Authorization to Amend Section 37 Agreement for 5800 Yonge Development Application - by Councillor Lily Cheng, seconded by Councillor Nick Mantas

Bill 23 significantly restructured municipal tools for securing community benefits by limiting the scope of Section 37 density bonusing and introducing a capped Community Benefits Charge system. These changes have materially reduced the City's ability to secure community benefit if the developers choose to bring forward their application again. Within this evolving legislative and financial context, the owner has continued discussions with City staff regarding the implementation and delivery of the required child care facility. The owner has now proposed a revised framework that maintains the obligation to deliver a fully fitted out stand-alone child care facility, along with associated furnishings and equipment contributions, and $500,000 Child Care Facility Capital Contribution. Importantly, the continued requirement for a stand-alone child care facility represents a significant and meaningful community benefit outcome. Given current market and policy conditions, including the limitations introduced by Bill 23 and the City's constrained ability to secure equivalent child care capital contributions through alternative mechanisms, the delivery of a purpose-built facility of this scale would be extremely difficult to achieve through any other planning or funding pathway. In this regard, securing the delivery of this facility represents a clear success in advancing critical community infrastructure. This outcome is particularly significant given that Willowdale is identified as a "red zone" on Toronto Children's Services Priority Levels for CWELCC expansion, indicating high unmet demand for licensed child care spaces and limited existing capacity relative to need. The revised proposal provides for a direct capital investment by the owner in the construction of the child care facility. This approach aligns with the current legislative environment, and ensures the continued delivery of a high-priority community service in an area of demonstrated need along with the over dedication of the parkland. Given the increased construction costs associated with delivering the child care facility, the strong public policy imperative to secure new licensed spaces in high-need areas such as Willowdale, and the legislative changes introduced by Bill 23 that have constrained alternative funding tools, it is appropriate to amend the existing Section 37 requirements to remove the separate cash contribution obligation while maintaining and strengthening the obligation to deliver the stand-alone child care facility and its associated benefits.