Item - 2022.TE34.33

The Toronto and East York Community Council recommends that:

1. City Council amend the Railway Lands Central Secondary Plan, for the lands at 315 and 325 Front Street West and the rail corridor between Blue Jays Way and John Street/Rod Robbie pedestrian bridge, substantially in accordance with the draft Official Plan Amendment attached as Attachment 6 to the report (June 15, 2022) from the Director, Community Planning, Toronto and East York District.

2. City Council amend the Zoning By-law for the lands at 315 and 325 Front Street West substantially in accordance with the draft Zoning By-law Amendment attached as Attachment No. 7 to the report (June 15, 2022) from the Director, Community Planning, Toronto and East York District.  

3. 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.

4. City Council authorize the City Solicitor to submit the necessary bill(s) to implement the foregoing recommendation(s) 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.

5. 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:

i. the design, construction, finishing, maintenance and provision of at least 32 affordable rental housing dwelling units comprised of at least 2,146 square metres of Gross Floor Area on the lands at 315 and 325 Front Street West (the "Affordable Housing Units"), all to the satisfaction of the Chief Planner and Executive Director, City Planning, in consultation with the Executive Director, Housing Secretariat, in accordance with the following terms:

aa. at least 10 percent of the Affordable Housing Units shall be three-bedroom rental units with an average size of 102.79 square metres;

bb.  at least 30 percent of the Affordable Housing Units shall be two-bedroom rental units with an average size of 86.40 square metres;

cc. at least 50 percent of the Affordable Housing Units shall be one-bedroom rental units with an average size of 53.79 square metres;

dd. no more than 10 percent of the Affordable Housing Units shall be studio rental units with an average size of 37.75 square metres;

ee. the minimum unit sizes shall be to the satisfaction of the Chief Planner and Executive Director, City Planning, in consultation with the Executive Director, Housing Secretariat and shall reflect the minimum and average sizes of the market units in the new mixed use building;

ff. the Affordable Housing Units shall be provided in Phase 1 of the development;

gg.  the location and 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;

hh. the owner shall provide and maintain the Affordable Housing Units as secured rental dwelling units for a minimum period of 40 years beginning from the date that each such unit is first occupied (the "Affordability Period"). During the Affordability Period, no Affordable Housing Unit shall be registered as a condominium unit or any other form of ownership housing that provides a right to exclusive possession of a dwelling unit, including life lease or co-ownership, and no application shall be made to demolish any Affordable Housing Unit or to convert any Affordable Housing Unit to a non-residential rental purpose. Upon the expiration of the Affordability Period, the owner shall continue to provide and maintain the units as rental dwelling units, unless and until such time as the owner has applied for, and obtained, all approvals necessary to do otherwise;

ii. 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;

jj. 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;

kk. after the first year of occupancy of any Affordable Housing Units and for the duration of the Affordability Period, the rent (inclusive of utilities) charged to the first tenants or new 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;

ll. notwithstanding the annual rent increases permitted in kk. above, the rent (inclusive of utilities) charged to any first tenants or new tenants occupying an Affordable Housing Unit during the Affordability Period 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;

mm. the City's Centralized Affordable Housing Access System will be used to advertise and select tenants provided it is in place.  In addition, at least six months in advance of any new Affordable Housing Units being made available for rent, the owner shall develop and implement an Access Plan which will outline how units will be rented to eligible households in consultation with, and to the satisfaction of, the Executive Director, Housing Secretariat;

nn. the new Affordable Housing Units shall be made ready and available for occupancy no later than the date by which seventy percent (70%) of the new dwelling units in the proposed development 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;

oo. the owner shall provide all tenants of the Affordable Housing Units with access to, and use of, all indoor and outdoor amenities in the development at no extra charge and on the same terms and conditions as any other resident of the mixed use building, without the need to pre-book or pay a fee, unless specifically required as a customary practice for private bookings;

pp. the owner shall provide all tenants of the Affordable Housing Units with ensuite laundry facilities at no extra charge;

