Item - 2024.CC16.22

City Council on March 20 and 21, 2024, adopted the following:

1. City Council adopt the confidential instructions to staff in Confidential Attachment 1 to the report (March 7, 2024) from the City Solicitor.

2. City Council authorize the public release of the confidential instructions to staff in Confidential Attachment 1 and Confidential Appendices A and B to the report (March 7, 2024) from the City Solicitor.

3. City Council direct that the balance of Confidential Attachment 1 to the report (March 7, 2024) from the City Solicitor remain confidential at the discretion of the City Solicitor, as it is about litigation before the Ontario Land Tribunal and advice or communications that are subject to solicitor-client privilege.

The confidential instructions to staff in Confidential Attachment 1 to the report (March 7, 2024) from the City Solicitor were adopted by City Council and are now public, as follows:

1. City Council accept the "without prejudice" settlement offer set out in Confidential Appendix A to the report (March 7, 2024) from the City Solicitor, and support a revised proposal that is substantially in accordance with the plans and drawings in Confidential Appendix B (together the "Settlement Offer") to the report (March 7, 2024) from the City Solicitor and subject to the Parts below.

2. City Council authorize the City Solicitor and appropriate City Staff to attend the Ontario Land Tribunal hearing on this matter in support of the Settlement Offer for the lands municipally known as 353 - 355 Adelaide Street West, 46 Charlotte Street and 16 Oxley Street.

3. City Council approve:

a. the alterations of the designated property at 355 Adelaide Street West in accordance with Section 33 of the Ontario Heritage Act to allow for the construction of a new mixed use building substantially in accordance with plans and drawings prepared by Arcadis Architects (Canada Inc.), dated February 9, 2024, submitted with the Heritage Impact Assessment prepared by ERA Architects Inc., dated February 9, 2024 all on file with the Senior Manager, Heritage Planning, all subject to and in accordance with a Conservation Plan satisfactory to the Senior Manager, Heritage Planning and subject to conditions as set out below; and

b. the removal of heritage attributes of the designated property at 355 Adelaide Street West in accordance with Section 34(1)1 of the Ontario Heritage Act to allow for the construction of a new mixed use building substantially in accordance with plans and drawings prepared by Arcadis Architects (Canada Inc.), dated February 9, 2024, submitted with the Heritage Impact Assessment prepared by ERA Architects Inc., dated February 9, 2024 all on file with the Senior Manager, Heritage Planning, all subject to and in accordance with a Conservation Plan satisfactory to the Senior Manager, Heritage Planning and subject to conditions as set out below.

4. City Council direct that its consent to the application to alter the designated property at 355 Adelaide Street West under Part IV, Section 33 of the Ontario Heritage Act and its consent to the demolition of heritage attributes of the designated heritage property at 355 Adelaide Street West, under Part IV, Section 34(1) 1 of the Ontario Heritage Act are also subject to the following conditions:

a. prior to issuance of an Ontario Land Tribunal Order in connection with the Zoning By-law Amendment appeal for the property at 355 Adelaide Street West, 46 Charlotte Street and 16 Oxley Street, the owner shall:

1. provide a detailed Conservation Plan prepared by a qualified heritage consultant that is substantially in accordance with the conservation strategy set out in the Heritage Impact Assessment for 355 Adelaide Street West, prepared by ERA Architects Inc., dated February 9, 2024, to the satisfaction of the Senior Manager, Heritage Planning; and

2. enter into a Heritage Easement Agreement with the City for the property at 355 Adelaide Street West substantially in accordance with plans and drawings prepared by Arcadis Architects (Canada Inc.), dated February 9, 2024, submitted with the Heritage Impact Assessment prepared by ERA Architects Inc., dated February 9, 2024, subject to and in accordance with the approved Conservation Plan required in Part 4.a.1 above, to the satisfaction of the Senior Manager, Heritage Planning, including execution of such agreement to the satisfaction of the City Solicitor;

b. prior to Site Plan approval for the proposed development of the properties at 355 Adelaide Street West, 46 Charlotte Street and 16 Oxley Street the owner shall:

1. provide final Site Plan drawings substantially in accordance with the approved Conservation Plan required in Part 4.a.1 above to the satisfaction of the Senior Manager, Heritage Planning;

2. obtain final approval for the necessary by-law amendments required for the alterations to the property at 355 Adelaide Street West, such amendments to have been enacted by City Council in connection with an Ontario Land Tribunal Order and to have come into effect in a form and with content acceptable to City Council as determined by the Chief Planner, City Planning in consultation with the Senior Manager, Heritage Planning;

3. provide an Interpretation Plan for the subject property, to the satisfaction of the Senior Manager, Heritage Planning thereafter shall implement such Plan to the satisfaction of the Senior Manager, Heritage Planning;

4. provide a Heritage Lighting Plan that describes how the heritage property will be sensitively illuminated to enhance its heritage character to the satisfaction of the Senior Manager, Heritage Planning and thereafter shall implement such Plan to the satisfaction of the Senior Manager, Heritage Planning; and

