25 and 35 Liberty Street, 58 Atlantic Avenue, and 51, 61 and 65 Jefferson Avenue - Zoning Amendment and Rental Housing Demolition Applications - Revised Final Report

The revised application proposes the development of a 10-storey (49 metre, including mechanical penthouse) building with 22,712 square metres of commercial office space and the on-site replacement of 42 existing live/work rental dwelling units. The proposed development also includes the retention of the three-storey heritage building on the northeast corner of the site. The accompanying revised Rental Housing Demolition Application proposes the demolition of all 42 existing live/work rental dwelling units located on the subject site and provide 42 replacement live/work rental dwelling units within the proposed building. The demolition of the 42 existing live/work rental dwelling units was originally approved by City Council at its meeting on May 22, 23 and 24, 2018. This previous rental housing and demolition proposal was approved on the condition that the applicant provide 51 replacement rental dwelling units within two new rental apartment buildings currently under construction at 11 and 25 Ordanance Street. The owner was not able to fulfill the obligations related to the off-site replacement rental dwelling units. This report provides information on the revised proposal including the replacement rental provisions and provides new recommendations and a revised Zoning By-law amendment to allow for the 42 existing live/work rental dwelling units to be demolished and replaced on the same site within the new proposed building. It is recommended that the Recommendations section in this report replace the Recommendations section of the report (April 16, 2018) adopted at May 22, 23, and 24, 2018 City Council in its entirety. The revised proposed development is consistent with the Provincial Policy Statement (2014) and conforms with A Place to Grow: Growth Plan for the Greater Golden Horseshoe (2019). The proposed development represents an appropriate development of the site. This report reviews and recommends approval of the application to amend the Zoning By-law, subject to conditions being fulfilled before introducing the necessary Bills to Council for enactment. This report also reviews and recommends approval of the Rental Housing Demolition Permit under Chapter 667 of the Toronto Municipal Code and the Residential Demolition Permit under Chapter 363 of the Toronto Municipal Code, subject to conditions. This report also recommends entering into Section 37 and Section 111 agreements for the site.

2. City Council amend Zoning By-law 438-86, for the lands at 25 and 35 Liberty Street, 58 Atlantic Avenue and 51, 61, and 65 Jefferson Avenue substantially in accordance with the draft Zoning By-law Amendment attached as Attachment No.5 to the report dated August 26, 2019 from the Director, Community Planning, Toronto and East York District. 3. City Council authorize the City Solicitor to make such stylistic and technical changes to the draft Zoning By-law Amendment, noted in Recommendation 2 above, as may be required. 4. Before introducing the necessary Bills to City Council for enactment, City Council require the owner(s) to: a) Enter into a Heritage Easement Agreement with the City for the properties at 25 and 35 Liberty Street, 58 Atlantic Avenue, and 51,61 and 65 Jefferson Avenue to the satisfaction of the Senior Manager, Heritage Planning, City Planning Division and the City Solicitor, and in accordance with the recommendations of the Staff report (dated April 6, 2018) to the Toronto Preservation Board from the Senior Manager, Heritage Planning with such agreement to be registered on title to the subject properties prior to the earlier of the coming into force of the Zoning By-law Amendment giving rise to the proposed alterations, or the issuance of any permit for all or any part of the properties, including a heritage permit or a building permit, but excluding permits for such repairs and maintenance and usual and minor works for the existing heritage buildings as are acceptable to the Senior Manager, Heritage Planning; and b) Provide a Conservation Plan, prepared by a qualified heritage consultant, that is consistent with the conservation strategy set out in the Heritage Impact Assessment for the properties at 25 and 35 Liberty Street, 58 Atlantic Avenue, and 51,61and 65 Jefferson Avenue, all to the satisfaction of the Senior Manager, Heritage Planning, in accordance with the recommendations of the Staff report (dated April 6, 2018) to the Toronto Preservation Board from the Senior Manager, Heritage Planning. 