STAFF REPORT

October 26, 1999

To: Toronto Community Council

From: Acting Commissioner of Urban Planning and Development Services

Subject: Preliminary Report on Official Plan and Rezoning Application No. 199012, upon application by McCarthy Tetrault, on behalf of 1160963 Ontario Inc., 65 Queen Street West, Suite 440, Toronto, Ontario M5H 2M5, respecting 164 Cheritan Avenue (Ward 22 - North Toronto)

Purpose:

To provide a preliminary report on a proposal for a 5 building, 465 dwelling unit development at a density of 2.67 times the area of the lot and to seek direction to hold a public meeting. The proposal involves the demolition of 115 rental housing units.

Financial Implications and Impact Statement:

There are no financial implications resulting from the adoption of this report.

Recommendation:

It is recommended that:

the Commissioner of Urban Planning and Development Services be requested to hold a public meeting in the area to discuss the application and to notify owners and tenants within 300 metres of the site, area residents associations and the Ward Councillors.

Background:

(1) Site and Situation of the Proposed Development:

The site of the proposed development has a triangular shape covering 1.45 ha (3.6 acres). The site's narrow northern frontage abuts Lawrence Avenue West while its wider southern frontage abuts Cheritan Avenue. The site is bounded by Rosewell Avenue to the west and a private laneway to the east (see Application Data Sheet).

The site is surrounded by large landscaped open spaces associated with Lawrence Park Collegiate Institute to the east, Glenview Senior Public School to the south and Havergal College to the West. To the north and across Lawrence Avenue West are a series of small, low scale commercial uses. The closest residential property is located approximately 100 metres to the south along Rosewell Avenue.

The site currently has 15 two and a half storey residential apartment buildings at a density of approximately 0.4 times coverage. The existing buildings have a total of 115 rental units and were constructed in 1952.

(2) Description of the Current Proposal:

The current application by First Ontario Realty Corporation Ltd. was received on August 13, 1999 and proposes the construction of five rental and condominium apartment buildings with a total of 465 dwelling units.

The site presently contains 115 purpose-built rental apartment units and the applicant has proposed replacing these with 80 purpose-built rental units. This would represent a loss of 35 purpose-built rental units. The remaining 385 "rental" units would appear to be provided through a "syndicated condominium" format. Overall, the proposal would result in a net gain of 350 dwelling units.

The first three buildings, adjacent to and south of Lawrence Avenue, are 6 storeys in height and the remaining two buildings are proposed at 7 storeys. The proposed density is 2.67 times coverage. This exceeds the permitted maximum of 1.0 times coverage.

The development would be accessed from two entrances off Rosewell Avenue which lead to a 581 parking space, below grade garage. There is an additional access off Cheritan Avenue for trucks.

(3) Application Chronology:

On April 12, 1999, the owner filed an application to permit the development of 4 rental apartment buildings, ranging in height from 8 to 10 storeys and containing 562 dwelling units at a density of 3.2 times the area of the lot. The application proposed rental units which would be provided through a "syndicated condominium" format. However, the application did specify the number of rental units to be secured through a long-term agreement with the City.

Planning staff met with the applicant and advised that the proposed development was inappropriate in terms of its height and density and could not be processed further. The applicant was encouraged to reconsider the proposed development approach and to file revised plans. The revised plans were received on August 13, 1999 and a further communication identifying a rental housing replacement scheme was submitted on October 18,1999.

(4) Applicable Planning Controls:

Official Plan

The entire site is designated as "Low Density Residence Area" by the Part I Official Plan which permits residential buildings having a gross floor area of up to 1.0 times the area of the lot provided, among other things, that appropriate regard is had for the effect of such buildings on the stability and general residential amenity of the Residence Area.

Zoning By-law

The most northerly 33.5 metres of the site are zoned R2 Z0.6 and the remainder is zoned R1 Z0.35. These designations permit most types of residential buildings to a maximum density of 0.6 and 0.35 times the area of the lot respectively. The maximum height permitted by either designation is 10.0 metres.

Site Plan Control

The site and the proposed development are subject to site plan control. However, application No. 199012 does not include a request for site plan approval.

(5) Current Housing Market Situation in the City of Toronto:

A full range of housing, including rental housing and affordable rental housing is important to the economic and social well-being of the City of Toronto and is good planning. Toronto faces a number of demographic and economic changes that have increased the demand for housing, especially lower-cost housing which is largely provided through the rental market.

