Item - 2023.TE6.23

The Toronto and East York Community Council recommends that:

1. City Council amend the Official Plan for the lands at 64-66 Wellesley Street East, 552-560 Church Street, and 564-570 Church Street substantially in accordance with the Draft Official Plan Amendment, included as Attachment 7 to the report (June 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 64-66 Wellesley Street East, 552-560 Church Street, and 564-570 Church Street substantially in accordance with the draft Zoning By-law Amendment included as Attachment 8 to the report (June 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 Zoning By-law Amendment as may be required.

4. City Council approve the Rental Housing Demolition Application File 21 235906 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 to permit the demolition of 65 existing rental dwelling units at 64-66 Wellesley Street East, subject to the following conditions:

a. the owner shall provide and maintain 65 replacement rental dwelling units on the subject site for a period of at least 20 years beginning from the date that each replacement rental dwelling unit is first occupied; during this period, no application may be submitted to the City for condominium registration, conversion to a non-residential rental purpose, or demolition without replacement of the rental units proposed to be demolished; the replacement rental dwelling units shall collectively contain a total gross floor area of at least 3,133 square metres and be comprised of 50 studio units, 11 one-bedroom units, and 4 two-bedroom units, as generally illustrated in the plans prepared by Graziani+Corazza Architects and dated May 30, 2023, with any revisions to these plans being to the satisfaction of the Chief Planner and Executive Director, City Planning;

b. as part of the 65 replacement rental dwelling units required in Recommendation 4.a. above, the owner shall provide and maintain at least 4 two-bedroom units, 11 one-bedroom units and 36 studio units at affordable rents, defined as gross monthly rent inclusive of utilities that is no greater than one times the average City of Toronto rent by unit type, as reported annually by the Canada Mortgage and Housing Corporation, and at least 14 studio units at mid-range rents, defined as gross monthly rent inclusive of utilities that exceeds affordable rent but is no greater than one 1.5 times the average City of Toronto rent by unit type, as reported annually by the Canada Mortgage and Housing Corporation, all for a period of at least 10 years beginning from the date of first occupancy of each unit;

c. the owner shall provide an acceptable Tenant Relocation and Assistance Plan to all Eligible Tenants of the 65 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;

d. the owner shall provide tenants of all 65 replacement rental dwelling units with access to, and use of, all indoor and outdoor amenities in the proposed development, at no extra charge, and on the same terms and conditions as any other resident of the development, without separate entrances or the need to pre-book or pay a fee unless specifically required as a customary practice for private bookings;    

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

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

g. the owner shall provide and make available vehicular parking spaces to tenants of the replacement rental dwelling units on the same terms and conditions as any other resident of the development;

h. the owner shall provide tenants of all replacement rental dwelling units with access to bicycle and vehicle parking on the same terms and conditions as any other resident of the proposed development;

i. the replacement rental dwelling units required in Recommendation 4.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 units, are made available and ready for occupancy, subject to any revisions to the satisfaction of the Chief Planner and Executive Director, City Planning; and

j. the owner shall enter into, and register on title to the lands at 64-66 Wellesley Street East, 552-560 Church Street, and 564-570 Church Street, an agreement pursuant to Section 111 of the City of Toronto Act, 2006 to secure the conditions outlined in Recommendations 4.a. through 4.i. above, all to the satisfaction of the City Solicitor and the Chief Planner and Executive Director, City Planning.

5. 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 pursuant to Section 111 of the City of Toronto Act, 2006, for the demolition of the 65 rental dwelling units located at 64-66 Wellesley Street East after all the following have occurred:

a. all conditions in Recommendation 4 above have been fully satisfied or secured;

b. the Official Plan Amendment and Zoning By-law Amendment have 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.

6. 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 5 above.

7. 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 64-66 Wellesley Street East after the Chief Planner and Executive Director, City Planning has given Preliminary Approval referred to in Recommendation 5 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 mixed-use building on the site no later than three 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 mixed-use building containing the 65 replacement rental units within the time specified in Recommendation 7.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 Residential Demolition Permit is issued.

8. 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.

9.  City Council direct that prior to the introduction of the Bills for the Official Plan Amendment and Zoning By-Law Amendments to City Council for enactment, City Council direct that the owner shall have entered into an agreement to purchase the public lane known as Dapper Lane (the "Lane") from the City, conditional upon City Council approving the permanent closure of the Lane, and subject to the necessary approvals being granted by the appropriate City authorities to declare the Lane surplus and authorize the sale of the Lane to the owner, all to the satisfaction of the City Solicitor and the Director, Real Estate Services. 

10. City Council direct the City Solicitor to withhold submitting the necessary Bills to City Council for enactment on the Official Plan Amendment and Zoning By-law Amendment until the following matters have been satisfied:

a. the owner has entered into and registered on title to the lands at 64-66 Wellesley Street East, 552-560 Church Street, and 564-570 Church Street, 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;

b. the owner has entered into and registered on title to the lands municipally known as 64 Wellesley Street East, a Heritage Easement Agreement pursuant to Section 37 of the Ontario Heritage Act to the satisfaction of the Senior Manager, Heritage Planning and the City Solicitor; and

c.  the owner has, at their sole cost and expense:

i.  submitted a revised Functional Servicing Report, Stormwater Management Report, and Hydrogeological Review, including the Foundation Drainage Report or addendums ("Engineering Reports"), to the satisfaction of the Chief Engineer and Executive Director, Engineering and Construction Services, in consultation with the General Manager, Toronto Water;

ii.  secured the design and provision of financial securities for any upgrades or required improvements to the existing 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 and the General Manager, Toronto Water, should it be determined that improvements or upgrades are required to support the development, according to the accepted Engineering Reports, accepted by the Chief Engineer and Executive Director, Engineering and Construction Services and the General Manager, Toronto Water; and

iii.  ensured the implementation of the accepted Engineering Reports does not require changes to the proposed amending By-laws or any such required changes have been made to the proposed amending By-laws, to the satisfaction of the Chief Planner and Executive Director, City Planning and the City Solicitor, including the use of a Holding ("H") By-law symbol regarding any new or upgrades to existing municipal servicing infrastructure as may be required identified in the accepted Engineering Report.

The Toronto and East York Community Council held a statutory public meeting on June 22, 2023 and notice was given in accordance with the Planning Act.

This report reviews and recommends approval of applications to amend the Official Plan and Zoning By-law and permit the demolition of 65 rental units at 64-66 Wellesley Street East, 552-560 Church Street, and 564-570 Church Street. The proposed redevelopment of the site includes a 104.5-metre (31-storeys excluding the mechanical penthouse) mixed-use building, containing 405 dwelling units (including 65 replacement rental units) and 770 square metres of non-residential gross floor area at grade.

The proposal includes a Tenant Relocation and Assistance Plan that addresses the right of existing tenants to return to replacement rental units at similar rents and financial compensation to mitigate hardship.

The site contains a Part IV designated heritage property at 64 Wellesley Street East. The development proposal involves the in-situ retention of a substantial portion of the significant heritage building including the front (south) and west elevations, and portions of the east elevation.

The applicant is proposing to acquire a 2.21-metre public lane, known as Dapper Lane, that currently bisects the site in a north-south direction in order to build upon these lands, providing for a more regularized massing of the proposed building. Approval of the permanent closure of the lane will be considered by Council through a separate process at a future date in accordance with the relevant policies and legislation. The applicant is aware that permanent closure of the lane will be subject to an independent Council decision.