Item - 2023.CC5.30

City Council on March 29, 30 and 31, 2023, adopted the following:

1. City Council adopt the confidential instructions to staff in Confidential Attachment 1 to the report (March 16, 2023) from the City Solicitor.

2. City Council adopt the recommendations contained in the Confidential Attachment 1 to the report (March 9, 2023) from the City Solicitor.

3. City Council authorize the public release of the confidential instructions to staff in Confidential Attachment 1 and Confidential Appendix 1 to the report (March 16, 2023) from the City Solicitor.

4. City Council authorize the public release of:

a. the recommendations contained in Confidential Attachment 1 to the report (March 9, 2023) from the City Solicitor with the remainder of Confidential Attachment 1 to remain confidential as it contains information that is subject to solicitor-client privilege; and

b. Confidential Appendix 1 to the report (March 9, 2023) from the City Solicitor and Confidential Appendix 2 to the report (March 9, 2023) from the City Solicitor.

5. City Council direct that the balance of Confidential Attachment 1 to the report (March 16, 2023) from the City Solicitor remain confidential at the discretion of the City Solicitor, as it contains advice and information which is subject to solicitor-client privilege and information regarding litigation.

6. City Council direct that the balance of Confidential Attachment 1 to the report (March 9, 2023) from the City Solicitor is to remain confidential at the discretion of the City Solicitor, as it contains advice which is subject to solicitor-client privilege.

The confidential instructions to staff in Confidential Attachment 1 to the report (March 16, 2023) from the City Solicitor and the confidential instructions to staff in Confidential Attachment 1 to the report (March 9, 2023) from the City Solicitor were adopted by City Council and are now public as follows:

1. City Council accept the without prejudice offer to settle dated March 15, 2023, set out in Confidential Appendix 1 to the report (March 16, 2023) from the City Solicitor, and City Council direct the City Solicitor to attend at the Ontario Land Tribunal in support of the settlement.

2. City Council allow the owner of 212 - 220 King Street West (the "Site") to construct and provide eleven (11) affordable housing rental dwelling units (the "affordable units") as part of the development, to the satisfaction of the Chief Planner and Executive Director, City Planning, as an in-kind contribution pursuant to subsection 37(6) of the Planning Act, in accordance with the following terms:

a. the provision of the affordable units shall be provided in accordance with the terms and conditions set out in this Part 2 and on such other terms and conditions as are deemed appropriate by the Chief Planner, and Executive Director, City Planning, the Executive Director, Housing Secretariat, and the City Solicitor, in consultation with the Ward Councillor;

b. the owner shall provide and maintain the affordable units as two-bedroom units as follows:

i. the affordable units shall be provided in contiguous groups of at least 6 dwelling units;

ii. the average size or residential Gross Floor Area of the affordable units will be no less than the average size of all the two-bedroom market units in the proposed development; and

iii. the general configuration and layout of the affordable units shall be to the satisfaction of the Chief Planner and Executive Director, City Planning.

c. the owner shall provide and maintain the affordable units as rental dwelling units for a minimum of 25 years, beginning with the date each such unit is first occupied. No affordable unit shall be registered as a condominium or any other form of ownership such as life lease or co-ownership which provide a right to exclusive possession of a dwelling unit, and no application for conversion for non-rental housing purposes, or application to demolish any affordable unit shall be made for at least 25 years from the date of first occupancy; upon the expiration of the 25 year period, the owner shall continue to provide and maintain the affordable units as rental dwelling units, unless and until such time as the owner has applied for and obtained all approvals necessary to do otherwise;

d. the owner shall provide and maintain the affordable units, at no more than eighty percent of average market rent for a minimum of 25 years, beginning with the date each such unit is first occupied; and

e. the owner shall provide and maintain the affordable units at affordable rents for at least 25 years, beginning with the date that each such unit is first occupied. During the first 25 years of occupancy, increases to initial rents charged to tenants occupying any of the affordable units shall be in accordance with the Residential Tenancies Act and shall not exceed the Provincial rent guideline.