Rental housing is a significant part of the City's housing stock constituting slightly more than half of all dwelling units. The current rental market is very tight and there is a need for more rental accommodation and more affordable rental accommodation, especially for households with low-to-moderate incomes who are least able to find alternative accommodation in the City's constrained housing market. In 1995, almost 1 in 4 tenants paid more than 50% of their income in rent.

The City is seeing ownership housing, both freehold and condominium, being approved and produced. However, for a number of years, there has been very little production of private, purpose-built rental housing. For example, in 1998, there were only 114 private rental completions across the new City of Toronto. The demand for rental housing is strong and is reflected in the very low vacancy rate of 0.9%. This rate means that only 9 units out of 1,000 are available to rent. Housing analysts consider a vacancy rate of between 2.0% and 3.0% as indicative of a healthy, balanced market.

In the past, some of this shortfall was made up through the construction of assisted rental housing. However, the program was cancelled in 1995 and the unfinished projects in the City were built out by 1997. The City has had to rely on other rental forms to make up the difference such as condominium rentals and second suites as the prospects for new purpose-built, private rental construction appear minimal for the foreseeable future. However, these non-conventional rental forms are less secure as they can readily revert to ownership.

(6) Overview of Official Plan Provisions:

In its January 1999 report, the Mayor's Homelessness Action Task Force noted that preserving existing rental housing is an essential component of a strategy to ensure sufficient affordable housing in the City. The Task Force recommended that the City adopt a principle of "no net loss" of affordable rental housing units.

The in-force and emerging housing policies of the Metropolitan Toronto Official Plan and the (former) City of Toronto Official Plan underscore the importance of preserving and maintaining rental housing.

The Metropolitan Toronto Official Plan

In addition to provisions related to affordable housing, Policy 125, states that it is the policy of Council to encourage investment in new private rental housing and the preservation and maintenance of existing rental housing and to support provincial and federal policies in this regard.

The (former) City of Toronto Official Plan

In addition to provisions related to affordable housing, Policy 6.17 indicates that it is Council's goal to encourage retention and conservation of the existing stock of private rental housing by discouraging demolition, conversion and renovation which in Council's opinion is undesirable.

Current Policies of the Amalgamated City of Toronto

In 1998, the Province of Ontario repealed the Rental Housing Protection Act (RHPA) and enacted the Tenant Protection Act (TPA), which does not include a provincially-mandated approval process with respect to conversions and demolitions of existing rental stock.

In recognition of the fact that:

(a) policies to encourage the retention and conservation of the existing stock of private rental housing (for example through discouraging demolition and conversion) represent good planning;

(b) the Provincial Policy Statement directs that all planning jurisdictions in the province provide for a full range of housing types and densities to meet projected demographic and market requirements of current and future residents by a variety of means, including encouraging housing forms and densities designed to be affordable to moderate and low income households; and

(c) more than half of the residents of the City (52.5%) live in rented accommodation;

the Commissioner of Urban Planning and Development Services reported to Council in June 1998, regarding the potential loss of rental housing . She was directed to review and report back on the matter by early Fall of 1998 on appropriate City-wide policies and procedures respecting condominium conversions and the demolition of rental housing.

City Council at its meeting of March 2, 3 & 4, 1999 approved draft official plan amendments regarding the conversion to condominium and demolition of rental housing (OPA No. 2) and on April 15, 1999, City Council adopted by by-law, the above-noted Official Plan Amendments. The new City policies also reflect on-going initiatives to harmonize the policies and practices of the former municipalities with regard to the preservation of rental housing.

The policies related to the demolition of rental housing adopted by Council as part of OPA No. 2 are as follows:

Policy 135.4 - to seek the retention of rented residential units, except where the whole or part of a building which contains such units is in the opinion of the Chief Building Official structurally unsound, and to consider, where appropriate, acquiring or leasing a property where such units are at risk of being demolished.

Policy 135.5 (a) - when considering redevelopment applications involving the demolition of rented residential units, to seek the replacement of the demolished rental units with rental units of a similar number, type, size and level of affordability in the new development, and/or alternative arrangements, which in the opinion of Council are consistent with the intent of this policy; and

Policy 135.5 (b) - when considering such applications in the context of an increase in height and/or density, to secure such replacement units and/or alternative arrangements through an appropriate legal agreement under Section 37 of the Planning Act.

