Item - 2022.TE34.21

The Toronto and East York Community Council recommends that:

1. City Council rescind its previous decisions on Item 2018 TE32.3 and Item 2019.TE8.10.

2. City Council amend Zoning By-law 438-86, for the lands at 25 and 35 Liberty Street, 58 Atlantic Avenue and 51, 61, and 65 Jefferson Avenue, substantially in accordance with the draft Zoning By-law Amendment attached as Attachment 5 to the report (June 13, 2022) from the Director, Community Planning, Toronto and East York District.

3. City Council authorizes the City Solicitor to submit the necessary bills to implement the foregoing recommendations provided the City Solicitor is satisfied that the appropriate legal mechanisms are in place to ensure that no building permit will issue until such time as the Section 111 Agreement and Section 37 Agreement, and any other necessary agreements, including agreements securing off-site replacement rental dwelling unit requirements, are executed and registered.

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

5. Prior to introducing the necessary Bills to City Council for enactment of the Zoning By-law Amendment, City Council require the owner to:

a. Enter into a Heritage Easement Agreement with the City for the property at 58 Atlantic Avenue to the satisfaction of the Senior Manager, Heritage Planning, Urban Design, City Planning and the City Solicitor, and in accordance with the recommendations of April 6, 2018 Staff Report (2018.TE32.4) to the Toronto Preservation Board from the Senior Manager, Heritage Planning, Urban Design, City Planning including registration of such agreement to the satisfaction of the City Solicitor.

6. City Council approve the modified Rental Housing Demolition Application File No. 15 130397 STE 14 RH in accordance with Chapter 667 of the Toronto Municipal Code and pursuant to Section 111 of the City of Toronto Act, 2006 which allows for the demolition of forty-two (42) existing live-work rental dwelling units located at 25 and 35 Liberty Street, 58 Atlantic Avenue, and 51, 61 and 65 Jefferson Avenue, subject to the following conditions:

a. Not less than twenty (20) replacement live-work rental dwelling units shall be provided and maintained on the subject site for a period of at least 20 years beginning from the date that each replacement live-work rental dwelling unit is first occupied and, during which time, no application may be submitted to the City for condominium registration, or for any other conversion to a non-rental housing purpose, or for demolition without providing for replacement during the, at minimum, 20 year period; the twenty (20) replacement live-work rental dwelling units shall be comprised of five (5) studio units, fourteen (14) one-bedroom units, and one (1) two-bedroom unit, as generally illustrated in the plans submitted to the City Planning Division dated May 13, 2022. Any revision to these plans, including the number of units and unit mix, shall be to the satisfaction of the Chief Planner and Executive Director, City Planning;

b. Not less than thirty (30) off-site replacement rental dwelling units shall be provided and maintained at 11 and 25 Ordnance Street for a period of at least 20 years beginning from the date that each replacement rental dwelling unit is first occupied and, during which time, no application may be submitted to the City for condominium registration, or for any other conversion to a non-rental housing purpose, or for demolition without providing for replacement during the, at minimum, 20 year period; the thirty (30) replacement rental dwelling units shall be comprised of twenty-nine (29) one-bedroom units and one (1) two-bedroom unit as generally illustrated in the plans submitted to the City Planning Division dated June 13, 2022. Any revision to these plans shall be to the satisfaction of the Chief Planner and Executive Director, City Planning;

c. The owner shall, as part of the fifty (50) replacement rental dwelling units required in Recommendations 6.a. and 6.b. above, provide on-site at 25 and 35 Liberty Street, 58 Atlantic Avenue, and 51, 61 and 65 Jefferson Avenue, at least one (1) studio and three (3) one-bedroom replacement live-work rental dwelling units at affordable rent, as currently defined in the City's Official Plan, and three (3) studio, eleven (11) one-bedroom, and one (1) two-bedroom replacement live-work rental dwelling units at mid-range rents, as currently defined in the City's Official Plan, all for a period of at least 10 years beginning from the date of first occupancy of each unit. The rents of the remaining one (1) replacement live-work rental dwelling unit on-site at 25 and 35 Liberty Street, 58 Atlantic Avenue, and 51, 61 and 65 Jefferson Avenue and thirty (30) off-site replacement rental dwelling units at 11 and 25 Ordnance shall be unrestricted subject to recommendation 6.d. below;