5. submit a Signage Plan for the proposed development to the satisfaction of the Senior Manager, Heritage Planning;

c. prior to the issuance of any permit for all or any part of the property at 355 Adelaide Street West, but excluding permits for repairs and maintenance and usual and minor works for the existing heritage buildings as are acceptable to the Senior Manager, Heritage Planning, the owner shall:

1. have obtained final approval for the necessary Zoning By-law Amendment required for the subject property, such Amendment to have come into full force and effect;

2. have entered into a Heritage Easement Agreement with the City of Toronto required in Part 4.a.2 for property at 355 Adelaide Street West, including registration on title of such agreement, to the satisfaction of the City Solicitor;

3. provide building permit drawings, including notes and specifications for the conservation and protective measures keyed to the approved Conservation Plan required in Part 4.a.1 above including a description of materials and finishes, to be prepared by the project architect and a qualified heritage consultant to the satisfaction of the Senior Manager, Heritage Planning;

4. provide a Letter of Credit, including provision for upwards indexing in a form and amount and from a bank satisfactory to the Senior Manager, Heritage Planning, to secure all work included in the approved Conservation Plan and Interpretation Plan; and

5. provide full documentation of the existing heritage property, including two (2) printed sets of archival quality 8 by 10 inch colour photographs with borders in a glossy or semi-gloss finish and one (1) digital set on a CD in tiff format and 600 dpi resolution keyed to a location map, elevations and measured drawings, and copies of all existing interior floor plans and original drawings as may be available, to the satisfaction of the Senior Manager, Heritage Planning; and

d. prior to the release of the Letter of Credit required in Part 4.c.4. above, the owner shall:

1. provide a letter of substantial completion prepared and signed by a qualified heritage consultant confirming that the required conservation work, and the required interpretive work has been completed in accordance with the Conservation Plan and Interpretation Plan and that an appropriate standard of conservation has been maintained, all to the satisfaction of the Senior Manager, Heritage Planning.

5. City Council authorize the entering into of a Heritage Easement Agreement under Section 37 of the Ontario Heritage Act with the owner of 355 Adelaide Street West in a form and content satisfactory to the City Solicitor and the Interim Chief Planner and Executive Director, City Planning.

6. City Council authorize the City Solicitor to introduce the necessary Bill in Council authorizing the entering into of a Heritage Easement Agreement for the property at 355 Adelaide Street West.

7. City Council instruct the City Solicitor to request that the Ontario Land Tribunal withhold its Order on the Zoning By-law Amendment until such time as the Ontario Land Tribunal has been advised by the City Solicitor that:

a. the final form and content of the draft Zoning By-law Amendment is satisfactory to the Interim Chief Planner and Executive Director, City Planning and the City Solicitor, which will include the minimum number of 2 bedroom and 3 bedroom and additional 2 and 3 bedroom requirements in the Downtown Plan;

b. the owner has, at its sole cost and expense:

i. submitted a revised Functional Servicing Report and Stormwater Management Report, Hydrogeological Review, including the Foundation Drainage Report ("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 provided financial securities in respect of 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 that implementation of the accepted Engineering Reports does not require changes to the proposed amending By-law or that any required changes have been made to the proposed amending By-law to the satisfaction of the Interim Chief Planner and Executive Director, City Planning and the City Solicitor, including the use of a Holding ("H") By-law symbol regarding any new municipal servicing infrastructure or upgrades to existing municipal servicing infrastructure, as may be required;

c. the owner has provided a detailed Conservation Plan prepared by a qualified heritage consultant that is substantially in accordance with the conservation strategy set out in the Heritage Impact Assessment for 355 Adelaide Street West, prepared by ERA Architects Inc., dated February 9, 2024, to the satisfaction of the Senior Manager, Heritage Planning;

d. the owner has entered into a Heritage Easement Agreement with the City for the property at 355 Adelaide Street West substantially in accordance with plans and drawings prepared by Arcadis Architects (Canada Inc.), dated February 9, 2024, submitted with the Heritage Impact Assessment prepared by ERA Architects Inc., dated February 9, 2024, subject to and in accordance with the approved Conservation Plan required above, to the satisfaction of the Senior Manager, Heritage Planning including execution of such agreement to the satisfaction of the City Solicitor; and

e. the owner has withdrawn its site-specific appeal of Official Plan Amendment 486.

8. City Council direct the Interim Chief Planner and Executive Director, City Planning to continue discussions with the owner, and to report back on the outcome of any proposed agreement with the owner for the potential provision of affordable housing on the lands as an in-kind contribution in accordance with the City's Community Benefits Charge By-law.

9. City Council authorize the City Solicitor and appropriate City staff to take any necessary steps to implement City Council's decision on this matter.

Confidential Appendices A and B to the report (March 7, 2024) from the City Solicitor are now public and can be accessed under Background Information (City Council).

The balance of Confidential Attachment 1 to the report (March 7, 2024) from the City Solicitor remains confidential at this time, in accordance with the provisions of the City of Toronto Act, 2006, as it pertains to litigation and contains advice that is subject to solicitor-client privilege. The balance of Confidential Attachment 1 to the report (March 7, 2024) from the City Solicitor will be made public at the discretion of the City Solicitor.