4. OFFICIAL PLAN AND ZONING - 138 SOMERSET sTREET wEST and text change to centretown secondary plan

PLAN OFFICIEL ET ZONAGE- 138, RUE SOMERSET OUEST ET TEXTE MODIFIÉ POUR LIRE PLAN SECONDAIRE DU CENTRE VILLE

Committee RECOMMENDATIONS AS AMENDED

That Council:

1. Request the Ontario Municipal Board to modify:

i) Official Plan Amendment No. 62 being an amendment to Schedule H of Volume 1 of the Official Plan of the former City of Ottawa; and,

ii) Official Plan Amendent No. 20 being an amendment to the Council Adopted (2003) Official Plan;

for the east part of 138 Somerset Street to remove the area from the land use schedules, as shown in Document 2 and detailed in Document 3.

2. Approve and adopt amendments to the Centretown Plan included as Chapter 3.0 in Volume 2 to the former City of Ottawa Officical Plan and included in Volume 2A of the City Council Adopted (2003) Official Plan as follows and as detailed in Document 3:

i) For the east part of 138 Somerset Street to amend the land use schedule from a “District Commerical Area” designation to a “Residential Area – Medium Profile” designation.

ii) Add new text to permit consideration through a Zoning By-law Amendment of development proposals with a height over nine-storeys within areas designated ‘Residential Area – Medium Profile’ under limited conditions.

3. Approve an amendment to the former City of Ottawa Zoning By-Law as shown in Documents 1 and 2 and detailed in Document 5, subject to the amendment outlined in iii) noted below, to:

i) change the zoning of the east part of 138 Somerset Street West from CN12 and CN6 F(3.0) H(18.3) - Neighbourhood Linear Commercial Zones to a new R6C - High-rise Apartment Zone with exceptions to modify performance standards and to permit parking garage as a permitted use; and,

ii) amend the CN12 - Neighbourhood Linear Commercial Zone as it applies to the west part of 138 Somerset Street West to permit required parking to be provided off site and to reduce the minimum rear yard setback required from 7.5 metres to 1 metre.

iii) include a modification to Document No. 5 - Details of the Recommended Zoning by adding a new subsection 2.2.4 under Section 2 to read as follows:

2.2.4 - A rear yard of 0.0 metres for a parking garage only and the maximum permitted height above grade for a parking garage only shall not exceed 1.0 metre.

4. At such time as the Owner/Developer (Teron Inc.) enters into a Municipal Housing Facilities Agreement to allow for and secure the deferral of Development Charges and where the Owner/Developer defers a portion of its selling price equal to the amount of the development charges to be deferred to provide assisted ownership units below market affordability within a 100 % affordable housing project at 138 Somerset Street West, Planning and Environment Committee recommends that Council

i) defer planning application fees, building permit fees and cash-in-lieu of parkland fees in accordance with the affordability proposal detailed in Document 8; and,

ii) endorse Document 8 as the framework for the agreement to be entered into by the Owner/Developer (Teron Inc.).

And that no further notice be provided pursuant to Section 34(17) of the Planning Act.

RECOMMANDATIONS MOdifiées DU Comité

Que le Comité de l’urbanisme et de l’environnement présente les recommandations suivantes au Conseil :

1. Demander à la Commission des affaires municipales de l'Ontario de modifier :

i) la Modification n^o62 au Plan officiel, qui est une modification à l’annexe H du volume 1 du Plan officiel de l’ancienne Ville d’Ottawa;

ii) la Modification n^o20 au Plan officiel, qui est une modification au Plan officiel adopté par le Conseil (2003);

pour la partie est du 138, rue Somerset visant à retirer la zone des plans d’utilisation du sol, tel qu’exposé dans le Document 2 et détaillé dans le Document 3.

2. Approuver et adopter les modifications au Plan du centre‑ville se trouvant au chapitre 3.0 du Volume 2 du Plan officiel de l'ancienne Ville d’Ottawa et comprises dans le Volume 2A du Plan officiel adopté par le Conseil (2003) de la façon suivante et tel que décrit en détail dans le Document 3 :

i) Pour la partie est du 138, rue Somerset, modifier le plan d’utilisation du sol en vue de changer la désignation « Zone commerciale de district » à la désignation « Zone résidentielle – profil moyen ».

ii) Ajouter un nouveau texte pour permettre l’examen, par l'entremise d’une modification de zonage, des propositions d’aménagement dont la hauteur dépasse neuf étages dans les zones désignées « Zone résidentielle – profil moyen » dans des conditions limitées.

3. Approuver une modification à l’ancien règlement de zonage de la Ville d’Ottawa tel que présenté dans les documents 1 et 2 et décrit en détail dans le Document 5, sous réserve de la modification au point iii) décrite ci-dessous, pour :

i) modifier le zonage de la partie est du 138, rue Somerset Ouest des zones de rues commerçantes de quartier CN12 et CN6 F(3.0) H(18.3) à une nouvelle zone de tours d’habitation R6C, avec des exceptions pour modifier les normes fonctionnelles et pour permettre les garages à étages à titre d’utilisation permise;

ii) modifier la zone de rue commerçante de quartier CN12 dans la mesure où elle s’applique à la partie ouest du 138, rue Somerset Ouest afin de permettre de fournir le stationnement requis à l’extérieur du site et de réduire les marges de recul minimales à partir de la ligne arrière du terrain requises de 7,5 mètres à 1 mètre;

iii) inclure une modification au Document 5 – Details of the Recommended Zoning (Détails du zonage recommandé) en ajoutant le paragraphe 2.2.4 à l’article 2, qui sera formulé en ces termes :

« 2.2.4 – A rear yard of 0.0 metres for a parking garage only and the maximum height above grade for a parking garage only shall not exceed 1.0 metres. »

4. Lorsque le propriétaire/promoteur (Teron Inc.) conclura un accord sur les ensembles domiciliaires municipaux pour permettre et obtenir la suspension des redevances d’aménagement et lorsque le propriétaire/promoteur suspendra une partie de son prix de vente égale au montant des redevances d’aménagement à suspendre pour fournir des unités d’aide pour l’accession à la propriété en deçà de l’accessibilité du marché dans un ensemble de logements accessible à 100 p. 100 au 138, rue Somerset Ouest, le Comité de l’urbanisme et de l’environnement recommandera que le Conseil :

i) suspende les droits de demande d’aménagement, les frais du permis de construire et les frais concernant le règlement financier des frais relatifs aux terrains à vocation de parc conformément à la proposition d’accessibilité détaillée au Document 8;

ii) appuie le Document 8 à titre de cadre pour l’accord à conclure par le propriétaire/promoteur (Teron Inc.).

