Report to: Development Services Committee Report Date: February 19, 2008

SUBJECT: RECOMMENDATION REPORT

1685904 Ontario Inc.

4600 Steeles Avenue East (North-east corner of Steeles Avenue East and the future Midland Avenue extension)

Site plan application for a mixed-use development

SC 06 113701

PREPARED BY: Scott Heaslip, Senior Project Coordinator, Central District

RECOMMENDATION:

That the staff report entitled “RECOMMENDATION REPORT – 1685904 Ontario Inc. – 4600 Steeles Avenue East (North-east corner of Steeles Avenue East and the future Midland Avenue extension) – Site plan application for a mixed-use development”, dated February 19, 2008, be received;

That the application for site plan control approval be endorsed, in principle;

And that site plan approval be delegated to the Director of Planning and Urban Design or her designate, to be issued following execution of a site plan agreement (Site Plan approval is issued only when the Director has signed the site plan “approved”), when the following conditions have been met:

The Owner has conveyed all lands required for Steeles Avenue and the Midland Avenue extension to the City of Toronto and the Town of Markham.
The Town owned lands which are to be incorporated into the proposed development have been acquired by the Owner.
The Owner has conveyed a heritage easement to the Town over the south (front) façade, portions of the sidewalls, and the wood doors with their associated glazing within the vestibule of the former Milliken Public School.
The Owner has entered into a site plan agreement with the Town containing all standard and special provisions and requirements of the Town and public agencies and the conditions outlined in Schedule ‘A’ to the February 19, 2008 staff report, including provisions for the payment of a local improvement contribution in lieu of the area-specific development charge in the event that the Area Specific Development Charge By-law has not been enacted.
Provision for the payment by the Owner of all applicable fees, recoveries, development charges, parkland dedications and financial obligations related to applicable Developers Group Agreements.
The Trustee for the Milliken Main Street Landowners Group has advised the Town in writing that the Owner is in good standing with the Group and that the Group supports the assignment of 129 units of servicing allocation to 1685904 Ontario Inc.
The City of Toronto has confirmed in writing that the Owner has entered into an acceptable arrangement for the interim construction of the portion of the Midland Avenue extension required to provide access to the subject development, or alternatively an interim private driveway, prior to the completion of the Class Environmental Assessment for the Midland Avenue extension.

And that 129 units of servicing allocation be granted by Council to 1685904 Ontario Inc., subject to the conditions outlined above;

And that Council authorize the enactment of a by-law to remove the Hold (H) provisions on the subject lands, upon application by the Owner, once the conditions of hold removal have been satisfied;

And that Staff be authorized and directed to do all things necessary to give effect to this resolution.

EXECUTIVE SUMMARY:

The subject property is located on the north side of Steeles Avenue East, immediately east of the future Midland Avenue extension, and contains a vacant 2-storey heritage building known as the Milliken Public School, built in 1929.

The applicant has applied for site plan approval of:

a 7-storey, mixed-use building, focused on the future Steeles/Midland intersection, containing 123 apartment units, 280 m² (3014 ft²) of commercial uses and two levels of underground parking. This building will incorporate the front third of the historic Milliken Schoolhouse building.
two, 3-storey, 6-unit townhouse blocks at the rear of the site.

On May 22, 2007, Council approved a site specific zoning by-law amendment to permit the proposed development.

The Steeles/Midland intersection is one of the major gateways to the Milliken Main

Street area. The proposed development will help to anchor this gateway and potentially act as a catalyst for further development of the Milliken Main Street. The proposed development is pedestrian and transit oriented, and the proposed apartment units will help to diversify the housing stock in the vicinity.

Staff recommend that Committee endorse the application, in principle, and delegate site plan approval to the Director of Planning and Urban Design, to be issued once the conditions outlined in the recommendations, have been satisfied.

The zoning of the lands is subject to a holding provision. Staff will bring a by-law to Council to remove the hold, upon application by the Owner, once all of the conditions of hold removal have been satisfied.

FINANCIAL CONSIDERATIONS:

Not applicable.1. Purpose 2. Background 3. Discussion 4. Financial 5. Environmental

6. Accessibility 7.Engage^21st 8. Affected Units 9. Attachment(s)

PURPOSE:

Property and Area Context

The subject property has an area of approximately 0.8 ha (2 acres) and is located on the north side of Steeles Avenue East, immediately east of the future Midland Avenue extension. (Figure 2) The property contains a vacant 2-storey heritage building known as the Milliken Public School, built in 1929. To the north and east are single detached dwellings which front on Manston Crescent and Duxford Crescent and back onto the subject property. To the west is a vacant property which was purchased by the Town a number of years ago for the Midland Avenue extension. To the south across Steeles Avenue East are single detached dwellings which front on Staverton Court and flank on Steeles Avenue East.

