July 8, 1998

 To:Toronto Community Council

 From:H.W.O. Doyle, City Solicitor

 Subject:Nos. 363-373 Adelaide Street East, 55-59 Sherbourne Street, and 226-230 King Street East - Heritage Easement - Height Increase in exchange for preservation of Bishop's Houses and portions of Imperial Bank Building (Don River)

 Purpose:

 To permit a building height increase in exchange for preservation of the Bishop's Houses and portions of Imperial Bank Building at 363-373 Adelaide Street East, 55-59 Sherbourne Street, and 226-230 King Street East.

 Funding Sources, Financial Implications and Impact Statement:

 No funds are required as a result of this report.

 Recommendations:

 It is recommended that:

 (1)The Draft By-law authorizing the entering into of a heritage easement agreement respecting the Bishop's Houses (363-365 Adelaide Street East) and the Imperial Bank Building (226 King Street East) and attached to the report (July 8, 1998) of the City Solicitor be approved and authority be granted to introduce the necessary Bill in Council to give effect thereto; and

 (2)Authority be granted for the appropriate officials to execute on behalf of the City the following agreements satisfactory to the City Solicitor:

 (a)a heritage easement agreement under Section 37 of the Heritage Act in respect of the property known as the Bishop's Houses (363-365 Adelaide Street East);

 (b)a heritage easement agreement under Section 37 of the Heritage Act in respect of the property known as the Imperial Bank Building (226 King Street East);

 (c)an agreement under Section 37 of the Planning Act for the conservation, maintenance and restoration of the buildings described in the heritage easement agreements referenced in paragraphs (a) and (b).

 Council Reference/Background/History:

 The Commissioner of Urban Planning and Development who has provided the background and discussion portions of this report is currently finalizing a site plan approval for a major development on the site which consists of 800 square metres of ground floor retail space and 196 residential units. The 13 storey project includes the retention and restoration (circa 1885) of historic rowhouses located along the Adelaide Street East frontage of the property. The rowhouses, known as the Bishop's Houses, are among the oldest remaining houses in the entire City of Toronto. An historic bank building which is part of the project, is located on the northeast corner of King Street East and Sherbourne Street. This historic building is partially retained and incorporated in the development.

 Sections 4.1. and 4.2 of the King-Parliament Part II Official Plan (Section 19.5 of the Part I Official Plan) for the former City of Toronto authorizes the use of Section 37 of the Planning Act to grant increases in building height and floor area in exchange for the conservation and maintenance of heritage buildings. Section 7(3) of the former City of Toronto General Zoning By-law implements an as-of-right building height and floor area bonus in exchange for the conservation and maintenance of one or more heritage buildings retained on a lot in a Reinvestment Area Zoning district. Provided the owner of the land executes the Section 37 Agreement, the bonus can be granted as-of-right without requiring a rezoning approval. The provisions facilitate the timely redevelopment of land while achieving meaningful heritage conservation.

 The project incorporates the conservation, maintenance and restoration of two heritage buildings located on the site, and makes use of the planning provisions described above. As a result, the site plan approval for the project includes execution by the owner of a Section 37 Agreement and two Heritage Easement Agreements.

 Comments and/or Discussion and/or Justification:

 On June 16, 1998 the Board of Heritage Toronto approved the development proposal in respect to its heritage aspects. The site plan approval and the finalization of the legal agreements can now be completed. This report includes a recommendation authorizing execution of a Section 37 Agreement (Planning Act) for the development. The key elements of this agreement are described below.

 The owner has agreed to complete the restoration of the heritage buildings on the site in accordance with an approved Restoration Strategy for each building. Heritage Toronto staff have reviewed the reports and are satisfied with them. Prior to the submission of a building permit application for the development, the owner has also agreed to prepare an additional restoration plan for each of the heritage buildings retained which will provide detailed technical specifications for the restoration of each heritage building.

 Under the terms of the agreement the restoration of the heritage buildings is to commence prior to any occupation of the development. The restoration work is to be completed within 9 months of first occupancy.

 The owner is required to post Letters of Credit to ensure that the restoration work is completed in a manner contemplated by the Section 37 Agreement. Additional funds are being included in the Letter of Credit to secure the short maintenance requirement, such as patching the roof of the Bishop's Houses as it is imperative this work occur soon. The developer is required by this Agreement to complete the short term maintenance within 3 months of execution of this Agreement. The Letter of Credit may be reduced by the City as the restoration work is completed by the developer.

 The Agreement also requires the owner to enter into Heritage Easement Agreements for the conservation and maintenance of the buildings at the same time the Section 37 Agreement is executed.

 Finally, the Section 37 Agreement contains provisions for collateral matters secured as part of the site plan approval process, including streetscape improvements and soil and groundwater remediation requirements.

 Conclusions:

 Because the Official Plan and Zoning By-law for the former City of Toronto permit through the use of a Section 37 Agreement (Planning Act) increases in building height in exchange for the preservation of heritage buildings, and because there is planning and heritage board support for the project, it is appropriate to authorize and execute the Heritage Easement Agreements and the Section 37 Agreement in respect of the proposed redevelopment.

Contact Name:Stephen Bradley, Solicitor

Telephone: (416) 392-7790

Fax: (416) 392-0024

E-Mail: sbradley@city.toronto.on.ca

 H.W.O. Doyle

City Solicitor

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DRAFT BY-LAW

 Authority:Toronto Community Council Report No. ( )

Intended for first presentation to Council:

Adopted by Council:

 CITY OF TORONTO

 BY-LAW No. -1998

 To provide for the entering into of an easement for the conservation of buildings on lands known as Nos. 363 and 365 Adelaide Street East and 226 King Street East.

 The Council of the City of Toronto HEREBY ENACTS as follows:

 1.The entering into of an easement with the owner or owners of lands known as Nos. 363 and 365 Adelaide Street East and 226 King Street East, being of architectural value or interest, is hereby authorized.

 2.All documents required to be signed on behalf of the City in respect to the easement hereby authorized shall be signed by the City Clerk and the Chief Financial Officer and Treasurer, who are hereby authorized and directed to affix the seal of the City to all such documents.