Item - 2026.CC39.6

City Council on March 25 and 26, 2026, adopted the following:

1. City Council adopt the confidential instructions to staff in Confidential Attachment 1 to the report (March 13, 2026) from the City Solicitor.

2. City Council authorize the public release of the confidential instructions to staff in Confidential Attachment 1 and Confidential Appendices A and B to the report (March 13, 2026) from the City Solicitor.

3. City Council direct that the balance of Confidential Attachment 1 to the report (March 13, 2026) from the City Solicitor remain confidential at the discretion of the City Solicitor, as it contains advice that is subject to solicitor-client privilege.

The confidential instructions to staff in Confidential Attachment 1 to the report (March 13, 2026) from the City Solicitor were adopted by City Council and are now public as follows:

1. City Council accept the offer to settle dated March 12, 2026 set out in Confidential Appendices A and B to the report (March 13, 2026) from the City Solicitor and direct the City Solicitor to attend at the Ontario Land Tribunal in support of the settlement.

2. City Council authorize the entering into of an Amending Agreement pursuant to Section 37 of the Planning Act to the satisfaction of the City Solicitor and the Executive Director, Development Review, to be registered on title to the lands at 506-516 Church Street, which Amending Agreement will secure the following community benefits and matters of legal convenience, as offered in the Settlement Offer:

a. prior to the issuance of the first above-grade building permit for the development, the owner shall make a cash contribution of $2,000,000 to be allocated towards existing or new community facilities, recreation, cultural space, community and cultural facilities, and/or streetscape and laneway improvements in Ward 13, to the satisfaction of the Executive Director, Development Review, in consultation with the Ward Councillor;

b. the financial contribution pursuant to Part 2.a. above shall be indexed upwardly in accordance with the Statistics Canada Non-Residential Building Construction Price Index for Toronto, calculated from the date the Ontario Land Tribunal approves the Zoning By-law amendment in principle to the date of payment;

c. in the event the cash contribution referred to in Part 2.a. above has not been used for the intended purpose within three (3) years of the Zoning By-law coming into full force and effect, the cash contribution may be redirected for another purpose, at the discretion of the Executive Director, Development Review, in consultation with the Ward Councillor, provided that the purpose is identified in the Toronto Official Plan and will benefit the community in Ward 13;

d. in the alternative to the cash contribution referred to in Part 2.a., the Owner and the City may agree to a community benefit in the form of a community agency space in the base of the building at a value not to exceed that of the cash contribution, on terms acceptable and to the satisfaction of the Executive Director, Development Review, in consultation with the Ward Councillor and the City Solicitor;

e. the owner commits to offer each commercial unit to the existing tenants (who occupy any commercial space on site as of March 1, 2026) on market terms prior to entering into negotiations with any other prospective tenant; the Owner will offer each commercial unit to all existing tenants on the same day and they shall have 30 days to accept the proposed terms; if more than one existing tenant accepts the same unit then it shall be at the sole discretion of the Owner to select the existing tenant whom it wishes to enter into a lease with; an existing tenant who has defaulted on their lease at any time shall be excluded from this provision; and for additional clarity, these provisions only apply to the initial non-residential occupancy; and

f. at the end of the offer period for the existing tenants described above, the owner shall notify the local Ward Councillor about vacancies for the commercial units, if any; the local Ward Councillor, or a group established by the Councillor comprised of members of the local community, organizations and agencies, shall have 30 days from receiving notice of any vacancies from the owner to seek interest from prospective commercial tenants to lease the vacant commercial units in the building; and the owner shall consider any prospective tenants put forward within this 30-day period before entering into a lease for any of the vacant commercial units with any other prospective tenants, with the final determination of any tenants to occupy space in the building to be at the sole discretion of the owner.

3. Should the Ontario Land Tribunal allow the appeals in whole or in part, City Council direct the City Solicitor to request the Ontario Land Tribunal to withhold issuance of its order with respect to the Official Plan and Zoning By-law Amendment appeals until such time as the Ontario Land Tribunal has been advised by the City Solicitor that:

a. the final form and content of the draft Official Plan and Zoning By-law Amendments are to the satisfaction of the City Solicitor and the Director, Community Planning, Development Review;

b. an Amending Section 37 Agreement satisfactory to the City Solicitor and the Executive Director, Development Review has been executed and registered on title to the lands to the satisfaction of the City Solicitor, securing the benefits and matters outlined in Part 2 above;

c. the owner has satisfactorily addressed matters contained in the Development Engineering memorandum, dated December 6, 2024, and any outstanding issues raised by Development Engineering and Transportation Review arising from the ongoing technical review (including the provision of acceptable reports and studies), to the satisfaction of the Director, Engineering Review and the General Manager, Transportation Review;

d. the owner has submitted an updated Hydrogeological Review Report, Hydrological Review Summary, Foundation Drainage Summary Form, Subsurface Utility Engineering Investigation, Functional Servicing and Stormwater Management Report, Servicing Report Groundwater Summary Form, and any other reports or documents deemed necessary in support of the development to the satisfaction of the Director, Engineering Review;

e. in the event that upgrades are required to the infrastructure to support the development according to the accepted Functional Servicing Report and/or the Transportation Impact Study, the owner has secured the design, construction, and provision of financial securities for any new or upgraded municipal infrastructure in a financially secured agreement to the satisfaction of the Director, Engineering Review and the General Manager, Transportation Review;

f. the existing Heritage Easement Agreement for the properties at 508 and 510 Church Street has been amended in accordance with the plans and drawings dated March 13, 2026, prepared by Diamond Schmitt Architects and on file with the Senior Manager, Heritage Planning, all to the satisfaction of the Senior Manager, Heritage Planning, including registration of such amending agreement to the satisfaction of the City Solicitor; and

g. the owner has submitted a revised Heritage Impact Assessment and a detailed final Heritage Conservation Plan, prepared by a qualified heritage consultant, to the satisfaction of the Senior Manager, Heritage Planning and the Chief Planner and Executive Director, City Planning.

3. City Council authorize the City Solicitor to take all necessary and reasonable actions, including introducing necessary bills, to implement City Council's decision.

Confidential Appendices A and B to the report (March 13, 202) from the City Solicitor are now public and can be accessed under Background Information (City Council).

The balance of Confidential Attachment 1 to the report (March 13, 2026) from the City Solicitor remains confidential at this time in accordance with the provisions of the City of Toronto Act, 2006, as it contains advice that is subject to solicitor-client privilege. The balance of Confidential Attachment 1 to the report (March 13, 2026) from the City Solicitor will be made public at the discretion of the City Solicitor.