Item - 2023.RA3.2

The Board of Directors of CreateTO:

1.  Accepted the conclusions from the Mass Timber pilot project analysis, as outlined in the report (March 6, 2023) from the Chief Executive Officer, CreateTO.

2.  Directed the Chief Executive Officer, CreateTO, in collaboration with the Executive Director, Housing Secretariat and the Chief Planner and Executive Director, City Planning, to advance a rezoning application of the property at 1113-1117 Dundas Street West for a mass timber building.

3.  Directed the Chief Executive Officer, CreateTO, to report on the business case of a mass timber building for 1113-1117 Dundas Street West in first quarter of 2024.

4.  Directed the Chief Executive Officer, CreateTO, to report to the Board of Directors on future City real estate assets suitable for mass timber construction in delivering affordable and market rental housing based on the findings of the Mass Timber Pilot Program in the first quarter of 2024.

The Vice President, Development, CreateTO gave a presentation on Mass Timber Pilot Study - Key Findings and Next Steps.

On June 20, 2022, the Board of Directors, CreateTO (CreateTO Board) received Item 2022.RA32.5 "Integrating a Climate Action Approach to City Real Estate Decisions - Mass Timber Pilot Program" and directed staff to report back to the CreateTO Board on the progress of the Mass Timber Affordable Housing Pilot Program (the "Pilot Program").

The Pilot Program explores using mass timber construction (such as cross-laminated timber (CLT) or glue-laminated timber structural materials to reduce carbon emissions in the delivery of affordable and market housing. Mass timber, contrary to production of other structural materials such as steel and concrete, stores rather than emits carbon which results in a lower carbon development.

The primary goal of the Pilot Program has been to assess the feasibility of delivering affordable rental housing within a mass timber form. The overall goal of the Pilot Program is to deliver a new, scalable affordable and market housing solution that can be developed with the objective of replicating the delivery method across other City-owned (and privately-owned) sites in the future to support climate action while expediting the delivery of affordable and market housing in the City.

The initial report provided an overview of the program, its goals and objectives, and work plan. This report will present the conclusions of the pilot program which examine the mass timber and hybrid building typologies against the following:

·  Energy Performance, (TGS Version 4, Tier 1 vs Tier 3) and Life Cycle Assessment of Embodied Carbon

·  Cost Analysis (TGS Version 4, Tier 1 vs Tier 3)

·  Mass Timber vs Concrete Construction Costs

The analysis demonstrated the following key conclusions.

1.   Energy Performance

·  TGS Tier 3 energy use is achieved with the 10-Storey and 12-Storey Typologies meeting the Energy Use Intensity and Green House Gas Intensity performance standards and operating as efficient low-carbon buildings.

·  Capital investments in geothermal, air source heat pumps, photovoltaics and enhanced building envelopes are key drivers contributing to successfully achieving the energy performance standards.

·  Geothermal should be pursued wherever possible as it:

-  Improves energy performance; 

-  Generates greater utility savings and a shorter payback time; and

-  Enables potential partnership with energy providers.

2.   Embodied Carbon

·  Each of the Typologies are on track to achieve low-embodied carbon values with a mass timber structure.

·  The findings for all three typologies are below the TGS Tier 3 requirement and would meet the most aggressive Toronto Green Building Council's Zero Carbon Building Design Standard Version 3, June 2022 with a greater than 40 percent reduction in Embodied Carbon Intensity.

3.   Tier 1 vs Tier 3 Cost Premium

·  On average, the analysis found a 3 percent premium to deliver a mass timber building that targets TGS Tier 3, Version 4 as compared to Tier 1.

·  The key capital cost drivers for the Tier 3 premium are:

-  A high-performance enclosure (e.g. triple glazed windows instead of double);

-  Mechanical systems that use electrically-driven heat pumps instead of conventional chillers and gas boilers; and

-  Rooftop PV panels installed as opposed to being PV-ready only.

·  Upfront investment to achieve Tier 3 performance standards will minimize the risk associated with future required retrofit and bring on stream energy efficient buildings to support climate action initiatives.

4.   Concrete versus Mass Timber Construction

·  Given the current state of the market with inflated costs particularly in form work, rebar and concrete, mass timber construction costs are less than conventional concrete construction.

·  As there is a stabilization of materials (concrete) and form work, it is anticipated that mass timber construction will be price competitively with conventional construction in concrete and steel.  

5.   Construction Schedules

·  Discussions with industry leaders and suppliers indicate that mass timber allows for a significantly reduced construction timing which, can result in financing and capital cost savings that could add to the cost effectiveness of mass timber construction and become a material of choice for mid-rise developments.

·  While construction schedules are reduced with mass timber construction, it should be noted that successful delivery of mass timber buildings requires an upfront integrated approach to design that requires architects, engineers, contractors and manufactures to work closely together starting on day one.

As this report demonstrates, CreateTO staff, collaborating with our colleagues in the Environment and Climate Division and City Planning, conclude that this Pilot Program has potential benefits for the City, both from a housing delivery and sustainability and climate action perspective.

Should the CreateTO Board adopt the recommendations of this report, CreateTO will begin working with City Planning to advance rezoning applications for the Typology 1, 10-storey mass timber project on the City lands at 1113-1117 Dundas Street West.