Item - 2023.TE4.13

The Toronto and East York Community Council recommends that:

1. City Council amend the Official Plan for the lands at 25 St. Mary Street substantially in accordance with the draft Official Plan Amendment attached as Attachment 5 to the report (April 6, 2023) from the Acting Director, Community Planning, Toronto and East York District.

2. City Council amend City of Toronto Zoning By-law 569-2013 for the lands at 25 St. Mary Street substantially in accordance with the draft Zoning By-law Amendment attached as Attachment 6 to the report (April 6, 2023) from the Acting Director, Community Planning, Toronto and East York District.

3. 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.

4. City Council allow the owner of 25 St. Mary Street (the "Site") to construct, finish, furnish, equip and convey to the City a non-profit licensed child care facility (the "Child Care Facility") to the satisfaction of the Chief Planner and Executive Director, City Planning and the General Manager, Children's Services as part of the development, as an in-kind contribution pursuant to subsection 37(6) of the Planning Act, in accordance with the following terms:

a. the Child Care Facility will accommodate a minimum of 62 children, including infants, toddlers and preschoolers;

b. the Child Care Facility will comprise approximately 730 square metre indoor area located on the first and second floors of the proposed development and approximately 221 square metre outdoor area, located on the second floor of the proposed development; and

c. the Child Care Facility will be provided in accordance with the terms to be set out in the In-Kind Contribution Agreement identified in Recommendation 6 below to the satisfaction of the Chief Planner and Executive Director, City Planning.

5.  City Council attribute a value to the in-kind contribution set out in Recommendation 4 above equal to 100 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.

6.  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 Recommendation 4 above to the satisfaction of the Chief Planner and Executive Director, City Planning, the General Manager, Children's Services and the City Solicitor, including that:

a. the owner will provide a letter of credit in an amount sufficient to guarantee 120 percent of the estimated cost of the design, construction and handover of the Child Care Centre, to the satisfaction of the General Manager, Children's Services and the Chief Financial Officer and Treasurer, and will be provided to the City prior to the issuance of the first above grade building permit for the development, to secure the Child Care Centre;

with such agreement to be registered on title to the Site, which agreement shall be evidence of arrangements for the provision of the in-kind contribution that are satisfactory to City Council.

7. City Council approve that in accordance with Section 42 of the Planning Act prior to the first above grade building permit, the owner shall convey to the City, an on-site parkland dedication, having an approximate size of 500 square metres, to the satisfaction of the General Manager, Parks, Forestry and Recreation and the City Solicitor.

8. City Council approve the acceptance of on-site parkland dedication, subject to the owner transferring the parkland to the City free and clear, above and below grade, of all easements, encumbrances, and encroachments, in an acceptable environmental condition; the owner may propose the exception of encumbrances of tiebacks, where such an encumbrance is deemed acceptable by the General Manager, Parks, Forestry and Recreation, in consultation with the City Solicitor; and such an encumbrance will be subject to the payment of compensation to the City, in an amount as determined by the General Manager, Parks, Forestry and Recreation and the Executive Director, Corporate Real Estate Management.

9. 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 the Above Base Park Improvements 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 development charges payable for the development in accordance with the City's Development Charges By-law, as may be amended from time to time.

10. City Council approve the Rental Housing Demolition Application File 21 166617 STE 13 RH in accordance with Chapter 667 of the Toronto Municipal Code and pursuant to Section 111 of the City of Toronto Act, 2006 which allows for the demolition of 259 existing rental dwelling units located at 25 St. Mary Street, subject to the following conditions:

a. the owner shall provide and maintain at least 259 replacement rental dwelling units on the subject site, in the West Building, for a period of at least 20 years beginning from the date that each replacement rental dwelling unit is first occupied and, during which time, no application may be submitted to the City for condominium registration, or for any other conversion to a non-rental housing purpose, or for demolition without providing for replacement during the, at minimum, 20 year period; the replacement rental dwelling units shall collectively have a total gross floor area of at least 18,857 square metres and be comprised of at least 47 studio units, 118 one-bedroom units and 94 two-bedroom units as generally illustrated in the plans submitted to the City Planning Division dated February 10, 2023; and any revisions to these plans shall be to the satisfaction of the Chief Planner and Executive Director, City Planning;

