| 138103 | REPORT | N | N | SUPPL | ACTION | ADOPTED | N | Next Phase of Waterfront Revitalization - Update | 2024.EX19.2 | Y | Y | Y | Y | <p>In 2022 City Council approved, in principle, a Next Phase of Waterfront Revitalization and directed City staff to pursue discussions with provincial and federal staff, and report back on intergovernmental discussions.</p>
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<p>This report provides an update on those discussions and recommends that City Council endorse a first set of projects for the Next Phase, contingent on tri-government funding and necessary agreements. Subject to approvals, these projects will help advance complete communities in Ookwemin Minising (formerly referred to as Villiers Island) and Quayside, and continue the successful tri-government partnership in delivering waterfront revitalization.</p>
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<p>This report also recommends that City Council direct City staff to report back on these projects in the first half of 2025, including through the budget process; authorize City staff to negotiate and execute necessary agreements; affirm Waterfront Toronto as the revitalization lead for Ookwemin Minising; and endorse a mandate extension for Waterfront Toronto to support implementation.</p>
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<p>In addition to the Next Phase of Revitalization, this report provides an update on Port Lands Flood Protection (PLFP) and recommends technical amendments to the tri-government PLFP contribution agreement and the PLFP Parks and Public Realm delivery agreement with Waterfront Toronto.</p>
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<p>The Next Phase - A First Set of Projects</p>
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<p>A first set of priority projects, which, if approved and collectively funded by all governments, will deliver vital public infrastructure over the next five to seven years to enable future development of housing, parks and public realm, and to advance planning for new destinations and attractions on the waterfront.</p>
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<p>City staff recommend the following projects, with an order of magnitude estimate of $900-975 million, be considered for funding by all three orders of government. This prioritization is based on a business case completed by Waterfront Toronto and a one-year due diligence exercise conducted with government staff:</p>
<p style="padding-left: 30px;">-Ookwemin Minising enabling infrastructure;</p>
<p style="padding-left: 30px;">-Quayside enabling infrastructure;</p>
<p style="padding-left: 30px;">-The completion of Biidaasige Park (the northwest portion, which was previously referred to as Promontory Park North) and a program of early activation ('meanwhile uses') on adjacent future development lands;</p>
<p style="padding-left: 30px;">-A study of waterfront destinations and attractions; and</p>
<p style="padding-left: 30px;">-Funding envelopes to advance the Marine Use Strategy and wider waterfront initiatives.</p>
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<p>Ookwemin Minising enabling infrastructure is anticipated to enable the future development of approximately 4,500 new total housing units on Blocks 3, 7, 8, 12 and 16, with a Council approved target of 30 percent of residential gross floor area (GFA) allocated to affordable rental housing (See Figure 5). Additional funding will be required to secure the affordable housing when specific plans are determined. In Quayside, funding for the enabling infrastructure gap will help enable the approximately 4,700 proposed total housing units in both Phases 1 and 2, of which 869 will be affordable rental housing.</p>
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<p>Government due diligence continues on affordable housing and transit, which could represent a second set of projects for the Next Phase. Affordable housing discussions for Quayside are ongoing with the Canada Mortgage and Housing Corporation (CMHC) regarding project financing. For Ookwemin Minising, City Council's 30 percent affordable housing target on public lands, including equity contributions, will be addressed through a detailed business and implementation plan and site-specific funding plans as implementation proceeds. On transit, active discussions continue regarding the Waterfront East Light Rail Transit (Waterfront East LRT) project and possible phasing opportunities.</p>
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<p>City staff will provide City Council with updates on the funding approach, tri-government funding commitments, and cost sharing through the following reports planned for the first half of 2025:</p>
<p style="padding-left: 30px;">-Ookwemin Minising Business and Implementation Plan (including updates on enabling infrastructure and completing Biidaasige Park);</p>
<p style="padding-left: 30px;">-Advancing Affordable Housing Outcomes in Quayside - Phase 1; and,</p>
<p style="padding-left: 30px;">-Waterfront East LRT Update.</p>
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<p>Building on the First Two Phases of Tri-Government Partnership</p>
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<p>Since 2001, over $2.9 billion in public investments have transformed Toronto's central waterfront. This revitalization effort has been supported by all three orders of government with leadership from Waterfront Toronto in partnership with agencies such as CreateTO, Infrastructure Ontario, and the Toronto and Region Conservation Authority (TRCA). Public funding provided over two phases (2001 and 2016) has delivered significant results:</p>
<p style="padding-left: 30px;">-Almost 4,400 new homes on Waterfront Toronto supported sites which is a part of the over 9,600 units developed overall in the Lower Yonge, East Bayfront and West Don Lands precincts;</p>
<p style="padding-left: 30px;">-58.5 hectares (144.6 acres) of new or improved public parks and public realm;</p>
<p style="padding-left: 30px;">-Over 28,000 construction jobs through development; and,</p>
<p style="padding-left: 30px;">-Nearly $10 billion in private sector development.</p>
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<p>Revitalized neighbourhoods such as the West Don Lands and East Bayfront serve as a model for complete communities. As PLFP nears completion, these achievements will grow, supporting long-term resilience and new opportunities for growth.</p>