Official Plan and Zoning

The property is designated “Commercial” in the Official Plan and “Community Amenity Area – Steeles Avenue” in the Milliken Main Street Secondary Plan (OPA 144). Lands subject to this designation are intended to develop with retail and office uses along Steeles Avenue. Medium or high density residential uses are also permitted.

The property is zoned “Holding - Community Amenity 4” [CA4*286(H3)] by

By-law 177-96. Amending By-law 2007-98, passed by Council on May 22, 2007, incorporates site specific use permissions and development standards into the by-law to permit the proposed development. (Figure 2)

Proposal

The applicant has now submitted a site plan application to permit development

of (see Figures 4 - 7):

A mixed use building at the front of the property, focused on the future Steeles/Midland intersection. This building will contain 123 apartment units and 280 m² (3014 ft²) of commercial uses in the front portion of the ground floor. This building will also incorporate the front third of the historic Milliken Schoolhouse building. The west portion of the mixed-use building will be 7-storeys in height, stepping down to 6 and then 4 storeys, to the east.
Two, 3-storey, 6-unit townhouse blocks on the north portion of the property.

The mixed use building will be primarily faced with light beige EIFS (stucco) panels and blue tinted glazing. The lower two storeys will be faced with a darker coloured smooth and rough finished artificial stone which will provide a base for the building and complement the former Milliken Schoolhouse building. The townhouse blocks will be primarily faced with brick.

The majority of parking will be in a two level, 148 space underground garage. A portion of the retail parking (10 spaces) and the townhouse resident parking (12 spaces) and apartment visitor parking (2 spaces) will be on the surface.

All vehicular access will be from the future Midland Avenue extension.

OPTIONS/ DISCUSSION:

Proposed development is consistent with the objectives of the Secondary Plan

The uses and built form of the proposed development are consistent with the planned function of the “Community Amenity Area – Steeles Avenue” designation. The mixed-use building, in combination with the applicant’s proposed development at 4550 Steeles Avenue (north-west corner of Steeles and future Midland), will visually identify this intersection as a gateway into the Milliken Main Street Secondary Plan Area. The proposed development is pedestrian and transit oriented, and the proposed apartment units will help to diversify the housing stock in the vicinity.

Development will facilitate construction of the Midland Avenue extension

This development and the proposed development at the north-west corner of Steeles and Midland both rely on the Midland Avenue extension for access. The Milliken Main Street Landowners Group is undertaking the Class Environmental Assessment (EA) for the extension, and will be constructing the road as part of Phase 2 of the overall Milliken Main Street development. A portion of the subject property will be required to be conveyed to the Town and the City of Toronto as a condition of site plan approval to accommodate the extension and a road widening across the Steeles Avenue frontage. A small portion of the adjoining Town owned land not be required for the road is being purchased by the applicant and will be incorporated into the development. As the Midland EA has not been completed, a short section of the road will be constructed to municipal standards as a private driveway to provide access to this development. The landowners group is advised that any modifications to the private driveway required to meet the approved EA design will be at it’s cost.

Resident concerns were addressed at the zoning stage

To address the concerns of the adjoining residents, the proposed development was refined at the zoning stage, as follows:

the massing and commercial uses were focused towards the intersection and away from adjoining residents.

the setback of the building from the east boundary was increased from 12 to 16 metres.
the stepping back of the east portion of the building was increased at the upper floor levels.
the driveway onto Steeles Avenue was eliminated and replaced with a landscaped area. The elimination of this driveway will allow the preservation of an existing mature oak tree adjacent to the east boundary, which will act as a visual buffer between the building and the adjoining residents.

the setback of the two townhouse blocks from the north lot line was increased from 4.6 to 7.5 metres.
portions of the underground garage were pulled back from the north lot line to facilitate the preservation of several existing trees. The applicant subsequently introduced a second level of underground parking which allows the underground garage to be pulled further back from the existing trees to be preserved.

The applicant also submitted a sun shadow study, which demonstrated that there will be no unacceptable shadow impact on the adjoining residential properties.

Heritage Markham concerns have been addressed

The applicant has worked closely with heritage staff and Heritage Markham to sensitively integrate the historic schoolhouse into the mixed-use building. At the request of Heritage Markham, the applicant revised the plans to have the front third of the schoolhouse building stand proud of the mixed-use building, and has simplified the new south facade of the building to act as a backdrop to the schoolhouse. Heritage Markham is satisfied with the current plans. The final details will be addressed in consultation with the staff of the Heritage Section and secured in the site plan agreement. The applicant will also be required to convey a heritage easement to the Town over the south (front) façade, portions of the sidewalls, and the wood doors with their associated glazing within the vestibule of the former Milliken Public School.