Il est en outre résolu qu'aucun autre avis ne sera donné à ce sujet, conformément au paragraphe 34 (17) de la Loi sur l'aménagement du territoire.

Documentation

1. Deputy City Manager, Planning and Growth Management report dated 13 May 2005 (ACS2005-PGM-APR-0129).

2. Extract of Draft Minutes, 24 May 2005.

Report to/Rapport au :

Planning and Environment Committee

Comité de l'urbanisme et de l'environnement

and Council / et au Conseil

13 May 2005 / le 13 mai 2005

Submitted by/Soumis par : Ned Lathrop, Deputy City Manager/Directeur municipal adjoint,

Planning and Growth Management / Urbanisme et Gestion de la croissance

Contact Person/Personne ressource : Grant Lindsay, Manager / Gestionnaire

Development Approvals / Approbation des demandes d'aménagement

(613) 580-2424 x13242, Grant.Lindsay@ottawa.ca

Somerset (14)

Ref N°: ACS2005-PGM-APR-0129

SUBJECT:	OFFICIAL PLAN AND ZONING - 138 SOMERSET sTREET wEST and text change to centretown secondary plan (FILE NUMBERS: d01-01-05-0004 and D02-02-05-0032)

OBJET :	PLAN OFFICIEL ET ZONAGE- 138, RUE SOMERSET OUEST ET TEXTE MODIFIÉ POUR LIRE PLAN SECONDAIRE DU CENTRE VILLE

REPORT RECOMMENDATIONS

That the Planning and Environment Committee recommend Council:

1. Request the Ontario Municipal Board to modify:

i) Official Plan Amendment No. 62 being an amendment to Schedule H of Volume 1 of the Official Plan of the former City of Ottawa; and,

ii) Official Plan Amendent No. 20 being an amendment to the Council Adopted (2003) Official Plan;

for the east part of 138 Somerset Street to remove the area from the land use schedules, as shown in Document 2 and detailed in Document 3.

i) For the east part of 138 Somerset Street to amend the land use schedule from a “District Commerical Area” designation to a “Residential Area – Medium Profile” designation.

3. Approve an amendment to the former City of Ottawa Zoning By-Law as shown in Documents 1 and 2 and detailed in Document 5 to:

ii) to amend the CN12 - Neighbourhood Linear Commercial Zone as it applies to the west part of 138 Somerset Street West to permit required parking to be provided off site and to reduce the minimum rear yard setback required from 7.5 metres to 1 metre.

i) defer planning application fees, building permit fees and cash-in-lieu of parkland fees in accordance with the affordability proposal detailed in Document 8; and,

ii) endorse Document 8 as the framework for the agreement to be entered into by the Owner/Developer (Teron Inc.).

RECOMMANDATIONS DU RAPPORT

Que le Comité de l’urbanisme et de l’environnement présente les recommandations suivantes au Conseil :

1. Demander à la Commission des affaires municipales de l'Ontario de modifier :

i) la Modification n^o62 au Plan officiel, qui est une modification à l’annexe H du volume 1 du Plan officiel de l’ancienne Ville d’Ottawa;

ii) la Modification n^o20 au Plan officiel, qui est une modification au Plan officiel adopté par le Conseil (2003);

pour la partie est du 138, rue Somerset visant à retirer la zone des plans d’utilisation du sol, tel qu’exposé dans le Document 2 et détaillé dans le Document 3.

3. Approuver une modification à l’ancien règlement de zonage de la Ville d’Ottawa tel que présenté dans les documents 1 et 2 et décrit en détail dans le Document 5 pour :

ii) modifier la zone de rue commerçante de quartier CN12 dans la mesure où elle s’applique à la partie ouest du 138, rue Somerset Ouest afin de permettre de fournir le stationnement requis à l’extérieur du site et de réduire les marges de recul minimales à partir de la ligne arrière du terrain requises de 7,5 mètres à 1 mètre.

4. Lorsque le propriétaire/promoteur (Teron Inc.) conclura un accord sur les ensembles domiciliaires municipaux pour permettre et obtenir la suspension des redevances d’aménagement et lorsque le propriétaire/promoteur suspendra une partie de son prix de vente égale au montant des redevances d’aménagement à suspendre pour fournir des unités d’aide pour l’accession à la propriété en deçà de l’accessibilité du marché dans un ensemble de logements accessible à 100 pour cent au 138, rue Somerset Ouest, le Comité de l’urbanisme et de l’environnement recommandera que le Conseil :

ii) appuie le Document 8 à titre de cadre pour l’accord à conclure par le propriétaire/promoteur (Teron Inc.).

BACKGROUND

The subject property, 138 Somerset Street West, is located on the southeast corner of the intersection of Elgin and Somerset Streets, within the Centretown neighbourhood. The subject property is rectangular in shape, has 33.53 metres of frontage on Elgin Street, 89.98 metres of frontage on Somerset Street West and it has a lot area of 3 017 square metres. The Elgin Street or west portion of the site is occupied by St. John’s Anglican Church and the Somerset Street or east portion of the property is a surface parking lot. The parking lot, comprising 42 parking spaces and an attendant hut, is used both by the place of worship as well as a paid parking lot during the workweek. The site is identified on the Location Plan within Document 1 and the Legal Plan within Document 2.

