Item - 2023.CC6.4

City Council on May 10, 11 and 12, 2023, adopted the following:

1. City Council adopt the confidential instructions to staff in Confidential Attachment 1 to the report (April 27, 2023) from the City Solicitor.

2. City Council authorize the public release of the confidential instructions to staff in Confidential Attachment 1 and Confidential Appendix A to the report (April 27, 2023) from the City Solicitor.

3. City Council direct that the balance of Confidential Attachment 1 to the report (April 27, 2023) from the City Solicitor remain confidential, as it contains advice that is subject to litigation and solicitor-client privilege.

The confidential instructions to staff in Confidential Attachment 1 to the report (April 27, 2023) from the City Solicitor were adopted by City Council and are now public as follows:

1. City Council accept the with prejudice settlement offer related to the Planning Act appeals, dated April 26, 2023 in Public Appendix A to the report (April 27, 2023) from the City Solicitor, and the architectural plans and drawings in Public Appendices B, C and D to the report (April 27, 2023) from the City Solicitor (the "With Prejudice Settlement Offer).

2. City Council accept the without prejudice settlement offer related to the Ontario Heritage Act appeal, dated April 26, 2023, and set out in Confidential Appendix A to the report (April 27, 2023) from the City Solicitor (the "Without Prejudice Settlement Offer") by accepting the With Prejudice Settlement Offer described in Part 1 above, and by approving the alteration and removal of heritage attributes, described in Parts 12 to 15 below.

3. City Council authorize the City Solicitor and appropriate City Staff to attend the Ontario Land Tribunal hearing on this matter in support of the revised development proposal generally described in the With Prejudice Settlement Offer and the revised architectural plans in Confidential Appendix A and Confidential Appendix B to the report (April 27, 2023) from the City Solicitor.

4. City Council accept an on-site parkland dedication pursuant to Section 42 of the Planning Act, having a minimum size of 939.5 square metres (the "Required Parkland Dedication"), and an additional on-site parkland dedication, which is intended to satisfy the parkland obligations of the adjacent development application at 1405-1409 Bloor Street West, having a minimum size of 276.3 square metres (the "Additional Park Area"), for a total combined on-site parkland dedication size of 1,215.8 square metres (the "Combined Park"), with the exact size, location and configuration of the on-site parkland dedication to be to the satisfaction of the General Manager, Parks, Forestry and Recreation, and such on-site parkland dedication to be conveyed to the City, free and clear, above and below grade, of all easements, encumbrances and encroachments, in an acceptable environmental condition.

5. The Combined Park shall be conveyed to the City prior to the issuance of the first Above Grade Building Permit for the final phase of development of the Property, to the satisfaction of the General Manager, Parks, Forestry and Recreation; the Owner and the City may agree to extend the timing of conveyance of the Combined Park provided the Owner has:

a. posted Financial Security in the amount of the value of the Parkland as appraised by the Executive Director, Corporate Real Estate Management in a form satisfactory to the City, and such security shall not be released until the Parkland is conveyed to the City in a manner satisfactory to the General Manager, Parks, Forestry and Recreation. From the date the Financial Security is first paid to the City until such time as the Parkland is conveyed to the City, the Financial Security shall be indexed upwardly in accordance with the Statistics Canada Non-Residential Construction Price Index for the Toronto Census Metropolitan Area, reported quarterly by Statistics Canada in Building Construction Price Indexes Publication 18-10-0135-01, or its successor, to the satisfaction of the General Manager, Parks, Forestry and Recreation;

b. registered in priority a Section 118 Restriction, pursuant to the Land Titles Act against title the Combined Park to be conveyed to the City, that prohibits the transfer or charge of the parkland without the prior written consent of the General Manager, Parks, Forestry and Recreation, to the satisfaction of the City Solicitor; and

c. provided that in no event shall there by residential occupancy or registration of any condominium on any part of the lands under the Condominium Act, until such time as the Parkland has been conveyed to the City.

6. 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 Above Base Park Improvements to the Parkland, 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 the development charges payable for the development in accordance with the City's Development Charges By­law, as may be amended from time to time.

7. City Council require the Owner to submit a phasing plan, in a form acceptable to the Chief Planner and Executive Director, City Planning, in consultation with the General Manager, Transportation Services, the General Manager, Parks, Forestry and Recreation, the Chief Engineer and Executive Director, Engineering and Construction Services, and the City Solicitor; and City Council require that phasing regulations be provided in the final form of the Zoning By-law Amendment, if deemed necessary by the Chief Planner and Executive Director, City Planning and the City Solicitor; and City Council require that any appropriate agreement(s) be entered into to provide for the orderly development of the lands, to the satisfaction of the Chief Planner and Executive Director, City Planning and the City Solicitor.

