Item - 2024.CC21.3

City Council on September 5, 2024, adopted the following:

1. City Council adopt the confidential instructions to staff in Confidential Attachment 1 to the report (August 16, 2024) from the City Solicitor, as amended by Motion 1 by Deputy Mayor Ausma Malik.

2. City Council authorize the public release of the confidential instructions to staff in Confidential Attachment 1 to the report (August 16, 2024) from the City Solicitor, as amended by Motion 1 by Deputy Mayor Ausma Malik, and Confidential Appendix A to the report (August 16, 2024) from the City Solicitor.

3. City Council direct that the balance of Confidential Attachment 1 to the report (August 16, 2024) from the City Solicitor remain confidential at the discretion of the City Solicitor, as it contains advice that is subject to solicitor-client privilege.

The confidential instructions to staff in Confidential Attachment 1 to the report (August 16, 2024) from the City Solicitor, as amended by Motion 1 by Deputy Mayor Ausma Malik, were adopted by City Council and are now public as follows:

1. City Council accept the without prejudice offer to settle dated August 15, 2024, set out in Confidential Appendix A to the report (August 16, 2024) from the City Solicitor for the lands municipally known as 70-86 Lynn Williams Street (the "Site").

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.

3. City Council approve, that in accordance with Section 42 of the Planning Act, prior to the first above grade building permit, the Owner shall convey to the City, an on-site parkland dedication, having a minimum size of 325 square metres, to the satisfaction of the General Manager, Parks, Forestry and Recreation and the City Solicitor.

4. City Council approve the acceptance of the on-site parkland dedication, subject to the Owner transferring the parkland to the City free and clear, above and below grade, of all easements, encumbrances, and encroachments, in an acceptable environmental condition; the Owner may propose the exception of encumbrances of tiebacks, where such an encumbrance is deemed acceptable by the General Manager, Parks, Forestry and Recreation and Recreation, in consultation with the City Solicitor; and such an encumbrance will be subject to the payment of compensation to the City, in an amount as determined by the General Manager, Parks, Forestry and Recreation, and the Executive Director, Corporate Real Estate Management.

5. In the event that the Owner undertakes the Above Base Park Improvements, City Council approve a development charge credit against the Parks and Recreation component of the Development Charges for the design and construction by the Owner of the Above Base Park Improvements to the satisfaction of the General Manager, Parks, Forestry and Recreation; the development charge credit shall be in an amount that is the lesser of the cost to the Owner of designing and constructing the Above Base Park Improvements, as approved by the General Manager, Parks, Forestry and Recreation, and the Parks and Recreation component of development charges payable for the development in accordance with the City's Development Charges By-law, as may be amended from time to time.

6. City Council allow the Owner of the Site to construct, finish, furnish, equip and convey to the City a non-profit licensed child care facility (the "Child Care Facility") to the satisfaction of the Chief Planner and Executive Director, City Planning and the General Manager of Children's Services as part of the development, as an in-kind contribution pursuant to subsection 37(6) of the Planning Act, in accordance with the following terms:

a. the Child Care Facility will comprise a minimum of 450 square metres indoor area located on the first and second floors of the proposed development and a minimum 201 square metres outdoor area, located on the first floor of the proposed development; and

b. the Child Care Facility will be provided in accordance with the terms to be set out in the In-Kind Contribution Agreement identified in Part 9 below.

7. City Council attribute a value to the in-kind contribution set out in Part 6 above equal to 100 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.

8. City Council require that prior to the issuance of the first above grade building permit for the development, the Owner shall provide to the City a letter of credit to secure the Child Care Centre in an amount sufficient to guarantee 120 percent of the estimated cost of the design, construction and handover of the Child Care Centre complying with the specifications and requirements of the In-kind Contribution Agreement, to the satisfaction of the General Manager, Children's Services and the Chief Financial Officer and Treasurer.

9. 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 Part 6 above to the satisfaction of the Chief Planner and Executive Director, City Planning, the General Manager, Children's Services and the City Solicitor, with such agreement to be registered on title to the Site and such agreement shall be evidence of arrangements for the provision of the in-kind contribution that are satisfactory to City Council.