d. The owner shall provide an acceptable tenant relocation and assistance plan for all Eligible Tenants of the forty-two (42) existing live-work rental dwelling units proposed to be demolished at 25 and 35 Liberty Street, 58 Atlantic Avenue, and 51, 61 and 65 Jefferson Avenue, addressing the right to return to occupy one of the replacement live-work rental dwelling units on the subject site at similar rents and other assistance to mitigate hardship. The tenant relocation and assistance plan shall be developed in consultation with, and to the satisfaction of, the Chief Planner and Executive Director, City Planning;

e. The owner shall provide the right to return to occupy one of the replacement live-work rental dwelling units on the subject site at similar rents to all Other Eligible Tenants, all to the satisfaction of the Chief Planner and Executive Director, City Planning;

f. The owner shall provide tenants of all twenty (20) replacement rental dwelling units located on-site with access to, and use of, all residential indoor and outdoor amenities in the proposed building at no extra charge. Access to, and use of, these amenities shall be provided without the need to pre-book or pay a fee, unless specifically required as a customary practice for private bookings, all to the satisfaction of the Chief Planner and Executive Director, City Planning;

g. Tenants of all thirty (30) off-site replacement rental dwelling units located at 11 and 25 Ordnance Street shall have access to, and use of, all residential indoor and outdoor amenities in the 39-storey mixed-use building at no extra charge. Access to, and use of, these amenities shall be 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;

h. Central air conditioning and ensuite laundry shall be provided in each replacement rental dwelling unit within the mixed-use building at 11 and 25 Ordnance Street at no additional cost to tenants;

i. Tenants of the thirty (30) replacement rental dwelling units at 11 and 25 Ordnance Street shall have with access to all bicycle and visitor parking on the same terms and conditions as any other resident of the proposed mixed-use building;

j. The owner shall provide central air conditioning and ensuite laundry in each on-site replacement live-work rental dwelling unit within the proposed commercial office building on-site at no additional cost to tenants;

k. The owner shall provide and make available for rent at least nine (9) vehicle parking spaces to tenants of the replacement rental dwelling units on-site. Such parking spaces shall be made available firstly to returning tenants who previously rented a vehicle parking space, secondly to returning tenants who did not previously rent a vehicle parking space, and thirdly to new tenants of the on-site replacement live-work rental dwelling units;

l. The owner shall provide tenants of the twenty (20) replacement live-work rental dwelling units on-site with access to all resident bicycle and visitor parking spaces in the proposed commercial office building at no additional cost to tenants;

m. The owner shall provide at least ten (10) storage lockers to tenants of the replacement live-work rental dwelling units within the proposed commercial office building; and

n. The owner of 25 and 35 Liberty Street, 58 Atlantic Avenue, and 51, 61 and 65 Jefferson Avenue shall enter into and register on title, one or more agreement(s), to secure the conditions outlined in Recommendations 6.a. through 6.m. above, including an agreement pursuant to Section 111 of the City of Toronto Act, 2006 on the development lands, and the off-site replacement rental dwelling units contemplated in Recommendations 6.b. and 6.g., h. and i. shall be secured by one or more agreement(s) registered on title to the 10 and 25 Ordnance Street lands, all to the satisfaction of the City Solicitor and the Chief Planner and Executive Director, City Planning.

7. City Council authorize the Chief Planner and Executive Director, City Planning, to issue Preliminary Approval of the Rental Housing Demolition Permit under Chapter 667 of the Toronto Municipal Code for the demolition of the forty-two (42) existing live-work rental dwelling units located at 25 and 35 Liberty Street, 58 Atlantic Avenue, and 51, 61 and 65 Jefferson Avenue after all the following have occurred:

a. All conditions in Recommendation 6 above have been fully satisfied and/or secured;

b. The Zoning By-law Amendment has come into full force and effect;

c. The issuance of the Notice of Approval Conditions for Site Plan Approval by the Chief Planner and Executive Director, City Planning or their designate, pursuant to Section 114 of the City of Toronto Act, 2006;

d. The issuance of excavation and shoring permits (conditional or full permit) for the approved development on the site;

e. The owner has confirmed, in writing, that all existing live-work rental dwelling units proposed to be demolished are vacant;

f. The execution and registration of an agreement pursuant to Section 111 of the City of Toronto Act, 2006; and

g. The execution and registration of agreements pursuant to Section 37 of the Planning Act securing Recommendations 6.a. through 6.n. above and Recommendations 10.d.iv. and v. below, including an agreement securing the off-site replacement rental dwelling unit requirements at 11 and 25 Ordnance Street, and any other requirements of the Zoning-Bylaw Amendment.