b. the 152 existing rental units occupied by Eligible Tenants, as of the date of this report, shall be replaced with replacement rental dwelling units having at least the same average size by unit type; the 107 existing rental units which are vacant or are not occupied by an Eligible Tenant, as of the date of this report, shall be replaced with replacement rental dwelling units having at least the same average unit size, by unit type, of market units in the West Building, provided that additional replacement rental dwelling units are provided and maintained in the West Building, with such units having at least the same average unit size, by unit type, of market units in the West Building to ensure that 100 per cent of the gross floor area of the existing rental units is replaced;

c. the number of existing units required to be replaced with replacement rental dwelling units having at least the same average size by unit type, may be reduced based on changes to the number of Eligible Tenants, at the discretion of, and to the satisfaction of the Chief Planner and Executive Director, City Planning;

d. final floor plans for the replacement rental dwelling units shall be provided prior to execution of the Section 111 agreement, which will secure the replacement rental dwelling units;

e. the owner shall, as part of the replacement rental dwelling units required in Recommendation 10.a. above, provide at least sixteen (16) studio units, eight (8) one-bedroom units, and one (1) two-bedroom unit at affordable rents and no more than thirty-one (31) studio units, one-hundred and ten (110) one-bedroom units and ninety-three (93) two-bedroom units at mid-range rents, as defined in the City's Official Plan, all for a period of at least ten (10) years beginning from the date of first occupancy of each unit;

f. any replacement rental dwelling units provided in addition to the minimum 259 replacement rental dwelling units, in accordance with Recommendations 10.a. and 10.b. above, shall be secured at affordable rents, as defined in the City's Official Plan, for a period of at least ten (10) years beginning from the date of first occupancy of each unit;

g. the owner shall provide an acceptable Tenant Relocation and Assistance Plan to all Eligible Tenants of the 259 existing rental units proposed to be demolished, addressing the right to return to occupy one of the replacement rental dwelling 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; and the Tenant Relocation and Assistance Plan will also provide for extended notice for Special Needs Tenants and compile information on available apartments in the vicinity of the development for all Eligible Tenants;

h. the owner shall provide tenants of all replacement rental dwelling units use of indoor and outdoor amenities in the proposed development, at no extra charge, with the same access and on the same terms and conditions as any other resident of the West Building, without the need to pre-book or pay a fee unless specifically required as a customary practice for private bookings;

i. the 152 replacement rental dwelling units required for Eligible Tenants in Recommendation 10.b. above shall have a private outdoor balcony and/or patio; private outdoor balconies and/or patios will be provided for all other replacement rental dwelling units at a similar ratio as provided to the market units in the West Building, to the satisfaction of the Chief Planner and Executive Director, City Planning;

j. the owner shall provide ensuite laundry in each replacement rental dwelling unit within the proposed development at no additional cost to tenants;

k. the owner shall provide central air conditioning in each replacement rental dwelling unit at no additional cost to tenants;

l. the owner shall provide and make available for rent a minimum of 24 storage lockers to tenants of the replacement rental dwelling units; the terms and conditions for renting storage lockers to tenants of the replacement rental dwelling units shall be to the satisfaction of the Chief Planner and Executive Director, City Planning;

m.  the owner shall provide tenants of all replacement rental dwelling units with access to bicycle and visitor parking on the same terms and conditions as any other resident of the proposed development, unless otherwise required by the Tenant Relocation and Assistance Plan;

n. the replacement rental dwelling units required in Recommendation 10.a. above shall be made ready and available for occupancy no later than the date by which 70 percent of the new dwelling units in the proposed development, exclusive of the replacement rental dwelling units, are made available and ready for occupancy, subject to any revisions to the satisfaction of the Chief Planner and Executive Director, City Planning;

o. the owner shall provide tenant relocation and assistance to all Post-application Tenants above and beyond the requirements of the RTA, including at least 6 months' of notice, special needs compensation for applicable tenants, and the first right of refusal on any replacement rental dwelling units not occupied by returning Eligible Tenants, provided such Post-application Tenants meet any income eligibility requirements for renting affordable or mid-range units, to the satisfaction of the Chief Planner and Executive Director, City Planning; and

p. the owner shall enter into, and register on title to the lands at 25 St. Mary Street, one or more agreement(s), to secure the conditions outlined in Recommendations 10.a. through 10.o. above, including an agreement pursuant to Section 111 of the City of Toronto Act, 2006, all to the satisfaction of the City Solicitor and the Chief Planner and Executive Director, City Planning.

