Item - 2022.TE34.30

The City Planning Division and Housing Secretariat recommend that:

1. City Council amend Zoning By-law 569-2013 for the lands at 1978-2002 Lake Shore Boulevard West substantially in accordance with the draft Zoning By-law Amendment attached as Attachment No. 5 to report (June 15, 2022) from the Director, Community Planning, Toronto and East York District.

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

3. City Council authorize the City Solicitor to submit the necessary bill 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 37 Agreement is executed and registered.

4. City Council require Marlin Springs (carrying on business as Winlake Developments Limited) (or a related corporation) (“the Owner”) the Owner to enter into an Agreement pursuant to Section 37 of the Planning Act as follows:

1. The Owner's section 37 contribution consists of providing and maintaining sixty-one (61) new affordable rental dwelling units on the lands at 1978-2002 Lake Shore Boulevard West (the "Affordable Housing Units");
   
   
2. The Affordable Housing Units are to be conveyed to Community Affordable Housing Solutions or another non-profit affordable housing provider chosen by the City in its sole discretion (the "Provider") as a stratified freehold parcel;
   
   
3. The Affordable Housing Units shall be in accordance with the following:
   
   
   1. at least one (1) of the Affordable Housing Units shall be a three-bedroom unit with a minimum unit size of 83.1 square metres and an average size of 83.1 square metres;
      
      
   2. at least twelve (12) of the affordable rental dwelling units shall be two-bedroom rental units with a minimum unit size of 58.3 square metres and an average size of 63.8 square metres;
      
      
   3. no more than sixteen (16) of the Affordable Housing Units shall be one-bedroom rental units with a minimum unit size of 44.8 square metres and an average size of 53.5 square metres;
      
      
   4. no more than thirty-two (32) of the Affordable Housing Units shall be studio rental units with a minimum unit size of 30 square metres and an average size of 35.4 square metres;
      
      
   5. the unit sizes described in recommendations 4.c.i to 4.c.iv may vary by a maximum of three percent (3%), but only as a result of reasonable adjustments which may be required for the purposes of accommodating final structural or mechanical design. All such adjustments must be made to the satisfaction of the Chief Planner and Executive Director, City Planning and the Executive Director, Housing Secretariat;
      
      
   6. the Affordable Housing Units shall all be located on one contiguous floor within the podium of the development;
      
      
   7. the layouts of the Affordable Housing Units shall be to the satisfaction of the Chief Planner and Executive Director, City Planning and the Executive Director, Housing Secretariat;
      
      
   8. the Affordable Housing Units shall be provided and maintained for a minimum period of ninety-nine (99 years) from the date the units are first occupied (the "Affordability Period");
      
      
   9. the initial rent (inclusive of utilities) charged to the first tenants of any Affordable Housing Units shall not exceed 100 percent of the average rent for the same bedroom type in the City of Toronto, as reported by Canada Mortgage and Housing Corporation in its most recent annual Rental Market Report;
      
      
   10. if an Affordable Housing Unit becomes vacant and is re-rented to a new tenant during the Affordability Period, the initial rent (inclusive of utilities) charged to the new tenant shall not exceed 100 percent of the average rent for the same bedroom type in the City of Toronto, as reported by Canada Mortgage and Housing Corporation in its most recent annual Rental Market Report;
       
       
   11. after the first year of occupancy of any Affordable Housing Units, the rent (inclusive of utilities) charged to tenants occupying such unit may be escalated annually by not more than the annual provincial rent guideline, regardless of whether such guideline is applicable to the units under the Residential Tenancies Act or any successor legislation governing residential tenancies in Ontario, until the tenancy ends;
       
       
   12. notwithstanding the annual rent increases permitted in ix. above, the rent (inclusive of utilities) charged to any tenants occupying an Affordable Housing Unit shall not be increased to an amount that exceeds 100 percent of the average rent for the same unit type in the City of Toronto, as reported by Canada Mortgage and Housing Corporation in its most recent annual Rental Market Report;
       
       
   13. at least six months in advance of any new Affordable Housing Units being made available for rent to the general public, the Owner shall develop and implement a Tenant Access Plan to ensure units are rented to eligible households in consultation with, and to the satisfaction of the Executive Director, Housing Secretariat;
       
       
   14. the new Affordable Housing Units shall be made ready and available for occupancy no later than the date by which seventy (70) percent of the new market dwelling units are available and ready for occupancy, or to the satisfaction of, the Chief Planner and Executive Director, City Planning and the Executive Director, Housing Secretariat;
       
       
   15. the Owner shall provide all tenants of the affordable rental dwelling units with access to, and use of, all indoor and outdoor amenities in the building in which such tenant resides at no extra charge;
       
