Item - 2023.RA3.6

The Board of Directors of CreateTO:

1.  Approved the approach outlined in Confidential Attachment 1 to the report (March 9, 2023) from the Chief Executive Officer, CreateTO, as amended in closed session, and the corresponding amendments to the agreements for 5207 Dundas Street West which include the Ground Lease, Project Agreement, and the Contribution Agreement (the "Agreements") and such other terms and conditions deemed appropriate by the Chief Development Officer and Executive Vice President Strategic Asset Management and the Chief Legal Counsel and Corporate Secretary, subject to the necessary City of Toronto approvals.

2.  Directed the Chief Executive Officer, CreateTO to request the necessary City of Toronto authorities required to execute the Agreements and such other documents as may be necessary to finalize the arrangement with the proponent partners for 5207 Dundas Street West based on the approach described in Confidential Attachment 1 to the report (March 9, 2023) from the Chief Executive Officer, CreateTO, as amended in closed session.

3.  Directed that the names of the proponents be made public at the discretion of the Chief Executive Officer following execution of the Agreements and that the remainder of the information in Confidential Attachment 1 to the report (March 9, 2023) from the Chief Executive Officer, CreateTO remain confidential as it deals with a proposed or pending disposition of land by the Board of Directors of CreateTO and the City of Toronto.

The Board of Directors of CreateTO recessed its public session to meet in closed session to consider the item as it pertains to pending disposition of land by the Board of Directors of CreateTO and the City.

Following completion of the market offering process in December 2021, the successful proponent executed the term sheet on March 14, 2022. On April 12, 2021, the CreateTO Board adopted Item RA30.5 and approved selection of the successful proponent partners and the term sheet. On May 17, 2022, the CreateTO Board of Directors adopted Item RA31.3 and approved negotiated agreements which included the Ground Lease, the Project Agreement, and the Contribution Agreement (the "Agreements"). The proponent selection and the negotiated agreements were approved by senior City management on July 11, 2022.

The proponent has been diligently advancing the Site Plan application following Board approvals in April 2021. The first site plan submission was submitted in September 2022; on September 15, 2022, the proposal was successfully considered by the Design Review Panel; and a public meeting was held on December 13, 20022 where the development was positively received.  

While the proponent has been diligently advancing their site plan application, several economic factors have impacted the proponent's proposal. In September 2022, the proponent approached CreateTO to resolve these issues to maintain project schedules and the delivery of affordable housing. These factors and an approach to resolve these issues are outlined in Confidential Attachment 1.

This report recommends that the CreateTO Board of Directors approve the approach outlined in Confidential Attachment 1, which responds to the significant change in the development and financing markets over the past year and ensures the project's viability and delivery of 217 affordable housing units.

The report also recommends that the CreateTO Board of Directors direct the Chief Executive Officer, CreateTO to request the necessary City of Toronto authorities to execute the amended Agreements and such other documents as may be necessary to finalize the arrangement with the proponent partners for 5207 Dundas Street W. as described in Confidential Attachment 1.

Subject to approval of this report, CreateTO will collaborate with City legal to make the amendments to the Agreements and prepare for execution of the documents. 

Pending rezoning and site plan approvals, the proponent's current schedule is to start site servicing construction in Third Quarter, 2023.