11.  City Council authorize the Chief Planner and Executive Director, City Planning, to issue Preliminary Approval of the Rental Housing Demolition Permit under Chapter 667 of the Toronto Municipal Code for the demolition of the 259 existing rental dwelling units located at 25 St. Mary Street after all the following have occurred:

a. all conditions in Recommendation 10 above have been fully satisfied or secured;

b. the Zoning By-law Amendment has come into full force and effect;

c. the issuance of the Notice of Approval Conditions for site plan approval by the Chief Planner and Executive Director, City Planning or their designate, pursuant to Section 114 of the City of Toronto Act, 2006, or as otherwise authorized by the Chief Planner and Executive Director, City Planning;

d. the issuance of excavation and shoring permits (conditional or full permit) for the approved development on the site; and

e. the owner has confirmed, in writing, that all existing rental dwelling units proposed to be demolished are vacant.

12.  City Council authorize the Chief Building Official and Executive Director, Toronto Building to issue a Rental Housing Demolition Permit under Chapter 667 of the Toronto Municipal Code after the Chief Planner and Executive Director, City Planning has given Preliminary Approval referred to in Recommendation 11 above.

13.  City Council authorize the Chief Building Official and Executive Director, Toronto Building to issue a Residential Demolition Permit under Section 33 of the Planning Act and Chapter 363 of the Toronto Municipal Code for 25 St. Mary Street after the Chief Planner and Executive Director, City Planning has given Preliminary Approval referred to in Recommendation 11 above, which may be included in the Rental Housing Demolition Permit under Chapter 667 pursuant to section 6.2 of Chapter 363, on condition that:

a. the owner removes all debris and rubble from the site immediately after demolition;

b. the owner erects solid construction hoarding to the satisfaction of the Chief Building Official and Executive Director, Toronto Building;

c. the owner erects the proposed development, containing the replacement rental dwelling units, on site no later than four years from the date on which the demolition of the existing rental dwelling units commences, subject to the timeframe being extended to the discretion of the Chief Planner and Executive Director, City Planning; and

d. should the owner fail to complete the proposed development within the time specified in Recommendation 13.c. above, the City Clerk shall be entitled to enter on the collector’s roll, as with municipal property taxes, an amount equal to the sum of twenty thousand dollars ($20,000.00) per dwelling unit for which a demolition permit is issued, and that such amount shall, until payment, be a lien or charge upon the land for which the demolition permit is issued.

14.  City Council authorize the appropriate City officials to take such actions as are necessary to implement City Council's decision, including execution of the Section 111 Agreement and other related agreements.

15.  City Council authorize that the following matters related to site servicing be addressed prior to the introduction of the final Bills to City Council:

a. submit to the Chief Engineer and Executive Director, Engineering and Construction Services for review and acceptance, a Functional Servicing Report to determine the storm water runoff, sanitary flow and water supply demand resulting from this development and whether there is adequate capacity in the existing municipal infrastructure to accommodate the proposed development; and  

b. make satisfactory arrangements with Engineering and Construction Services and enter into the appropriate agreement with the City for the design and construction of any improvements to the municipal infrastructure, should it be determined that upgrades are required to the infrastructure to support this development, according to the accepted Functional Servicing Report accepted by the Chief Engineer and Executive Director of Engineering and Construction Services.

16. City Council request the Chief Planner and Executive Director, City Planning, in consultation with the City Solicitor and the Executive Director, Environment and Climate, to work collaboratively with the applicant to evaluate proposed revisions to the draft Zoning By-law Amendment to permit the incorporation of geo-energy facilities and corresponding revisions to main building height and residential GFA and report to City Council with any amendments to that effect.

The Toronto and East York Community Council held a statutory public meeting on April 12, 2023 and notice was given in accordance with the Planning Act.

This report reviews and recommends approval of the Official Plan Amendment, Zoning By-law Amendment, and the Rental Housing Demolition applications. The applicant proposes to demolish the existing 24-storey residential rental apartment building at 25 St. Mary Street containing 259 rental dwelling units, and redevelop the site with a new mixed-use development consisting of two towers with heights of 59 and 54 storeys. The proposal includes a minimum of 259 replacement rental dwelling units, 1,024 new residential units, 310 square metres of ground floor retail space, a 730 square metre child care facility, and a 500 square metre on-site parkland dedication.

The proposed mixed use development will replace all existing 259 rental units that are proposed to be demolished. In addition, the applicant is proposing approximately 50 additional affordable replacement rental dwelling units. The proposal also includes a Tenant Relocation and Assistance Plan that addresses the right for existing tenants to return to a replacement rental dwelling unit at similar rent and financial compensation to mitigate hardship.