Land uses in proximity to the property include a wide mix of commercial and residential uses. Adjacent land uses to the site include the following: to the north (across Somerset Street) is a bank, Army Officers’ Club, four-storey apartment building, and a 12-storey apartment building. To the east is a 13-storey apartment building; and to the south are three-storey single-detached dwellings converted into apartments, and a 10-storey apartment hotel. To the south of the place of worship along Elgin Street is a three-storey commercial building.

Proposal:

The applicant is proposing to develop the east portion of 138 Somerset Street with a 10-storey apartment building consisting of 118 units and three levels of underground parking accommodating 90 parking spaces. The project is to be developed as affordable housing, with all units being affordable at and below the targeted incomes defined in Section 2.5.2 of the Official Plan. To accommodate the proposed development, the applicant has submitted applications to change the Official Plan land use designation of the parcel to be developed from ‘District Commercial Area’ to ‘Residential Area – Medium Profile’ and to change the zoning from CN12 and CN6 F(3.0) H(18.3) – Neighbourhood Linear Commercial Zones to ‘R6C – High-rise Apartment Zone with exceptions. Among the exceptions is a request to allow public parking to continue as a permitted use. Also, the rezoning application seeks to rezone the west portion of the property containing the place of worship, to add a new provision to the CN12 Zone as it applies to the west portion of the property to permit required parking to be provided off site within the easterly parcel, and an exception for the minimum required rear yard depth.

The owner and the prospective purchaser have entered into an agreement of purchase and sale for the east parcel, which includes the provision for the development of the building as affordable housing. With the development of the surface parking lot, it is proposed that the provision of required parking for the place of worship would be accommodated within the first level of underground parking within the apartment building, numbering 24 parking spaces. The other two levels would accommodate 66 parking spaces for owners of the units. Further, the applicant is requesting the continuation of the paid parking as a permitted use during the workweek and has therefore requested a parking garage as an additional permitted use.

Other Applications

The applicant is requesting the lifting of the Centretown Heritage Conservation District designation for a small portion of the property, an area situated at the rear of the place of worship comprising 1.2 metres in width and 33 metres in depth and an area of 40 square metres. This strip of land, which is to form part of the redevelopment of the surface parking lot for the proposed 10-storey apartment building, is identified as Part 2 on the Legal Plan within Document 2. The Department is of the opinion that the removal of the strip from the Centretown Heritage Conservation District will not affect the heritage character of the District, nor will it affect the City’s goals regarding the management of the heritage district. A report on the request to lift the designation is scheduled to be considered by the Local Architectural Conservation Advisory Committee (LACAC) at their May 12, 2005 meeting.

The applicant has indicated that they will shortly be submitting applications for Consent, Site Plan Control and Condominium, necessary to be completed for the development of the parcel and ultimately to be addressed prior to the issuance of a building permit. The Consent application is necessary to sever the property in two parcels, purpose of which is to allow the transfer in ownership of the parking lot parcel (Parts 2 and 3 on the Legal Plan within Document 2) to the purchaser. The Site Plan Control application will consist of the submission of detailed site and servicing information. The Condominium application is necessary to ultimately allow the transfer in ownership of the individual units, as well as the transfer of ownership of parking spaces to St. John’s Church.

DISCUSSION

Recommendation 1:

Official Plan Amendment No. 62 (OPA 62) and Official Plan Amendment No. 20 (OPA 20)

City Council adopted on January 12, 2005 Official Plan and Zoning By-law Amendments as part of the implementation of the ‘Elgin Street Strategic Plan’. Official Plan Amendment No. 62 and Official Plan Amendment No. 20 had the effect of changing the land use designations for lands along Elgin Street. The intent of the changes to the Centretown Secondary Plan were to be limited to those properties along Elgin Street, and it included the east portion or parking lot area for 138 Somerset Street. This parcel formed part of one property and the parking lot was subordinate to the place of worship.

Although the zoning boundary was subsequently amended by Council to remove the parking lot area and apply only to the Elgin Street portion of the property, the Official Plan land use designation change remains applicable to the whole property. The requested change to the Official Plan and zoning proposed by the applicant is in keeping with the Department’s stated intent for this site, which was discussed within the staff report on the implementation of the ‘Elgin Street Strategic Plan’. There is currently an appeal to both the Elgin Street Official Plan Amendments and Zoning By-law Amendment filed by the owner. The owner has advised that, subject to the approvals of these applications, they will withdraw their appeal.

Recommendation 1 is provided to have Council request the Ontario Municipal Board to remove the subject lands from the lands included in OPA 62 and OPA 20. The subject area, identified as Parts 2 and 3 on the Legal Plan within Document 2, will be removed from the ‘Elgin Street Commercial’ designation. Recommendation 1 along with Recommendation 2 will allow the appeal filed by St John’s Church to OPA 62 and OPA 20 to be withdrawn.

Recommendation 2:

City Council Approved Official Plan

The proposed development conforms to the ‘General Urban Area’ designation that applies to the site as set out in the Urban Area Land Use Schedule B of the City Council Approved Official Plan. Lands having this designation are intended to develop with a full range of choice of housing types to meet the needs of all ages, incomes and life circumstances, in combination with conveniently located commercial/employment, service, cultural, leisure, entertainment, and institutional uses. Rezoning to allow for a residential development at this location is consistent with the Official Plan.

Volume 2 of the City Council Approved Official Plan includes the Centretown Secondary Plan which designates the site ‘District Commercial Area’. The Centretown Secondary Plan has been carried forward in its entirety into the City Council Approved Official Plan.

The amendment to the Centretown Secondary Policy Plan to establish a ‘Residential Area - Medium Profile’ designation to allow for residential development of the parking lot is consistent with the policies for development within areas designated ‘General Urban Area’. Further, as noted, the proposed development is intended to be developed as a 100% affordable housing project and will advance the policy objectives of the new Official Plan to have 25% of new housing developed as affordable housing. Finally, Section 2.5.1 of the new Official Plan sets out various considerations for reviewing development proposals to ensure that new development will be compatible with existing development and established development patterns within the urban area. The amendment to the Centretown Plan to allow for a 10-storey apartment building is a form of development that already exists in the area. The proposal will utilize design techniques to ensure that the proposed development will provide for a human scale street environment and will break up the building mass to be consistent with the characteristics of development in the area.