       
   16. access to, and use of, these amenities shall be provided on the same terms and conditions as any other resident of the building in which the Affordable Housing Units are located, without the need to pre-book or pay a fee, unless specifically required as a customary practice for private bookings;
       
       
   17. the Owner shall provide all tenants of the Affordable Housing Units with laundry facilities on the same basis as other units within building in which the Affordable Housing Units are located at no extra charge; and
       
       
   18. the Owner shall provide all tenants of the Affordable Housing Units with air conditioning facilities on the same basis as other units within building in which the Affordable Housing Units are located at no extra charge; and
       
       
   19. the Owner shall provide all tenants of the Affordable Housing Units with access to permanent and visitor bicycle parking/bicycle lockers on the same terms and conditions as any other resident of the building in which the Affordable Housing Units are located, and in accordance with the Zoning By-law.
       
       
4. The Owner shall enter into an agreement with the Provider and the City, being the municipal housing project facility agreement (the "Contribution Agreement") referenced in Part 8, no later than 180 days after Zoning By-law Amendment(s) permitting the Development becomes final and binding or within such longer period of time as the City and the Owner may agree to, but in any case before Development Charges for the Affordable Housing Units would otherwise be due;
   
   
5. The Owner shall enter into an agreement of purchase and sale ("APS") for the conveyance of the Affordable Housing Units to the Provider and the City (with the City as a contingent transferee) at the discounted maximum total purchase price of $17,019,896 prior to the issuance of the first above grade building permit for the development, which APS shall be subject to the following terms:
   
   
   1. the APS shall be assignable by the City of Toronto to another Provider at the City of Toronto's sole discretion; and
      
      
   2. the City of Toronto shall not be liable to pay any deposit penalty, or liquidated damages to the Owner or the Provider in the event the City terminates the APS for any reason, including failure of the Provider to close on the transaction, a lack of funding to complete the transaction, or the City being unsuccessful in identifying an alternate Provider;
      
      
6. The Owner and the Provider will enter into a shared facilities agreement for 99 years, on the following terms:
   
   
   1. the shared facilities agreement will allocate costs proportionately based on each party's actual share of the shared facilities;
      
      
   2. the Owner shall discount 50% of the Provider's share of the shared facilities costs under the shared facilities agreement for 99 years;
      
      
   3. the Owner (including any condominium corporation or other assignee) shall not have the right to unilaterally amend the shared facilities agreement, nor shall the shared facilities agreement be amended to directly or indirectly increase the share of costs that the Provider is responsible for paying under the shared facilities agreement for the 99 year term; and
      
      
   4. the shared facilities agreement shall otherwise be on commercially reasonably terms.
      
      
7. if the Owner fails to enter into the APS as required or the conveyance of the Affordable Housing Units to the Provider does not close for any reason, the Owner shall provide and maintain the Affordable Housing Units in accordance with this Part 4.

5. City Council also direct that the following be secured in the Section 37 Agreement as a legal convenience to secure matters required to support the development:

a.  The Owner shall provide a minimum of 10 percent of all new units in the proposed development as three-bedroom units;

b.  The Owner shall provide a minimum of 30 percent of all new units in the proposed development as two-bedroom units;

c.  A privately owned publicly accessible open space (POPS) of approximately 200 square metres along Lake Shore Boulevard West and Windermere Avenue, whereby as a pre-approval condition to Site Plan Approval for the development, the Owner shall convey to the City, for nominal consideration, easement(s) along the surface of the lands, to the satisfaction of the City Solicitor, which shall constitute the POPS and any required public access easements to connect the POPS to adjacent POPS and/or public rights-of-way, where necessary; and the Owner shall own, operate, maintain and repair the POPS and install and maintain a sign, at its own expense, stating that members of the public shall be entitled to use the POPS at all times of the day and night, 365 days of the year; and the specific location, configuration and design of the POPS shall be determined in the context of a site plan approval, including retail/commercial spill out uses on terms and conditions satisfactory to the Chief Planner and Executive Director, City Planning, pursuant to Section 114 of the City of Toronto Act, 2006, and secured in a Site Plan Agreement with the City:

d. The Owner will construct and maintain the Development Site in accordance with Tier 1, Toronto Green Standard, and the Owner will be encouraged to achieve Tier 2, Toronto Green Standard, or higher,  consistent with the performance standards of Toronto Green Standards applicable at the time of the site plan application for each building on the Development Site;

e. The location of the amenity space will be determined through the Site Plan Approval process to the satisfaction of the Chief Planner and Executive Director, City Planning;

f. Implementation of all recommended mitigation measures included in all reports, studies, and plans submitted by the Owner, to the satisfaction of the Chief Planner and Executive Director, City Planning, in consultation with the appropriate City official;

