Item - 2023.TE9.18

The Toronto and East York Community Council recommends that:

1. City Council approve the Rental Housing Demolition application (21 189637 STE 13 RH) under Chapter 667 of the Toronto Municipal Code pursuant to Section 111 of the City of Toronto Act, 2006, to permit the demolition of forty-four (44) existing rental dwelling units at 387 Sherbourne Street, subject to the following conditions:
 

a. the owner shall provide and maintain forty-four (44) 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 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; the forty-four (44) replacement rental dwelling units shall collectively have a total gross floor area of at least 1,820 square metres and be comprised of twenty-two (22) studio units and twenty-two (22) one-bedroom units, as generally illustrated in the plans submitted to the City Planning dated May 19, 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 forty-four (44) replacement rental dwelling units required in Recommendation 1.a. above, provide at least fifteen (15) studio and twelve (12) one-bedroom replacement rental dwelling units at affordable rents, as currently defined in the Toronto Official Plan, all for a period of at least ten (10) years beginning from the date of first occupancy of each unit; the rents of the remaining seventeen (17) replacement rental dwelling units shall be unrestricted;

c. the owner shall provide an acceptable Tenant Relocation and Assistance Plan to all eligible tenants of the forty-four (44) existing rental dwelling units proposed to be demolished at 387 Sherbourne Street, addressing the right to return to occupy one of the replacement rental dwelling units at similar rents, 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;

e. the owner shall provide tenants of all forty-four (44) replacement rental dwelling units with access to, and use of, all indoor and outdoor amenities in the proposed 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 development, without the need to pre-book or pay a fee unless specifically required as a customary practice for private bookings;

 
f. the owner shall provide ensuite laundry in each replacement rental dwelling unit within the proposed development at no extra charge;

g. the owner shall provide central air conditioning in each replacement rental dwelling unit within the proposed development at no extra charge;

h. the owner shall provide tenants of the replacement rental dwelling units with access to bicycle and visitor vehicular parking at no charge and on the same terms and conditions as any other resident of the proposed development;

i. the forty-four (44) replacement rental dwelling units required in Recommendation 1.a. 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 development, exclusive of the replacement rental dwelling units, are made available and ready for occupancy; and

j. the owner shall enter into and register on title to the lands at 387 and 383 Sherbourne Street 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 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 forty-four (44) existing rental dwelling units at 387 Sherbourne Street after all the following have occurred:
 

a. all conditions in Recommendation 1 above have been fully satisfied and 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 permits) 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.

 
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 387 Sherbourne Street after the Chief Planner and Executive Director, City Planning has given 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 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 building no later than four (4) 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 containing the forty-four (44) replacement rental dwelling units within the time specified in Recommendation 4.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.

5. City Council request the Chief Planner and Executive Director, City Planning to secure through one or more agreements to the satisfaction of the City Solicitor the owner's obligation to:

a. continue to provide and maintain the existing thirty-two (32) rental dwelling units at 383 Sherbourne Street as rental housing for a period of at least 20 years commencing from the date the Zoning By-law Amendment comes into force and effect, with no application for demolition or conversion from residential rental use during the 20-year period, all to the satisfaction of the City Solicitor and the Chief Planner and Executive Director, City Planning; and

b. undertake improvements to the existing rental building, at its sole expense and at no cost to tenants, at 383 Sherbourne Street, as follows:

1. interior renovations of each rental unit including: high-efficiency water upgrades with all toilets converted to low flow and shower fixtures retrofitted, ceiling fans, triple glazed windows, new kitchen appliances, cabinets and plumbing, new flooring, and in-suite laundry in all rental dwelling units;

2. exterior and interior common area renovations including: high-efficiency lighting and new carpet tile in all common areas, brick repair and tuck pointing on the south side exterior wall, front façade improvements, triple glazed windows, and repair of walls for continuous fire separations between suites; and

3. building system upgrades including: new water tank installed, heating upgrades and replacement of steam traps and condensation tank, new intercom system, new fire alarm system, central low energy cooling, new plumbing system, modernized electrical system, and direct ducting for fresh air supply in suites with heat supply;

c. the owner shall provide access to new outdoor amenities, indoor amenities, and indoor bicycle parking in the proposed new building for tenants of the existing rental apartment building; and

d. the owner shall provide an acceptable Tenant Relocation and Assistance Plan to all Eligible Tenants of the thirty-two (32) retained rental dwelling units at 383 Sherbourne Street, addressing the right to return to occupy one of the retained 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.

6. 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.

The Toronto and East York Community Council held a statutory public meeting on November 15, 2023 and notice was given in accordance with the City of Toronto Act.

The application proposes to demolish a 3-storey apartment building containing 44 rental units located at 387 Sherbourne Street. The 44 rental units are proposed to be replaced as part of the new 39-storey building comprised of 346 dwelling units. An adjacent 3-storey apartment building at 383 Sherbourne Street with 32 units is proposed to undergo extensive renovation and be retained on the development site.   

The properties are also the subject of a Zoning By-law Amendment application (21 189632 STE 13 OZ), which was appealed to the Ontario Land Tribunal (OLT). The OLT issued a written decision on October 6, 2023, approving the Zoning By-law Amendment in principle, with the final Order being withheld until all outstanding matters, including the necessary agreements with the City, are secured, including the rental housing matters.

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, subject to conditions to replace the rental housing and provide Tenant Relocation and Assistance.