OPA No. 2 has been appealed to the Ontario Municipal Board by a number of private developers, the Urban Development Institute and several equity co-operatives. The owner for this property, First Ontario Realty Corporation Ltd., also appealed the policy. At the pre-hearing for another application that was seeking the demolition of rental housing, a solicitor sought to have the OMB members rule on the validity and applicability of the new policies through a motion of direction. The OMB members consented to the motion of direction and agreed to provide a decision on the validity and applicability of OPA No. 2. This did not include addressing the planning/policy merits.

Arguments on the legal validity and applicability of the new policies were heard from lawyers representing the City and the City of Hamilton (in support of Toronto's policies) and the solicitors representing individual developers and the Fair Rental Policy Organization of Ontario (FRPO). The Board issued a decision that found OPA No. 2 to be invalid and illegal based on their conclusion that the new Tenant Protection Act provides a "complete" code with respect to housing matters.

At its meeting of September 28, 1999, City Council unanimously directed the City Solicitor to seek leave to appeal the OMB's decision to the Superior Court of Justice Divisional Court. By taking such action, Council has clearly indicated its intent to continue applying the policies contained in OPA No. 2.

All of the above policies combine to provide a strong policy framework in which to assess the application.

Comments:

(1) Reasons for the Application:

To permit the proposed development, an Official Plan amendment would have to be approved because the proposed density of 2.67 times exceeds the permitted maximum of 1.0 times coverage by 1.67 times coverage. The rezoning would be necessary because the overall density proposed of 2.67 times exceeds significantly the maximum permissions of 0.35 and 0.6 times coverage.

The five proposed buildings greatly exceed the maximum permitted height of 10.0 metres by between 7 and 12 metres. Other areas of non-compliance will be identified as a result of the zoning review currently being undertaken as part of the circulation process.

(2) Issues to be Resolved:

The concept advanced by the application involves residential intensification including the replacement of 70 percent of the existing purpose-built rental housing and the rebuilding of the Rosewell Avenue street frontage. In order to determine whether the proposal should be processed further, the impacts of the proposed residential intensification on and off the site need to be carefully assessed. Issues to be considered include, but are not limited to, the following:

Demolition and Replacement of Purpose-Built Rental Housing

The applicant has outlined a proposal to replace a component of the existing purpose-built rental housing in a letter to staff dated October 18, 1999 and attached to this report as Appendix A. Briefly stated, the applicant proposes to replace 80 of the existing purpose-built 115 rental housing units. This represents a replacement rate of 70 percent.

The replacement units would be provided in conjunction with or prior to the construction of other units. Rents would be determined by reference to the average CMHC rents for North Toronto with increases pursuant to the Tenant Protection Act. The applicant has not provided sufficient detail around the type of re-housing package which would be offered to the sitting tenants.

The applicant has indicated that if current efforts to remove the existing eight-year limitation on the new multi-residential tax are unsuccessful that the purpose-built rental component (80 units) be permitted to be registered as a condominium.

To date, City Council has considered two applications that involve the demolition of rental housing: 310-320 Tweedsmuir Avenue in the former City of York (Goldlist Properties Inc.) and 325 Bogert Avenue in the former City of North York (Greatwise Developments). Both of these are considered to be "pipeline" applications.

The application for the site in the former York was received in July 1998 while that for the site in the former North York was originally received in 1995 and revised and resubmitted in July 1998. The proposed OPA No. 2 policies were before the (former) Urban Environment and Development Committee (UEDC) at its meeting of November 25, 1998. The policies were revised and reviewed by UEDC between November 1998 and March 1999 with final Council approval in April 1999. Staff do not consider this to be a "pipeline" application. Unlike the Tweedsmuir and Bogert applications, the details of the policy had been made public for almost 6 months and the direction of the Standing Committee was clearly focused on strengthening the intent of the policy. The application was made on the day prior to Council's meeting to adopt OPA No. 2.

The applicant's proposal to develop 465 units on this site (80 purpose-built rental units and 385 "rental" condominium units), represents a fourfold increase in the number of existing units. It is clear that the proposal could achieve the intent of the overall policy framework with full replacement of the 115 existing purpose-built rental units.

Even though it has been proposed that the condominium units would be rented, perhaps through a "syndicated condominium" format, this does not mean that in the future these units could not readily revert to ownership. Full replacement of the existing purpose-built rental housing would assist in ensuring that the goals of the in-force and emerging City policies are met, including no net loss of rental housing.