The ‘District Commercial Area’ designation of the Centretown Secondary Plan that applies to the site was established to reflect that the subject lands comprised one parcel under one ownership accommodating a place of worship and associated parking. Permitting commercial development to extend down Somerset Street, as would be permitted under the current designation, is however inconsistent with the underlying policy of the Centretown Secondary Plan to focus commercial activity along Elgin Street and to have the residential areas adjacent to the Elgin Street area strengthened and enhanced. The proposed amendment to establish a ‘Residential Area – Medium Profile’ designation will achieve the objectives of the Secondary Plan. The proposed amendment will ensure compatibility with the directives approved by Council through the ‘Elgin Street Strategic Plan’.

The proposed Official Plan Amendment also introduces an amendment to the policies set out in the Secondary Plan applicable for areas designated ‘Residential Area – Medium Profile’. The current policy for ‘Residential Area- Medium Profile’ states that a variety of dwelling types suitable for occupancy by one person, small and medium sized family and non-family households are to be accommodated and provides direction that building heights be limited. Medium profile development is interpreted in the context of the Centretown Plan as development in the five to nine-storey range. This height generally is seen as appropriate for most lands with a ‘Residential Area – Medium Profile’ designation. This enables a transition in heights between the higher profile residential areas along the north edge of Centretown adjacent to the commercial core where buildings with heights of 10 to 13-storeys is common, and lower profile residential areas where buildings generally do not exceed a height of three or four-storeys.

Given this diversity and range of building profiles associated with lands designated medium profile, and in the context of the height limitation of nine-stories established through the application of the Official Plan policies and definitions for medium profile development in Centretown, it is considered desirable to allow some flexibility to consider buildings over nine-storeys through a rezoning process for residential projects being developed entirely for affordable housing with a variety of unit types at different income percentiles. This however will only be considered where a site may be located in an area where higher profile developments already exist, either as a result of the site being adjacent to a high profile residential area developed with a concentration of high profile buildings or within a medium profile residential area where a concentration of buildings with heights over nine-storeys currently exists. With this amendment, each proposal for affordable housing where increased building height is proposed would be assessed on its merits, and if appropriate can be permitted through a rezoning process without also requiring an amendment to the Official Plan.

The proposed text change will facilitate considering the rezoning for the St. John’s Church to permit a 10-storey apartment building to provide affordable housing without having to establish a ‘Residential Area – High Profile’ designation for the site. There exists an established development pattern of higher buildings and the proposed development will be consistent with this established development pattern.

Recommendation 3:

Zoning By-Law Amendment

The applicant is requesting a new residential zone to allow permitted uses that include a 10-storey apartment building, parking for the place of worship, and commercial parking. For this new zone, the applicant is requesting site-specific performance standards as it applies to: yard setbacks, building height, driveway width; and, the requirements for loading space, passenger drop-off, indoor amenity space, and parking space size. For the west part of the site containing the place of worship, the applicant is requesting a provision to be added to the CN12 zone as it applies to the property to permit required parking to be accommodated off-site, within the east parcel and a reduced minimum rear yard setback.

In support of the applications, the applicant has provided a conceptual site plan (Document 6) and conceptual building elevations (Document 7). The plans are based upon the requested performance standards mentioned above and detailed within Document 5. The applicant has also submitted a traffic overview for their proposal, which concludes that traffic impact of the development will be negligible. The parking garage is to be below grade, accessing onto Somerset Street. There are three levels of underground parking proposed, the top level with 24 parking spaces is to be retained by the place of worship and they intend to continue to operate commercial parking of the spaces during the workweek and for use by parishioners. The current by-law does not require parking for residential uses on Somerset Street however the applicant proposes to provide 66 parking spaces on the second and third levels for purchase by owners of the units.

The residential zone and exceptions, as detailed in Document 5, implements the Official Plan Amendment, is acceptable and will promote a development that is appropriate and desirable at this location with little impact on the residential uses in proximity to the property. The provision of parking for parishioners of the place of worship within the residential building would satisfy the by-law requirement for parking. Further, a parking garage to allow the continuation of the commercial parking use is appropriate and it accommodates daily parking needs within the downtown. Policy 3.4.7 d) of the Centretown Secondary Plan generally discourages the development of new public parking, but indicates that where a surface parking area lawfully exists at the date of the passing of the zoning by-law to implement the Plan, such surface parking may be incorporated within the confines of a structure provided that the amount of public parking is no more than that which lawfully existed at the time of the passing of the by-law. Accordingly, the proposed by-law amendment specifies a limit on the number of public parking spaces available at 42.

Recommendation 4:

Affordable Housing Proposal

City Council on October 13, 2004, in considering Amendments to the City Council Approved Official Plan to modify policies related to affordable housing, provided direction to staff to implement various planning incentives and direct supports to promote and encourage the achievement of the Official Plan affordable housing policies. Direction was provided to staff to explore mechanisms for the deferral of fees and charges including planning application fees, building permit fees, development charges and parkland levies.

The proposed apartment building is to be developed as an affordable condominium project, with all units being affordable at and below the targets defined by the Official Plan. Consistent with the directive provided to staff as noted above, the applicant is requesting the deferral of planning application fees, development charges, building permit fees, and parkland levies. Similarly, the applicant is proposing to defer part of its selling price of units equal to the dollar value of the amount of fees deferred by the City. With the combined City and applicant deferrals, the applicant proposes to make units of each type in the development available and affordable to households from the 25^th to 40^th income percentiles.

