Item - 2025.EX20.2

The Executive Committee recommends that:

1. City Council request the Board of Directors, CreateTO to direct the Chief Executive Officer, CreateTO to work with the Executive Director, Corporate Real Estate Management, the Executive Director, Social Development, Finance and Administration, the General Manager, Parks and Recreation, the Executive Director, Development Review, the Chief Planner and Executive Director, City Planning and the Executive Director, Housing Secretariat, to advance the Development Master Plan process as outlined in Attachment 1 to the report (January 14, 2025) from the Executive Director, Corporate Real Estate Management.

2. City Council direct the Executive Director, Development Review to initiate the City-initiated Planning Approval process required to facilitate redevelopment as outlined in Attachment 1 to the report (January 14, 2025) from the Executive Director, Corporate Real Estate Management.

3. City Council direct the Executive Director, Corporate Real Estate Management, in consultation with the Executive Director, Social Development, Finance and Administration, to develop a relocation and re-accommodation strategy for existing Community Space Tenancy Policy tenants located on the property, that will form part of the process to create the Development Master Plan.

4. City Council request the Board of Directors, CreateTO to direct the Chief Executive Officer, CreateTO, in consultation with the Executive Director, Corporate Real Estate Management, to negotiate agreements with Toronto Lands Corporation and/or Toronto District School Board, as appropriate, for the Development Master Plan and report back to City Council on negotiated terms.

This report seeks City Council approval to advance a City-initiated Development Master Plan and Planning Approval Process for the redevelopment of 705 Progress Avenue. It also provides an update on work completed to-date to advance the Development Master Plan, in coordination with Toronto Lands Corporation (TLC), on behalf of the Toronto District School Board (TDSB), and enables CreateTO to work with TLC on the successful delivery of the project, including the Development Master Plan whose key terms are outlined in Attachment 1. TLC oversees the acquisition, asset management, redevelopment, and sales of all properties in the TDSB real estate portfolio.

705 Progress Avenue is a 10.9-acre property jointly owned on a 50/50 basis by the City of Toronto and TDSB. It was acquired in August 1996 by the former City of Scarborough in partnership with the former Scarborough Board of Education to develop a new elementary school and municipal park. The site is well served by existing and planned transit options and is within the Council-adopted Scarborough Centre Station Protected Major Transit Station Area.

The site is currently developed with low-rise, non-residential buildings initially intended for light industrial uses. The property currently contains 55 commercial units, including active leases with market-rate tenants and below-market-rate tenants, along with City divisions, agencies, and corporations.

In November 2021, City Council directed staff, in consultation with CreateTO and in collaboration with TDSB, to create a Development Master Plan for the site. City Council direction included advancing Official Plan and/or Zoning By-law Amendments to allow a mixed-use development to achieve multiple city-building outcomes. These outcomes include:

-Constructing a new public school;

-Creating a large park;

-Building new affordable housing; and

-Establishing a permanent community hub for local not-for-profit organizations.

In response to City Council direction, CreateTO (on behalf of the City of Toronto), and TLC (on behalf of TDSB) have established a Working Committee and developed a joint and non-binding Project Charter to advance a Development Master Plan and Conceptual Phasing Strategy. The Working Committee includes representatives from the following City of Toronto divisions: City Planning; Development Review, Corporate Real Estate Management; Housing Secretariat; Parks and Recreation; and Social Development, Finance, and Administration.

The Development Master Plan and Conceptual Phasing Strategy have been developed with a view to minimize impacts on existing Community Space Tenancy Policy tenants. Development of the site is anticipated to be phased over several years. In consultation with stakeholders, a relocation and re-accommodation strategy will be developed. This will enable uninterrupted community services for existing tenants operating under the City's Community Space Tenancy Policy and will be refined as the Development Master Plan and phasing strategy are further developed.

This report was prepared in consultation with the Working Committee and TLC (on behalf of TDSB).