Item - 2023.TE5.9

That:

1. City Council allow the Owner of 880-882 and 888 Eastern Avenue and 74-80 Knox Avenue (the "Site") to design, construct, finish, provide and maintain on the Site six (6) affordable rental housing units as part of the development, to the satisfaction of the Chief Planner and Executive Director, City Planning, and the Executive Director, Housing Secretariat, as an in-kind contribution pursuant to subsection 37(6) of the Planning Act and notwithstanding Section 415 - 49 A. (1) of the Municipal Code; all in accordance with the following terms (the “in-kind contribution”):

a. the affordable rental dwelling units shall be provided in a contiguous group or contiguous with other rental dwelling units in the development;

b. the in-kind contribution shall be comprised of five (5) one-bedroom units, and one (1) two-bedroom unit (the "Affordable Rental Housing Units"). The average size and residential Gross Floor Area of the Affordable Rental Housing Units shall be to the satisfaction of the Chief Planner and Executive Director, City Planning and the average and minimum unit size shall be secured in the Contribution Agreement, to the satisfaction of the Chief Planner and Executive Director, City Planning;

c. the general configuration and layout of the Affordable Rental Housing Units in the development shall be to the satisfaction of the Chief Planner and Executive Director, City Planning;

d. tenants of the Affordable Rental Housing Units shall be provided with access to, and use of all indoor and outdoor amenities in the development at no extra charge; access to, and use of, these amenities shall be on the same terms and conditions as any other resident of the building without the need to pre-book or pay a fee, unless specifically required as a customary practice for private bookings;

e. all affordable rental dwelling units will be provided with en-suite laundry facilities at no extra charge;

f. tenants of the Affordable Rental Housing Units will be provided with access to permanent and visitor bicycle parking/bicycle lockers in accordance with the Zoning By-law and on the same basis as other units within the development.

g. the initial rent (inclusive of utilities) charged to the first tenants of and upon turnover of the Affordable Rental Housing Units shall not exceed one-hundred percent of the average City of Toronto rent by unit type, as reported annually by the Canada Mortgage and Housing Corporation in its most recent annual Rental Market Report for a minimum of 40 years, beginning with the date each such unit is first occupied (the "Affordability Period"). During the Affordability Period, increases to initial rents charged to tenants occupying any of the Affordable Rental Housing Units shall be in accordance with the Residential Tenancies Act and shall not exceed the Provincial rent guideline, regardless of whether the Provincial rent guideline applies to the Affordable Rental Housing Units under the Residential Tenancies Act;

h. the Owner shall provide and maintain the Affordable Rental Housing Units as rental dwelling units at the rents identified in vii above for the duration of the Affordability Period. The Affordable Rental Housing Units shall not 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 Rental Housing Unit shall be made for the duration of the Affordability Period; upon the expiration of the Affordability Period, the owner shall continue to provide and maintain the Affordable Rental Housing Units as rental dwelling units, unless and until such time as the owner has applied for and obtained all approvals necessary to do otherwise;

i. the Owner will use the City's Centralized Affordable Housing Access System to advertise and select tenants for the Affordable Rental Housing Units, provided it is in place, unless otherwise agreed to by the Executive Director, Housing Secretariat; and at least six (6) months in advance of any Affordable Rental Housing Unit being made available for rent, the owner shall develop and implement an Access Plan which will outline how the Affordable Rental Housing Units will be rented to eligible households in consultation with, and to the satisfaction of, the Executive Director, Housing Secretariat;

j. the Owner will enter into an agreement with the City, being the Municipal Housing Project Facility Agreement (the "Contribution Agreement") referenced in Part 4 below before Development Charges for the Affordable Rental Housing Units would otherwise be due;

2. City Council attribute a value to the in-kind contribution set out above, net any value attributable to the City's Open Door Affordable Housing Program financial incentives, equal to 90 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.

