Item - 2024.RA12.3

The Board of Directors of CreateTO:

1. Recommends that City Council request the Chief Executive Officer, CreateTO, in consultation with Corporate Real Estate Management and the Housing Secretariat to undertake a market offering for 931 Yonge Street on a long-term land lease basis and to prioritize the creation of affordable rental housing as per the general direction contained in Item EX9.3, which has considered the feasibility of co-operative housing.

On April 6, 2022, City Council through Item 2022.EX31.10, supported the recommended portfolio strategy to optimize the city-building opportunities on the eight City-owned properties that are targeted to be unlocked through the ModernTO program and authorized CreateTO in consultation with Corporate Real Estate Management and the Housing Secretariat to:

 - undertake a market offering process for 931 Yonge Street immediately following the re-zoning of the property that, further to Council direction, prioritizes the creation of affordable ownership housing, delivery of public realm improvements and adheres to the City’s strategic investment policy as outlined in the proposed vision; and,

- report back to the CreateTO Board with the recommended proponent for City Council approval.

CreateTO led the entitlement process to amend the Zoning By-law to permit a 32-storey mixed use building with 250 dwelling units and 150 square metres of non-residential space on the ground floor. On April 17, 2024, City Council adopted Item TE12.6; the amended by-laws were final and binding on Apr 18, 2024.

The current development statistics are outlined in Table 1.

Table 1: 931 Yonge St - Development Statistics

City priorities as per Council direction 2023.EX 9.3 Generational Transformation of Toronto's Housing System to Urgently Build More Affordable Homes have shifted. Staff in the Housing Secretariat and CreateTO have been directed to leverage City lands for purpose built rental housing that includes both affordable and rent-controlled units. As such, Management recommends offering this site on a long-term land lease basis as opposed to fee simple sale to support a 100 per cent rental development with a minimum requirement of 33 per cent affordable rental units.

The intent is to bring the Site to market in the fourth quarter of 2024 through a real estate brokerage market offering. Following the market offering process, CreateTO staff will report to the CreateTO Board on the proponent selection for endorsement and recommendation to Council. Subject to Council approval, staff will finalize the ground lease agreement and contribution agreement, collectively the ("Agreements"). The lease agreements will be executed prior to the completion of the Site Plan Control process by the proponent developer.