Item - 2026.NY34.9

The Director, Community Planning North York District recommends that:

1. City Council amend City of Toronto Zoning By-law 569-2013 for a portion of the lands municipally known as 1377 Sheppard Avenue West subject to the Zoning By-law Amendment application (City File Number 24 232020 NNY 06 OZ - Downsview West District) substantially in accordance with the draft Zoning By-law Amendment included as Attachment 7 to this Report.

2. City Council authorize the City Solicitor to make such stylistic and technical changes to the draft Zoning By-law Amendment as may be required.

3. City Council classify the lands municipally known as 1377 Sheppard Avenue West which are subject to the Zoning By-law Amendment application (City File Number 24 232020 NNY 06 OZ) as a Class 4 Noise Area pursuant to Publication NPC-300 (Ministry of Environment, Conservation and Parks Environmental Noise Guideline - Stationary and Transportation Sources - Approval and Planning).

4.  City Council forward the City Council Decision document for the Class 4 Noise Area to the Ministry of Environment Conservation and Parks.

5. City Council accept the Owner's offer of an in-kind contribution (attached as Attachment 19  to this Report) pursuant to subsection 37(6) of the Planning Act and allow the Owner to:

a.  provide a minimum of 930 square metres Community Space to the satisfaction of the Executive Director, Development Review, and Executive Director, Social Development, Executive Director, Corporate Real Estate Management, and the City Solicitor and in accordance with the terms set out in the Contribution Agreement identified in Recommendation 6;

b.  provide a minimum of 929 square metres of indoor space and 279 square metres of outdoor space for each non-profit licensed childcare facilities (total 3) to the satisfaction of the Executive Director, Development Review, Executive Director, Corporate Real Estate Management, the General Manager, Children's Services, and the City Solicitor in accordance with the terms set out in the Contribution Agreement identified in Recommendation 7; and

c. commission Public Art installation with the value of the contribution in the amount of not less than one million dollars ($1,000,000 million) secured with financial security, to the satisfaction of the Chief Planner and Executive Director, City Planning in accordance with Recommendation 8, together, the ("In-Kind Contribution").

Any changes to these terms will be to the satisfaction of the City and reflected through the updated Contribution Agreements.

6. City Council recommend that the Community Space be:

a.  co-located or adjacent to the child care facility in Block 6 of Phase 2C, or in another suitable location to the satisfaction of the Executive Director, Development Review and the Executive Director, Social Development;

b. constructed and equipped by the Owner to Base Building Condition plus fit-out as per the Community Space Term Sheet;

c.  conveyed to the City, as specified in the In-Kind Contribution Agreement; and

d. be operated in accordance with the City’s Community Space Tenancy Policy.

7. City Council require that the three child care facilities be delivered in accordance with the following terms:  

a. each child care facility shall accommodate a minimum of 62 children, and each child care facility will comprise a minimum of 929 square metres of indoor space and 279 square metres of outdoor space located adjacent to and accessible from the indoor area;

b. the childcare facilities shall be located in each of Blocks 14 or 15 (Phase 1C), Block 7 and Block 6 and will be integrated into a building with other uses;

c. the childcare facilities shall be located on the ground floor, or the ground and

second floor, of a building;

d. the childcare facilities shall be designed, constructed and delivered in accordance with the Child Care Early Years Act, 2014 and the City of Toronto's Child Care Development Guideline, 2021;

e. four parking spaces shall be provided within the building or at grade within each of Blocks 14 or 15 (Phase 1C), Block 7 and Block 6 directly accessible to the childcare facility for pick-up and drop-off for the childcare facility, plus an additional three or four parking spaces for childcare staff within the building, available at the time of conveyance of the childcare facilities;

f. prior to the issuance of the first above grade building permit for a building within Blocks 14 or 15 (Phase 1C), Block 7 or 6 the owner shall provide to the City a letter of credit or Surety Bond to secure 120 percent of the estimated cost of the design, construction and provision of each childcare facility for that Block; and