Long-term affordability would be achieved through a requirement that unit owners sell their units at an amount affordable to households at the defined income target. Should a unit be sold above the affordability threshold that the unit was originally purchased at, the owner shall pay to the City all deferred fees, with interest, and pay to the applicant that part of the selling price that was deferred plus interest. The deferred fees and selling price would be secured by a second mortgage held jointly by the City and the applicant to provide a self monitoring process related to the sale of units by the initial purchaser and subsequent purchasers.

To allow for long-term deferral of development charges, is a requirement that the applicant enter into a Municipal Housing Facilities Agreement. The Housing Branch of the Department of Community and Protective Services have advised that a report will be brought forward to the Health Recreation and Social Services Committee with recommendations to modify the Municipal Housing Facilities By-law. It is proposed that the modifications will expand the types of residential developments that can be considered Municipal Housing Facilities to enable the use of the bylaw to secure any investments or incentives made by the City to improve the affordability of housing, in accordance with the direction given to staff to implement various planning incentives and direct supports to promote and encourage the achievement of the Official Plan affordable housing policies.

Revising the Municipal Housing Facilities By-law will enable the proposal for the subject property to be a municipal housing facility eligible for long-term deferral of Development Charges. The combination of deferred fees by the City and reduction of sale price by the applicant/developer creates an innovative partnership to stimulate a new approach to affordable market housing in Ottawa. The full range of unit sizes in the development will be affordable to as low as the 25^th income percentile (see proposed agreement within Document 8). Units will only be made available to qualifying households based on meeting the income targets of the Official Plan. If household income exceeds the defined thresholds, then interest on the second mortgage will become payable. Future sales will either be directed to similar income thresholds, or will see the deferred costs, fees and charges be returned with interest.

The affordability proposal as set out in Document 8 is consistent with and within the spirit of the directives provided by Council to staff to explore mechanisms to support the development of affordable housing by the private sector that goes beyond market affordability. In this regard, staff considers the project to be a demonstration project that can be used to encourage other developers to also participate in advancing the City’s affordable housing agenda towards achieving the targets set out in the new Official Plan to have 25 % of new housing developed as affordable housing, and in particular, to have affordable housing developed that is over and above market affordable housing.

The Department therefore is recommending, should the applicant enter into a Municipal Housing Facilities Agreement (which would be negotiated with the Director of Housing), that Council also approve the deferral of planning application, building permit and cash-in-lieu of parkland fees where the agreement incorporates the elements set out in Document 8 to provide for long-term and ongoing affordability. As such, staff is also recommending that Council endorse the affordability proposal set out in Document 8 to be incorporated into any Municipal Housing Facility Agreement for 138 Somerset.

CONSULTATION

Notice of this application was carried out in accordance with the City’s Public Notification and Consultation Policy. Information signs were posted on-site indicating the nature of the applications. The Ward Councillor has indicated support of the two applications. A comment from the Community Association in regard to regulating the use of the parking garage was received. No comments have been received from the public. Four enquiries from the public requesting information were received. Details of the notification and consultation process are highlighted in Document 9.

FINANCIAL IMPLICATIONS

As part of the proposal, to facilitate affordable housing the applicant has requested the deferral of City fees, including Development Charges, Development Application Approval fees, Building Permit fees, and Cash-in-lieu of Parkland fees, totalling an estimated $630 000.

APPLICATION PROCESS TIMELINE STATUS

This application was processed by the "On Time Decision Date" established for the processing of Official Plan and Zoning By-law Amendment applications.

SUPPORTING DOCUMENTATION

Document 1 Location Map

Document 2 Legal Plan

Document 3 Proposed Official Plan Amendment

Document 4 Explanatory Note

Document 5 Details of Recommended Zoning

Document 6 Conceptual Site Plan

Document 7 Conceptual Building Elevations

Document 8 Affordability Proposal

Document 9 Consultation Details

DISPOSITION

Department of Corporate Services, Secretariat Services to notify the applicant Lloyd Phillips & Associates Ltd., Attn. Lloyd Phillips, 14 Woodlawn Avenue, Ottawa, ON K1S 2S9, the owner The Church of St. John The Evangelist, Attn. Rev. Garth Bulmer, 154 Somerset Street West, Ottawa, ON K2P 0HS, the purchaser Teron Inc., Attn. Chris Teron, 350 Terry Fox Drive, Suite 340, Kanata, ON K2K 2W5, the lawyer Borden Ladner Gervais, Attn. Janet Bradley, 1100-100 Queen Street, Ottawa, ON K1P 1J9, All Signs, 8692 Russell Road, Navan, ON K4B 1J1, and the Program Manager, Assessment, Department of Corporate Services of City Council’s decision.

Planning and Growth Management Department to prepare the implementing zoning by-law, forward to Legal Services Branch and undertake the statutory notification for the zoning and Official Plan Amendment.

Upon receipt of the Ontario Municipal Board's Order modifying Official Plan Amendment No. 62 (being an amendment to Schedule H of Volume 1 of the Official Plan of the former City of Ottawa); and, Official Plan Amendment No. 20 (being an amendment to the City Council Adopted 2003 Official Plan) to remove part of 138 Somerset Street West from 'Elgin Street Commercial' designation, Corporate Services Department, Legal Services Branch to forward the implementing zoning by-law and by-law to adopt the Official Plan Amendment to City Council.

LOCATION MAP Document 1

LEGAL PLAN Document 2

PROPOSED OFFICIAL PLAN AMENDMENT Document 3

Official Plan Amendment /Modifications due Plan directeur

To the Centretown Secondary Policy Plan as contained in the Official Plan of the Former City of Ottawa and in the City Council Adopted Official Plan.

Land use

Utilisation du sol

INDEX

________________________________________________________________________

The Statement of Components…………………………………………………………. i

PART A - THE PREAMBLE

Purpose………………………………………………………………………………….…1

Location………………………………………………………………………….………...1

Basis…………………………………………………………………………………….…1

PART B- THE AMENDMENT

Introductory Statement……………………………………………………………………2

Details of the Amendment…………………………………………………………...……2

PART C - APPENDIX

Appendices……………………………………………………………………………….2

THE STATEMENT OF COMPONENTS

PART A - THE PREAMBLE, introduces the actual Amendment but does not constitute part of Amendment No. X to the Centretown Secondary Policy Plan.

