Item - 2025.PH18.12
Tracking Status
- City Council adopted this item on February 5, 2025 with amendments.
- This item was considered by Planning and Housing Committee on January 23, 2025. It is being forwarded to City Council without recommendations. It will be considered by City Council on February 5, 2025.
PH18.12 - Transit-Oriented Communities Update on Downtown Proposals and Affordable Housing
- Decision Type:
- ACTION
- Status:
- Amended
- Wards:
- All
City Council Decision
City Council on February 5, 2025, adopted the following:
1. City Council direct the City Manager to seek a firm commitment from the Province that the Additional Community Benefit, as defined through the Transit Oriented Community Value Allocation Framework, will be 8 percent of the value of a Transit Oriented Community rather than "up to 8 percent".
2. City Council authorize the City Manager or designate to negotiate and execute a Memorandum of Understanding for the Queen-Spadina Transit Oriented Community proposals generally in accordance with the terms and conditions set out in Confidential Attachment 1 to the report (January 13, 2025) from the Chief Planner and Executive Director, City Planning, and on such other terms as may be satisfactory to the City Manager and in a form acceptable to the City Solicitor, if the following condition is met:
a. that the Government of Ontario commit to achieving 20 percent affordable housing in this Transit Oriented Community project.
3. City Council direct that Confidential Attachment 1 to the report (January 13, 2025) from the Chief Planner and Executive Director, City Planning remain confidential at this time as it pertains to criteria to be applied to negotiations carried on by or on behalf of the City of Toronto and be made public following the execution of the site specific Transit Oriented Community Memorandum of Understanding for the Queen-Spadina Transit Oriented Community.
4. City Council direct that Confidential Attachment 2 to the report (January 13, 2025) from the Chief Planner and Executive Director, City Planning remain confidential at this time as it contains commercial information supplied in confidence to the City of Toronto and be made public upon confirmation to the Deputy City Manager, Development and Growth from the Province that the King Bathurst Transit Oriented Community Letter from the Province is no longer required to remain confidential.
5. City Council direct the Chief Planner and Executive Director, City Planning, in consultation with the Executive Director, Housing Secretariat and the Deputy City Manager, Development and Growth, to work with the Province to maximize the affordable housing outcome that can be realized by leveraging the Provincial value contribution from Transit Oriented Community developments to assist in qualifying projects with best cost per door results for City affordable housing incentive programs.
6. City Council direct the Deputy City Manager, Development and Growth, the Chief Planner and Executive Director, City Planning, and the Executive Director, Development Review to advise future Transit Oriented Community development partners of the City's affordable housing incentive programs in the context of future applications for development of the Transit Oriented Community sites.
7. City Council direct the Chief Planner and Executive Director, City Planning, in collaboration with the Executive Director, Housing Secretariat and the Deputy City Manager, Development and Growth, to continue to assess opportunities to enhance affordable housing outcomes for all Transit Oriented Community proposals as housing programs continue to evolve.
8. City Council reaffirm that the City of Toronto expects all proponents, including the Government of Ontario, to adhere to the City’s rental replacement requirements when applicable.
Confidential Attachment 1 to the report (January 13, 2025) from the Chief Planner and Executive Director, City Planning remains confidential at this time in accordance with the provisions of the City of Toronto Act, 2006, as it pertains to criteria to be applied to negotiations carried on by or on behalf of the City of Toronto. Confidential Attachment 1 to the report (January 13, 2025) from the Chief Planner and Executive Director, City Planning will be made public following the execution of the site-specific Transit Oriented Community Memorandum of Understanding for the Queen-Spadina Transit Oriented Community.
Confidential Attachment 2 to the report (January 13, 2025) from the Chief Planner and Executive Director, City Planning remain confidential at this time in accordance with the provisions of the City of Toronto Act, 2006, as it contains commercial information supplied in confidence to the City of Toronto. Confidential Attachment 2 to the report (January 13, 2025) from the Chief Planner and Executive Director, City Planning will be made public upon confirmation to the Deputy City Manager, Development and Growth from the Province that the King Bathurst Transit Oriented Community Letter from the Province is no longer required to remain confidential.
Confidential Attachment - Information about criteria to be applied to negotiations carried on by or on behalf of the City and the Province as represented by Infrastructure Ontario, and information supplied in confidence to the City which, if disclosed, could reasonably be expected to prejudice significantly the competitive position or interfere significantly with contractual or other negotiations of the Province as represented by Infrastructure Ontario with potential development partners
Background Information (Committee)
https://www.toronto.ca/legdocs/mmis/2025/ph/bgrd/backgroundfile-252059.pdf
Confidential Attachment 1: Draft Terms of Site Specific Transit Oriented Communities Memorandum of Understanding for Queen-Spadina Transit Oriented Community
Confidential Attachment 2: King-Bathurst Transit Oriented Community Letter from the Province
Motions (City Council)
That City Council adopt the following recommendations in the report (January 13, 2025) from the Chief Planner and Executive Director, City Planning, with an amendment to Recommendation 2 as follows:
1. City Council direct the City Manager to seek a firm commitment from the Province that the Additional Community Benefit, as defined through the Transit Oriented Community Value Allocation Framework, will be 8 percent of the value of a Transit Oriented Community rather than "up to 8 percent".
2. City Council authorize the City Manager or designate to negotiate and execute a Memorandum of Understanding for the Queen-Spadina Transit Oriented Community proposals generally in accordance with the terms and conditions set out in Confidential Attachment 1, and on such other terms as may be satisfactory to the City Manager and in a form acceptable to the City Solicitor.