5. Before introducing the necessary Bills contemplated in Recommendation 2 to City Council for enactment, City Council require the owner(s) to enter into an Agreement with the City, pursuant to Section 37 of the Planning Act, satisfactory to the Chief Planner and Executive Director, City Planning Division and the City Solicitor, together with satisfactory provisions in the Zoning By-law Amendment, to secure the following, at the owner's expense, in connection with 25 and 35 Liberty Street, 58 Atlantic Avenue and 51, 61 and 65 Jefferson Avenue, with such agreement to be registered to the satisfaction of the City Solicitor prior to the earlier of the bills coming into force, or the issuance of any permit for all or any part of the properties, including a heritage permit or a building permit, including conditional permits and permits for excavation and shoring, but excluding permits for such repairs and maintenance and usual and minor works for the existing heritage buildings as are acceptable to the Senior Manager, Heritage Planning: a) The following matters are recommended to be secured in a Section 37 Agreement: i) A financial contribution by the owner of $1,250,000.00, payable prior to the issuance of the first above-grade building permit, towards the provision of affordable rental housing within Ward 10 in the vicinity of the site, including provision for upward indexing in accordance with the Statistics Canada Non-Residential Construction Price Index for Toronto for the period from the date of the execution of the Section 37 Agreement to the date of payment; ii) The owner shall provide, secure and maintain 42 replacement live/work rental dwelling units within the proposed building, at rents as prescribed in recommendation 6, all to the satisfaction of the Chief Planner and Executive Director, City Planning Division, and the City Solicitor; ii) The owner shall provide tenant relocation and assistance to all eligible tenants, including securing the right to return to a replacement live/work rental dwelling unit within the proposed building at restricted rents all to the satisfaction of the Chief Planner and Executive Director, City Planning Division; iv) Prior to final Site Plan Approval for the proposed Zoning By-law Amendment for the property located 25 and 35 Liberty Street, 58 Atlantic Avenue, and 51, 61, and 65 Jefferson Avenue, the owner shall: A) Provide final site plan drawings substantially in accordance with the approved Conservation Plan, to the satisfaction of the Senior Manager, Heritage Planning; B) Have obtained final approval for the necessary Zoning By-law Amendment required for the development lands, such Amendment to have come into full force and effect; C) Provide a Heritage Lighting Plan that describes how the exterior of the heritage property will be sensitively illuminated to enhance its heritage character, to the satisfaction of the Senior Manager, Heritage Planning and thereafter shall implement such Plan to the satisfaction of the Senior Manager, Heritage Planning; D) Provide an Interpretation Plan for the heritage property, to the satisfaction of the Senior Manager, Heritage Planning and thereafter shall implement such Plan to the satisfaction of the Senior Manager, Heritage Planning; E) Submit a Signage Plan to the satisfaction of the Senior Manager, Heritage Planning; v) Prior to the issuance of any permit for all or any part of the property at 25 and 35 Liberty Street, 58 Atlantic Avenue, and 51,61, and 65 Jefferson Avenue, including a heritage permit or a building permit, and including conditional permits, but excluding permits for repairs and maintenance and usual and minor works for the existing heritage building as are acceptable to the Senior Manager, Heritage Planning, the owner shall: A) Have obtained final approval for the necessary Zoning By-law Amendment required for the alterations to the property 25 and 35 Liberty Street, 58 Atlantic Avenue, and 51, 61, and 65 Jefferson Avenue, such amendment to have come into full force and effect in a form and with content acceptable to City Council, as determined by the Chief Planner and Executive Director, City Planning Division, in consultation with the Senior Manager, Heritage Planning. B) Provide building permit drawings, including notes and specifications for the conservation and protective measures keyed to the approved Conservation Plan, including a description of materials and finishes, to be prepared by the project architect and a qualified heritage consultant, to the satisfaction of the Senior Manager, Heritage Planning. C) Provide a Letter of Credit, including provision for upwards indexing, in a form and amount and from a bank