January 12, 1999
To:Toronto Community Council
From:Commissioner of Urban Planning and Development Services
Subject:Proposed Amendment to Section 37 Agreement - 33 Bay Street - World Trade Centre (Ward 24, Downtown).
Purpose
This report recommends that City Council authorize the City Solicitor to amend the Section 37 Agreement for the World
Trade Centre respecting details of the day care centre obligations on Parcel 2 (33 Bay Street).
Source of Funds
Not applicable.
Recommendation
It is recommended that:
1. City Council authorize the City Solicitor, in consultation with the Commissioner of Urban Planning and Development
Services, to amend the Section 37 Agreement for the World Trade Centre development generally in accordance with the
terms set out in this report, and that the appropriate City officials be authorized to enter into such agreement.
Comments
The site known as the World Trade Centre is located on three parcels of land (Parcels 1, 2 and 3) located in the vicinity of
Bay and Harbour Streets, between Queens Quay West and the Gardiner Expressway (as shown on Map 1).
City Council adopted a Part II Plan permitting only non-residential development for these lands in 1987, accompanied by
Zoning By-law amendments and a Section 36 (now known as Section 37) Agreement. In 1993, the then-owner of Parcel 2,
Camrost, applied for an Official Plan Amendment and Rezoning to permit residential rather than commercial uses on that
parcel, at approximately the same density. The matter was subsequently appealed to the Ontario Municipal Board. An
OMB decision in favour of residential uses was issued in April 1994, followed by the execution of a new Section 37
Agreement between the City, the Toronto Harbour Commissioners (the owner of Parcel 1), and Standard Life (the new
owner of Parcel 2). Parcel 3, containing the constructed residential condominium towers at 10 Yonge Street and 10 Queens
Quay, was not included in the new agreement. An OMB order approving site-specific Official Plan and Zoning By-law
amendments followed in June, 1998.
One of the provisions of the new Section 37 Agreement which has carried over from the original Section 36 Agreement is
the owner's obligation to provide a daycare centre on a continuous basis on Parcel 2. Although this daycare centre may be
relocated, daycare facilities must be provided on the parcel at all times, once residential development begins.
The owner, Standard Life, has requested relief from the Section 37 requirement of the continuous provision of a daycare
centre on Parcel 2. Parcel 2 permits three towers on a largely retail podium. Permitted are a 46-storey hotel/residential
tower on the west part of the site, a 42-storey residential tower in the centre, and a 38-storey residential tower on the east,
with an overall cap of 1,500 residential units. The site could be built out in phases relating to the podium, below-grade
parking levels, and each of the three towers. The owner's current phasing strategy is shown on Map No. 2.
Under this phasing plan, the continuous daycare provision in the Section 37 Agreement could result in the daycare centre
and its outdoor playground being set up and then dismantled in two temporary locations, before a third, permanent facility
is established.
Two of the three possible daycare locations are not desirable. In temporary Location A (refer to Map No. 3), the large
distance separating the indoor facility from the outdoor playground is not acceptable. In temporary Location B (refer to
Map No. 4), the sun/shadow conditions for the outdoor playground are not optimal, and the facility will mostly face north.
Location C, at the north-east corner of the site (refer also to Map No. 4), is contemplated as the permanent location.
Location C is the best option, since:
- the sun/shadow conditions on the playground will be acceptable;
- the indoor facility will have desirable north, east and south exposures, and directly overlooks the playground from two
directions; and
- the facility can be easily accessed from Yonge Street.
In lieu of the continuous daycare provision, the owner has agreed to provide:
(1) the permanent daycare centre at the City's preferred location, Location C. Provision of the permanent daycare would be
triggered by the construction of the eastern-most portion of the development (corresponding to the location of Phase 4, as
shown on Map No. 2), which includes below-grade parking, a potentially mixed-use podium and a tower with
approximately 500 residential units; and
if there is construction on the site after the permanent daycare is built, the owner will monitor the on-site environmental
conditions and provide operational safeguards (such as screening) for the day care centre, especially the outdoor
playground; and
(2)until the permanent daycare centre is constructed, a fixed contribution of $400 per residential unit built prior to the
permanent daycare centre, to be used for an interim daycare location off-site. This financial contribution is non-refundable,
and is over and above any cost to build and equip the permanent facility. The owner shall make this financial contribution
prior to the issuance of a building permit for any phase to be built prior to the eastern-most phase. The amount owed is
calculated on the total number of residential units permitted in that phase. If the eastern-most phase and the permanent
daycare centre are built first, no contribution will be required of the owner.
City staff have calculated the $400 per unit as the estimated cost of capital improvements at an interim daycare location, as
well as utility and equipment costs. The funds could also be used to lease space, assuming that any required tenant
improvements are minimal. In any event, the cash contributions would be used for no other purpose than the provision of
daycare facilities within the area bounded by King Street to the north, Lake Ontario to the south, Stadium Road to the west
and Cherry Street to the east.
Given the desirability of the daycare location at the north-east corner of Parcel 2, it is appropriate to replace the owner's
current obligation to provide continuous day care service on site with a new obligation that the owner build the daycare
centre at the north-east corner of the site, along with a $400 payment, per each residential unit, to be made prior to the
issuance of a building permit for any phase to be built prior to the eastern-most phase, and calculated on the total number of
residential units permitted in that phase.
Therefore, I recommend that Council authorize the City Solicitor, in consultation with the Commissioner of Urban
Planning and Development Services, to amend the Section 37 Agreement for the World Trade Centre development
generally in accordance with the terms set out in this report, and that the appropriate City officials be authorized to enter
into such agreement.
Contact Name:Anne Milchberg
Telephone392-7216
Fax392-1330
E-Mailamilchbe@toronto.on.ca
Beate Bowron, Director
Community Planning, South District
/nbb
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APPENDIX A
APPLICATION DATA SHEET