qq. 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; and

rr.  prior to the issuance of the first building permit for a residential use on any part of the site, including permits for excavation and shoring, the owner shall enter into a municipal housing facility agreement with the City (the "Contribution Agreement"), for the Affordable Housing Units that are approved for Open Door incentives, on terms satisfactory to the Executive Director, Housing Secretariat and in a form satisfactory to the City Solicitor. The owner shall provide such Affordable Housing Units in accordance with such agreements(s);

ii. the design, construction, finishing, commissioning and equipping of a non-profit licensed child care facility to be located in the second floor of the building in Phase 1, to the satisfaction of the Chief Planner and Executive Director, City Planning, and the General Manager, Children's Services, to accommodate at a minimum 62 children, including infants, toddlers and preschoolers, comprising a minimum of 1,041 square metres of interior space and a minimum of 398 square metres of exterior space adjacent to the interior space including outdoor storage and six (6) parking spaces reserved for the exclusive use of the child care facility for pick-up/drop-off operations, (the "Child Care Centre"), including:

aa. the strata conveyance of the Child Care Centre at no cost to the City, in fee simple, prior to first occupancy of any building within Phase 1 of the development;

bb. on, or prior to the conveyance of the Child Care Centre, the City and the owner shall enter into and register on title to the appropriate lands an Easement and Cost Sharing Agreement for nominal consideration and at no cost to the City, that is in a form satisfactory to the City Solicitor. The Easement and Cost Sharing Agreement shall address and/or provide for the integrated support, use, operation, maintenance, repair, replacement and reconstruction of certain shared facilities, and the sharing of costs in respect thereof, or portions of the subject lands to be owned by the City and the owner as they pertain to the Child Care Centre;

cc. a letter of credit in an amount sufficient to guarantee 120 percent of the estimated cost of the design, construction and handover of the Child Care Centre complying with the specifications and requirements of the Section 37 Agreement, to the satisfaction of the General Manager, Children's Services and the Chief Financial Officer and Treasurer, will be provided to the City prior to the issuance of the first above grade building permit for any building on Phase 1 of the development, to secure the Child Care Centre;

dd. a one-time cash contribution in the amount of $150,000.00 to be used toward start-up costs to be paid prior to the issuance of the first above grade building permit for any building within Phase 1 of the development;

ee. a one-time cash contribution in the amount of $150,000.00 to the Child Care Capital Reserve Fund, to replace appliances and large equipment due to wear and tear, to be paid prior to the issuance of the first above grade building permit for any building within Phase 1 of the development;

ff.  all financial contributions 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;

gg. six (6) dedicated parking spaces will be provided free-of-charge for the exclusive use of the child care facility for pick-up/drop-off operations. These spaces to be assigned accordingly, and be located in close proximity to the elevators providing the shortest route between the underground parking garage and the Child Care Centre, which shall be barrier-free. A parking pass will be provided for officials conducting inspections of the child care facility;

hh. any other details related to the Child Care Centre such as timing, location, obligations and any matters necessary to implement the Child Care Centre, which have not been addressed in the recommendations of this report will be finalized between the owner and the City and will be substantially in accordance with the City of Toronto's Child Care Development Guidelines (2021) and to the satisfaction of the Executive Director, Corporate and Real Estate Management, the General Manager, Children's Services, and the Chief Planner and Executive Director, City Planning, in consultation with the City Solicitor;

iii. prior to the issuance of the first above-grade building permit, the owner shall make a contribution in the amount of $7,000,000.00 to be allocated toward the following capital improvements at the discretion of the Chief Planner and Executive Director, City Planning in consultation with the Ward Councillor:

aa.  a cash contribution of $6,000,000.00 towards land acquisition for parkland and/or capital improvements to parkland in the vicinity of the site; and

bb.  $1,000,000.00 for public art on the lands to be secured by a letter of credit in the City's standard form. The owner shall submit a Public Art Plan, prior to site plan approval, that is in accordance with the City's Percent for Public Art Guidelines to the satisfaction of the Chief Planner and Executive Director, City Planning and details of the public art process to the satisfaction of City Council. 