8. City Council direct the appropriate City staff to report back to City Council, prior to Site Plan Approval, with respect to the acceptance of facilities, services or matters as an on-site in-kind contribution, being a Community Agency Space, pursuant to subsection 37(6) of the Planning Act, and in the event City Council does not accept an on-site in-kind contribution, that City Council request that the appropriate City staff work with the Owner through the Site Plan Approval process to program the space as amenity to otherwise support the residents of the replacement live-work units.

9. Should the Ontario Land Tribunal allow the appeal on the Zoning By-law Amendment Application, in whole or in part, City Council authorize the City Solicitor to request the Ontario Land Tribunal to withhold the issuance of any final Order(s) until such time as the Ontario Land Tribunal has been advised by the City Solicitor that:

a. the final form of the Zoning By-law Amendment is to the satisfaction of the Director, Community Planning, Toronto East York District and the City Solicitor, in consultation with other appropriate divisions, and that they provide for, among other matters:

i. space within the development for installation and maintenance access holes and sampling ports on the private side, for both storm and sanitary service connections;

ii. a minimum of 10 percent of all units on the lands at 221, 225 and 227 Sterling Road as 3-bedroom units and a minimum of 15 percent of all units on the lands at 221, 225 and 227 Sterling Road as 2-bedroom units;

iii. maximum tower heights of 27 storeys (north tower), 24 storeys (centre tower) and 21 storeys (south tower), inclusive/exclusive of mechanical penthouses with a minimum separation distance between towers of 25 metres; and

iv. any mitigation measures that will have bearing on the approved building envelope or performance standards, arising from any of the accepted plans and studies listed in Part 9.c. below;

b. City Council has approved Rental Housing Demolition application 21 151447 STE 09 RH under Chapter 667 of the Toronto Municipal Code pursuant to Section 111 of the City of Toronto Act, 2006 to permit the demolition of the fifty-eight (58) existing rental dwelling units on the lands and the Owner has entered into, and registered on title to the lands, one or more agreements, including an agreement pursuant to Section 111 of the City of Toronto Act, 2006, to secure, among other matters, the following:

i. the provision of fifty-eight (58) replacement rental units, of which no fewer than eighteen (18) shall be designated live-work replacement rental units, including at least fourteen (14) live-work replacement rental units located on the ground floor with tall ceiling heights. The fifty-eight (58) replacement rental units shall be collectively comprised of no less than 100 percent of the existing residential and live/work rental gross floor area, including the gross floor area of all loft spaces erected by the Owner in the existing rental units, as illustrated in principle on Plans RZ151, RZ152 and RZ153 in Public Appendix B to the report (April 27, 2023) from the City Solicitor. The total gross floor area, bedroom types, and unit layouts of the replacement rental units shall be finalized upon the City receiving revised as-built floor plans of all fifty-eight (58) existing rental units, illustrating the area of all existing loft spaces erected by the Owner, to the satisfaction of the Chief Planner and Executive Director, City Planning;

ii. the rents of the fifty-eight (58) replacement rental units, which shall be based on the rents of the existing rental units by their respective bedroom types at the time of application and secured for a period of at least ten (10) years beginning from the date of first occupancy of each replacement rental unit. The rents shall be finalized upon the City receiving revised rent rolls for all fifty-eight (58) existing rental units at the time of application, to the satisfaction of the Chief Planner and Executive Director, City Planning; and

iii. the provision of an acceptable tenant relocation and assistance plan for all Eligible Tenants of the fifty-eight (58) existing rental units proposed to be demolished, addressing the right to return to occupy one of the replacement rental units at similar rents, the provision of alternative accommodation at similar rents in the form of rent gap payments, and other assistance to mitigate hardship. The tenant relocation and assistance plan shall be developed in consultation with, and to the satisfaction of, the Chief Planner and Executive Director, City Planning;

c. the Owner has, at the Owner's expense:

i. submitted a revised Functional Servicing and Stormwater Management Report, Hydrogeological Report and supporting documents (the "Engineering Reports"), including confirmation of water and fire flow, sanitary and storm capacity, to the satisfaction of the Chief Engineer and Executive Director, Engineering and Construction Services in consultation with the General Manager, Toronto Water;

ii. addressed all outstanding engineering issues, and any other comments that may arise further to the review of materials submitted as part of the process to address the issues set out in the memorandum from Engineering and Construction Services, and the General Manager, Transportation Services;

iii. secured the design and the provision of financial securities for any upgrades or required improvements to the existing municipal infrastructure and/or new municipal infrastructure identified in the accepted Engineering Reports to support the development, all to the satisfaction of the Chief Engineer and Executive Director, Engineering and Construction Services, should it be determined that improvements or upgrades and/or new infrastructure are required to support the development;

iv. submitted a pedestrian level wind study acceptable to, and to the satisfaction of, the Chief Planner and Executive Director, City Planning;

