St. Lawrence Co-operative Housing Corporation Condominium

- Request for Release of a Portion of the lands from a

Heritage Easement Agreement for Rack House AH@

of the Gooderham and Worts Distillery Site (Downtown)

 The Toronto Community Council recommends the adoption of the following report (July 21, 1998) from the City Solicitor:

 Purpose:

 To address a request from St. Lawrence Co-operative Housing Corporation for the release of certain lands, being Parts 7 and 8 on Plan 66R-17839 from the Heritage Easement Agreement entered into with the former City of Toronto (Instrument No. CA 397779) applicable to Rack House "H" of the Gooderham and Worts Distillery Site.

 Funding Sources, Financial Implications and Impact Statement:

 Not applicable.

 Recommendation:

 That the City consent to an Application to Amend the Register to Release the lands comprising Parts 7 and 8 on Reference Plan 66R-17839 from the Heritage Easement Agreement entered into with the former City of Toronto respecting Rack House "H" on the Gooderham and Worts Distillery Site, being Instrument No. CA 397779, and that appropriate City officials be authorized to execute such documents as are required to effect such release provided they are in a form and with content satisfactory to the City Solicitor.

 Council Reference/Background/History:

 In 1994 the former City of Toronto Council enacted Official Plan and Zoning By-law amendments to permit the redevelopment of the Gooderham and Worts Distillery Site (the "Site") located at Parliament and Cherry Streets, for mixed use purposes. One of the City's requirements for enacting the amendments was that the owner enter into a number of heritage easement agreements ("HEAs") with the City due to the Site's heritage significance.

 Rack House "H", one of the historic buildings located on the north side of Mill Street beside Rack House "I", was the subject of one such HEA, being Instrument No. CA397779, registered on April 3, 1996. Rack House "I" is the subject of another HEA.

 On the north side of Mill Street the Amending By-laws allowed for two buildings to be erected, one incorporating Rack House "H" and the other incorporating Rack House "I". In the HEA for Rack House "H", Schedule E sets forth the framework for adaptive re-use of the building and includes the following statement:

"This building, to be incorporated into a proposed apartment tower, offers interesting opportunities to form a base to a composite new/old built form....A parking structure could be built within the retained walls and linked to the adjoining Rack House "I"."

 Comments and/or Discussion and/or Justification:

 The St. Lawrence Co-operative Housing Corporation (the "Co-op") is now developing the condominium incorporating Rack House "I". As there has been no severance of the Rack House lands to-date, the Co-op also owns the lands and buildings subject to the Rack House "H" HEA. I am advised by the Co-op's solicitor that the Co-op will reconvey the Rack House "H" lands to Wyndham Court Canada Inc. (the owner of the majority of the Site) once the condominium for Rack House "I" is registered, thereby effecting a severance of the Rack House "H" lands from the Rack House "I" lands.

 It is expected that Mill Street Co-operative Housing Corporation will purchase the Rack House "H" lands some time in the future in order to develop another condominium.

 A difficulty has arisen for the Co-op in that Parts 7 and 8 on Reference Plan 66R-17839, which form part of the lands against which the Rack House "H" HEA is registered, are needed for the condominium registration for the Co-op building currently being developed which incorporates Rack House "I".

 Parts 7 and 8 are located below ground, approximately 7 to 8 metres from Rack House "H" and appear to comprise part of the below ground parking structure for the new building incorporating Rack House "I". No part of Rack House "H" is located on Parts 7 or 8.

 If Parts 7 and 8 become part of the condominium registration, the future Rack House "I" condominium owners will be responsible to meet the obligations of the Rack House "H" HEA (as well as for the Rack House "I" HEA), although no part of Rack House "H" is located on the lands of the condominium and despite there being other owners responsible to meet the obligations of the Rack House "H" HEA. This appears to be onerous and unnecessary.

 I have consulted with the City Surveyor's office, the Commissioner of Urban Planning and Development and staff of Heritage Toronto and we all agree that Parts 7 and 8 may be released from the Rack House "H" HEA without in any way jeopardizing the intent behind the HEA.

In addition, as Wyndham Court Canada Inc. intends to repurchase Rack House "H" and was the original signatory to the Rack House "H" HEA, I have confirmed with its solicitor that it has no concerns with such a release, should Council agree to same.

 Conclusions:

 I am recommending that Parts 7 and 8 on Reference Plan 66R-17839 be released from the Rack House "H" HEA as requested by the Co-op.

 Contact Name:

 Sharon Haniford, Solicitor

Telephone:(416) 392-6975

Fax:(416) 392-0024

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