iv. All financial contributions in Recommendation 5.a.iii. aa. and bb. 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;      

v. In the event the contributions referred to in Recommendation 5a) iii. aa. and bb. above have not been used for the intended purpose within three (3) years of the By-law 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;

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

i. The owner shall construct, provide and maintain a Privately Owned Publicly-Accessible Space ("POPS") at 315 and 325 Front Street West with a minimum area of 400 square metres at the northeast area of the site along Front Street West in the location generally identified in the Zoning By-law Amendment, with the specific configuration and design of the POPS to be determined and secured in the context of Site Plan Approval for the development to the satisfaction of the Chief Planner and Executive Director, City Planning in consultation with the Ward Councillor; and

ii. The owner shall construct, provide and maintain a Privately Owned Publicly-Accessible Space ("POPS") at 315 and 325 Front Street West with a minimum area of 200 square metres near the entrance to the winter garden along Front Street West in the location generally identified in the Zoning By-law Amendment, with the specific configuration and design of the POPS to be determined and secured in the context of Site Plan Approval for the development to the satisfaction of the Chief Planner and Executive Director, City Planning, in consultation with the Ward Councillor; and

iii. Prior to the occupancy for any portion of the Phase 2 portion of the development, except as otherwise agreed by the Chief Planner Executive Director, City Planning, due to unforeseen delays (eg. Weather), prepare all documents and convey to the satisfaction of the Chief Planner and Executive Director, City Planning and the City Solicitor, in priority, and for nominal consideration, a public access easement in perpetuity in favour of the City over the two Privately Owned Publicly-Accessible Spaces set out in Recommendation 5b) i. and ii. above with terms set out in the Section 37 Agreement satisfactory to the Chief Planner and Executive Director, City Planning and the City Solicitor;

iv. the owner shall be responsible for the design, construction, provision and maintenance of a PATH connection through the proposed development, including the conveyance at nominal cost to the City of easement(s) for use by the general public, and shall provide knock-out panels in the lower levels of the development to provide for the extension of the PATH to the east and north of the site, with the details of the PATH connection and knock-out panels to be determined and secured at Site Plan Approval; 

v. the owner shall provide a minimum 3.0 metre wide public pedestrian easement to the City, on terms and conditions satisfactory to the City Solicitor, in a location generally described as a north to south access over the eastern portion of the site, from the proposed privately owned publicly-accessible space referred to in Recommendation 5. b) ii. above to the walkway adjacent to the south of the development, with details of the location and final design to be determined and secured in the context of Site Plan Approval for the development to the satisfaction of the Chief Planner and Executive Director, City Planning, and that such easement lands be maintained by the owner at its sole cost. The conveyance of the easement shall be at no cost to the City to the satisfaction of the City Solicitor and the owner shall be responsible to prepare, submit to the City for approval and deposit all required reference plans to describe the easement;

vi. prior to the commencement of any excavation or shoring work, the owner shall submit a Construction Management Plan 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 and thereafter in support of the development, will implement the Plan during the course of construction.  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 Chief Planner and Executive Director City Planning and General Manager, Transportation Services, in consultation with the Ward Councillor;

vii. provisions that require, prior to the commencement of any demolition, excavation and shoring work, and prior to the first building permit the owner shall provide required easements and technical reports to the City for the purposes of reconstruction, maintenance, repair, protection and monitoring of the Transmission Watermain that traverses the site to the satisfaction of the Chief Engineer and Executive Director, Engineering and Construction Services, as set out in Attachment 8 to the report (June 15, 2022) from the Director, Community Planning, Toronto and East York District;  

viii. provisions that require that the owner provide easements in relation to maintenance of the Blue Jays Way and John Street/Rod Robbie Pedestrian bridges.

ix. The owner shall submit an updated Design and Engineering Analysis of the Rail Corridor Overbuild Structure, updated Air Quality Study, and a Sight Line Analysis for the John Street Interlocking Tower, at the time of Site Plan Approval for the overbuild structure to the satisfaction of the Chief Planner and Executive Director, City Planning;

x. The owner shall submit updated Crash Wall Design Reports and Drawings, and an updated Noise and Vibration Impact Study, at the time of Site Plan Approval for the development, to the satisfaction of the Chief Planner and Executive Director, City Planning; and

xi. The owner shall 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 the Toronto Green Standards, applicable at the time of site plan application for each building on the site.