v. submitted a revised Transportation Impact Study acceptable to, and to the satisfaction of, the General Manager, Transportation Services;

vi. submitted a revised Landscape Plan, including any necessary financial securities, to the satisfaction of the Chief Planner and Executive Director, City Planning and the General Manager, Parks, Forestry and Recreation;

vii. submitted an Environmental Noise and Vibration Assessment Report acceptable to the Chief Planner and Executive Director, City Planning and that such matters arising from such study, be secured if required;

viii. submitted a Transportation Demand Management Plan, including any necessary financial securities to the satisfaction of the General Manager, Transportation Services and the Chief Planner and Executive Director, City Planning and that such matters arising from such study, be secured if required; and the Plan shall include:

1. mode share targets intended on shifting travel away from passenger cars and required parking;

2. method(s) by which the target mode share and parking rates will be reached (for example -future implementation of a bike share station, car-share or transit pass program);

3. the level of commitment to implement, enforce and maintain the plan moving forward; and

4. expected short-term and long-term outcomes; and

should the accepted Transportation Demand Management Plan include any cash contribution toward Transportation Demand Management measures, such cash contribution shall be paid by the Owner prior to the issuance of any building permit, including a conditional building permit, for the development and allocated in accordance with the Transportation Demand Management Plan, and such cash contribution shall be indexed upwardly in accordance with the Statistics Canada Non-Residential Construction Price Index for the Toronto Census Metropolitan Area, reported quarterly by Statistics Canada in Building Construction Price Indexes Publication 18-10-0135-01, or its successor, calculated from the date of any Ontario Land Tribunal order, allowing the appeal in whole or in part, until the date of payment.

10. City Council request the Chief Planner and Executive Director, City Planning that the following matters be secured at the time and through the Draft Plan of Subdivision Approval or Site Plan Approval process for the proposed development, pursuant to Section 51 of the Planning Act and 114 of the City of Toronto Act, 2006, and secured in a Subdivision Agreement or Site Plan Agreement with the City, as the case may be; as follows:

a. the peer review, at the Owner's expense of its Compatibility and Mitigation Study and its Environmental Noise and Vibration Study;

b. the Owner's agreement to implement any required recommendations and/or mitigation measures from the accepted Compatibility and Mitigation Study, Environmental Noise and Vibration Study, Wind Tunnel analysis, Traffic Impact Study, and Landscape Plan, to the satisfaction of the Chief Planner and Executive Director, City Planning;

c. the construction and maintenance of the development in accordance with the Tier 1 or higher performance measures of the Toronto Green Standard, as adopted by City Council at its meeting held on October 26 and 27, 2009 through the adoption of Item 2009.PG32.3 of the Planning and Growth Management Committee, and as updated by Toronto City Council at its meeting held on December 5, 6 and 7, 2017 through the adoption of Item 2017.PG23.9 of the Planning and Growth Management Committee, and as may be further amended by Council from time to time;

d. the Owner's agreement to include warning clauses and signage of the Toronto Catholic District School Board and the Toronto District School Board in the conditions of site plan approval and subsequently within any agreements of purchase and sale or tenant lease agreements for the proposed units, to the satisfaction of the Chief Planner and Executive Director, City Planning;

e. the Owner's agreement that prior to the commencement of any excavation and shoring work, the Owner shall submit a Construction Management Plan to the satisfaction of the Chief Building Official and Executive Director, Toronto Building, the Chief Planner and Executive Director, City Planning, the General Manager, Transportation Services, and the Chief Engineer and Executive Director, Engineering and Construction Services and thereafter shall 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 laneway uses and access, refuse storage, site security, site supervisor contact information, and a communication strategy with the surrounding community, including matters related to the construction of streets or infrastructure, and any other matters requested by the Chief Planner and Executive Director, City Planning, and the City Solicitor.

11. City Council direct the City Solicitor to request that the appeal of the Draft Plan of Subdivision be adjourned sine die, to allow City staff and the Owner to work on consensually resolving any remaining issues with the application for Draft Plan of Subdivision approval, and to allow the Chief Planner and Executive Director, City Planning, to develop appropriate conditions of approval, including but not limited to conditions as to the design, construction and conveyance of the Ruttan Street extension and/or the interim driveway condition.

