Amending Item 2024.CC20.24 - 200 University Avenue - Official Plan Amendment, Zoning By-law Amendment and Site Plan Control Applications - Appeal Report - by Deputy Mayor Ausma Malik, seconded by Councillor Gord Perks

The June 20, 2024 settlement required a minimum of 15 percent of the converted office floor space and no less than 2,020 square metres of floor area to be provided for affordable rental housing units. Within this floor area, the settlement required a minimum of 20 affordable housing units with a 40 year affordability period, and a consideration for additional affordable housing units subject to final design. The affordable rental housing units were proposed to be located on levels 2 and 3 of the existing building. Through the more detailed design process, it was determined that 24, rather than 20, affordable rental housing units are required to meet the minimum of 15 percent of the converted office floor space. As well, the location of the affordable housing units is proposed to be relocated from levels 2 and 3, to levels 3 and 4, of the existing building. The settlement provided that the affordable units were to be eligible for an exemption of fees for planning application, building permit, parkland dedication and development charges exemptions, unless already paid or exempted by provincial legislation, and exempt from taxation for municipal and school purposes for the 40 year affordability period. As the number of affordable rental housing units has been increased in accordance with the office replacement requirements of the settlement, it is appropriate that the four additional affordable rental housing units be secured consistent with the 20 affordable rental housing units and be eligible for City incentives, for the 40 year affordability period. On July 24 and 25, 2024, City Council authorized staff to enter into and execute agreements under section 4.1 of the Development Charges Act, to provide affordable residential units with statutory exemptions from development charges, community benefits charge and parkland dedication pursuant to the Provincial Bill 23, More Homes Built Faster Act, 2022 (Bill 23) (Item 2024.MM20.28). The value of the statutory exemptions for the 24 affordable housing units will be secured in an agreement registered on title to the land.

Table 1: Incentives and Exemption of Municipal and School Taxation for 200 University Avenue Affordable Rental Housing Units Affordability Period* (years) Estimated Development and Parkland Charges Estimated Planning and Permit Fees Waiver Estimated Net Present Value of Property Tax Exemption** 24 40 Statutory exemption $162,223.00 $1,213,036.00 *The 40-year affordability period is expected to begin in the estimated year of occupancy. **The estimated NPV of property tax exemption reflects an updated forecasting model implemented in 2025. b. deleting Part 4 of the instructions to staff and replacing it with the following: City Council authorize an exemption from taxation for municipal and school purposes for the Affordable Rental Housing Units for the period of time described in Table 1 in Part 1 a. above. c. deleting Part 6 of the instructions to staff and replacing it with the following: City Council authorize the Executive Director, Housing Secretariat, to negotiate and execute, on behalf of the City, a municipal housing facility agreement (the City's Contribution Agreement), or amendments to existing Contribution Agreements, where applicable, with the owner and/or related legal entities for the development listed in Table 1 in Part 1.a above, to secure the financial assistance and to set out the terms of the development and operation of the new affordable rental housing units, on terms and conditions satisfactory to the Executive Director, Housing Secretariat, in consultation with the Chief Financial Officer and Treasurer, and in a form approved by the City Solicitor. d. deleting Part 7 of the instructions to staff and replacing it with the following: City Council authorize the Executive Director, Housing Secretariat, on behalf of the City, to execute any security or financing documents, or any other documents required to facilitate the development, including any documents required by the owner and/or related legal entities for the development described in Table 1 in Part 1 a. above, to complete pre-development activities, construction and secure conventional financing, where required, including any postponement, confirmation of status, discharge or consent documents where and when required during the term of the municipal housing facility agreement, as required by normal business practices, and provided that such documents do not give rise to financial obligations on the part of the City that have not been previously approved by City Council.