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May 12, 1999

To:Toronto Community Council

From:Commissioner of Urban Planning and Development Services

Subject:Section 37 Amendment: 55, 60, 70 and 80 Mill Street (Gooderham and Worts Distillery Complex) (Don River)

Purpose:

To recommend certain changes to the phasing controls for Gooderham and Worts to permit the construction of an affordable housing project

Source of Funds:Not applicable

Recommendation:

That the City Solicitor be authorized to prepare and execute an amending agreement pursuant to Section 37 of the Planning Act to give effect to the changes described in this report.

Background:

In 1995 the former City of Toronto Council approved a major redevelopment for the Gooderham and Worts Distillery site located on the east side of Parliament Street one street south of Front Street East. The redevelopment includes the re-use of several important heritage buildings on the site for commercial and cultural uses, and the construction of new buildings on the periphery of the lands for a range of uses such as residential, office, and light industrial uses.

Thus far, one 95 unit affordable housing project has been completed, and a second project for 183 units of affordable housing and 2,000 square metres of retail space is being constructed. In addition, the owner is currently leasing the heritage buildings in the centre of the site for retail/entertainment uses, and has pre-sold 60 percent of the units proposed in a third affordable housing project containing about 140 units. This third project is currently being reviewed by City staff as part of a site plan approval application.

The purpose of this report is to recommend certain amendments to the Section 37 Agreement for Gooderham and Worts in order to permit this third affordable housing project to proceed in a timely fashion. The proposed amendments are described below.

Comments:

1.The Current Phasing Controls

The Section 37 Agreement for Gooderham and Worts requires that as new buildings are constructed on the perimeter of the site, that three things occur:

-a site interpretation centre to celebrate the history of the site be built in the oldest heritage building on the site, the Stone Distillery;

-a daycare be constructed and commence operation; and

-the restoration of ground floors of certain heritage buildings be completed.

The obligation for these benefits is triggered by floor area caps as new buildings are occupied. The Phase III building, which proposes the construction of 140 additional affordable housing units would exceed these limits. The applicant would not be entitled to a building permit unless these matters and facilities are completed. The applicant argues that the construction of affordable housing cannot bear these expenses and has requested that the provision of these benefits be tied to the redevelopment of the next phase of development which includes at least one more housing project, light industrial space, retail/entertainment space, and office space. The recommended changes are described below.

2.Exempt the Phase III Affordable Residential Building from the Phasing Controls

I am recommending that the Phase III affordable residential building be exempted from the phasing controls. In effect this means that the requirement to provide a daycare and a site interpretation centre will take effect when the next new building on the site is occupied.

3.Second Trigger for Site Interpretation Centre

The applicant has agreed to a second trigger for the provision of the Site Interpretation Centre. The second trigger is tied to the occupancy of 15, 450 square metres of non residential gross floor area within the heritage buildings located in the centre of the site, collectively called the Trinity Street Heritage District, and some additional buildings which were initially slated to be demolished, but are now to be re-used.

The existing heritage buildings included in this fall back trigger are the Machine Shop, the Stone Distillery Complex, the Cooperage Complex, the Maltings Complex, the Pure Spirits Complex, the Cannery, the Pumphouse, the Paint Shop, Rackhouse M, the Boilerhouse Complex, the denaturing building, Rackhouse G and Rackhorse J. The applicant has already pre-leased approximately 10,000 square metres of space in these buildings for a combination of retail and entertainment uses.

4.Public Historian

The current Section 37 Agreement for Gooderham and Worts requires the owner to hire a public historian to operate and supervise the Site Interpretation Centre. They are obligated to hire this person at least 6 moths prior to its opening. The applicant has agreed to retain the public historian earlier.

The public historian will now be hired within 6 months of reaching the trigger, and within an additional 6 months the construction of the Site Interpretation Centre will commence, and it must be in operation prior to the occupancy of additional space within the Trinity Street Heritage District or the Phase IV building constructed outside the Trinity Street Heritage District.

The net effect of this change is that the public historian will be involved in the design and layout of the site interpretation centre. This will allow the completion of a better thought out facility.

5.The Daycare

Two changes are proposed for the daycare. The first is to provide for a fall back trigger to the provision of the daycare facility. It will commence operation prior to the earlier of the occupancy 20,000 square metres of floor area within the buildings listed in Section 2 above, or the occupancy of the Phase IV building, whichever is earlier.

The start up operating contingency fund will be increased from $51,000 to $100,000 to reflect more recent agreements.

6.Building Restoration

The building restoration will now be completed at once in accordance with an existing trigger in Section 2.2.1(5) of the existing Section 37 Agreement.

Conclusions:

The proposed changes to the Section 37 Agreement will allow the Phase III building, a 140 unit affordable housing project to proceed. In exchange for the exemption, the applicant has agreed to certain other changes to the Section 37 Agreement which benefit the City.

Contact Name:

Lance Alexander

Planner

Community Planning, South District, East Section

Phone: 392-7573

Fax: 392-1330

E-mail: Lalexand@city.toronto.ca

Beate Bowron

Director, Community Planning, South District

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