3. City Council attribute a value to the in-kind contribution set out in Part 2 above equal to 76 percent of 4 percent of the value of the land (net of any exclusions or exemptions authorized under the Community Benefits Charge By-law), as determined the day before the day the building permit is issued in respect of the development and direct staff to advise the owner of such valuation.

4. City Council authorize the Chief Planner and Executive Director, City Planning to enter into an agreement pursuant to subsection 37(7.1) of the Planning Act (the "In-kind Contribution Agreement") to address the provision of the in-kind contribution identified in Part 2 above to the satisfaction of the Chief Planner and Executive Director, City Planning and the City Solicitor, with such agreement to be registered on title to the 212-220 King Street West lands, which agreement shall be evidence of arrangements for the provision of the in-kind contribution that are satisfactory to City Council.

5. City Council instruct the City Solicitor to request the Ontario Land Tribunal to withhold its Order until the City Solicitor has advised that:

a. the Official Plan and Zoning By-law Amendments have been prepared in a content and form satisfactory to the City Solicitor and the Chief Planner and Executive Director, City Planning;

b. the owner has addressed the comments in the Engineering and Construction Services memo dated August 4, 2022, or any update to that memo, to the satisfaction of the Chief Engineer and Executive Director, Engineering and Construction Services; and

c. the owner has entered into the In-kind Contribution Agreement pursuant to section 37(7.1) of the Planning Act to secure the in-kind contribution referenced in Part 2 above.

6. City Council approve the alterations to the designated heritage properties at 212, 214 and 220 King Street West, in accordance with Section 33 of the Ontario Heritage Act, to allow for the construction of a new 250 metre tall mixed use building substantially in accordance with the plans and drawings dated January 6, 2023 and the Heritage Impact Assessment dated January 6, 2023 revised V2, prepared by Philip Goldsmith Architect all subject to and in accordance with a Conservation Plan satisfactory to the Senior Manager, Heritage Planning and subject to the following conditions:

a. that prior to any Ontario Land Tribunal Order being issued in connection with the Official Plan Amendment and Zoning By-law Amendment appeals for 212­220 King Street West the owner shall complete the following matters all to the satisfaction of the City Solicitor:

1. enter into a Heritage Easement Agreement with the City for the properties at 212 and 220 King Street West substantially in accordance with plans and drawings dated January 6, 2023 and the Heritage Impact Assessment dated January 6, 2023 revised V2 prepared by Philip Goldsmith Borgal Architect, subject to and in accordance with the approved Conservation Plan required in Part 6.a.3. below to the satisfaction of the Senior Manager, Heritage Planning including execution of such agreement to the satisfaction of the City Solicitor;

2. amend the existing Heritage Easement Agreement for the property at 214 King Street West substantially in accordance with plans and drawings dated January 6, 2023 and the Heritage Impact Assessment dated January 6, 2023 revised V2 prepared by Philip Goldsmith Borgal Architect, subject to and in accordance with the approved Conservation Plan required in Part 6.a.3. below to the satisfaction of the Senior Manager, Heritage Planning including execution of such agreement to the satisfaction of the City Solicitor; and

3. provide a detailed Conservation Plan prepared by a qualified heritage consultant that is substantially in accordance with the conservation strategy set out in the Heritage Impact Assessment for 212-220 King Street West dated January 6, 2023 revised V2 prepared by Philip Goldsmith Architect, to the satisfaction of the Senior Manager, Heritage Planning;

b. that prior to Final Site Plan approval in connection with the Official Plan Amendment and Zoning By-law Amendment for the properties at 212-220 King Street West the owner shall:

1. provide final Site Plan drawings including drawings related to the approved Conservation Plan required in Part 6.a.3. above to the satisfaction of the Senior Manager, Heritage Planning;

2. have obtained final approval for the necessary Official Plan Amendment and Zoning By-law Amendment required for the subject properties, such Amendments to have come into full force and effect;

