,000 including HST (in 2022 dollars);  any such occupancy will be subject to the requirements of Municipal Code, Chapter 743, Streets and Sidewalks, Use of, including the requirement to submit an application and obtain a right-of-way occupancy permit, a traffic management plan (including provision for maintained pedestrian and cycling access), and any other requirements such as insurance, security, indemnification, to the satisfaction of the General Manager, Transportation Services;  and in the event the Owner wishes to occupy the realigned Borough Drive Lands to facilitate the staging of construction of the Development prior to their dedication as public highway, the requirements of Municipal Code Chapter 743 will not apply, but the Owner shall enter into a license agreement with the City to occupy the lands for nominal consideration for a maximum of two (2) years, on terms and conditions satisfactory to the Executive Director, Corporate Real Estate Management and in a form satisfactory to the City Solicitor.

11. City Council classify the lands municipally known as 25 Borough Drive as a Class 4 Noise Area pursuant to Ministry of Environment, Conservation and Parks Environmental Noise Guidelines – Stationary and Transportation Sources – Approval and Planning Publication NPC-300, August 2013.

12. City Council direct the Chief Planner and Executive Director, City Planning or designate to provide a copy of the City Council Decision Document to the Ministry of Environment, Conservation and Parks.

13. City Council require the Owner to enter into an Agreement pursuant to Section 37 of the Planning Act as follows:

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

1. prior to issuance of an above-grade building permit, the Owner shall make a financial contribution in the amount of $6,000,000 payable to the City of Toronto, with such amount to be indexed upwardly in accordance with the Statistics Canada Non-Residential Building Construction Price Index for Toronto, calculated from the date City Council adopts the zoning by-law amendment(s) to the date of payment; the funds shall be directed as follows:

aa. $1,750,000 to be allocated towards capital improvements for a non-profit daycare in Ward 21, Scarborough Centre;

bb. $400,000 to be allocated towards improvements to the Frank Faubert Woodlots and the Hand of God Park;

cc. $350,000 to be allocated to the Toronto Public Library for capital upgrades to the library facilities at the Scarborough Civic Centre Branch at 156 Borough Drive and/or Bendale Branch at 1515 Danforth Road;

dd. $2,000,000 to secure and/or to undertake future capital upgrades to recreational, cultural and/or community agency hubs;

ee. $1,000,000 to be allocated towards recreational needs in Ward 21, Scarborough Centre;

ff. $250,000 to be allocated towards capital improvements to the Scarborough YMCA at 230 Town Centre Court to improve the accessibility of the building;

gg. $200,000 to be allocated towards funding for school ground improvements and playground upgrades at David and Mary Thompson Collegiate Institute at 125 Brockley Drive;

hh. $50,000 for the future implementation of bike-share facilities in Ward 21, at a location that may be determined by the Chief Planner and Executive Director, City Planning, in consultation with the Ward Councillor; and

ii. in the event the cash contributions required in Recommendations 13.a.1.aa. through 13. a.1.hh. above have not been used for the intended purpose within three (3) years of the date of the issuance of the first above-grade building permit, the cash contribution may be directed to another purpose, at the discretion of the Chief Planner and Executive Director, City Planning, in consultation with the Ward Councillor, provided that the purpose is identified in the Toronto Official Plan and will benefit the community in the vicinity of the subject property.

2. the preparation of a public art plan, generally in accordance with City Planning's Percent for Public Art process, to the satisfaction of the Chief Planner and Executive Director, City Planning, including that:

aa. prior to the issuance of the first above-grade building permit, the Owner shall submit public art plan, generally in accordance with City Planning's Percent for Public Art process detailing the possible location(s) of any public art installations on the site, 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; and

bb. prior to the issuance of the first above-grade building permit, the Owner shall provide a letter of credit in the amount of $1,500,000.00, with such value indexed upwardly in accordance with the Statistics Canada Non-Residential Building Construction Price Index for Toronto, calculated from the date City Council adopts the zoning by-law amendment(s) to the date of payment;

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

1. the construction and maintenance, at the Owner's expense, an area of not less than 966 square metres between the north block and the south block, providing an east-west pedestrian connection, 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.