3. City Council approve the provision of financial incentives pursuant to the City's Open Door Affordable Housing Program in relation to the Affordable Rental Housing Units as follows:

a. City Council exempt the Affordable Rental Housing Units from taxation for municipal and school purposes for the 40-year Affordability Period; and

b. City Council authorize the Affordable Rental Housing Units to be eligible for waivers of fees for planning applications, building permits and parkland dedication, and for development charges exemptions, unless already paid.

4. City Council authorize the Executive Director, Housing Secretariat to negotiate and execute the Contribution Agreement with the owner for the development of the Affordable Rental Housing Units to secure the financial assistance being provided and set out the terms of the operation of the Affordable Housing Units, on terms and conditions acceptable to the Executive Director, Housing Secretariat, in a form satisfactory to the City Solicitor.

5. City Council authorize the Controller to cancel or refund any taxes paid after the effective date of the exemption from taxation for municipal and school purposes as set out in the Contribution Agreement.

6. City Council authorize the Executive Director, Housing Secretariat, on behalf of the City, to execute any security or financing documents, or any other documents required to facilitate the delivery of the Affordable Rental Housing Units, including any documents required by the Owner to complete pre-development activities, and secure construction and conventional financing and subsequent refinancing, where required, including any postponement, confirmation of status, discharge or consent documents where and when required during the term of the Contribution Agreement, as required by normal business practices, and provided that such documents do not give rise to financial obligations on the part of the City that have not been previously approved by City Council.

7. 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 1 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 Site, which agreement shall be evidence of arrangements for the provision of the in-kind contribution that are satisfactory to City Council.

8. City Council amend Zoning By-law 569-2013, for the lands at 880-882 and 888 Eastern Avenue and 74-80 Knox Avenue, substantially in accordance with the draft Zoning By-law in Attachment 1 to Motion 1 by Councillor Paula Fletcher; and that City Council determine that pursuant to Section 34(17) of the Planning Act, no further notice is to be given in respect of the changes.

9. City Council recommend that the Chief Planner and Executive Director, City Planning secure through the Site Plan Control process for the proposed development, pursuant to Section 114 of the City of Toronto Act, 2006, the Owner's obligation to:

a. construct and maintain the development of the site in accordance with Tier 1, Toronto Green Standard Version 4.0, and the owner will be encouraged to achieve the highest Tier of the Toronto Green Standard, where appropriate, consistent with the performance standards of Toronto Green Standards applicable at the time of the site plan application for the development and in support of the objective to design the building to a net-zero standard;

b. prior to commencement of any excavation and shoring work, submit a Construction Management Plan (generally in accordance with the commitments set out in Attachment 2 to Motion 1 by Councillor Paula Fletcher 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 matters: noise, dust, size and location of staging areas, location and function of gates, dates of significant concrete pouring, lighting details, vehicular parking and queueing 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 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;

10. City Council direct the Executive Director, Housing Secretariat to work with the developer to explore options to secure up to 4 additional affordable rental units, for a total of 10 affordable rental units in the development, and report back to City Council on the negotiations, including the availability of further funding to secure the additional units  by no later than December 31, 2024, failing which the developer will only deliver the six (6) affordable rental units in the development referred to above.

11. City Council direct the General Manager, Transportation Services to report to the Toronto and East York Community Council on excluding the development at the Site from the on-street permit parking program including requiring the applicant to state in all marketing materials, condominium disclosure documents, and sales agreements that the future owner, tenant, or sublet tenant or any other additional occupant or guest will be prohibited from applying for an on-street parking permit and the building will be excluded from any on-street permit specified area.

That:

1. Toronto and East York Community Council forward the item to City Council without recommendation

2. Toronto and East York Community Council request the Executive Director, Housing Secretariat and the Chief Planner and Executive Director, City Planning, in consultation with the Ward Councillor, to work with the Owner to pursue opportunities to include affordable rental housing as part of the development, and report directly to City Council, if necessary.