Item - 2024.PH14.9

The Planning and Housing Committee:

1. Endorsed the proposed policy directions outlined in Attachment 1 to the report (June 25, 2024) from the Interim Chief Planner and Executive Director, City Planning, and request the Chief Planner and Executive Director, City Planning to report back in the fourth quarter of 2024 with final policy recommendations.

2. Requested the Chief Planner and Executive Director, City Planning to conduct an economic analysis and include results of a sensitivity analysis that tests various replacement rates and corroborates the final staff-proposed rate, in the fourth quarter of 2024 report back.

3.  Requested the Chief Planner and Executive Director, City Planning to consult on the merits of an additional policy direction to Attachment 1 to the report (June 25, 2024) from the Interim Chief Planner and Executive Director, City Planning as follows:

- Purpose built rental housing – A revised replacement policy that waives office replacement provided that the proposed development consists of 100 percent purpose built rental housing and includes 20 percent affordable rental units.

This report is the first of a two-phased approach in bringing forward Official Plan Amendments related to the City’s adopted office replacement policies. This report provides an update on the ongoing Office Space Needs Study (Office Study), which informs the described policy directions related to office replacement. City Planning and Economic Development and Culture (EDC) staff will use the proposed policy directions (Attachment 1) for the basis of stakeholder engagement prior to recommending office replacement Official Plan amendments to the Planning and Housing Committee and City Council.

Through the Office Study, staff are seeking to balance the need for new housing, including affordable housing, with Toronto’s long-term employment growth and the creation of transit-supported complete communities, while addressing the office market conditions resulting from the COVID-19 pandemic. The Office Study also considers the growing space needs for alternative employment sectors, such as retail, service commercial, cultural and entertainment-based activities, institutional uses, storage and warehousing, and life sciences that add to the City’s diverse and resilient economy.

Upon completion of the Office Study, including stakeholder engagement, staff will generate final recommendations that would amend existing Official Plan policies including those under appeal as part of Official Plan Amendment 231 (OPA 231) and policies within the Downtown Plan and Yonge-Eglinton Secondary Plan.

In the subsequent report, staff will address policy and non-policy options, including those related to office conversion, replacement requirements and incentives for alternative non-residential employment uses and affordable housing.