Item - 2022.TE34.35

The Toronto and East York Community Council recommends that:

1. City Council amend Harbourfront Zoning By-law 289-93, as amended, for the lands at 200, 208, 218, 228 and 230 Queens Quay West and 8 York Street West and By-law No. 93-81 for the lands at 207 and 211 Queens Quay West substantially in accordance with the draft Zoning By-law Amendment attached as Attachment 6 (June 13, 2022) to the report from the Director, Community Planning, Toronto and East York District, amended to reflect Recommendation 4.b.i. below.

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(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 issue until such time as the Section 37 Agreement is executed and registered.

4. 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 76 affordable rental housing dwelling units on the lands at 200 Queens Quay West (the "Affordable Housing Units") comprised of at least ten (10%) percent of the total residential Gross Floor area of the new mixed use building, 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 forty (40%) percent of the Affordable Housing Units shall be a two-bedroom or a three-bedroom rental dwelling unit, where at least ten (10%) percent of the Affordable Housing Units shall be a three-bedroom rental dwelling unit;

bb.  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, and in no event be less than the minimum and average sizes of the market units in the new 59-storey mixed use building;

cc. one-bedroom Affordable Housing Units shall have a minimum average unit size of 50 square metres, two-bedroom Affordable Housing Units shall have a minimum average unit size of 64.5 square metres, and three-bedroom Affordable Housing Units shall have a minimum average unit size of 83.5 square metres;

dd. 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;

ee. 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;

ff. the initial rent (inclusive of utilities) charged to the first tenants of any Affordable Housing Units shall not exceed 100% 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;

gg. 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% 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;

hh. 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;

ii. notwithstanding the annual rent increases permitted in hh. 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 pecent 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;

jj. The City's Centralized Affordable Housing Access System will be used to advertise and select tenants, provided it is in place, unless otherwise agreed to by the Executive Director, Housing Secretariat.  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;

kk. 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 59-storey mixed use building 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;

ll. 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;

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

nn. 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, subject to a maximum charge to the satisfaction of the Chief Planner and Executive Director, City Planning and in accordance with the Zoning By-law; and

oo. 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 ("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 agreement(s).

ii.  the owner shall make a cash contribution in the amount of $250,000.00 to be allocated toward the following capital improvements at the discretion of the Chief Planner and Executive Director, City Planning in consultation wih the Ward Councillor;

aa. prior to the issuance of the first above-grade building permit a cash contribution of $160,000.00 toward parkland improvements for parks in the vicinity of the site; and

bb. at such time as the By-law comes into full force and effect, a cash contribution of $90,000.00 toward the Bentway Waterfront Reconnect project for improvements under the Gardiner Expressway at Lower Simcoe Street;

which contributions shall be indexed upwardly in accordance with the Statistics Canada Construction Price Index for Toronto, calculated from the date of the passing of the Zoning By-law Amendment to the date the payment is made; and

iii. in the event the cash contributions referred to in Recommendation 4.a) ii. 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 the development:

i. The owner shall convey to the City, an on-site parkland dedication contemplated by Section 42 of the Planning Act, having a minimum size of 488 square metres, situated in the west portion of the site, as shown generally on the Site Plan drawing A1.02 prepared by Walllman Architects, revision 3 dated March 18, 2022, to the satisfaction of the General Manager, Parks, Forestry and Recreation, and in accordance with the terms and conditions of parkland conveyance and construction as set out in the draft Zoning By-law Amendment in Attachment 6 to the report (June 13, 2022) from the Director, Community Planning, Toronto and East York District, including provision that, based on a waiver of parkland dedication requirements for the Affordable Housing Units in accordance with Recommendation 6.b. below, the conveyance shall fully satisfy the owner’s existing and future obligations with respect to all parkland conveyance and cash in lieu requirements with respect to the proposed development in accordance with the Zoning By-law Amendment;" and

ii. acceptance of the on-site parkland dedication is subject to the owner transferring the parkland to the City free and clear, above and below grade, of all easements, encumbrances, and enroachments, in an acceptable environmental condition; the owner may 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;

iii. prior to the earlier of the commencement of any excavation or shoring work, and issuance of the first building permit, the owner shall submit a Construction Management Plan to the satisfaction of the Chief Planner and Executive Director, City Planning, the General Manager of 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;

iv.  provisions that require, prior to site plan approval the owner shall make satisfactory arrangements with the Chief Engineer and Executive Director, Engineering and Construction Services to secure, pay for and construct improvements to the sanitary infrastructure in connection with the Functional Servicing and Stormwater Management Report, as accepted by the Chief Engineer and Executive Director, Engineering and Construction Services, should it be determined that upgrades and/or improvements are required to such infrastructure to support the development;

v. provisions that require the owner to provide a minimum of 125 non-exclusive parking spaces within the parking garage for the development to address off-site parking obligations for properties at 208 and 218 Queens Quay West and 8 York Street, 207 and 211 Queens Quay West and 250, 260, and 270 Queens Quay West, on terms set out in the Section 37 agreement and to be secured in the context of Site Plan Approval to the satisfaction of the Director Community Planning, Toronto and East York District; and

vi. 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.

5.  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 200 Queens Quay 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.

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:

a) City Council exempt the up to 79 affordable rental dwelling units at 200 Queens Quay West from taxation for municipal and school purposes for the 40-year Affordability Period;

b) City Council authorize the up to 79 new affordable rental dwelling units at 200 Queens Quay West  to be eligible for waivers of fees for planning applications, building permits and parkland dedication, and for development charges exemption, unless already paid. 

7. City Council authorize the Executive Director, Housing Secretariat, on behalf of the City, to execute any security or 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.

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. In the event the owner elects to design and construct Above Base Park Improvements, 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.

10. 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 200 Queens Quay West 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 30, 2022 and notice was given in accordance with the Planning Act.

This application proposes to amend the Harbourfront Zoning By-law 289-93, as amended, to permit the redevelopment of the property at 200 Queens Quay West currently occupied with an 8 storey above-grade parking garage and provide for a new mixed-use development including residential, retail and public park uses. The development proposes a 59-storey building and 60,258 square metres of gross floor area of which 298 square metres is proposed as retail space. A total of 997 dwelling units are proposed, of which at least 76 and up to 79 are proposed as affordable rental housing units. A four level below grade garage is proposed with 340 vehicle parking spaces and 1,005 bicycle parking spaces. A 488 square metre public park is proposed on-site at the southeast corner of Lower Simcoe Street and Harbour Street.

The application also proposes to amend parking requirements within the zoning by-law for nearby properties where this parking is situated within the existing garage on the site.  This includes removing the requirement for recreational (public) parking for the subject site, 208 and 218 Queens Quay West and 8 York Street (Waterclub condominiums) and at 228 and 230 Queens Quay West (Riveriera condominiuns).  A reduction in the amount of parking for 207 and 211 Queens Quay West (Queens Quay Terminal Building) is also proposed.  Parking for the Queens Quay Terminal building as well as visitor parking for nearby properties including 208, 218 Queens Quay West and 8 York Street and 250 - 270 Queens Quay West, is proposed to continue to be provided within the new below-grade garage on the site.

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 and Central Waterfront Secondary Plan. 

The proposal presents an appropriate built form that is compatible with the surrounding context. The development includes affordable rental housing, as well as on-site public parkland and public realm enhancements in keeping with the Official Plan and Central Waterfront Secondary Plan.  Approval of the development would  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 Zoning By-law Amendment. The report also recommends the approval of Open Door Affordable Rental Housing Program incentives for at least 76 and up to 79 new affordable rental homes in the development.