2. as a pre-approval condition of Site Plan Approval for the Privately Owned Publicly Accessible Open Space described in Recommendation 13.b.1. 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 Owned Publicly Accessible Open Space, all to the satisfaction of the Chief Planner and Executive Director, City Planning and the City Solicitor.

3. the design and construction of the above base park improvements to the new park by the Owner in exchange for Development Charge Credit against Parks and Recreation component of the Development Charges as referred to in Recommendation 9 above.

4. 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.

5. the Owner shall include warning clauses and signage of 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.

6. the provision of a minimum of 10 percent of the total residential dwelling units within the development to be three-bedroom dwelling units and a minimum of 15 percent of the total residential dwelling units within the development to be two-bedroom dwelling units to the satisfaction of the Chief Planner and Executive Director, City Planning;

7. prior to final site plan approval, the Owner shall confirm that residents living in all buildings will have mutual access to the communal indoor and outdoor amenity areas within the development;

8. the Owner shall construct wind mitigation measures required pursuant to site plan approval, to the satisfaction of the Chief Planner and Executive Director, City Planning;

9. the Owner shall, to the satisfaction of the Chief Planner and Executive Director, City Planning Division, comply with the Environmental Noise Impact Feasibility Studies, prepared by HGC Engineering dated November 19, 2021 and May 12, 2022;

10. the Owner shall, to the satisfaction of the Chief Planner and Executive Director, City Planning, comply with the Air Quality Study, prepared by Theakston Environmental dated November 16, 2021;

11. prior to the issuance of the first above-grade building permit, the Owner shall construct the realigned Borough Drive as per illustrated on Map 5-3 as it relates to the subject lands and associated services to the satisfaction of the Chief Engineer and Executive Director, Engineering and Construction Services and General Manager, Transportation Services, with the specific obligations to be provided as a Schedule in the Section 37 agreement;

12. the Owner shall construct the services to service the development block other than the services associated with the realigned Borough Drive, this may include sidewalk, boulevard improvements, pavement marking modifications, signage, municipal service connections to existing municipal streets and any external improvements required as a result of detailed design to the satisfaction of the Chief Engineer and Executive Director, Engineering and Construction Services;

13. prior to the issuance of below-grade building permits the Owner is required to pay for the construction of any municipal infrastructure improvements and make necessary arrangements with Engineering and Construction Services to carry out the work;

14. the Owner is responsible for any and all cost associated with the roadway improvements, pavement marking modifications, installation of traffic control signals plants, signal timing optimizations, coordination and modifications as identified in the Transportation and Parking Study to support this development, according to the Site Servicing Review and Traffic Impact Study accepted by the Chief Engineer and Executive Director. Engineering and Construction Services;

15. the Owner shall facilitate such rights in the nature of easements satisfactory to the City Solicitor as may be required by the Chief Engineer and Executive Director, Engineering and Construction Services within and external to the site for existing and proposed municipal services, as applicable;

16. the Owner shall, at its own expense and as may be required, prepare and submit a draft Reference Plan of Survey to the Chief Engineer and Executive Director, Engineering and Construction Services, for review and approval to describe areas of easement interest, prior to depositing it in the Land Registry Office.

17. prior to seeking the issuance of below-grade building permits for any Block on the subject lands, the Owner shall have made all necessary submissions and obtained release for construction of services. The issuance of below-grade permits will be subject to providing and maintaining safe access for emergency vehicles and all applicable requirements of the Chief Building Official and Executive Director, Toronto Building and the Chief Engineer and Executive Director, Engineering and Construction Services; construction of roads and services shall be completed prior to any request for issuance of above-grade building permits for any Block within the subject lands.

c. where Recommendations 13.a. and b. above require 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; and

d. the Owner shall not use, or permit the use of, a building or structure erected with an increase in height and/or density pursuant to this By-law unless all provisions of Recommendations 13.a. and b. above are satisfied.