PART B - THE AMENDMENT, consisting of the following text and maps constitutes the actual Amendment No. X to the Centretown Secondary Policy Plan.

PART C - THE APPENDIX, does not form part of the Amendment but is provided to clarify the intent and to supply background information related to the Amendment.

PART A - THE PREAMBLE

1.0 Purpose

The property at 138 Somerset Street West is presently designated ‘District Commercial Area’ within the Centretown Secondary Plan which is included in both the former City of Ottawa Official Plan and the City Council Adopted Official Plan. Further, the parcel in question is desginated as ‘Elgin Street Commercial’, within Schedules A to Offiical Plan Amendment No. 62 being an amendment to Schedule H of Volume 1 of the Official Plan of the former City of Ottawa; and, Official Plan Amendent No. 20 being an amendment to the City Council Adopted (2003) Official Plan. OPA 62 and OPA 20 have been appealed to the Ontario Municipal Board in part to have the land use changes established through these amendments not apply to the lands that are subject to Amendment No. X. The purpose of Amendment No. X is to amend the land use designation for the east part of the subject parcel from ‘District Commercial Area’ to ‘Residential Area – Medium Profile’, and to amend policy 3.4.1 c) of the Centretown Secondary Plan to allow consideration to be given to permitting buildings with heights over nine-storeys within areas designated ‘Residential Area – Medium Profile’ under limited circumstances.

2.0 Location

The lands affected by the amendment are located on the south side of Somerset Street, commencing approximately 53 metres east of the intersection of Elgin and Somerset Streets. The parcel in question has 37.22 metres frontage along Somerset Street, lot depth of 33.54 metres, and a lot area of 1 248 square metres. The lands affected by this development are east of the place of worship. The text change will apply to all lands designated ‘Residential Area – Medium Profile’ however the modified text will only have application to a limited number of properties with this designation and only for affordable housing projects.

3.0 Basis

3.1 Background

A surface parking lot presently occupies the 1,248 square metre parcel, which represents the east part of the property municipally known as 138 Somerset Street West, the west part of the property containing the place of worship. A consent application is necessary to sever the property in two parcels to permit the conveyance of the east parcel for intended residential development. The proposed east parcel has a frontage of 37.22 metres along Somerset Street, lot depth of 33.54 metres, and a lot area of 1 248 square metres. Land uses in proximity to the property include a wide mix of commercial and residential uses. Adjacent land uses to the site include the following: to the north (across Somerset Street) is a bank, Army Officers’ Club, four-storey apartment building, and a 12-storey apartment building; to the east is a 13-storey high-rise apartment building; and to the south are three-storey single-detached dwellings converted into apartments, and a 10-storey apartment hotel.

3.2 Context of Amendment

The purpose of the requested Official Plan Amendment proposal is to change the designation of the east parcel in the Centretown Secondary Plan from ‘District Commercial Area’ to ‘Residential Area – Medium Profile’. Further, a site specific policy is to be added to the ‘Residential Area – Medium Profile’ designation to allow consideration through the Zoning By-law Amendment process for affordable housing projects with heights in excess of nine-storeys under limited circumstances.

The applicant is requesting changes to the land use designation and zoning for the east portion of 138 Somerset Street to permit the development of a 10-storey apartment building consisting of 118 units and three levels of underground parking accommodating approximately 90 parking spaces. The proposed residential development is to be developed as a 100% affordable housing project. The owner, St. John’s and the purchaser have entered into an agreement of purchase and sale for this parcel, which includes the provision for the development of the building as affordable housing. With the development of the surface parking lot, the provision of required parking for the place of worship would be accommodated within one level of underground parking within the building, numbering 24 parking spaces. The other two levels would accommodate 66 parking spaces for owners of the units. The applicant is requesting that a parking garage continue as an additional permitted use to allow the continuation of the commercial parking. The number of parking spaces is proposed to be capped at 42, the number currently accommodated on the existing surface lot, in accordance with Policy 3.4.7 d) of the Centretown Secondary Plan.

The proposed development conforms to the City Council Approved Official Plan that has designated the site as ‘General Urban Area’ on Schedule B. Lands having this designation are intended to develop with a full range of choice of housing types to meet the needs of all ages, incomes and life circumstances, in combination with conveniently located commercial/employment, service, cultural, leisure, entertainment, and institutional uses. The proposed development conforms to the former City of Ottawa Official Plan that has designated the site as ‘Residential’ on Schedule A. Lands having this designation are encouraged to provide a mix and variety of new housing in all neighbourhoods, through the efficient use of existing housing stock and of underutilized and vacant residential parcels. The requested Official Plan Amendment is consistent with the planning framework and objectives established for the Centretown neighbourhood by the Centretown Secondary Plan.

An amendment to policy Section 3.4.1 c) of the Centretown Secondary Plan to permit under certain conditions an increase in building heights greater than nine-storeys for lands designated ‘Residential Area – Medium Profile’ is consistent with the residential and affordable housing policies of the new and former City of Ottawa Official Plans.

PART B - THE AMENDMENT

1.0 The Introductory Statement

All of this part of the document entitled Part B - The Amendment, consisting of the following text and schedule included as Schedule "B", constitutes Amendment No. X to the Official Plan of former City of Ottawa.

2.0 Details of Amendment

2.1 To amend the land use schedule of the Centretown Secondary Plan included as Schedule H to the former City of Ottawa Official Plan and included in Volume 2A within the City Council Adopted Official Plan for the east part of 138 Somerset Street West from “District Commercial Area” designation to “Residential Areas – Medium Profile” designation.

