To:Corporate Services Committee

From:Commissioner of Corporate Services

Subject:Proposed Land Exchange--York City Centre

South-West Corner of Eglinton Avenue West and Black Creek Drive

(Ward 27 - York Humber)

Purpose:

To authorize the initiation of the process to stop up and close portions of public highways and to authorize negotiations in connection with a proposed land exchange in the York City Centre area.

Financial Implications:

To be included in future report, if any.

Recommendations:

It is recommended that:

(1)staff proceed, in consultation with Ward Councillors, with negotiations involving the Ministry of Transportation of Ontario and Rutledge Development Corporation with a view to formalizing terms and conditions for the exchange of lands in the York City Centre area, and report back in due course;

(2)notice of intent to declare surplus be issued, and staff initiate the process to stop-up, close, and convey those portions of the public highways known as Keelesdale Road and Photography Drive, intended to be included in the proposed land exchange, in the south-west quadrant of Eglinton Avenue West and Black Creek Drive; and

(3)the appropriate City officials be authorized and directed to take the necessary action to give effect thereto.

Background:

In April of 1992, the former City of York (York) entered into a Memorandum of Understanding (MOU) with the Province of Ontario represented by the Ministry of Transportation of Ontario (MTO) and the Minister Responsible for Greater Toronto (both hereinafter referred to as the Province), and Dumez Real Estate North America Inc. (DRENA).

York's desire was to encourage the development of the lands at the intersection of Black Creek Drive and Eglinton Avenue West for the purposes of a city centre.

DRENA, the Province, and York as owners of lands in the south-west quadrant of Black Creek Drive and Eglinton Avenue West were desirous of participating in the development of such lands as the first phase of the York City Centre.

The purpose of the MOU was to set forth the land transactions necessary to facilitate the development of the first phase of the York City Centre and to ensure that such development proceeds as a mixed-use development and in a manner consistent with York's objectives of ensuring the creation of the York City Centre and implementing the provisions of Official Plan Amendment 98.

Pursuant to an Agreement of Purchase and Sale, Mr. H. Scott Rutledge, principal of Rutledge Development Corporation (RUDEVCO), now has control of the DRENA holdings that were subject to the MOU.

Whereas a number of conditions of the MOU were not satisfied, legal advice from City Legal staff dated September 21, 1998, stated the following:

"If DRENA has contracted for the sale of their holdings to a purchaser who is interested in a development in the south-west quadrant, it would be best if the purchaser had discussions with the City and the Province with a view to arriving at a renewed MOU or land exchange agreement."

Comments:

(1)Site Ownership

The York City Centre - Phase One site is located on a 4.74 hectare (11.7 acre) triangular parcel of the land bounded to the east by Black Creek Drive, to the north by Eglinton Avenue East, and to the south-west by the CNR/CPR railway corridor.

GM Gest, a Lyonnaise des Eaux-Dumez subsidiary, owned the central part of the triangle since the early 1950's. The remaining lands are owned by the Province of Ontario, Ministry of Transportation and the local roads by the City of York. Prior to GM Gest's ownership, the site was used by the municipality as a granular borrow source and subsequently as a landfill site.

Downtown York Development, a holding company owned through Dumez Immobilier and managed by DRENA, purchased the GM Gest lands in December 1989 in order to develop the York City Centre - Phase One.

In April 1992, DRENA executed a land exchange agreement (Memorandum of Understanding - MOU) with the Ministry of Transportation for Ontario and the City of York. This agreement provides for a reconfiguration of the land holdings to allow for the development of a gateway transit station, one million square feet of commercial premises, and 850 residential condominiums. The agreement also provides for the joint servicing of the site and removal of landfill by DRENA and the Ministry of Transportation.

(2)Landfill History

The Landfill History is paraphrased from the Environmental and Geotechnical Assessment by Bruce A. Brown Associates Limited dated April 1990.

From the available information, it appears this site was originally used as a granular borrow source. There is no record of the duration of borrow activities, however, historic air photos dating from 1947 onward suggest that no significant volumes of landfill were placed prior to 1947. The Granular "C" sand was not completely exhausted, however, borrow limits may have been confined by the adjacent Canadian Pacific Railway line. Landfilling operations extended from 1949 to 1950 to late 1953, or early 1954. The photographs indicate landfilling by 1950 and certain completion of filling by 1954.