14. City Council direct the City Solicitor to revise the Zoning by-law amendment attached as Attachment 7 to the report (June 10, 2022) from the Director, Community Planning, Scarborough District to implement Recommendations 13.a.1, 13.a.1.dd, 13.a.1.gg. and 13.a.2.bb above prior to the submission of the bills for adoption by City Council.

The Scarborough Community Council held a statutory public meeting on June 30, 2022 and notice was given in accordance with the Planning Act.

This report reviews and recommends approval of the application to amend the Official Plan and the Employment Districts Zoning By-law No. 24982 (Progress Employment District), and to lift the Holding ("H") provisions for the subject site. The applications propose to update existing residential permissions to permit a mixed-use development with three residential towers of 32, 41 and 50-storeys with 1,285 purpose-built rental units along with a total of 1,611 square metres of retail uses at grade. The proposed total gross floor area of 109,962 square metres represents a gross density of approximately 7.98 times the lot area. A new 2,041 square metre public park is proposed at the south end of the site and a 966 square metre Privately-Owned Publicly Accessible Space (POPS) walkway is proposed between the north and south blocks, which will provide a pedestrian connection through the site and enhance the public realm by creating additional open space through the site.

Staff have negotiated a number of community benefits, including a 966 square metre Privately-Owned Publicly Accessible Space (POPS) walkway and a $7,500,000 financial contribution to be dispersed as outlined in Recommendation 13, and which are recommended to be secured in an agreement pursuant to Section 37 of the Planning Act.

The site's redevelopment will contribute to the continued development of a mixed-income, inclusive community, supporting the evolution and vision of Scarborough Centre, as well as the first phase of a long-term plan to redevelop the Scarborough Town Centre mall lands. Through the dedication of the parkland and securing of POPS space, the proposal creates a public realm around which a new community will emerge. Approval of the development would also secure a number of community benefits, outlined above.

The application is also proposing to realign Borough Drive to implement the street network in accordance with the Scarborough Centre Secondary Plan ("SCSP") Map 5-3, Street Network, which envisions a finer grain street network to allow pedestrians, cyclists, transit users and vehicles to move more efficiently while improving connectivity.

Concurrently with this report, staff are proceeding with a report to seek City Council authority to enter into an agreement to exchange a portion of Borough Drive owned by the City of Toronto and land owned by the Owner. The proposed land exchange would facilitate a realigned Borough Drive and increase the area of the developable lands adjacent thereto owned by the Owner.

The proposed amendment to the Official Plan would exempt the portion of 25 Borough Drive being redeveloped from Policy 6.3 of the SCSP to bring the parkland dedication rate for the site into accordance with the Official Plan policies regarding parkland that are in force at the time of issuance of the first above-grade building permit, as well as modify the wording in the existing Site and Area Specific Policy 1 (SASP 1) to delete retail uses as the primary use and streetscape requirements along Brimley Road from the lands.

In addition, the proposed amendment to the Official Plan would re-designate the south portion of the site as Parks on Land Use Map 19.

This report also recommends that City Council designate the subject lands as a Class 4 Area under relevant provincial noise guidelines administered by the Ministry of Environment, Conservation and Parks (MECP). Class 4 Area designation will allow existing industrial facilities in the vicinity of the site, to rely on the associated sound level limits in applications for required provincial approvals, including operating certificates.

The proposed development concept is consistent with the Provincial Policy Statement (2020) and conforms with A Place to Grow: Growth Plan (2020), as it provides an appropriate type and scale of development in a strategic growth area, Scarborough Centre.

This report reviews and recommends approval of the application to amend the Official Plan and the Zoning By-law, and that the Owner to enter into a Section 37 Agreement.