Item - 2022.TE34.49

The Toronto and East York Community Council recommends that:

1. City Council amend the Official Plan for the lands at 353-355 Sherbourne Street and 157 Carlton Street substantially in accordance with the draft Official Plan Amendment attached as Attachment 5 to the report (June 13, 2022) from the Director, Community Planning, Toronto and East York District.

2. City Council amend City of Toronto Zoning By-law 569-2013 for the lands at 353-355 Sherbourne Street and 157 Carlton Street, substantially in accordance with the draft Zoning By-law Amendment attached as Attachment 6 to the report (June 13, 2022) from the Director, Community Planning, Toronto and East York District.

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 be issued until such time as the Section 37 Agreement and the Heritage Easement Agreement is/are executed and registered.

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

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

a. The owner shall construct, provide, and maintain a privately owned publicly-accessible open space on the lands, having a minimum size of 250 square metres along the Sherbourne Street and Carleton Street frontages of the site to the satisfaction of the Chief Planner and Executive Director, City Planning. 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 privately owned publicly accessible open space and any required public access easements to connect the privately owned publicly accessible open space to adjacent privately owned publicly accessible open space and/or public rights-of-way, where necessary. The owner shall own, operate, maintain and repair the privately owned publicly accessible open space and install and maintain a sign, at its own expense, stating that members of the public shall be entitled to use the privately owned publicly accessible open space at all times of the day and night, 365 days of the year. The specific location, configuration, design and timing of conveyance of the privately owned publicly accessible open space shall be determined in the context of site plan approval pursuant to Section 114 of the City of Toronto Act, 2006, and secured in a Site Plan Agreement with the City;

b. The owner shall provide and maintain thirty-one (31) new affordable rental dwelling units on the lands at 353-355 Sherbourne Street and 157 Carlton Street (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:

i. Three (3) of the Affordable Housing Units shall be three-bedroom rental units with an average unit size that is no smaller than the average unit size of a non-affordable three-bedroom dwelling unit within the development;

ii. Nine (9) of the Affordable Housing Units shall be two-bedroom rental units with an average unit size that is no smaller than the average unit size of a non-affordable two-bedroom dwelling unit within the development;

iii. Eleven (11) of the Affordable Housing Units shall be one-bedroom rental units with an average unit size that is no smaller than the average unit size of a non-affordable one-bedroom dwelling unit within the development;

iv. The remaining eight (8) Affordable Housing Units shall be studio rental units with an average unit size that is no smaller than the average unit size of a non-affordable studio dwelling unit within the development;

v. The location and layouts of the Affordable Housing Units within the development shall be to the satisfaction of the Chief Planner and Executive Director, City Planning and the Executive Director, Housing Secretariat;

vi.  The owner shall provide and maintain the Affordable Housing Units as secured rental housing 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 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;

vii. the owner shall provide and maintain the Affordable Housing Units with affordable rents for the Affordability Period. 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;

viii.  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;

ix.  after the first year of occupancy of any Affordable Housing Units, 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;

x. notwithstanding the annual rent increases permitted in x. above, the rent (inclusive of utilities) charged to any first tenants or new 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;

xi. 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;

xii. 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 erected within the 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.

xiii. 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;

xiv. the owner shall provide all tenants of the Affordable Housing Units with laundry facilities and air conditioning at no extra charge;

xv. 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;

c. The owner shall construct and maintain the development of the site in accordance with Tier 3 of the Toronto Green Standard Version 4.0, or the equivalent in the Toronto Green Standard version applicable at the time of the site plan application for each building on the site;

d. As a pre-approval condition to site plan approval, the owner shall convey lands to widen the existing Central Hospital Lane by 0.87 metres through a conveyance to the City along the east limit of the lands; and

e. 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);

6. City Council authorize the Executive Director, Housing Secretariat, to negotiate and execute a municipal housing facility agreement (Contribution Agreement) with the owner for the provision of Open Door Incentives, for 31 affordable rental dwelling units at 353-355 Sherbourne Street and 157 Carlton Street to secure rents at or below 100 percent of the average rent by bedroom type in the City of Toronto, as reported by Canada Mortgage and Housing Corporation in its most recent annual Rental Market Report, for a minimum period of 40 years, 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 31 affordable rental dwelling units at 353-355 Sherbourne Street and 157 Carlton Street from taxation for municipal and school purposes for the 40-year term of the municipal housing facility agreement; and

b. City Council authorize the 31 new affordable rental dwelling units at 353-355 Sherbourne Street and 157 Carlton Street 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 or financing documents, or any other documents required to facilitate the delivery of the affordable rental housing dwelling 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 the Controller to cancel or refund any taxes paid pursuant to the by-law exempting the property from taxation if authority is given for an exemption from taxation as set out in Recommendation 7 above.

10. City Council authorize the City Solicitor and appropriate City staff to take such actions as are required to implement City Council's decision, including the execution and implementation of appropriate agreements.

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 a 12-storey (42-metre) mixed-use building at 353-355 Sherbourne Street and 157 Carlton Street. The building would contain 100 rental residential units (7,942 square metres of residential gross floor area), of which 30%, or 31 dwelling units, would be affordable housing, as well as 3,087 square metres of community space. The proposal entails the removal of two components of the existing heritage-designated St. Luke's United Church (the narthex and gymnasium) while retaining the rest of the building. A 250-square metre Privately Owned Publicly Accessible Space (POPS) is proposed on the Sherbourne Street frontage.         

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). This report recommends approval of the application to amend the Official Plan and Zoning By-law. The report also recommends approval of Open Door Affordable Rental Housing Program incentives for 31 new affordable rental homes in the development.