Conversations with Gest personnel also confirms that landfill activities were terminated by about 1954, at which time the fill was enclosed with a granular cover. Further discussions with Gest personnel indicate that Gest covered the site with an additional lift of granular fill and extended southward the use of the site as a contractor's yard. Some of the array of small buildings on the north part of the site pre-date the 1947 earliest available air photograph and the balance was constructed in 1948 and 1949. The most northern was demolished in 1966 for the Eglinton Avenue grade separations. The first evidence of occupation of more intensive land use in the contractor's yard was found on the 1956 aerial photographs which includes the largest of the Gest buildings. The site continued to be used by Gest who installed underground fuel tanks and constructed the buildings which are still present.

(3)RUDEVCO Proposal

RUDEVCO are proposing to acquire certain lands from MTO and from the City in order to end up with a developable site. The various parcels, subject to the present fractured ownership, have limited development potential. The assembly proposed by RUDEVCO would result in a realignment of ownership intended to create development opportunities of a mixed-use nature. RUDEVCO would be responsible for any land clean-up required because of the former landfill use.

The land exchange proposal submitted by RUDEVCO provides that RUDEVCO would acquire Areas 5 and 6 on attached Appendix "A" from MTO, and together with Areas 4 and 7, deed those lands to the City in return for the lands within the boundaries of the former Keelesdale Road right-of-way shown as Area 1 and Areas 2 and 3 being part of the Photography Drive right-of-way.

The RUDEVCO proposal contains three components; commercial, residential, and possible future transportation facility. The commercial component will contain approximately 80,000 - 90,000 square feet of retail space and the residential component will comprise approximately 150 units on a high density site.

A possible future transportation facility would be located on the block intended to be under City ownership to be created by virtue of the proposed land exchange. As mentioned earlier, RUDEVCO would be responsible for any required environmental clean-up of the land included in the exchange.

RUDEVCO has submitted an application to rezone the land. Future development of the lands would be subject to a site plan control application. Their application is currently being circulated by Planning Department staff for review and comment by the appropriate City departments. That process will include public input by way of a public meeting.

This report is not intended to comment on planning issues in any great detail. However, for purposes of information, the Official Plan calls for mixed-use development. The zoning for the property is regulated under Section 336 of Zoning By-law 1-83 of the former City of York. The uses proposed are allowed under that By-law. However, the Zoning By-law amendments being proposed are of a site-specific nature pertaining to, among other things; reconfiguration of the Blocks, changes in phasing, changes in vehicular access, and so on.

The site plan submitted by the applicant attached as Appendix "B" indicates the following:

BuildingLot

Block Use Area Area

ARetail7,000 sq. m.2.66 ha (6.57 acres)

(75,347 sq.ft.)

BResidential150 units0.46 ha (1.14 acres)

CFuture Development --0.22 ha (0.55 acre)

DGateway Facility --0.60 ha (1.49 acres)

A reduced copy of the site plan is attached for reference.

We have been advised that RUDEVCO's preliminary general concept was previously presented to members of the York Community Council, as well as to the local BIA and ratepayers in 1998. It is understood that there will be ample opportunity for public input into the land use issues related to the proposal.

The requirements for the proposed gateway facility will also be the subject of further review and comment by staff of Urban Planning and Development Services and Works and Emergency Services, TTC, and GO Transit. There have been preliminary discussions with regard to requirements and design issues related to the potential for provision of future facilities like a "kiss-'n-ride" and a ticket kiosk, as well as parking and access issues for the gateway facility. More detailed comments are anticipated as a result of the rezoning circulation process being coordinated by Urban Planning and Development staff.

Conclusion:

Steps to stop-up, close, and convey the affected portions of the public highway, including the required 4 consecutive weeks of advertising, should be initiated.

Corporate Services staff should be authorized to enter into negotiations in consultation with the Ward Councillors, to formalize terms and conditions for the proposed land exchange and report back thereon to the Corporate Services Committee.

Contact Name:

Francois (Frank) G. Bedard, Manager, Realty Services, Etobicoke-York Districts

Telephone: (416) 394-8096; Fax No.: (416) 394-8895 (cs99030.wpd)

Margaret Rodrigues

Commissioner of Corporate Services

Attachs.