g. concurrent with or prior to the conveyance of the childcare facilities to the City, the Owner and the City shall enter into, and register on title to the appropriate lands, an Easement and Cost Sharing Agreement for nominal consideration and at no cost to the City, that is in a form satisfactory to the City Solicitor. The Easement and Cost Sharing Agreement shall address and / or provide for the integrated support, use, operation, maintenance, repair, replacement and reconstruction of certain shared facilities, and the sharing of costs, in respect thereof, of portions of the subject lands to be owned by the City and the Owner as they pertain to the childcare facilities.

8.  City Council require that the Owner commission Public Art in a manner consistent with the approved Public Art Plan for the Downsview West District.  A letter of credit or Surety Bond will be required prior to the issuance of the first above grade building permit for the buildings within the development Block where the public art is to be located in an amount sufficient to guarantee 100 percent  ($1,000,000 million) of the estimated cost of the design and construction of the public art complying with the specifications and requirements of the In-kind Contribution Agreement, to the satisfaction of the Chief Planner and Executive Director, City Planning.

9. City Council attribute a value to the In-Kind Contribution set out in Recommendations 5, 6, 7  and 8 above, equal to 100 percent of 4 percent of the value of the land (net of any exclusions or exemptions authorized under the Community Benefits Charge By-law), as determined the day before the day the first building permit is issued in respect of the development.

10. City Council authorize the Executive Director, Development Review to enter into an Agreement pursuant to subsection 37(7.1) of the Planning Act (the "In-kind Contribution Agreement") to address the provision of the In-Kind Contribution to the satisfaction of the Executive Director, Development Review, and the City Solicitor.

11. City Council determine that the execution and registration of the In-kind Contribution Agreement constitute satisfactory arrangements for the provision of the In-Kind Contribution for the purpose of Applicable Law as defined in the Building Code.

12. City Council approve that, in satisfaction of Chapter 415 of the Municipal Code, Article III, the Owner shall convey to the City as a component of the registration of the subdivision, to satisfy the alternative rate parkland dedication requirements pursuant to section 42 of the Planning Act, on-site parkland dedication in the amount of a minimum 19,585 square metres as shown in [HATCHED] in Attachment 11 of this report, to the satisfaction of the Executive Director, Development Review and the City Solicitor. City Council accept the conveyance of an additional 1,088 square metres of land, as shown in [CROSS-HATCHED] in Attachment 11 of this Report, as a component of the registration of the subdivision, at nominal consideration and without credit toward the satisfaction of Municipal Code 415, Article III due to the existence of steep slopes.

13. City Council approve the acceptance of on-site parkland dedication, and the additional lands at nominal cost shown in [CROSS HATCH] on Attachment 11, subject to the owner transferring the lands identified in Attachment 11 to the City free and clear, above and below grade, of all easements, encumbrances, and encroachments, in an acceptable environmental condition, save and except for stormwater infrastructure. The additional lands shown in [CROSS HATCH] on Attachment 11 may also contain public storm and water main connections.  Any proposed stormwater infrastructure within a park, whether Major or Local, is to be designed and constructed to meet the target parameters established by the Downsview Secondary Plan’s Master Environmental Servicing Plan for a Major Park, including but not limited to depth, area and drawdown times, to the satisfaction of the General Manager, Parks and Recreation and the Executive Director, Development Review.

14. The owner may propose the exception of encumbrances of tie-backs, where such an encumbrance is deemed acceptable by the Executive Director, Development Review, in consultation with the City Solicitor; and such an encumbrance will be subject to the payment of compensation to the City, in an amount as determined by the Executive Director, Corporate Real Estate Management in consultation with the Executive Director, Development Review.