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<p>Endorsement of the first set of projects for the Next Phase, as recommended in this report, will advance the priorities for each of the three orders of government and help to ensure that the phased approach to waterfront revitalization continues. It will represent a significant step forward in realizing the broader effort of waterfront revitalization, which, over 50+ years, is expected to result in housing for over 100,000 people and create space for approximately 50,000 jobs in the central waterfront east, including the Port Lands. This unique opportunity exists because approximately 70% of Ookwemin Minising is owned or co-owned by the City via CreateTO and via Waterfront Toronto, there is a proven tri-government delivery model, and ambitious standards are in place for designing and delivering complete and sustainable communities.</p>
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<p>Central to all of the projects for the Next Phase is a City commitment to meaningful engagement with First Nations, Inuit, and Métis communities to reflect their histories, knowledge, and aspirations in all aspects of the waterfront’s transformation, and to foster opportunities for economic and cultural participation.</p>
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<p>This opportunity requires firm commitments from all orders of government. As noted earlier, focused discussions on available funding are ongoing and will be reported on by City staff through various reports in the first half of 2025. Federal and provincial funding is subject to political decision-making and approvals, which are still pending. The City is prepared to prioritize funding of its one-third share of funding commitment, subject to cost sharing commitments from other orders of government.</p>
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<p>Waterfront Toronto's Mandate</p>
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<p>To enable implementation of the Next Phase, City staff recommend that City Council endorse an extension to the length of the mandate of Waterfront Toronto (legally known as the Toronto Waterfront Revitalization Corporation) from 2028 to 2035, with an option for a further extension to 2040 subject to a government review of the organization. Tri-government staff have noted that a mandate extension is important, however formal decision making and approvals are still pending. Accordingly, it is recommended that City Council request federal and provincial support for this mandate extension, and request the Government of Ontario to introduce the necessary legislation (and other approvals) required to put this mandate extension into effect as soon as possible.</p>
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<p>A mandate extension for Waterfront Toronto of this length would align with the timeline to implement the first set of projects noted above (including enabling the first set of blocks on Ookwemin Minising), allow for uninterrupted implementation of projects underway such as Quayside, and provide the tri-government corporation with the operational certainty needed to move forward. It would strengthen the capacity of Waterfront Toronto to lead complex, multi-year revitalization efforts. The proposed extension follows a background study on waterfront revitalization that was completed by the City with the assistance of provincial and federal partners in 2020, with findings reported to City Council in 2021.</p>
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<p>Discussions also continue between CreateTO, Waterfront Toronto, and the City on respective roles and responsibilities and the collaborative approach to be taken to unlock land on Ookwemin Minising for new housing. Staff from all parties agree that subject to tri-government funding, Waterfront Toronto should be the revitalization lead for Ookwemin Minising. This would occur in close collaboration, and in alignment with, the City and CreateTO. This report recommends that City Council affirm Waterfront Toronto as the revitalization lead for Ookwemin Minising, and direct City staff to report back with a recommended update to the 2006 City-Toronto Economic Development Corporation (TEDCO, now under CreateTO)-Waterfront Toronto Memorandum of Understanding to reflect a renewed partnership.</p>
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<p>Central Waterfront East Transit</p>
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<p>The full-vision Waterfront East LRT project is essential for Toronto’s growth, to accommodate the existing and planned density of housing, commercial uses, and regional destinations. Expanding transit continues to be an active discussion amongst all three governments. Discussions to date have acknowledged the importance of transit to serve the fast-growing neighbourhoods of the eastern waterfront and have noted that opportunities should be explored to phase and expedite transit service to the area.</p>
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<p>To inform funding decisions regarding higher-order transit on the eastern waterfront, additional due diligence and discussions are required among the City, the Government of Ontario and the Government of Canada. Key topics include further work on costing and phasing, cost sharing possibilities, and potential funding sources. Staff are targeting a report back on the Waterfront East LRT project in early 2025. Updates on transit funding discussions will be provided in future Waterfront East LRT reports.</p>
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<p>Immediate Interim Transit Improvements</p>
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<p>As an immediate step to address urgent challenges, City staff in collaboration with TTC staff recommend that City Council direct staff to report back on interim bus lane implementation along Queens Quay East from Bay Street to Parliament Street in the second quarter of 2025. The interim bus lanes are not a replacement for higher-order transit. They are intended to address immediate challenges along the eastern waterfront related to bus travel times. Current delays are having a material impact on the East Bayfront community which is home to a rapidly growing resident population, businesses, and visitors including students attending local post-secondary institutions.</p>
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<p>Work Ahead</p>
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<p>It is important to note that while City staff recommend City Council approval of a first set of projects for the Next Phase, intergovernmental funding still needs to be confirmed following further discussion and approvals. Subject to City Council and other government approvals, City staff, government partners, and Waterfront Toronto will continue to advance project implementation, refine cash flows, and determine funding contributions. Updates will be provided in the upcoming 2025 Budget process and in planned reports on the Ookwemin Minising Business and Implementation Plan, Quayside and Waterfront East LRT in the first half of 2025.</p> | 19 | 2 | CMMTTEE | EX | All | N | 1734411600000 | … | Report | ACTION | Adopted | Supplementary | Committee | … | … | … | … | … | … | … | … | … | … | … | … | ACTION | true | Adopted | … | … | … | … | — | — | — | — | — | — | — |