g.  The Owner shall submit a comprehensive Construction Management Plan for each stage of the construction process, to the satisfaction of the General Manager, Transportation Services, the Chief Building Official and Executive Director, Toronto Building and the Ward Councillor. The Construction Management Plan will include, but not be limited to the following construction-related details: noise, dust, size and location of staging areas, location and function of gates, dates of significant concrete pouring, lighting details, vehicular parking and queuing locations, street closures, parking and access, refuse storage, site security, site supervisor contact information, and a communication strategy with the surrounding community, and any other matters requested by the General Manager, Transportation Services, in consultation with the Ward Councillor; 

 h.  The Owner shall submit financial contributions/payments in the form of a letter of credit or certified cheques, indexed upwards in accordance with the Construction Price Index from the date of the passing of the Zoning By-law Amendment and/or provide additional documentation for the implementation of a Transportation Demand Management (TDM) plan. These provisions include, but are not limited to:

i.          A payment of $50,000 for bike-share station implementation on-site or in the area surrounding the subject site;

ii.         A minimum of three (3) car-share spaces on-site;

iii.        One (1) car-share and/or bike-share membership per unit, offered for the first year of occupancy; and

iv.        A minimum of one (1) bike repair station/area provided on-site.

6. City Council approve the provision of financial incentives pursuant to the City's Open Door Affordable Housing Program in relation to the Affordable Housing Units as follows:

1. City Council authorize the 61 affordable rental units to be constructed on the lands known as 1978-2002 Lake Shore Boulevard West to be eligible for waivers of fees for planning application, building permit, parkland dedication and development charges exemptions.
   
   
2. City Council authorize an exemption from taxation for municipal and school purposes for 99 years, for the up to 61 affordable rental units to be constructed on the lands known as 1978-2002 Lake Shore Boulevard West.
   
   
3. City Council authorize the Executive Director, Housing Secretariat to negotiate and enter into, on behalf of the City, a municipal housing project facility agreement (the "Contribution Agreement") with Winlake Developments Limited (or a related corporation) and/or Community Affordable Housing Solutions (or a related corporation), or a non-profit housing provider Owner approved by the Executive Director, Housing Secretariat, at their sole discretion (the "Provider"), for the development of the affordable housing to be constructed on the lands known as 1978-2002 Lake Shore Boulevard West, to secure the financial assistance being provided and to set out the terms of the operation of the new affordable rental housing, on terms and conditions satisfactory to the Executive Director, Housing Secretariat and in a form approved by the City Solicitor.

8. City Council authorize the Controller to cancel or refund any taxes paid after the effective date of the exemption from taxation for municipal and school purposes as set out in the Contribution Agreement.

9. City Council authorize the Executive Director, Housing Secretariat to execute, on behalf of the City, any security or financing documents required by the Owner or the Provider to secure construction and conventional financing and subsequent refinancing, including any postponement, tripartite, confirmation of status, discharge or consent documents of any City security documents where and when required during the term of the municipal housing facility agreement, as required by normal business practices, and provided that such documents do not give rise to financial obligations on the part of the City that have not been previously approved by Council.

10. City Council authorize the City Solicitor and appropriate City staff to take such necessary steps, as required, to implement City Council's decision.

11. City Council authorize the City to be a party to the agreements of purchase and sale contemplated to be entered into for the Affordable Housing Units as a contingent transferee, in order to ensure the benefit of the Affordable Housing Units is secured for the intended purposes until the transaction is complete.

12. City Council authorize the Executive Director, Housing Secretariat to execute the agreements of purchase and sale and any other documents required to complete the purchase of the Affordable Housing Units, including an assignment of the agreements of purchase and sale for the Affordable Housing Units to the Provider.

13. City Council authorize the Executive Director, Housing Secretariat to administer and manage the transaction relating to the Affordable Housing Units in consultation with the Executive Director, Corporate Real Estate Management, including the provision of any consents, approvals, waivers and notices, provided that they may, at any time, refer consideration of any such matters (including their content) to City Council for consideration and direction, all as may be required.

14. City Council request the Director, Community Planning, Toronto East York District, to confer with the previously established 1978-2002 Lake Shore Working Group on the future site plan control application for this development.

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

This application proposes to amend the Zoning By-law 569-2013 to permit a mixed-use building with two towers, 20 and 36-storeys on a 5-storey base building at 1978-2002 Lake Shore Boulevard West with 611 residential units, 154 square metres of retail uses at grade and 262 parking spaces.

The proposed development is consistent with the Provincial Policy Statement (2020) and conforms with A Place to Grow: Growth Plan for the Greater Golden Horseshoe (2020), conforms to the relevant policies of the Official Plan and maintains the intent and purpose of the applicable design guidelines.

This report reviews and recommends approval of the application to amend the Zoning By-law. The report also recommends approval of Open Door Affordable Rental Housing Program incentives for 61 new affordable rental homes in the development.