2. City Council authorize the City Manager or designate to negotiate and execute a Memorandum of Understanding for the Queen-Spadina Transit Oriented Community proposals generally in accordance with the terms and conditions set out in Confidential Attachment 1 to the report (January 13, 2025) from the Chief Planner and Executive Director, City Planning, and on such other terms as may be satisfactory to the City Manager and in a form acceptable to the City Solicitor, if the following condition is met:
a. that the Government of Ontario commits to achieving 20 percent affordable housing in this Transit Oriented Community project.
3. City Council direct that Confidential Attachment 1 remain confidential at this time as it pertains to criteria to be applied to negotiations carried on by or on behalf of the City of Toronto and be made public following the execution of the site specific Transit Oriented Community Memorandum of Understanding for the Queen-Spadina Transit Oriented Community.
4. City Council direct that Confidential Attachment 2 remain confidential at this time as it pertains to contains commercial information supplied in confidence to the City of Toronto and be made public upon confirmation to the Deputy City Manager, Development and Growth from the Province that the King Bathurst Transit Oriented Community Letter from the Province is no longer required to remain confidential.
5. City Council direct the Chief Planner and Executive Director, City Planning, in consultation with the Executive Director, Housing Secretariat and the Deputy City Manager, Development and Growth, to work with the Province to maximize the affordable housing outcome that can be realized by leveraging the Provincial value contribution from Transit Oriented Community developments to assist in qualifying projects with best cost per door results for City affordable housing incentive programs.
6. City Council direct Deputy City Manager, Development and Growth, the Chief Planner and Executive Director, City Planning, and the Executive Director, Development Review to advise future Transit Oriented Community development partners of the City's affordable housing incentive programs in the context of future applications for development of the Transit Oriented Community sites.
7. City Council direct the Chief Planner and Executive Director, City Planning, in collaboration with the Executive Director, Housing Secretariat and the Deputy City Manager, Development and Growth, to continue to assess opportunities to enhance affordable housing outcomes for all Transit Oriented Community proposals as housing programs continue to evolve.
That:
1. City Council reaffirm that the City of Toronto expects all proponents, including the Government of Ontario, to adhere to the City’s rental replacement requirements when applicable.
PH18.12 - Transit-Oriented Communities Update on Downtown Proposals and Affordable Housing
- Decision Type:
- ACTION
- Status:
- Without Recs
- Wards:
- All
Confidential Attachment - Information about criteria to be applied to negotiations carried on by or on behalf of the City and the Province as represented by Infrastructure Ontario, and information supplied in confidence to the City which, if disclosed, could reasonably be expected to prejudice significantly the competitive position or interfere significantly with contractual or other negotiations of the Province as represented by Infrastructure Ontario with potential development partners
Committee Recommendations
The Planning and Housing Committee forwards the item to City Council without recommendation.
Origin
Summary
This report provides an update on the Province's Ontario Line South Transit Oriented Communities (TOC) proposals at Exhibition, Corktown, King-Bathurst and Queen-Spadina and seeks authority from City Council for the City Manager to conclude negotiations on, and enter into, a site-specific TOC Memorandum of Understanding (MOU) for Queen-Spadina generally in accordance with updated terms. (City staff will seek updated authorities related to the updated Exhibition and Corktown TOCs in late Q1/Q2 2025.) Changes in the Toronto housing and office markets have led Infrastructure Ontario to revise the TOC proposals at these sites that were previously presented to City Council in April 2022, requiring changes to MOU terms.
The report outlines the Province's confirmed approach to managing tenant displacement and rental housing replacement in TOCs. The report notes that the Provincial approach does not comply with policies of the Official Plan. City staff have communicated this to the Province and have advocated for the Province to comply with the City's policy.
Additionally, the report responds to direction from City Council to assess the feasibility of achieving 20 percent of units in TOC projects as affordable housing. The Province's primary objective of the TOC program is to generate revenue for the Province to offset the capital cost of new major transit projects.
The Province's TOC program is not part of an affordable housing program. Nevertheless, based on the terms of the Value Allocation Framework agreement between the City and the Province, the Province will make a value contribution from each TOC site that will support some affordable housing. These contributions are not available to typical private developments. City staff continue to explore options with the Province on how to leverage these contributions to achieve better community benefits outcomes, including affordable housing. Among the options are to pool contributions from several TOCs to achieve better outcomes where costs are lower, or to provide financial assistance at certain TOC projects to position them to qualify for City incentive programs.
The Province retains sole authority to allocate TOC value contributions. Further, the Value Allocation Framework specifies that the Provincial contribution would be "up to" 8 percent of the value of the TOC. While Infrastructure Ontario consults with the City on how best to do so, the Province retains discretion on how it will use the funds. Likewise, the value contributions will not be provided to the City but rather will be deployed directly from the Province to the provider of the community benefit(s) funded by the contributions. Finally, with language of "up to" 8 percent as the amount of Provincial value contribution, the City has no certainty what the actual contribution will be, which could potentially be zero percent.
City Planning staff retained specialized consulting services to undertake an analysis of several known TOC proposals to understand what might be required to reach 20 percent affordable housing. Results of the assessment indicate that achieving 20 percent affordable housing in TOCs is not feasible without making significant changes to the development proposals, discounting of land value and/or providing additional direct funding.
The Housing Secretariat has been consulted in the preparation of this report.
Background Information
https://www.toronto.ca/legdocs/mmis/2025/ph/bgrd/backgroundfile-252059.pdf
Confidential Attachment 1: Draft Terms of Site Specific Transit Oriented Communities Memorandum of Understanding for Queen-Spadina Transit Oriented Community
Confidential Attachment 2: King-Bathurst Transit Oriented Community Letter from the Province
Speakers
Motions
That the item be forwarded to City Council without recommendation.