3. provide an Interpretation Plan for the subject properties, to the satisfaction of the Senior Manager, Heritage Planning and thereafter shall implement such Plan to the satisfaction of the Senior Manager, Heritage Planning;

4. provide a Heritage Lighting Plan that describes how the heritage properties will be sensitively illuminated to enhance their heritage character to the satisfaction of the Senior Manager, Heritage Planning and thereafter shall implement such Plan to the satisfaction of the Senior Manager Heritage Planning;

5. submit a Signage Plan for the proposed development to the satisfaction of the Senior Manager, Heritage Planning; and

6. provide a detailed Landscape Plan for the properties at 212-220 King Street West, satisfactory to the Senior Manager, Heritage Planning.

c. that prior to the issuance of any permit for all or any part of the properties at 212-220 King Street West, including a heritage permit or a building permit, but excluding permits for repairs and maintenance and usual and minor works for the existing heritage buildings as are acceptable to the Senior Manager, Heritage Planning, the owner shall:

1. provide building permit drawings, including notes and specifications for the conservation and protective measures keyed to the approved Conservation Plan required in Partn6.a.3. above 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; and

2. 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 to secure all work included in the approved Conservation Plan, Heritage Lighting Plan and Interpretation Plan.

d. that prior to the release of the Letter of Credit required in Part 6.c.2 above, the owner shall:

1. provide a letter of substantial completion prepared and signed by a qualified heritage consultant confirming that the required conservation work, required heritage lighting work, and the required interpretive work has been completed in accordance with the Conservation Plan, Lighting Plan and Interpretation Plan and that an appropriate standard of conservation has been maintained, all to the satisfaction of the Senior Manager, Heritage Planning; and

2. provide replacement Heritage Easement Agreement photographs to the satisfaction of the Senior Manager, Heritage Planning;

7. City Council authorize the entering into of a Heritage Easement Agreement under Section 37 of the Ontario Heritage Act with the owner of 212 and 220 King Street West in a form and content satisfactory to the City Solicitor and the Chief Planner and Executive Director, City Planning.

8. City Council authorize the City Solicitor to introduce the necessary Bill in Council authorizing the entering into of a Heritage Easement Agreement for the properties at 212 and 220 King Street West.

9. City Council authorize the City Solicitor to amend the existing Heritage Easement Agreement, registered on title for the heritage property at 214 King Street West, Instrument CT768842 dated February 6, 1986 and on file with the Senior Manager, Heritage Planning.

10. City Council authorize the City Solicitor to introduce any necessary bill in Council to amend the Heritage Easement Agreement.

11. the owner has withdrawn their appeal(s) of the King-Spadina Heritage Conservation District Plan, and if not an appellant, but rather a party to such appeals, the owner shall withdraw as a party and not seek any party or participant status on the appeals.

12. City Council authorize the City Solicitor to take all necessary actions to implement City Council's decision.

Confidential Appendix 1 to the report (March 16, 2023) from the City Solicitor is now public and can be accessed under Background Information (City Council).

The balance of Confidential Attachment 1 to the report (March 16, 2023) from the City Solicitor remains confidential at this time in accordance with the provisions of the City of Toronto Act, 2006, as it contains advice that is subject to solicitor-client privilege. The balance of Confidential Attachment 1 to the report (March 16, 2023) from the City Solicitor will be made public at the discretion of the City Solicitor.

Confidential Appendices 1 and 2 to the report (March 9, 2023) from the City Solicitor are now public and can be accessed under Background Information (City Council).

The balance of Confidential Attachment 1 to the report (March 9, 2023) from the City Solicitor remains confidential at this time in accordance with the provisions of the City of Toronto Act, 2006, as it contains advice that is subject to solicitor-client privilege. The balance of Confidential Attachment 1 to the report (March 9, 2023) from the City Solicitor will be made public at the discretion of the City Solicitor.