satisfactory to the Senior Manager, Heritage Planning, to secure all work included in the approved Conservation Plan, Lighting Plan, and Interpretation Plan. vi) Prior to the release of the required Letter of Credit, the owner shall provide a letter of substantial completion, prepared and signed by a qualified heritage consultant, confirming that the required conservation work and the required interpretive work has been completed in accordance with the approved Conservation Plan, approved Lighting Plan and approved Interpretation Plan and that an appropriate standard of conservation has been achieved, all to the satisfaction of the Senior Manager, Heritage Planning and shall provide replacement Heritage Easement Agreement photographs to the satisfaction of the Senior Manager, Heritage Planning. b) The following matters of convenience are recommended to be secured in the Section 37 Agreement by and at the owner's expense and thereafter implemented to the City's satisfaction: i) Implementation of wind mitigation measures as determined through a wind tunnel analysis undertaken prior to the issuance of Site Plan Approval, to the satisfaction of the Chief Planner and Executive Director, City Planning Division; ii) Design and construction of public realm improvements on Liberty Street, Jefferson Avenue and Atlantic Avenue, to the satisfaction of the Chief Planner and Executive Director, City Planning Division; and the General Manager, Transportation Services; iii) Design and construction of the required improvements to municipal infrastructure identified in the accepted Functional Servicing and Stormwater Management Report(s) prior to the issuance of the first above-grade building permit for all or any part of the development lands, to the satisfaction of the Chief Engineer and Executive Director, Engineering and Construction Services, should it be determined that improvements or upgrades are required to support the development, according to the accepted Functional Servicing and Stormwater Management Reports; iv) Submission of a Construction Management Plan for the development lands, to the satisfaction of the Chief Planner and Executive Director, City Planning, the General Manager, Transportation Services, and the Chief Building Official, in consultation with the Ward Councillor, prior to the issuance of any permit, including a heritage permit or a building permit, and including conditional permits, but excluding permits for repairs and maintenance and usual and minor works for the existing heritage building as are acceptable to the Senior Manager, Heritage Planning, and thereafter shall implement the plan during the course of construction; v) Matters related to heritage preservation of the existing heritage building at 58 Atlantic Avenue (25 Liberty Street), to the satisfaction of the Senior Manager, Heritage Planning; and vi) Construction and mainenance of the development in accordance with Tier 1 performance measures of the Toronto Green Standard, as adopted by Toronto City Council at its meeting held on December 5, 6, and 7, 2017, through the adoption of items PG 23.9 of the Planning and Growth Committee, and as may be further amended by City Council from time to time. 6. City Council approve the application for a Rental Housing Demolition permit in accordance with Chapter 667 of the Toronto Municipal Code to allow for the demolition of 42 existing live/work rental dwelling units located at 25 and 35 Liberty Street, 58 Atlantic Avenue, and 51, 61 and 65 Jefferson Avenue subject to the following conditions: a) The owner shall provide, secure and maintain not less than 42 replacement live/work rental dwelling units, comprised of at least 22 bachelor, 19 one-bedroom and 1 two-bedroom units, within the proposed 10-storey building on the subject site, for a period of at least 20 years, beginning from the date that each replacement live/work rental dwelling unit is first occupied, and as generally illustrated in the plans provided to the City Planning Division dated August 1, 2019. Any revision to these plans shall be to the satisfaction of the Chief Planner and Executive Director, City Planning Division; b) The owner shall provide, secure and maintain at least 1 one-bedroom replacement live/work rental dwelling unit at affordable rent and 6 bachelor, 6 one-bedroom and 1 two-bedroom replacement live/work rental dwelling units at mid-range rents, for a period of at least 10 years, beginning from the date that each replacement live/work rental dwelling unit is first occupied; the remaining 28 replacement live/work rental dwelling units shall have unrestricted rents; c) The owner shall provide ensuite laundry