8. City Council authorize the Chief Building Official and Executive Director, Toronto Building to issue a Rental Housing Demolition Permit under Chapter 667 of the Toronto Municipal Code after the Chief Planner and Executive Director, City Planning has given Preliminary Approval referred to in Recommendation 7 above.

9. City Council authorize the Chief Building Official and Executive Director, Toronto Building to issue a Residential Demolition Permit under Section 33 of the Planning Act and Chapter 363 of the Toronto Municipal Code for 25 and 35 Liberty Street, 58 Atlantic Avenue, and 51, 61 and 65 Jefferson Avenue after the Chief Planner and Executive Director, City Planning has given Preliminary Approval referred to in Recommendation 7 above, which may be included in the Rental Housing Demolition Permit under Chapter 667 pursuant to section 6.2 of Chapter 363, on condition that:

a. The owner removes all debris and rubble from the site immediately after demolition;

b. The owner erects solid construction hoarding to the satisfaction of the Chief Building Official and Executive Director, Toronto Building;

c. The owner erects the proposed building and on-site replacement live-work rental dwelling units no later than five (5) years from the date that the demolition of the buildings commences, subject to the timeframe being extended to the discretion of the Chief Planner and Executive Director, City Planning; and

d. Should the owner fail to complete the proposed building and on-site replacement live-work rental dwelling units within the time specified in Recommendation 9.c. above, the City Clerk shall be entitled to enter on the collector’s roll, as with municipal property taxes, an amount equal to the sum of twenty thousand dollars ($20,000.00) per dwelling unit for which a demolition permit is issued, and that such amount shall, until payment, be a lien or charge upon the land for which the demolition permit is issued.

10. City Council require the owner to enter into an Agreement, pursuant to Section 37 of the Planning Act, satisfactory to the Chief Planner and Executive Director, City Planning and the City Solicitor, together with satisfactory provisions in the Zoning By-law Amendment, to secure the following, at the owner's expense, in connection with 25 and 35 Liberty Street, 58 Atlantic Avenue and 51, 61 and 65 Jefferson Avenue, with such agreement to be registered to the satisfaction of the City Solicitor:

a. prior to the issuance of an above-grade building permit, the owner shall make a cash contribution payable to the Treasurer, City of Toronto in the amount of $2,750,000.00 dollars, for the provision of affordable rental housing within Ward 10 within the vicinity of the site, to the satisfaction of the Chief Planner and Executive Director, City Planning, in consultation with the Ward Councillor;

b. The financial contribution pursuant to Recommendation 10.a. above shall 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;

c. In the event the cash contributions referred to in Recommendation 10.a. above has not been used for the intended purpose within three (3) years of the Zoning By-law Amendment 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 that the purpose is identified in the Toronto Official Plan and will benefit the community in Ward 10;

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

i. Prior to final Site Plan Approval relating to the proposed Zoning By-law Amendment for the property located 25 and 35 Liberty Street, 58 Atlantic Avenue, and 51, 61, and 65 Jefferson Avenue, the owner shall:

A. provide final site plan drawings substantially in accordance with the approved Conservation Plan dated May 5, 2022 by ERA Architects Inc., to the satisfaction of the Senior Manager, Heritage Planning, Urban Design, City Planning;

B. have obtained final approval for the necessary Zoning By-law Amendment required for the development lands and such amendment shall have come into full force and effect;

C. provide a Heritage Lighting Plan that describes how the exterior of the heritage property will be sensitively illuminated to enhance its heritage character, to the satisfaction of the Senior Manager, Heritage Planning, Urban Design, City Planning and thereafter shall implement such Plan to the satisfaction of the Senior Manager, Heritage Planning, Urban Design, City Planning

D. provide an Interpretation Plan for the heritage property, to the satisfaction of the Senior Manager, Heritage Planning, Urban Design, City Planning and thereafter shall implement such Plan to the satisfaction of the Senior Manager, Heritage Planning, Urban Design, City Planning; and

