Item - 2025.TE27.5

The Toronto and East York Community Council recommends that:

1. City Council amend City of Toronto Zoning By-law 438-86, as amended by By-law 1049-2006 and By-law 852-2024 for the lands at 257-259 and 291 Lake Shore Boulevard East, 2 Small Street, and 200 Queens Quay East substantially in accordance with the draft Zoning By-law Amendment included as Attachment 1 to the motion by Deputy Mayor Ausma Malik.

2. City Council require the Owner to enter into an Agreement pursuant to Section 37.1 of the Planning Act and the repealed and transitioned subsections 37(1) and (3) of the Planning Act to reflect the increase in market residential gross floor area, in addition to the previously secured items, to implement the requirements of the recommended Zoning By-law Amendment to the satisfaction of the Executive Director, Development Review and the City Solicitor.

3. City Council enact a Part Lot Control Exemption By-law with respect to certain lands located at 257-259 and 291 Lake Shore Boulevard East, 2 Small Street and 200 Queens Quay East shown as Parts 1-13 on the Draft Part Lot Control Exemption Plan attached as Attachment 9 to the report (November 10, 2025) from the Director, Community Planning, Toronto and East York District, to be prepared to the satisfaction of the City Solicitor and to expire four years following enactment by City Council.

4. Prior to the enactment of the Part Lot Control Exemption Bill, City Council require the owner to:

a. provide proof of payment of all current property taxes for the subject lands to the satisfaction of the City Solicitor; and

b. register, to the satisfaction of the City Solicitor, a Section 118 Restriction under the Land Titles Act, in priority, prohibiting the transfer or charge any part of the lands subject to the Part Lot Control Exemption By-law without the written consent of the Executive Director, Development Review or their designate.

5. City Council authorize and direct the City Solicitor to register the Part Lot Control Exemption By-law on title to 257-259 and 291 Lake Shore Boulevard East, 2 Small Street and 200 Queens Quay East.

6. City Council authorize the City Solicitor to take the necessary steps to release the Section 118 Restriction from title to all or a portion of 257-259 and 291 Lake Shore Boulevard East, 2 Small Street and 200 Queens Quay East in the City Solicitor's sole discretion, after consulting with the Executive Director, Development Review.

7. City Council authorize the City Solicitor to make such stylistic and technical changes to the draft Zoning By-law and draft Part Lot Control Exemption By-law as may be required.

8. City Council delegate the approval and signing authority to the Executive Director, Development Review for agreements related to payments-in-lieu of bicycle parking under the By-law referred to in Recommendation 1 above, as amended, in a form satisfactory to the City Solicitor.

9. City Council direct the Executive Director, Development Review to use $538 per short-term bicycle parking space reduced, adjusted for inflation, as the basis upon which payments under the By-law referred to in Recommendation 1 above, as amended, be calculated.

10. City Council direct the Executive Director, Development Review to use $1076 per long-term bicycle parking space reduced, adjusted for inflation, as the basis upon which payments under Article the By-law referred to in Recommendation 1 above, as amended, be calculated.

11. City Council request the General Manager, Transportation Services to review and report back on the feasibility of amending City of Toronto Municipal Code Chapter 925, Permit Parking, to exclude the development located at 257-259 and 291 Lake Shore Boulevard East, 2 Small Street and 200 Queens Quay East from Permit Parking.

The Toronto and East York Community Council held a statutory public meeting on November 27, 2025 and notice was given in accordance with the Planning Act.

This report recommends approval of the application to amend former City of Toronto Zoning By-law 438-86, as previously amended by By-law 852-2024 and By-law 1049-2006, to modify the zoning permissions of the first two blocks of the Quayside proposal, at 257-259 and 291 Lake Shore Boulevard East, 2 Small Street, and 200 Queens Quay East.

Approval of the application would permit two towers rather than one on the north-westerly block (Block 1A) and allow the linear 12-storey building fronting Queens Quay East to be broken up into two buildings. This would result in four mixed-use towers of 50, 57, 66 and 53 storeys, fronting on to Lake Shore Boulevard East and two linear 12-storey buildings fronting Queens Quay East. The amended zoning by-law, if approved, would also revise some existing zoning permissions site-wide, and allocate site-wide density, institutional uses, amenity space requirements, and bike parking requirements, on a block-by-block basis.

The amended zoning by-law would permit a total of 202,878 square metres of mixed-use development with up to 197,396 square metres of residential floor area, including 45,645 square metres of affordable rental housing (approximately 2,850 total residential units, including 553 affordable rental units, or 23% of the overall residential GFA), and 5,482 square metres of non-residential floor area. The application also includes revisions to the layout of Privately-Owned Publicly Accessible Space and a relocation of the planned community space to a different building. The in-force holding provisions and the Section 37 provisions will remain.

A key driver for Quayside is the provision of affordable rental housing units by the City in partnership with Waterfront Toronto and the applicant, Quayside Impact Limited Partnership (QILP), a consortium consisting of Dream and Great Gulf. The City, QILP, and Waterfront Toronto have worked on an accelerated plan to maximize the number of affordable rental housing units that can be delivered in the first phase in addition to providing additional new market purpose-built rental homes. Approximately 553 affordable rental housing units, including 56% as two, three, and four bedroom units, and approximately 1,229 purpose-built rental homes will be delivered by 2030-31. This will assist in the achievement of the HousingTO 2020-2034 Action Plan target to approve 65,000 rent-controlled homes (comprised of 6,500 rent-geared-to-income (RGI), 41,000 affordable rental and 17,500 rent-controlled market homes) by 2030.

The application also requests exemption from the Part Lot Control provisions of the Planning Act, to facilitate financing, fee simple transfers, and creation of easement interests.

This report reviews and recommends approval of the applications to amend the Zoning By-law and the Part Lot Control Exemption application. The proposed zoning by-law amendment is consistent with the Provincial Planning Statement (2024) and conforms to the City's Official Plan, including the Central Waterfront Secondary Plan. The proposed development will contribute to the ongoing revitalization of the Central Waterfront as a complete, mixed-use community with significant affordable housing, a generous public realm, and high standards of sustainability and design.