Minor variance may be required

Once the lands required for the Midland Avenue extension and Steeles Avenue road widening have been conveyed to the Town and the City of Toronto, the proposed development will slightly exceed the maximum permitted floor space index of 1.6. The applicant will be required to either reduce the floor area to comply with the by-law, or apply to the Committee of Adjustment for a minor variance.

Conditions need to be met before hold can be removed

The zoning of the subject property is subject to a “holding” provision. The zoning by-law outlines the conditions for removal of the hold, as follows:

i) Execution of a site plan agreement.

Status: Preparation of the agreement can be initiated following Committee’s endorsement of this application.

ii) The Town is satisfied that adequate water, sanitary sewer and stormwater management facilities are available to service the subject lands.

Status: The trustee for the Milliken Main Street developers group has advised that the group supports allocation of 129 units to this project. The remaining 6 units are being transferred from the 31 Old Kennedy road project, which the applicant also owns and which is not proceeding at this time. The Engineering Department is currently reviewing the Master Servicing Plan submitted by the Engineer for the Milliken Main Street Landowners Group. The applicant is advised that the water and sewer mains serving this project will need to be installed and operational before construction can commence as the Town of Markham’s Municipal Servicing By-law does not allow the issuance of Building Permits until the required municipal services are available.

iii) The Town is satisfied that land for required road rights-of-way, open space and other community facilities has been secured.

Status: The extent of the lands required for the Midland Avenue extension and Steeles Avenue widening has been confirmed. The applicant is in discussion with the Town’s Real Property Manager to finalize arrangements for the transfer of the applicant’s lands required for the Midland Avenue extension.

iv) The Town is satisfied that the lands proposed to be released for development can be adequately served by the existing and committed transportation network without adverse impact on the road system or to other committed development.

Status: The applicant submitted a traffic impact study in support of the proposed development. The study has been reviewed and accepted by Town and City of Toronto staff.

v) The Town, in consultation with concerned agencies, is satisfied that any potential site contamination has either been remediated to an environmental site condition which meets appropriate Provincial standards for the proposed land use and will not result in any adverse effects, or that such remediation can be secured through other means, such as conditions in a subdivision agreement, or securement of a record of site condition prior to issuance of a building permit.

Status: The identified site contamination, from a leaking oil tank, was mostly cleaned up in 2004. However, there is the potential that some of the contaminants have migrated. The applicant has been requested to submit a Phase 2 environmental report to address this issue. Any additional site clean up requirements will be secured in the site plan agreement.

vi) A Development Charges By-law has been enacted, or the Town Solicitor has confirmed a satisfactory arrangement for the payment to the Town by the landowner(s), without recourse, of an amount equal to the applicable development charges has been made.

Status: An area specific development charge by-law reflecting proposed

infrastructure and streetscape improvements for the entire Milliken Main Street area has not been enacted. Until such a by-law is enacted, all development within the area will be subject to a local improvement contribution to be specified in the site plan agreement.

vii) The Town is satisfied that arrangements have been made, through a Developers Group or alternative agreement, to address the sharing of common costs of development not dealt with under a Development Charges By-law.

Status: The cost sharing agreement has not been finalized by the Milliken Main Street Landowners Group. However, the trustee for the Landowners Group has provided written confirmation that “the owner of the subject property has continued to be an active and supportive member of the Group and we support the development of these lands.” The Owner will be required to obtain a certificate from the trustee confirming that he has satisfied all financial requirements.

viii) Execution of a heritage conservation easement agreement to ensure long-term protection of the heritage building.

Status: This will be registered on title with the site plan agreement.

Conclusion

Staff are satisfied with the proposed site plan and building elevations, and recommend that this site plan application be endorsed, in principle, subject to the conditions outlined in this report.

FINANCIAL TEMPLATE:

ENVIRONMENTAL CONSIDERATIONS:

Several mature trees are being retained.
The soil contamination will need to be remediated before development can proceed.

TRAFFIC IMPACT STUDY AND PARKING

The traffic impact study submitted in support of the corresponding rezoning application was reviewed and accepted by the Markham Engineering Department and the Toronto City Planning Division.