Density

Given the isolated nature of the site and the relatively distant proximity of residential development, the site is arguably a suitable location for some residential intensification. The final determination of an appropriate density on the site should be dependent upon a consideration of the feasibility of development having regard for, among other things:

(a) the housing policy framework;

(b) built form;

(c) traffic impacts; and

(d) community service impacts.

The applicant is seeking a density increase which will necessitate an Official Plan amendment and a re-zoning. Section 37 of the Planning Act allows for a public benefit to be secured when increases in height and/or density are sought. The framework for the use of Section 37 is outlined in Section 16.21of the (former) City of Toronto Part I Official Plan. These policies, together with the recent OPA No. 2 provisions, which identifies the use of Section 37 to secure replacement of the demolished rental units, justify the need to seek such an agreement as part of the development approval of this application.

The primary consideration will be to secure affordable rental housing, including rent levels, number and mix of units, securing the building as a rental property and the re-housing provisions for the sitting tenants. The use of Section 37 for these matters should not be viewed as a "bonus" as the intent of the policies is to make gains in affordable housing. As currently proposed, this application would result in 35 fewer purpose-built, rental apartment units.

A preliminary analysis of built form and school capacity alone indicate that there should be a reduction in the proposed height and density. A height and density increase needs to be carefully assessed given the height of adjacent institutional buildings, the larger context of low density residential development and based on a concern for precedent should, in the future, some or all of the adjacent open space associated with school uses, became available for development. This may be an unlikely future outcome, but one which cannot be ignored given the changing funding environment for public institutions. The Toronto Catholic District School Board has expressed concern regarding the overcrowding and lack of permanent facilities at Blessed Sacrament Catholic School, one of the area's elementary schools.

Built Form

Following receipt of the original application proposing four 8 to 10 storey apartment buildings, staff developed preliminary urban design guidelines for the block. The applicant's revised proposal for five 6 to 7 storey apartments conforms to these guidelines as follows:

(a) there is no at-grade parking between Rosewell Avenue and the new buildings;

(b) there is a generously landscaped public boulevard with landscaped setback;

(c) the architect has incorporated an expression line at the height of approximately 3 storeys; and

(d) the building mass has been broken up to lessen the impact on the Rosewell Avenue.

The proposed development fails to conform to the preliminary design guidelines as follows:

(a) the servicing and parking strategy does not utilize the existing rear lane;

(b) the proposed buildings are up to 2 storeys higher than the five-storey guideline maximum for apartment buildings;

(c) the grade related units are not directly accessible from Rosewell Avenue; and

(d) the grade related units should have landscaped front yards.

The ability of the site to be serviced as proposed, instead of from the existing rear lane will be reviewed as part of the current circulation of plans. However, conformity with the design guidelines with respect to building height and grade related access will be required. In addition, the extent of each building above the third storey may have to be reduced to prevent adverse shadow impacts and to lessen the visual impact of the buildings on pedestrians.

Landscaping and Tree Protection

According to the applicant, the proposed development will maintain approximately 42 percent of the site as Landscaped Open Space. Closer compliance with the by-law standard for development of the type proposed (50 percent) is needed. However, in order to better assess the amount and quality of proposed open space, detailed landscape plans and a sun/shade analysis will be required. Similarly, the applicant will be required to submit an arborist's report or declaration that no City-owned or other protected trees exist on- or off-site.

Traffic, Parking and Loading

Any significant increase in the number of units on this site requires a comprehensive traffic impact, parking and servicing study. Such a study should be undertaken in accordance with Works and Emergency Services guidelines. This should include an examination of existing parking conditions, anticipated residential and visitor demand, operation of on site parking and loading facilities, existing traffic routing patterns, traffic forecast patterns, and the identification of measures to discourage undesirable routing and to ensure a safe road environment with special attention to school pick-up/drop-off and after-hour activities.

Parkland Dedication

The site is large enough that a requirement for the provision of parkland instead of cash-in-lieu will have to be examined.

Social Services

Any significant increase in unit count will also necessitate a review by the applicant of the adequacy of licensed group daycare and libraries. Parks Staff and both school boards have been circulated plans for comment.

Site Plan Control

As noted above, the applicant has not submitted an application for site plan approval as part of this Official Plan Amendment and Rezoning application. As a result, fewer plans have been submitted and those submitted contain less information than would otherwise be required. To properly consider a project of this size and complexity, more detailed information is required for staff to be able to confirm that the project, if approved, will function as proposed. Further, if the applicant wishes to build-out the project over an extended period of time, it will be necessary to identify building parcels and to submit a phasing plan.

