TO: Chair and Members of Development Services Committee

FROM: Jim Baird, Commissioner of Development Services

PREPARED BY: Ron Blake, Development Manager, West District

DATE: May 3, 2011

Re: Request for Deputation by Liberty Development Corp.

Re Phase 2 of World on Yonge

7161 and 7171 Yonge Street

RECOMMENDATION:

That the memorandum entitled, “Request for Deputation by Liberty Development Corporation re Phase 2 of World on Yonge, 7161 and 7171 Yonge Street”, be received as information.

BACKGROUND:

The subject site is located at the north east corner of Yonge Street and Meadowview Avenue in Thornhill, immediately south of the CN Rail line. Surrounding uses include industrial commercial uses to the north and east, low density residential to the south east, and commercial and high density residential fronting both the east and west sides of Yonge Street.

The development of the site is proceeding in two phases. The Phase 1 development consists of some 707,000 sq. ft. of retail, a 20 storey office/hotel building and 714 residential units in two high rise towers fronting Yonge Street. Phase 2 includes an additional 493 residential units, located in two high rise residential towers fronting Meadowview Avenue. In total, 1,207 residential units will be developed on the site.

In May 2009 the OMB approved the OPA and ZBA to permit both the Phase 1 and 2 developments, subject to (H) Holding provisions on the zoning. In October 2009, the OMB endorsed the site plan application for the Phase 1 development. The owner has recently submitted an application for site plan approval for the Phase 2 development. In addition, the owner has secured a conditional permit to excavate the site in preparation for construction of the underground garage. Staff anticipate that the Holding provisions applying to the above-ground portions of the Phase 1 development will be lifted shortly, in conjunction with final approval of the Phase 1 Site Plan.

Liberty is requesting relief from the no pre-sale agreement and certain conditions relating to the Holding Provision applying to the Phase 2 portion of the development

Liberty Development Corporation wishes to begin selling the residential units in their second phase of development as soon as possible. The Phase 2 development is subject to a no pre-sale agreement, which prevents the sale of residential units before Town Council has granted the required servicing allocation. Phase 2 is also subject to a Hold provision, as set out in the site-specific zoning by-law, which places a hold on the Phase 2 development pending satisfaction of a number of conditions. The owner is requesting relief from the no pre-sale agreement and conditions of hold removal that require that the Yonge Street BRT either be designed or under construction or that funding for the Yonge subway extension be confirmed prior to removal of the Holding Provision applying to Phase 2.

DISCUSSION:

Requirement for no pre-sale agreement endorsed by Council

In February 2009, Council endorsed the proposed OPA and ZBA subject to a number of conditions, including a requirement that the applicant enter into no pre-sale agreements with the Town of Markham for each phase of the development that had not yet received servicing allocation. This is a standard condition of the Town for phased developments. It is a result of the current constraints on servicing capacity in York Region. It is intended to ensure that residential units are not offered for sale to the public in advance of assignment of servicing allocation, to allow for release for development and a reasonably predictable timeline for construction and occupancy. If this were not required, and units in later phases of developments were allowed to be sold without a confirmed assignment of servicing allocation, there is the risk of significant delays and frustrated purchasers initiating complaints or possible legal actions against various parties including the Town.

Similar requirements were also established in the conditions for Hold removal, set out in the site-specific zoning by-law, whereby the owner must enter into one or more no pre-sale agreements applying to later phases of the development before the first hold provision can be lifted.

The owner entered into two no pre-sale agreements (applying to the second Phase 1 tower and the two Phase 2 residential towers) in the summer of 2009. The no pre-sale agreement applying to the second phase 1 tower was lifted in June 2010 when the owner secured additional servicing allocation for this portion of the development.

Additional servicing allocation for the Phase 2 residential towers has not yet been granted. The next round of servicing (2014 allocation) from the Region to the Town will likely be available for distribution late 2011/early 2012. The Liberty Phase 2 units will be considered for allocation at that time.

Conditions for lifting the Hold Provision applying to the Phase 2 development have not been met

The site-specific zoning by-law amendment approved by the OMB in May 2009 contains a number of conditions that must be met before the Hold Provision applying to the Phase 2 development can be lifted. These conditions, and their current status, are as follows:

· Removal of the H1 and H2 provisions (applying to the Phase 1 development). As noted above, the conditions applying to these Hold Provisions have now been met and they will be lifted shortly;

· Submission of an updated transportation impact/monitoring study, to the satisfaction of the Director of Engineering in consultation with York Region. The owner recently submitted a traffic study addendum applying to the proposed Phase 2 development, which is under review by the Engineering Department and in circulation to the Region of York;

· The Town, in consultation with the Region, must be satisfied that sufficient servicing capacity is available and must have adopted a resolution granting additional servicing capacity to provide for the number of dwelling units permitted. In this regard, the applicant has recently entered into an agreement to construct a new sewer line along Dudley Avenue to service the proposed development, as well as anticipated intensification along the Yonge Steeles Corridor to the south. This sewer line will address sanitary sewer capacity issues in the local system. However, as previously noted, additional Regional servicing allocation for the Phase 2 development is not yet available, and has not been granted.

· The final design must be completed or construction commenced for the Yonge Street BRT, or the funding for the Yonge Street Subway extension must be confirmed. Neither of these conditions have been met at this time. We are advised that the applicant’s transportation consultant is examining alternative measures to achieve the required transit modal splits, such as shuttle bus service between the development and the Finch Subway during the a.m. and p.m. peaks.

NEXT STEPS

Regarding servicing allocation, Staff anticipate that additional servicing allocation will be available from the Region in late 2011 or early 2012. This is the earliest date that additional servicing allocation could be confirmed for Phase 2, for occupancy potentially as early as 2014 (exact timeline yet to be confirmed by Region based on status of infrastructure projects). The Liberty project meets many of the Town’s criteria for servicing allocation on a priority basis, but this is subject to availability and future assignment by Council.

Regarding lifting of the Hold Provision applying to Phase 2, traffic and transportation impacts are a key consideration. In the absence of Provincial funding for a subway, the applicant must demonstrate, to the Town’s and Region’s satisfaction, that the existing transportation system has sufficient capacity to accommodate the second phase of development. As noted above, the applicant has submitted a traffic study addendum, which is currently under review. The Hold Provision applying to Phase 2 should not be lifted until traffic impacts have been addressed to the satisfaction of the Town and the Region.

The request for release from the no pre sale agreement needs to be considered in the context of both servicing allocation and transportation capacity. Target dates for construction and occupancy needs to be understood and to be realistic. Council would need to be satisfied not only that servicing allocation will be available and granted to the Phase 2 units for occupancy within the timelines being offered to purchasers, but also that transit modal split requirements can be expected to be achieved, in order to allow for (H) removal and release for development to meet projected timelines.

More information is required from the applicant and the Region regarding construction/servicing allocation timelines, and the applicant’s recently submitted transportation analysis needs to be reviewed by Town and Regional Engineering staff.

Q:\Development\Planning\APPL\OPAPPS\06 127138 hy and zels\Staff memo re Phase 2.docx