in each replacement live/work rental dwelling unit at no additional cost to tenants, all to the satisfaction of the Chief Planner and Executive Director, City Planning Division; d) The owner shall provide tenants of the replacement live/work rental dwelling units with access to all indoor and outdoor amenities in the proposed 10-storey building at no extra charge. Access and use of these amenities shall be provided without the need to pre-book or pay a fee, unless specifically required as customary practices for private bookings, all to the satisfaction of the Chief Planner and Executive Director, City Planning Division; e) The owner shall provide 12 vehicle parking spaces to tenants of the replacement live/work rental dwelling units, to the satisfaction of the Chief Planner and Executive Director, City Planning Division; f) The owner shall provide tenant relocation and assistance to all eligible tenants of the existing live/work rental dwelling units, including the right to return to a replacement live/work rental dwelling unit, all to the satisfaction of the Chief Planner and Executive Director, City Planning Division; and g) The owner shall enter into and register on title to the subject site one or more Agreement(s) to secure the conditions outlined in 6. a, b, c, d, e and f above to the satisfaction of the City Solicitor and the Chief Planner and Executive Director, City Planning Division, including an agreement pursuant to Section 111 of the City of Toronto Act, 2006. 7. City Council authorize the Chief Planner and Executive Director, City Planning Division, to issue the Preliminary Approval for the Rental Housing Demolition Permit under Chapter 667 of the Toronto Municipal Code for the demolition of the 42 existing live/work rental dwelling units located at 25 & 35 Liberty Street, 58 Atlantic Avenue and 51, 61 & 65 Jefferson Avenue after all the following have occurred: a) Satisfaction or securing of the conditions in Recommendation 6 above; b) The Zoning By-law Amendment referred to in Recommendation 2 has come into full force and effect; c) The issuance of the Notice of Approval Conditions for Site Plan approval by the Chief Planner or their designate, pursuant to Section 114 of the City of Toronto Act, 2006; d) The issuance of excavation and shoring permits for the approved development on the site; and e) The execution and registration of one or more Section 37 Agreements pursuant to the Planning Act securing Recommendation 6. a, b, c, d, e, and f and any other requirements of the Zoning-Bylaw Amendment. 8. City Council authorize the Chief Building Official to issue the Rental Housing Demolition Permit under Municipal Code Chapter 667 after the Chief Planner and Executive Director, City Planning Division, has issued the Preliminary Approval referred to in Recommendation 7. 9. City Council authorize the Chief Building Official to issue a Residential Demolition Permit under Chapter 363 of the Toronto Municipal Code and Section 33 of the Planning Act no earlier than the issuance of the first building permit for excavation and shoring of the proposed development, and after the Chief Planner and Executive Director, City Planning Division, has issued the Preliminary Approval referred to in Recommendation 7, which may be included in the Residential Demolition Permit under 363-11.1, of the Toronto Municipal Code, on condition that: a) The owner erects the proposed building on site no later than three (3) years from the day demolition of the buildings is commenced; and b) Should the owner fail to complete the new building within the time specified in condition 9. a above, the City Clerk shall be entitled to enter on the collector's roll, to be collected in a like manner as municipal taxes, the sum of twenty thousand dollars ($20,000.00) for each dwelling unit for which a demolition permit is issued, and that each sum shall, until payment, be a lien or charge upon the land for which the demolition permit is issued. 10. Council authorize the appropriate City officials to take such actions as are necessary to implement the foregoing, including execution of the Section 111 Agreement, Section 37 Agreement, and Heritage Easement Agreement. 11. Before introducing the necessary bills contemplated in Recommendation 2 to City Council for enactment, City Council require the owner(s) to submit revised Functional Servicing, Geotechnical and Stormwater Management Reports, to the satisfaction of the Chief Engineer & Executive Director, Engineering and Construction Services Division, that address the comments in the memo from the Manager, Development Engineering, Toronto & East York District (August 13, 2019).