12. City Council approve:

a. the alterations to the designated heritage property at 221 Sterling Road (including active entrances at 225 and 227 Sterling Road), in accordance with Section 33 of the Ontario Heritage Act, for the construction of a new residential building that includes three towers, in conjunction with an appeal to the Ontario Land Tribunal, comprised of the plans and drawings prepared by Turner Fleisher Architects Inc., and dated February 1, 2023, in Public Appendix B to the report (April 27, 2023) from the City Solicitor, submitted with the Heritage Impact Assessment prepared by Goldsmith Borgal & Company Ltd. Architects, dated February 10, 2023, all subject to and in accordance with a Conservation Plan satisfactory to the Senior Manager, Heritage Planning and subject to conditions set out in Part 13 below; and

b. the removal of the heritage attributes from the designated heritage property at 221 Sterling Road (including active entrances at 225 and 227 Sterling Road), in accordance with Section 34(1)1 of the Ontario Heritage Act to allow for the construction of a new residential building that includes three towers, in conjunction with an appeal to the Ontario Land Tribunal, comprised of the plans and drawings prepared by Turner Fleisher Architects Inc., and dated February 1, 2023, submitted with the Heritage Impact Assessment prepared by Goldsmith Borgal & Company Ltd. Architects, dated February 10, 2023, in Public Appendix A to the report (April 27, 2023) from the City Solicitor, all subject to and in accordance with a Conservation Plan satisfactory to the Senior Manager, Heritage Planning and subject to the conditions set out in Part 13 below.

13. City Council direct that its consent to the application to alter the designated property at 221 Sterling Road (including active entrances at 225 and 227 Sterling Road) under Part IV, Section 33 of the Ontario Heritage Act and its consent to the demolition of heritage attributes, of the designated heritage property at 221 Sterling Road (including active entrances at 225 and 227 Sterling Road), under Part IV, Section 34(1)1 of the Ontario Heritage Act be subject to the following conditions:

a. prior to issuance of an Ontario Land Tribunal order in connection with the Zoning By-law Amendment and Draft Plan of Subdivision appeals for the property at 221 Sterling Road (including active entrances at 225 and 227 Sterling Road), the Owner shall:

i. enter into a Heritage Easement Agreement with the City for the property at 221 Sterling Road (including active entrances at 225 and 227 Sterling Road), substantially in accordance with plans and drawings prepared by Turner Fleisher Architects Inc. and dated February 1, 2023, submitted with the Heritage Impact Assessment prepared by Goldsmith Borgal & Company Ltd. Architects dated February 10, 2023, subject to and in accordance with the approved Conservation Plan required in Confidential Part 13.a.ii below, all to the satisfaction of the Senior Manager, Heritage Planning including execution of such agreement to the satisfaction of the City Solicitor;

ii. 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 221 Sterling Road (including active entrances at 225 and 227 Sterling Road), prepared by Goldsmith Borgal & Company Ltd. Architects, dated February 10, 2023, and details all future conservation efforts as part of this application, all to the satisfaction of the Senior Manager, Heritage Planning; and

iii. withdraw the appeal of the heritage designation By-law 1130-2022 at the Ontario Land Tribunal (Case OLT-22-004437).

b. prior to Final Site Plan approval in connection with the Zoning By-law Amendment for the property at 221 Sterling Road (including active entrances at 225 and 227 Sterling Road), the Owner shall:

i. provide final site plan drawings including drawings related to the approved Conservation Plan required in Part 13.a.ii to the satisfaction of the Senior Manager, Heritage Planning;

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

iii. provide a Heritage Lighting Plan that describes how the heritage property will be sensitively illuminated to enhance its 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;

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

v. submit a Landscape Plan for the proposed development to the satisfaction of the Senior Manager, Heritage Planning.

14. That prior to the issuance of any permit for all or any part of the property at 221 Sterling Road (including active entrances at 225 and 227 Sterling Road), 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:

a. obtain final approval for the necessary Zoning By-law Amendments required for the redevelopment of the property at 221 Sterling Road (including active entrances at 225 and 227 Sterling Road), such amendments to have been approved by the Ontario Land Tribunal and to have come into effect in a form and with content acceptable to the Chief Planner, City Planning in consultation with the Senior Manager, Heritage Planning;

b. provide building permit drawings, including notes and specifications for the conservation and protective measures keyed to the approved Conservation Plan required in Confidential Part 13.a.ii, 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

c. 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, Landscape Plan, and Interpretation Plan.

15. That prior to the release of the Letter of Credit required in Part 14.c above the Owner shall:

a. 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, Landscape 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

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

16. City Council authorize the entering into of a Heritage Easement Agreement under Section 37 of the Ontario Heritage Act with the Owner of 221 Sterling Road (including active entrances at 225 and 227 Sterling Road) in a form and content satisfactory to the City Solicitor and the Chief Planner and Executive Director, City Planning.

17. City Council authorize the City Solicitor to introduce the necessary Bill in Council authorizing the entering into of a Heritage Easement Agreement for the property at 221 Sterling Road (including active entrances at 225 and 227 Sterling Road).

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

Confidential Appendix A to the report (April 27, 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 (April 27, 2023) from the City Solicitor remains confidential in accordance with the provisions of the City of Toronto Act, 2006, as it contains advice that is subject to litigation and solicitor-client privilege.