Settlement Allows 75-Storey Yonge Tower

Summary#

This item is about a rezoning appeal for 399–405 Yonge Street and the City’s plan for an Ontario Land Tribunal (OLT) hearing. The applicant appealed because Council did not make a decision in time. Council adopted confidential directions for the City’s position and later released a settlement offer and revised plans.

The settlement materials outline a path to resolve the appeal and allow a very tall mixed-use building at the site, with conditions. A key goal is to secure non-profit housing space in the building for Covenant House and to protect Allan Gardens from new shadows.

Key points:

• A proposed settlement would permit about a 75‑storey tower at 399–405 Yonge Street, if certain conditions are met.
• Two full floors (2nd and 3rd) would be built out for non-profit housing (up to about 40 units) for Covenant House at no cost to Covenant House.
• An Official Plan Amendment (OPA) would add 399–405 Yonge and 20 Gerrard Street East to a broader planning exercise with 409–415 Yonge, setting tower setbacks so future development on the Covenant House property is not blocked by adjacent towers.
• Any tall building at 399–405 Yonge would need a “social housing program” secured by agreement under section 453.1 of the City of Toronto Act (a tool Council can use to require and secure housing benefits).
• The revised design would retain a heritage building at 401 Yonge, widen the Gerrard Street sidewalk by about 1.7 metres with weather protection, and be shaped to cast no net new shadow on Allan Gardens at specified times in spring and fall.

What it means for you#

• Residents and businesses near Yonge and Gerrard:

  • If the settlement proceeds to final approvals, expect a very tall mixed-use tower on the northeast corner of Yonge and Gerrard.
  • The Gerrard Street sidewalk would be wider and weather-protected.
  • The heritage building at 401 Yonge would be kept and integrated.
  • The tower massing is designed to avoid net new shadows on Allan Gardens at certain measured times of day in March and September.

• Future tenants at 399–405 Yonge:

  • The plans show about 810 residential units, with a mix that includes:
    • At least 15% two-bedroom units,
    • At least 10% three-bedroom units,
    • An additional 15% that are two- or three-bedroom, or can be adapted to that size.
  • Building amenities and outdoor terraces are shown in the plans.
  • Final unit counts and sizes could change during the zoning and site plan stages.

• Covenant House and the people it serves:

  • If approved as proposed, two full floors (2nd and 3rd storeys) in the new building would be delivered and fitted out for non-profit housing at no cost to Covenant House.
  • The materials do not specify operating details (such as eligibility, rent levels, or program length).

• Heritage and park users:

  • The heritage building at 401 Yonge would be conserved with design changes coordinated between City Heritage staff and the applicant’s consultants.
  • The proposal is shaped to avoid net new shadow on Allan Gardens at certain times on March 21 and September 21.

• General public:

  • This item mostly affects a specific development site and adjacent properties. The direct impact on most residents is limited.

• Important timing note:

  • Council’s vote sets the City’s legal direction for the OLT and implementation steps. Final zoning and any required agreements still need to be brought to a public meeting and approved before construction can proceed.

Expenses#

No new City cost beyond the current approved budget is identified in the report.

• Staff and legal work for the OLT hearing and to prepare the OPA and zoning by-law will be handled within existing resources.
• The settlement terms include two floors of non-profit housing space provided by the developer at no cost to Covenant House (a private in-kind contribution, not a City expenditure).
• Any future operating costs for the non-profit housing program are not detailed in the available materials.

Proponents' View#

• The item appears intended to settle a long-running appeal efficiently and avoid the uncertainty of a full OLT hearing.
• It could secure on-site non-profit housing space for Covenant House within a new tower, using a legal tool (City of Toronto Act s. 453.1) that allows the City to require and register an agreement for a “social housing program.”
• The revised design aims to:
  • prevent net new shadow on Allan Gardens at key times,
  • keep and highlight the heritage building at 401 Yonge,
  • improve the pedestrian experience with a wider, weather-protected sidewalk on Gerrard.
• The unit mix requirements would likely increase the share of family-sized units.
• The OPA would set clear tower setbacks that both enable the proposed tower and do not block potential future redevelopment of the Covenant House lands, subject to full review.

Opponents' View#

• One concern is that key details of the “social housing program” are not specified in the released materials (for example, eligibility, rent levels, length of commitment, and who operates and funds it long-term).
• The non-profit housing area (two floors, up to about 40 units) is a small share of a very large building (about 810 units). Some may question whether that level of secured benefit is sufficient.
• The building is very tall for the site. Even with shadow shaping, there could be concerns about scale, wind, and construction impacts on the immediate area.
• The approach relies on future Council actions (an OPA, a zoning by-law amendment, and a non-appealable by-law under s. 453.1 of the City of Toronto Act). It is unclear what happens if some steps are delayed or not approved as proposed.
• Parts of the process and Council’s instructions were confidential due to litigation, which may raise transparency concerns for some observers.
• The “no net new shadow” commitment is measured at specific dates/times; it is unclear how shadows at other times of the year will be addressed.