6.  City Council authorize the Executive Director, Housing Secretariat, to negotiate and execute a municipal housing facility agreement (the "Contribution Agreement") with the owner for the development of the Affordable Housing Units at 315 and 325 Front Street West to secure the financial assistance being provided and set out the terms of the operation of the Affordable Housing Units, on terms and conditions acceptable to the Executive Director, Housing Secretariat, in a form satisfactory to the City Solicitor.

7. 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:

a. City Council exempt the 32 affordable rental dwelling units at 315 and 325 Front Street West from taxation for municipal and school purposes for the 40-year Affordability Period; and

b. City Council authorize the 32 new affordable rental dwelling units at 315 and 325 Front Street West to be eligible for waivers of fees for planning applications, building permits and parkland dedication, and for development charges exemptions, unless already paid.

8.City Council authorize the Executive Director, Housing Secretariat, on behalf of the City, to execute any security of financing documents, or any other documents required to facilitate the delivery of the Affordable Housing Units, including any documents required by the owner to complete pre-development activities, construction and secure conventional financing, where required, including any postponement, confirmation of status, discharge or consent 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.

9.  City Council authorize all parkland dedication cash-in-lieu funds collected for 315 and 325 Front Street West, pursuant to Section 42 of the Planning Act to be allocated to contribute to new, expanded, and improved parkland opportunities within the vicinity that will produce new parkland with significant City-wide impact.

10. 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.

11. City Council, pursuant to subsection 45(1.4) of the Planning Act, R.S.O. 1990, c. P.13, permit applications for minor variances from the former Railway Lands Central Zoning By-law 1994-0806 in respect of the development at 315 and 325 Front Street West before the second anniversary of the day on which the Zoning By-law amendment in Recommendation 2 above is enacted.

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.

The application proposes to amend the Railway Lands Central Secondary Plan and Railway Lands Central Zoning By-law to permit a mixed-use development with office, residential and retail uses in four buildings, including two office buildings and two residential buildings.  The application also proposes to permit park and other open spaces uses over the rail corridor in the area between Blue Jays Way and the John Street/Rod Robbie pedestrian bridge. The office buildings are proposed to have heights of 50 storeys (262 metres) and 60 storeys (303 metres). The residential buildings are proposed to have heights of 50 storeys (186 metres) and 52 storeys (192 metres). The application proposes 832 rental dwelling units, of which 32 are proposed as affordable rental units. A total gross floor area of 340,422 square metres is proposed including 260,610 square metres of office floor area and 11,941 square metres of retail floor area. A child care centre accommodating 62 children is proposed.  The application also includes two privately owned publicly-accessible spaces fronting onto Front Street West. A four-level underground garage and 688 vehicle and 2,007 bicycle parking spaces are proposed.

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), and conforms with the Official Plan, Downtown Secondary Plan and Railway Lands Central Secondary Plan.  The proposal presents an appropriate built form that is compatible with the surrounding context. The development includes purpose built rental housing, and significant office floor area expanding the Financial District promoting economic investment, in keeping with the Official Plan and Downtown Secondary Plan. The Official Plan amendment also provides opportunities for parkland and other open space uses over the rail corridor between Blue Jays Way and John Street/Rod Robbie Pedestrian bridge in keeping with the Downtown Secondary Plan and Railway Lands Central Secondary Plan.  Approval of the development would also secure a number of community benefits including new affordable housing units consistent with the Official Plan.

This report reviews and recommends approval of the proposed Official Plan and Zoning By-law Amendments. The report also recommends approval of Open Door Affordable Rental Program incentives for 32 new affordable rental homes in the development.