2.2 Policy 3.4.2 c) of the Centretown Secondary Plan is hereby amended by inserting immediately following the third sentence, the following:

Building heights similar to heights associated with areas designated ‘Residential Areas – High Profile’ may be permitted through a site specific Zoning By-law amendment for lands designated ‘Residential Area – Medium Profile’ only to allow for the development of affordable housing that provides affordable housing beyond market affordability as defined in the Official Plan, and only where the lands to be rezoned to permit a higher building are adjacent to lands designated ‘Residential Areas – High Profile’ where a concentration of development in excess of nine (9) stories exists; and/or, where adjacent lands within the ‘Residential Area – Medium Profile’ area wherein the site is located also accommodates a concentration of development with heights similar to the height being proposed.

EXPLANATORY NOTE Document 4

THE FOLLOWING IS AN EXPLANATORY NOTE TO BY-LAW NUMBER ______

By-law Number ______ amends Zoning By-law, 1998, the former City of Ottawa's Comprehensive Zoning By-law. This amendment affects the rear portion of the property, located approximately 53 metres east of the intersection of Elgin and Somerset Streets, municipally known as 138 Somerset Street West, having dimensions of 37.22 metres frontage along Somerset Street, lot depth of 33.54 metres, and a lot area of 1248 square metres. The site is shown on the attached location map. The site contains a surface parking lot. The applicant requests to change the zoning of the site to permit a 10-storey apartment building, consisting of 118 units, underground parking, a parking garage, and to permit parking off-site for the place of worship.

Current Zoning

The current zoning is CN12 and CN6 F(3.0) H(18.3) – Neighbourhood Linear Commercial Subzones. The purpose of the two zones is to encourage a mix of small-scale, pedestrian-oriented commercial uses that are sensitive to adjacent residential areas. The zones allow a number of uses such as a bank, convenience store, personal service business, place of worship, restaurants, dwelling units, and retirement home. The CN12 subzone includes a provision that limits restaurant uses to the ground floor and specific yards and setbacks. The CN6 subzone includes provisions that allows the permitted uses of the CN zone, with the additional permitted use of a hotel. The F(3.0) is a provision that allows a maximum floor space index of 3.0 times the lot area of a property, thereby establishing the maximum permitted gross floor area of a building. The H(18.3) is a provision establishing a maximum building height of 18.3 metres.

Proposed Zoning

The recommended zoning is a new R6C – High-rise Apartment Zone with exceptions. The new R6C zone will allow a high-rise apartment building and parking garage and be subject to the same provisions of the R6C zone, with exceptions to the following: Front Yard of 3 metres, Interior Side Yards of 0 metres, Rear Yard of 6 metres, Maximum permitted Building Height of 32 metres, Minimum Driveway Width and Aisle Width of 5.8 metres, No Loading Space is required, No Passenger Drop-off is required, Minimum Indoor Amenity Space of 35 square metres, Maximum number of Public Parking Spaces of 42, and permitting variation in size of certain parking spaces. The proposed zoning change is to accommodate a proposed 10-storey apartment building and a parking garage. The CN12 zone as it applies to the place of worship is to be amended to permit parking to be provided off site and a minimum rear yard setback of 1 metre.

For further information on the amendment, please contact David Loker at 580-2424 ext. 21234 or dave.loker@ottawa.ca.

DETAILS OF RECOMMENDED ZONING Document 5

1. The CN12 zone as it applies to west portion of the property at 138 Somerset Street West is amended to add an exception zone as follows:

1.1 Required parking may be provided off site on the abutting lands to the east zoned R6C-XX - High-rise Apartment Zone with exceptions.

1.2 Minimum Rear Yard Setback 1 metre.

2. A new R6C-XX zone with exceptions as noted below is established for the east portion of the site at 138 Somerset Street West as shown on Document 1:

2.1 Permitted uses to include a parking garage.

2.2 Minimum setbacks shall be provided as follows:

2.2.1 Front Yard (Somerset Street) 3 metres;

2.2.2 Interior Side Yards (west and east property lines) 0 metres; and,

2.2.3 Rear Yard 6 metres.

2.3 Maximum permitted Building Height of 32 metres.

2.4 Minimum Driveway Width and Aisle Width of 5.8 metres.

2.5 No Loading Space is required.

2.6 No Passenger Drop-off is required.

2.7 Minimum Indoor Amenity Space of 35 square metres.

2.8 Maximum number of public parking spaces permitted is 42.

2.9 The width of a parking space adjacent to a reserved parking space for the physically disabled may be reduced to 2.1 metres.

2.10 Despite Section 59(1), parking spaces that are reduced in size may be located adjacent to a column or other structure.

CONCEPTUAL SITE PLAN Document 6

CONCEPTUAL BUILDING ELEVATIONS Document 7

AFFORDABILITY PROPOSAL Document 8

ST. JOHN’S AFFORDABLE HOUSING PROJECT

ASSISTED HOME OWNERSHIP PROGRAM

Deferment of Municipal Fees and Part of Builder’s Selling Price

For Income Tested, Qualifying Purchasers

Targeted Income Percentiles

· Each unit type to be provided will be available to purchasers ranging from the 25^th income percentile to the 40^th income percentile with a minimum 50 % of units which will include all unit types to be developed being available at the 25^th to 35^th income percentile. The specific breakdown will be included as a schedule to the Municipal Housing Facilities Agreement with Teron Inc.

Qualifying Units

· All condominium apartments purchased within the City of Ottawa’s criteria for affordable housing being the 40th income percentile paying 30% of income for housing will qualify for deferred fees by the City where the developer is deferring part of its selling price equal to the amount of the deferred fees. The threshold is calculated by City staff each March based on figures released by Statistics Canada for the previous year. This threshold figure will be in use for the St. John’s program for the period from May 1 to the following April 30. For example, the 2004 figure, in use from May 2005 to April 2006, is $199 208.

Qualifying Purchasers

· A purchaser who personally occupies a qualifying unit and whose family total income within the 40th income percentile in the City of Ottawa, as evidenced by copies of income tax returns. Family is defined as being all occupants of the unit, whether related or not. For example, the 2004 figure, in use from May 2005 to April 2006, is $55 521.

