April 28, 1999
To:Urban Environment and Development Committee
From:Commissioner of Urban Planning and Development Services
Subject:700 King Street West - Capital Accounts
Purpose:
To seek authority to establish capital accounts for funds received as a result of Official Plan
amendments and rezoning of 700 King Street West.
Source of Funds:
None required.
Recommendations:
- That separate capital accounts be established with budgets reflecting monies received from
the owners of 700 King Street (1997) Limited for public art (gross $146,215 net 0), and
community service facilities ($250,000, net 0), respectively, said monies to be expended in
accordance with the terms and conditions specified in the legal agreements entered into
with the owner;
- That monies currently assigned to Finance Department account # 1000-05310-304023 be
transferred to the appropriate newly created capital accounts;
- That the appropriate City staff be authorized to take the actions necessary to implement the
foregoing recommendations.
History:
At its meeting held on May 9 and 10, 1994, the former Toronto City Council approved
amendments to the Official Plan and Zoning By-Law associated with the property located at
700 King Street West, permitting residential uses. In accordance with Official Plan policies
regarding the timely provision of community service facilities, public benefits in the form of
public art and community service facilities were secured through Section 37 of the Planning
Act. These public amenities will serve the residents of the new development, as well as those
in the surrounding community.
Background:
The portion of King Street West between Bathurst and Dufferin Streets is undergoing
significant residential intensification. A number of former commercial and industrial buildings
are being converted or redeveloped for residential uses, including the former Massey Ferguson
Lands. Since 1996, applications have been received for an estimated 2,600 additional
residential units in the area, excluding the subject site. Additional applications for residential
development within the area are anticipated.
This anticipated incremental increase in population is expected to result in additional demand
for public services and amenities. As a consequence, public benefits were secured as part of
the approval process for 700 King Street West.
1. Community Service Facility Contribution
As part of the approvals necessary to allow the proposed residential intensification, and in
accordance with Official Plan policies related to the timely provision of community service
facilities, space within the development was secured by the City on behalf of the former
Toronto Board of Education (TBE) for an alternative secondary school.
Subsequently, the owner approached the TBE asking to be released from the obligation to
provide an on-site benefit, and instead proposed a cash contribution of $500,000. The TBE
consented, and further agreed to accept half of the proposed funds, with the remaining half to
be used for the provision of appropriate services within the area of development, at the City's
discretion. This proposal was approved by the former City of Toronto Council at its meeting
held on April 14 and 15, 1997.
2. Public Art Contribution
The contribution of public benefits through Section 37 agreements includes a public art
provision. While these agreements anticipate that the owner will commission art work for the
publicly accessible areas of the development site, there is also the provision that allows the
owner the option of donating one percent of the Gross Construction Costs to the City's capital
budget for public art. The owner of 700 King Street West chose this option and as a result, the
City received $146,295 in donated funds for the City's public art program.
It is anticipated that the funds secured from 700 King Street West will be applied to another
civic initiative which offers a public art opportunity. The City's public art program integrates
public art into the planning process and reinforces, where applicable, the urban design
objectives for the public realm. This may range from an artist as a member of a design team to
a call for the commissioning of a site specific art work. Urban design staff will work with the
local planners to determine the appropriate opportunity to which the public art funds can be
applied and report back to Council at a later date.
3. Establishment of Appropriate Capital Accounts
The owners of 700 King Street West have made contributions secured through the Section 37
agreements in the amounts of $146,214.90 for public art, and $500,000 for community
services (half of which has since been allocated to the Toronto District School Board). In the
absence of Council authority to establish separate accounts, the funds have been temporarily
placed in account # 304-423 (Simcoe Place - Public Art Monies). For clarity, it is preferable to
establish two new capital accounts which reflect the purposes and geographic boundaries
specified within the legal agreements with the land owners.
Comments:
The funds contributed by the owners of 700 King Street West will provide a basis for the
establishment of appropriate facilities and amenities within this area. Any public benefits
secured in the future as a result of approvals for increased height and/or density, may be used
to augment the amounts secured to date.
My staff will be exploring options for the expenditure of these funds, in consultation with the
Ward Councillors and local residents, which will be the subject of a future report. However,
the establishment of capital reserves for this area of reinvestment is an important component
of successful City-building.
Contact Names:
Paula Prieditis, 392-0400Robert Glover, 392-1126
Planner, Policy and ProgramsDirector, Urban Design
Reviewed by:
Paul J. BedfordVirginia M. West
Executive Director and Chief PlannerCommissioner of
City Planning DivisionUrban Planning and Development Services
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