I will be requiring the submission of additional information and plans as required to properly evaluate the proposal and will encourage the applicant to submit for site plan approval.

Outstanding Information/Plans

At this time it should be noted that, on a preliminary basis, the following additional information will be required to be provided:

(a) revised parking plans with drive aisle, parking space and other dimensions to test compliance with the Zoning By-law;

(b) landscaped open space statistics;

(c) a north elevation plan;

(d) a recent registered plan of survey;

(e) a re-housing strategy for the existing tenants; and

(f) a current rent schedule and more specific details on the proposed rental rates for the replacement rental component.

Next Steps:

As a next step, a public meeting should be held in the neighbourhood to provide a forum for public discussion and feedback on the development proposal. Based on further analysis and on the community input, I will meet with the applicant to review required changes to the proposal. I will report back to Toronto Community Council with my final recommendations.

Conclusions:

The application, as revised, proposes a significant residential intensification involving the demolition of 115 purpose-built rental units and the construction of 465 dwelling units, including 80 replacement, purpose-built rental units. The application must be evaluated in a comprehensive manner in the context of the following equally important objectives:

(a) to maximize rental replacement;

(b) to secure an appropriate built form; and

(c) to ensure no adverse impact on existing community services, transportation services or municipal services in the area.

Plans have been circulated to the appropriate departments and agencies for review and a community public meeting is being recommended.

Contact:

Raymond David

Manager, North Section

Telephone: 416-392-7188

Fax: 416-392-1330

E-mail: rdavid@toronto.ca

Beate Bowron

Director, Community Planning, South District

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List of Attachments:

Data Sheet

Appendix A - Letter from Applicant - Re: Proposed Rental Replacement

APPLICATION DATA SHEET

Confirmed Municipal Address: 164 Cheritan Avenue.

PLANNING CONTROLS (For verification refer to Chief Building Official)

Official Plan Designation:		Site Specific Provision:	No
Zoning District:	R1 Z0.35; R2 Z0.6	Historical Status:	No
Height Limit (m):	10.0	Site Plan Control:	Yes

PROJECT INFORMATION

Site Area:	14570.0 m2		Height:	Storeys:		6 - 7 + 2 basements
Frontage:	307.0 m			Metres:		22.00
Depth:	Irregular m
				Indoor		Outdoor
Ground Floor:	4735.0 m2		Parking Spaces:	581
Residential GFA:	38852.0 m2		Loading Docks:			5
Non-Residential GFA:			(number, type)
Total GFA:	38852.0 m2

Appendix A

Letter From Applicant

Re: Proposed Rental Replacement

We act on behalf of First Ontario Realty Corporation Limited(the "Company") with respect to the proposed development at Lawrence Avenue West and Rosewell Avenue. Further to our letter of August 9, 1999, we are writing to advise you of the Company's proposal with respect to the replacement of the existing rental dwelling units.

As you are aware, the site presently contains 115 rental dwelling units. The applications for re-development will permit 465 dwelling units, which are proposed to be developed as rental. The Company's proposal for rental replacement units as follows:

1. 80 dwelling units are proposed to specifically replace the existing units, which represents 70% of the existing units.

2. The rents proposed for the "first tenants" who will occupy the 80 replacement units will be determined by reference to the average CMHC rents for North Toronto as of the date of demolition (the "Base Rent"). The Base Rent is permitted to increase pursuant to the provisions of the Tenant Protection Act. When demolition occurs and the development proceeds, the Base Rent, including the aforementioned permitted increases the development proceeds, the Base Rent, including the aforementioned permitted increases, will be the maximum rent that may be charged to the "first tenants." After the "first tenants" leave, all of the Tenant Protection Act provisions will apply.

3. The 80 replacement rental units will be developed either in conjunction with or prior to the construction of any other units. Existing tenants who are required to vacate because of demotion will be offered a rental replacement based on their seniority within the phase demolished, up to the maximum of 80 rental replacement units.

4. The 80 replacement units are proposed as rental, based on the assumption that the municipal property tax rate will be equivalent to or less than the rates if the development was a condominium, and the existing eight year time limitation applicable to reduced rates for rental buildings is removed. If that is not the case, or the property tax rate payable for a rental building increases such that it is greater than the rate that would apply to a condominium building, the subject building will be permitted to be registered as a condominium, and the proposed rental replacement units will be secured on a long-term basis by way of an agreement.