The parking requirement for the apartment units was reduced from the typical standard of 1.5 spaces/unit to 1.2 spaces/unit, inclusive of visitor parking, in consideration of the location of the property on a major transit route. Parking for the other uses (townhouses and commercial) is being provided in accordance with Parking By-law No. 28-97.

ACCESSIBILITY CONSIDERATIONS:

Not applicable.

ENGAGE 21^ST CONSIDERATIONS:

The proposed development will support the following key goals of “Engage 21^st Century Markham” :

Environmental focus - The development is compact and transit supportive. Several existing mature trees will be preserved.

Infrastructure Management - The development will help to facilitate the Midland Avenue extension.

Quality Community - The proposed apartment units will help to diversify the housing stock.

BUSINESS UNITS CONSULTED AND AFFECTED:

The proposed development was circulated to applicable Town departments and public agencies. Their requirements will be incorporated in the final project plans and secured in the required site plan agreement.

RECOMMENDED BY:

________________________ ________________________

Valerie Shuttleworth, M.C.I.P, R.P.P Jim Baird, M.C.I.P, R.P.P

Director, Planning & Urban Design Commissioner, Development

Services

ATTACHMENTS:

Figure 1 - Location Map

Figure 2 - Area Context

Figure 3 - Air Photo

Figure 4 - Proposed Site Plan

Figure 5 - Proposed Elevations – Mixed Use Building

Figure 6 - Proposed Elevations – Townhouse Blocks

Figure 7 - Coloured Perspective

Appendix ‘A’ – Conditions of Site Plan Approval

Applicant/Agent Jim Kirk

Malone Given Parsons Ltd.

140 Renfrew Drive, Suite 201

Markham, Ontario

L3R 6B3

Tel: (905) 513-0170

Fax: (905) 513-0177

Email: JKirk@mgp.ca

APPENDIX A

Conditions of Site Plan Approval

1685904 Ontario Inc.

4600 Steeles Avenue East

Prior to the execution of the site plan agreement, the Owner shall submit:

site plans, elevation drawings, underground parking garage layout plans, grading, servicing and engineering drawings that comply with all requirements of the Town and authorized public agencies, to the satisfaction of the Commissioner of Development Services.
landscape Plans, including streetscape details, prepared by a Landscape Architect having membership with the Ontario Association of Landscape Architects
a storm water management report and a functional servicing report
a geotechnical report
a noise and vibration study

for endorsement or approval by the Town.

The Owner shall enter into a Site Plan Agreement with the Town, containing all standard and special provisions and requirements of the Town, the City of Toronto and other public agencies, including the specific requirements identified in the February 19, 2008 staff report, including the following:

Payment by the Owner of all applicable fees, recoveries and development charges, and cash-in-lieu of parkland dedication.
Provision for the payment of the Highway 48 flow control charge.
Provisions to ensure implementation of the recommendations of the approved reports.
Provision for the payment by the Owner of all applicable fees, recoveries, development charges, parkland dedications and financial obligations related to applicable Developers Group Agreements.
Provision for the posting of a letter of credit to secure the financial obligations related to the developers Group Agreement in the event that the Developers Group Agreement has not been executed.
Provision for the payment of a local improvement contribution in lieu of the area-specific development charge in the event that the Area Specific Development Charge By-law has not been enacted.
That the Owner obtain all necessary approvals from the City of Toronto.
That the location, size and construction of all refuse storage areas and recycling facilities, and arrangements for waste collection be to the satisfaction of the Town of Markham Waste Management Department.
That the Owner design the site to ensure that there is no permanent encroachment into any municipal road right-of-way.
That the Owner acknowledges and agrees that the Town of Markham Municipal Servicing By-law does not allow the issuance of Building Permits until the required municipal services are available.
That fire Routes, yard hydrants, Siamese connections and other emergency access requirements be to the satisfaction of the Fire Department.
That provision for snow storage, sidewalk alignment and maintenance be to the satisfaction of the General Manager of Operations and Director of Engineering.
That the Owner pay for all costs associated with the relocation of utilities within the right-of-way, as may be required.
That the Owner implement the recommendations of the approved Environmental Noise and Vibration Feasibility Study.
That the Owner provide and implement a detailed stormwater management plan, including quality control measures/devices to the satisfaction of the Director of Engineering.
That the Owner provide and implement erosion control measures during construction and obtain a Topsoil Removal Permit to the satisfaction of the Director of Engineering.
That the Owner pay for all costs associated with the relocation of utilities within the right-of-way, as may be required.
That the Owner provide for the installation of odour control units within any restaurants.

This endorsement shall lapse and site plan approval will not be issued, after a period of three years commencing on February 19, 2008, in the event that the site plan agreement is not executed within that period.