15. City Council approve a development charge credit against the Parks and Recreation component of the Development Charges for the design and construction by the Owner of the Above Base Park Improvements to the satisfaction of the General Manager, Parks and Recreation. The development charge credit shall be in an amount that is the lesser of the cost to the Owner of designing and constructing the Above Base Park Improvements, as approved by the General Manager, Parks and Recreation, and the Parks and Recreation component of development charges payable for the development in accordance with the City's Development Charges By-law, as may be amended from time to time.

16. City Council directs the Executive Director, Social Development, in consultation with other relevant divisions, to work with the owner or applicant to develop and implement a Community Benefits Plan across the district in alignment with the City’s Community Benefits Framework best practices. 

17. City Council endorse the Downsview West District Plan (Attachment 9) and Downsview West Urban Design Guidelines (Attachment 10).

18. City Council direct staff to use the Downsview West District Plan and Downsview West Urban Design Guidelines in the evaluation of all new development proposals within the Downsview West boundaries.

19. City Council receive the Carl Hall Road Rail Crossing Review of Alternatives Study, as contained in Attachment 17 to the report, dated June 22, 2026, from the Director, Community Planning, North York District, for information and for Metrolinx consideration.

This report recommends approval of the Zoning By-law Amendment application, with a series of holding provisions, to permit a mixed use development of 845,000 square metres of gross floor area, comprising approximately of 756,000 square metres of residential gross floor area and 89,000 square metres of non-residential gross floor area (consisting of 64,000 square metres of existing non-residential gross floor area and 25,000 square metres of new non-residential gross floor area). New buildings will range from 6 storeys to 60 storeys. Approximately 9,250 dwelling units are proposed, including 10 percent of the residential gross floor area secured as affordable rental housing.  The rental housing units would be secured through a social housing program under section 453.1 of the City of Toronto Act, 2006. These units will be administered by a non-profit housing provider and would be affordable for a minimum period of 25 years.

The proposal would also provide three new public parks, public streets, mid-block connections, open spaces including privately owned publicly accessible spaces (POPS), and a Bio Corridor (open space along the District's eastern boundary), three child care facilities, a 930 square metre community space, and a 1,500 metre long Aanikoobijiganag Miikana (Ancestor's Trail) serving pedestrians, cyclists, and other recreational users. 

The lands subject to the Zoning By-law Amendment are comprised of a portion of the lands municipally known as 1377 Sheppard Avenue West and form the Downsview West District in the Downsview Secondary Plan in the City's Official Plan.

In addition to the Zoning By-law amendment, this report also recommends that City Council endorse the Downsview West District Plan and the Downsview West Urban Design Guidelines which provide a comprehensive planning and development framework and design guidelines to support a new mixed-use community for the lands located at 1377 Sheppard Avenue West. 

The proposed Zoning By-law Amendment application is consistent with the Provincial Planning Statement (2024) and conforms to the City's Official Plan including the Downsview Secondary Plan.

As a result of noise and vibration, the peer reviewed Land Use and Compatibility Mitigation Study recommends that City Council classify the entire subject lands as a Class 4 Noise Area pursuant to Publication NPC-300 (MECP Environmental Noise Guideline - Stationary and Transportation Sources - Approval and Planning).

A related draft plan of subdivision application was filed (City File Number 24 236202 NNY 06 SB) by the applicant. Staff are targeting a report to Council on this application in the first quarter of 2027.

There are no immediate financial implications resulting from the recommendations included in this report.

Community Benefits Charge

This Report recommends that Council accept the Owner’s offer attached as Attachment 16 of this Report and allow the Owner to provide a Community Benefits Charge (CBC) in-kind contribution of a 930 square metres of community space, three child care facilities with a capacity of 62 children per facility, and a public art contribution for a value of $1 million which will be financially secured. The attributed value of the proposed Community Benefits Charge in-kind contribution is 100 percent of the 4 percent value of land. The Owner is required to enter into an agreement to secure the in-kind contribution prior to the issuance of the first building permit in respect of the development. 

The Chief Financial Officer and Treasurer has reviewed this report and agrees with the financial impact information.