Deferred Items

· The City will defer the dollar value of the portion of the following fees that apply to the residential units, and their parking spaces, that receive the benefit - development approval fees (Official Plan and Zoning By-law amendments, site plan control, condominium, heritage), building permit fees, cash-in-lieu of parkland fees and Development Charges subject to the developer entering into a Municipal Housing Facilities Agreement and subject to the developer deferring part of its selling price equal to the fees being deferred by the City.

· The deferred fees and price can be used by the purchaser to lower their down payment and lower their mortgage amount, using an insured high ratio mortgage.

Interest on Deferred Fees

· Interest is charged on the combined deferred amount. The interest rate is set on an annual basis on the same rate as a five-year first mortgage from an institutional lender. Interest is payable to the City and Teron monthly unless the purchaser continues to prove annually that they qualify.

· If the purchaser wishes to have the interest deferred, then on May 1 of each year, they shall provide copies of their family income tax returns for the previous year and a statutory declaration of who resides in the apartment. If the family income is within the 40^th income percentile, then the interest is deferred for the previous year and no monthly payments are due for the next 12 months. If the family income exceeds the 40^th income percentile, then accrued interest for the previous year becomes payable in full and monthly interest is payable for the next 12 months. Accrued interest for previous years in which the purchaser qualified remains deferred. If in any subsequent year, the family annual income drops below the threshold, then the purchaser may re-qualify for deferment of interest.

Re-payment of Deferred Fees and Interest

· The deferred fees, plus accrued interest, are payable to the City and Teron when the purchaser sells the apartment using the following formula. The funds from a sale shall be used - first to pay the outstanding principal balance on the mortgage, second to return the owner’s down payment with compound interest, third to repay the deferred fees and accrued interest, and the balance to the owner. This chart demonstrates the formula and shows how the City and builder will always recover the deferred amount with interest.

ASSISTED HOME OWNERSHIP PROGRAM
For Qualifying Purchasers

		Good	Average	Poor	Breakeven	Breakeven
		Market	Market	Market	to Everyone	to Owner only

Purchase
	Purchase price	159,000	159,000	159,000	159,000	159,000
	Deferred City fees and Builder assistance	(13,000)	(13,000)	(13,000)	(13,000)	(13,000)
	Net purchase price	146,000	146,000	146,000	146,000	146,000

NHA Mortgage (90% of purchase price)		143,100	143,100	143,100	143,100	143,100
	Down payment	2,900	2,900	2,900	2,900	2,900

Sale 10 years later		318,000	276,788	238,500	127,767	107,818

	Pay off mortgage principal outstanding	103,368	103,368	103,368	103,368	103,368
	Repay City and Teron incl compound interest	19,948	19,948	19,948	19,948	0

Net Proceeds to Owner		194,683	153,471	115,183	4,450	4,450

Note: Owner's down payment plus compound interest					4,450	4,450

Affordability is based on the mortgage down payment, the monthly housing costs, and annual family income.

DOWN PAYMENT - HOUSING COSTS - SALARY REQUIREMENTS

Sale Price		144,000	149,000	159,000	169,000	179,000	189,000	199,000

Deferment		(13,000)	(13,000)	(13,000)	(13,000)	(13,000)	(13,000)	(13,000)
Net Price		131,000	136,000	146,000	156,000	166,000	176,000	186,000
Down Payment		1,400	1,900	2,900	3,900	4,900	5,900	6,900
Mortgage (90% of purchase price)		129,600	134,100	143,100	152,100	161,100	170,100	179,100

Housing Costs
	Mortgage (principal and interest)	8,500	8,795	9,385	9,976	10,566	11,156	11,746
	Operating costs	2,400	2,400	2,400	2,400	2,400	2,400	2,400
	Realty taxes	1,800	1,863	1,988	2,113	2,238	2,363	2,488
	Annual costs	12,700	13,058	13,773	14,488	15,203	15,919	16,634
	Monthly costs	1,058	1,088	1,148	1,207	1,267	1,327	1,386

Salary Required		42,333	43,525	45,909	48,293	50,678	53,062	55,446

Mortgage Security

· The deferred fees and selling price are secured by a mortgage held jointly by the City and Teron. The mortgage will be postponed to a first mortgage from an institutional lender under the National Housing Act (N.H.A).

· Recovery of the fees, reduced price and interest on re-sale is protected by the second mortgage. This creates a self-monitoring process since the owner cannot sell their unit without discharging the second mortgage.

Administration

· The City will administer this system through the Housing Branch. Fees and interest collected by the City on behalf of Teron will be forwarded to Teron. Administration fees payable by Teron to the City will be determined, based on a cost-recovery system.

CONSULTATION DETAILS Document 9

NOTIFICATION AND CONSULTATION PROCESS

Notification and public consultation was undertaken in accordance with the Public Notification and Public Consultation Policy approved by City Council for Official Plan and Zoning By-law Amendments. Four enquiries with a request for information were received from the public. No public meetings were held in the community in which staff attended.

PUBLIC COMMENTS

No comments to the Official Plan and rezoning applications were received from the public.

COUNCILLOR’S COMMENTS

Councillor Diane Holmes has indicated her support of the two applications.

COMMUNITY ORGANIZATION COMMENTS

The Centretown Community Association provided the following comment on the applications, ‘given the shortage of short-term parking in the Elgin Street area, please ensure the current number of on-site parking spots for parking for durations of three hours or less is specified as a requirement for the parking garage of the proposed building.’

Response

Limitations on assigning a certain number of parking spaces as public parking for customer use of the parking spaces such as regulating the amount of short term or daily parking versus monthly rental of the parking space, is not possible within the Zoning By-law. The Zoning permits a use such as a parking lot or parking garage and cannot regulate matters such as time to be rented for short term or long term.

ADVISORY COMMITTEE COMMENTS

Local Architectural Conservation Advisory Committee (LACAC) advised that they had no objection to the Official Plan amendment and rezoning for this site. Further, that they would comment on the de-designation of a portion of the site, when a report under the Ontario Heritage Act is presented before LACAC May 12, 2005.