E. submit a Signage Plan to the satisfaction of the Senior Manager, Heritage Planning, Urban Design, City Planning;

ii. Prior to the issuance of any permit for all or any part of the property at 58 Atlantic Avenue, including a heritage permit or a building permit but excluding permits for repairs and maintenance and usual and minor works for the existing heritage building as are acceptable to the Senior Manager, Heritage Planning, Urban Design, City Planning, the owner shall:

A. have obtained final approval for the necessary Zoning By-law Amendment required for the alterations to the property at 58 Atlantic Avenue, such Amendment to have come into full force and effect in a form and with content acceptable to City Council, as determined by the Chief Planner and Executive Director, City Planning, in consultation with the Senior Manager, Heritage Planning, Urban Design, City Planning;

B. provide building permit drawings, including notes and specifications for the conservation and protective measures keyed to the approved Conservation Plan dated May 5, 2022 by ERA Architects Inc., including a description of materials and finishes, to be prepared by the project architect and a qualified heritage consultant, to the satisfaction of the Senior Manager, Heritage Planning, Urban Design, City Planning;

C. provide a Letter of Credit, including provision for upwards indexing, in a form and amount and from a bank satisfactory to the Senior Manager, Heritage Planning, Urban Design, City Planning, to secure all work included in the approved Conservation Plan, Lighting Plan, and Interpretation Plan; and

D. prior to release of the required Letter of Credit, the owner shall  retain a qualified heritage consultant, confirming that the required conservation work and the required interpretive work has been completed in accordance with the approved Conservation Plan, approved Lighting Plan, approved Interpretation Plan and approved Signage Plan, and that an appropriate standard of conservation has been achieved, all to the satisfaction of the Senior Manager, Heritage Planning, Urban Design, City Planning and shall provide replacement Heritage Easement Agreement photographs to the satisfaction of the Senior Manager, Heritage Planning, Urban Design, City Planning;

iii. Provisions incorporating the requirements set out in Recommendations 6.a. through 6.m. above;

iv. Prior to execution of an agreement pursuant to Section 111 of the City of Toronto Act, 2006 relating to the development lands, the owner shall:

A. engage a professional building measurement company or architect to re-measure and provide as-built floor plans for the thirteen (13) existing live-work rental dwelling units occupied or formerly occupied by Eligible Tenants to confirm the existing unit sizes, ceiling heights and unit types (number of bedrooms and dens), in accordance with the Ontario Building Code and Tarion Bulletin 22 and to the satisfaction of the Chief Planner and Executive Director, City Planning; and

B. reconfigure the Replacement Live-Work Rental Dwelling Unit Floor Plans for the 20 proposed on-site replacement live-work rental dwelling units to ensure that each Eligible Tenant's existing live-work rental dwelling unit is replaced with a replacement live-work rental dwelling unit of the same unit type, including dens, and within at least five (5%) per cent of the existing gross floor area of the unit, all to the satisfaction of the Chief Planner and Executive Director, City Planning;

v. Prior to issuance of the Notice of Approval Conditions for Site Plan Approval by the Chief Planner and Executive Director, City Planning or their designate, pursuant to Section 114 of the City of Toronto Act, 2006 for the property located 25 and 35 Liberty Street, 58 Atlantic Avenue, and 51, 61, and 65 Jefferson Avenue, the owner shall consult with Eligible Tenants on the floor layouts of the on-site replacement live-work rental dwelling units and the programming of on-site residential amenity spaces;

vi. Prior to the earlier of Site Plan Approval and issuance of the first building, permit, including a permit for shoring and excavation, the owner shall submit the following materials for review and acceptance to the satisfaction of the Chief Engineer and Executive Director, Engineering and Construction Services:

A. updated revised Functional Servicing and Stormwater Management   Report;

B. updated Geotechnical Report;

C. updated Hydrogeological Report;

D. Servicing Report Groundwater Summary Form; and

E. Hydrogeological Review Summary Form.

vii.  Prior to the earlier of Site Plan Approval and the first building permit, including a permit for shoring and excavation, the owner shall make arrangements satisfactory to the Chief Engineer and Executive Director, Engineering and Construction Services, including entering into a financially secured agreement for the construction of any improvements to the municipal

infrastructure, should it be determined that upgrades are required to support the development, according to an accepted Functional Servicing and Stormwater Management Report.

viii. Prior to the earlier of Site Plan Approval and issuance of the first building permit, including a permit for shoring and excavation, the owner shall submit a revised Transportation Impact Assessment Update for review and acceptance to the satisfaction of the General Manager, Transportation Service. The updated information must include, but not limited to, the following items:

A. a Transportation Demand Management (TDM) plan; and

B. a Vision Zero Implementation Plan;

ix. Prior to the earlier of Site Plan Approval and issuance of the first building permit, including a permit for shoring and excavation, the owner shall provide financial contributions (overall amount to be determined) in connection with the implementation of the Transportation Demand Management (TDM) plan and Vision Zero improvements, as determined to be required to support this development, to the satisfaction of the General Manager, Transportation Services;

x. Prior to the earlier of Site Plan Approval and issuance of the first building permit for shoring and excavation, the owner shall submit plans and drawings with the design and construction of public realm improvements on Liberty Street, Jefferson Avenue and Atlantic Avenue, to the satisfaction of the Chief Planner and Executive Director, City Planning and the General Manager, Transportation Services;

xi. Prior to the earlier of Site Plan Approval and issuance of the first building permit, including a permit for shoring and excavation, the owner shall submit a Construction Management Plan for the development lands, to the satisfaction of the Chief Planner and Executive Director, City Planning, the General Manager, Transportation Services, and the Chief Building Official and Executive Director, Toronto Building, in consultation with the Ward Councillor, prior to the issuance of any permit, including a heritage permit or a building permit, and including conditional permits, but excluding permits for repairs and maintenance and usual and minor works for the existing heritage building as are acceptable to the Senior Manager, Heritage Planning, Urban Design, City Planning, and thereafter shall implement the plan during the course of construction;

xii. Prior to the earlier of Site Plan Approval and issuance of the first building permit, including a permit for shoring and excavation, the owner shall submit plans and drawings detailing any wind mitigation measures as determined through a wind tunnel analysis undertaken, to the satisfaction of the Chief Planner and Executive Director, City Planning;

xiii. 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.

11. City Council authorize the City entering into such agreements, including an amendment to the Section 37 Agreement for 11 and 25 Ordnance Street, to secure the off-site replacement of the rental units to be demolished on the development lands at 25 and 35 Liberty Street, 58 Atlantic Avenue, and 51, 61, and 65 Jefferson Avenue, and the conditions as set out in Recommendations 6.b. and 6.g. to i. above, all to the satisfaction of the Chief Planner and Executive Director, City Planning and City Solicitor as required in Recommendation 6. n. above, with such agreement to be registered to the satisfaction of the City Solicitor prior to the issuance of any permit for all or any part of the development lands, including a heritage permit or a building permit, but excluding permits for such repairs and maintenance and usual and minor works for the existing heritage buildings as are acceptable to the Senior Manager, Heritage Planning, Urban Design, City Planning.

12. City Council authorize the appropriate City officials to take such actions as are necessary to implement City Council's decision, including execution of the Section 111 Agreement, Section 37 Agreement, and any other necessary agreement(s).

13. City Council declare, pursuant to subsection 45(1.4) of the Planning Act, R.S.O. 1990, c. P.13 for the purposes of subsection 45(1.3) of the Planning Act, R.S.O. 1990, c. P.13, that the owner, may be permitted to apply to amend the site specific zoning by-law for the lands at 25 and 35 Liberty Street, 58 Atlantic Avenue, and 51, 61, and 65 Jefferson Avenue before the second anniversary of the first day on which any part of the site specific by-law comes into effect.

The Toronto and East York Community Council held a statutory public meeting on June 29, 2022 and notice was given in accordance with the Planning Act.

This report reviews and recommends approval of the Zoning By-law Amendment and Rental Housing Demolition applications.

This application is a further modification of a proposal adopted by City Council at its meeting of October 2, 2019, Agenda Item TE8.10, Revised Final Report for Zoning By-law Amendment and Rental Housing Demolition applications. That proposal was to permit a 10-storey (49 metre, including mechanical penthouse) commercial office building with 22,712 square metres of commercial office space, on-site replacement of 42 existing live-work rental dwelling units, and retention of the three-storey heritage building on the northeast corner of the site.

The revised application now proposes an 11-storey (49.9 metres including mechanical penthouse) commercial office building with 24,290 square metres of non-residential uses, 20 on-site replacement live-work units, 30 off-site replacement rental dwelling units and the retention of the three-storey heritage building at 58 Atlantic Avenue. Two levels of underground parking are proposed with 96 vehicle parking spaces and a total of 148 bicycle parking spaces.