10. City Council authorize the Executive Director, Housing Secretariat, to negotiate and execute a municipal housing facility agreement ("Contribution Agreement") with the Owner for the provision of financial incentives, for 13 affordable rental dwelling units at the Site to secure rents at the City of Toronto’s income-based definition of "affordable housing" by bedroom type, as determined by the City annually, for a minimum period of 99 years, on terms and conditions acceptable to the Executive Director, Housing Secretariat, in a form satisfactory to the City Solicitor.

11. City Council approve the provision of financial incentives pursuant to the City's Rental Housing Supply Program in relation to the affordable rental dwelling units described in Part 10 above as follows:

a. City Council exempt the 13 affordable rental dwelling units at the Site from taxation for municipal and school purposes for the 99-year term of the municipal capital facility agreement;

b. City Council authorize the 13 new affordable rental dwelling units at the Site to be eligible for an exemption from development charges, parkland dedication fees, community benefits charges, if not exempted by provincial legislation, and waivers of building permit fees;

c. 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 dwelling units, including any documents required by the Owner to secure conventional financing, where required, including any postponement, confirmation of status, discharge or consent documents where and when required during the term of the municipal housing facility 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 Council; and

d. City Council authorize the Controller to cancel or refund any taxes paid pursuant to the by-law exempting the property from taxation if authority is given for an exemption from taxation as set out in Part 11.a. above.

12. 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;

b. the Owner has entered into an appropriate agreement to secure the affordable housing units described in Part 10 above, with such terms and conditions satisfactory to the Executive Director, Development Review and the Executive Director, Housing Secretariat, and the City Solicitor;

c. the Owner has entered into the In-kind Contribution Agreement pursuant to section 37(7.1) of the Planning Act to secure the in-kind contribution referenced in Part 6 above;

d. 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 prepared by ERA Architects dated July 26, 2024, for the property at 80-86 Lynn Williams Street, to the satisfaction of the Senior Manager, Heritage Planning;

e. the Owner has entered into a Heritage Easement Agreement with the City for property at 80-86 Lynn Williams Street, substantially in accordance with the plans and drawings dated July 30, 2024 prepared by gh3 on file with the Senior Manager, Heritage Planning and the Heritage Impact Assessment prepared by ERA Architects dated July 26, 2024, and on file with the Senior Manager, Heritage Planning, subject to and in accordance with the approved Conservation Plan required above, to the satisfaction of the Senior Manager, Heritage Planning, including execution and registration of such agreement to the satisfaction of the City Solicitor; and

f. the Owner has provided a revised Functional Servicing Report and a revised Stormwater Management Report, such reports to be reviewed to the satisfaction of the Chief Engineer and Executive Director, Engineering and Construction Services.

13. As an alternative, in the event the Owner withdraws its appeal to the Ontario Land Tribunal, City Council direct the Director, Community Planning, Toronto and East York District, to bring forward a report to the next available meeting of Toronto and East York Community Council for a statutory public meeting as required under the Planning Act on the basis of the revised plans identified in the Settlement Offer; for clarity, if a report is brought forward, City Council’s discretion on approving or refusing a Zoning By-law Amendment is not fettered by City Council’s acceptance of the Settlement Offer.

14. City Council request the applicant to conduct community engagement, at their expense and prior to the issuance of a below grade permit, with Liberty Village residents and appropriate City staff to consider the concerns raised by local residents, including, but not limited to: traffic congestion, construction management, public realm improvements, and community services and facilities within Liberty Village.

15. City Council direct City staff and the applicant to ensure that all development applications for the subject site comply with the Council-approved Liberty Village Public Realm Strategy, the upcoming Liberty Village Traffic Action Plan, any current or future neighbourhood-related plans for FIFA World Cup 2026 and the current directions of the Liberty Village Regeneration Study.

16. City Council authorize the City Solicitor to take all necessary actions to implement City Council's decision.

Confidential Appendix A to the report (August 16, 2024) from the City Solicitor is now public and can be accessed under Background Information (City Council).

The balance of Confidential Attachment 1 to the report (August 16, 2024) from the City Solicitor remains confidential at this time in accordance with the provisions of the City of Toronto Act, 2006, as it contains advice that is subject to solicitor-client privilege. The balance of Confidential Attachment 1 to the report (August 16, 2024) from the City Solicitor will be made public at the discretion of the City Solicitor.