Item - 2023.TE7.8

The Toronto and East York Community Council recommends that:

1. City Council approve the Rental Housing Demolition Application File 20 232889 STE 14 RH in accordance with Chapter 667 of the Toronto Municipal Code and pursuant to Section 111 of the City of Toronto Act, 2006, to allow the demolition of six (6) existing rental dwelling units located at 17 and 19 Cosburn Avenue and 8 and 10 Gowan Avenue, subject to the following conditions:

a. the Owner shall provide and maintain seven (7) replacement rental dwelling units on the subject site for a period of at least 20 years beginning from the date that each replacement rental unit is first occupied; during such 20-year period, 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 replacement; and the replacement rental dwelling units shall be comprised of two (2) one-bedroom units, three (3) two-bedroom units and two (2) three-bedroom units, as generally illustrated in the plans submitted to the City Planning Division dated June 16, 2023 and any revision to these plans shall be to the satisfaction of the Chief Planner and Executive Director, City Planning;

b. the Owner shall, as part of the seven (7) replacement rental dwelling units required in Recommendation 1.a. above, provide at least two (2) one-bedroom units, two (2) two-bedroom units and one (1) three-bedroom replacement rental dwelling units at affordable rents, defined as gross monthly rent no greater than one times the average City of Toronto rent by unit type, as reported annually by the Canada Mortgage and Housing Corporation, one (1) two-bedroom replacement rental dwelling units at mid-range rent, defined as gross monthly rent that exceeds Affordable Rent but is no greater than 1.5 times the average City of Toronto rent by unit type, as reported annually by the Canada Mortgage and Housing Corporation, and one (1) three-bedroom replacement rental dwelling unit at high-end rent, all for a period of at least ten (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 six (6) existing rental dwelling 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 rent gap assistance, and other assistance to lessen 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 seven (7) replacement rental dwelling units with access to, and use of, all indoor and outdoor amenities in the proposed 24-storey residential building 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. the Owner shall provide ensuite laundry and central air conditioning in each replacement rental dwelling unit at no extra charge;

f. the Owner shall provide and make available for rent at least three (3) vehicle parking spaces to tenants of the replacement rental dwelling units; such parking spaces shall be made available firstly to returning tenants who previously rented a vehicle parking space at similar monthly parking charges that such tenants previously paid, secondly to returning tenants who did not previously rent a vehicle parking space and thirdly to new tenants of the rental replacement dwelling units;

g. the Owner shall provide and make available for rent a minimum of two (2) storage lockers to tenants of the replacement rental dwelling units on terms and conditions that are to the satisfaction of the Chief Planner and Executive Director, City Planning;

h. the Owner shall provide tenants of the 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, and in accordance with the Zoning By-law;

i. the replacement rental dwelling units required in Recommendations 1.a. and 1.b. above shall be made ready and available for occupancy no later than the date by which seventy percent (70%) of the new dwelling units in the proposed 24-storey residential building, exclusive of the replacement rental units, are made available and ready for occupancy; and

j. prior to issuance of the Notice of Approval Conditions for site plan approval by the Chief Planner and Executive Director, City Planning, or their designate, the Owner shall enter into, and register on title to the lands at 5, 7, 9, 11, 15 and 19 Cosburn Avenue and 8, 10, 12, 14, 16, 30, 32, 34, 36, 38 and 40 Gowan Avenue, an Agreement pursuant to Section 111 of the City of Toronto Act, 2006, to secure the conditions outlined in Recommendations 1.a through 1.i. above, all to the satisfaction of the City Solicitor and the Chief Planner and Executive Director, City Planning.

2. City Council authorize the Chief Planner and Executive Director, City Planning to issue Preliminary Approval for 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 all or any of the six (6) existing rental dwelling units at 17 and 19 Cosburn Avenue, and 8 and 10 Gowan Avenue after all of the following have occurred:

a. all conditions in Recommendation 1 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;

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

e. the City's receipt of confirmation that all existing rental dwelling units to be demolished are vacant.

3. 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 2 above.

4. 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 5, 7, 9, 11, 15 and 19 Cosburn Avenue and 8, 10, 12, 14, 16, 30, 32, 34, 36, 38 and 40 Gowan Avenue after the Chief Planner and Executive Director, City Planning has issued the Preliminary Approval referred to in Recommendation 2 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 shall remove all debris and rubble from the site immediately after demolition;

b. the Owner shall erect solid construction hoarding to the satisfaction of the Chief Building Official and Executive Director, Toronto Building;

c. the Owner erects the proposed residential building containing the replacement rental dwelling units on the site no later than three (3) years from the date that the demolition of the existing buildings commenced, 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 24-storey building within the time specified in Recommendation 4.c. above, the City Clerk shall be entitled to enter on the collector’s roll, to be collected in a like manner as municipal 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 each sum shall, until payment, be a lien or charge upon the land for which the Residential Demolition Permit is issued.

5. 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.

The Toronto and East York Community Council held a statutory public meeting on September 19, 2023 and notice was given in accordance with the City of Toronto Act.

This Rental Housing Demolition application proposes to demolish 6 rental dwelling units at 5-19 Cosburn Avenue and 8-40 Gowan Avenue and replace them with 7 new rental units within the proposed redevelopment of a new 24-storey residential building comprising 425 new dwelling units.

The properties are also the subject of a Zoning By-law Amendment application (20 232879 STE 14 OZ), which was appealed to the Ontario Land Tribunal (Case Number OLT-21-001666) on the basis of City Council's failure to make a decision on the application within the statutory timeline under the Planning Act. City Council endorsed a settlement offer on March 29, 2023 and directed staff to bring forward a Decision Report on the Rental Housing Demolition application. The Ontario Land Tribunal approved the settlement in principle, subject to conditions, at a settlement hearing held on June 8, 2023.

This report recommends approval of the Rental Housing Demolition application under Chapter 667 of the Toronto Municipal Code and the residential demolition permit under Chapter 363 of the Toronto Municipal Code.  The recommended approval is based on  the owner: replacing the 6 existing rental units by their respective unit types and sizes and at similar rents to those in effect at the time of application; providing an acceptable Tenant Relocation and Assistance Plan to mitigate hardship for existing tenants; and securing other matters to the satisfaction of the Chief Planner and Executive Director, City Planning Division and Chief Building Official and Executive Director, Toronto Building Division.