Toronto faces challenges as pressure looms to purchase property for affordable housing

Calls ramp up for the city to purchase a rare property in downtown Toronto for affordable housing. Faiza Amin reports on the dilemma that could prevent the city from bidding on the property.

By Faiza Amin

Posted March 7, 2022 6:00 pm.

Last Updated March 8, 2022 6:19 pm.

The clock is ticking as calls ramp up for the City of Toronto to purchase a rare downtown property and create more affordable housing in the community.

Steps away from Dundas Street East, 214-230 Sherbourne Street consists of an empty lot and an empty, single house.

According to local advocates and area councillor Kristyn Wong-Tam, the properties have been vacant for ten years.

A rally took place outside the property on Monday, where community members called for the city to submit an offer on the property and provide support to a neighbourhood facing a homelessness crisis.

“This is an area where people are always in a state of crisis. This is a state of the needy, and the problem is developers, and other people are trying to kick us out,” said long-time resident Frank Coburn.

“There is no room for anyone to live. People are sleeping in the parks, inside tents, we have injection sites. This is a place of crisis, and people are not paying attention to what we have to say.”

“Two people froze to death in bus shelters in a matter of days in one of the wealthiest cities in the country,” said Lam. “There are cranes on every corner of downtown, and in the shadows of gentrification and more condos, people like Bernard and our unnamed friend make homes in bus shelters. This is shameful and completely unacceptable.”

This isn’t the first time these calls have come. In recent years, there have been numerous calls for the city to purchase or expropriate the land, nearly 30,000 square feet.

Wong-Tam said the city had approached the property owner on numerous occasions, but they’ve been unwilling to sell. Toronto Centre councillors add that staff have been instructed to put in a conditional offer to a willing buyer before this year and the property’s listing.

“My concern is that the staff won’t even submit an offer,” said Wong-Tam. “The seller is willing to sell. Council has given them the authority to purchase. We see the march of condominiums coming down, and the city isn’t making new land. So this is a very last opportunity for us to unlock the potential here at Sherbourne and Dundas.”

A city spokesperson says staff are currently evaluating the feasibility of the property for acquisition and working on the report to be submitted to the council, which is due on Wednesday. Though Wong-Tam said the report is 90 per cent completed, they are faced with a dilemma.

“Council’s last meeting, directed staff to come back with a report on March 9, staff missed their deadline, and now staff say if we want the report, we’re going to have to call another special meeting on top of the special meeting,” Wong-Tam said.

“This is it. If the city doesn’t make a bid, then we will lose it.”

A website belonging to Colliers International lists the seller as “the vendor,” stating they were retained on an exclusive basis to offer the sale of the property.

There is no official price listed for the property. Instead, the process would include interested parties submitting an offer through a purchase letter of intent. It’s up to the vendor if and when to select purchasers and how many.

“The purchaser with the most attractive overall terms (based on the Vendor’s sole discretion) will be selected to negotiate a binding agreement of purchase.”

Purchasers are asked to submit bids by 3 p.m. on March 11.

“The city should have funding for this site; the city has hundreds of millions in reserves,” Councillor Wong-Tam said.

Addressing the crowd, the Councillor called out for residents not to give up and keep the fight going. Adding that even though the city will get outbid, she’s asking interested developers to stand down.

“The city will get outbid, quite honestly. I have a message for developers: If you’re interested in this parcel of land, perhaps you should go elsewhere,” she said.

“We’re interested in this parcel of land, and we’ve been interested in it for years now. There will be other opportunities for you to bid, there will be other opportunities for you to develop, but I’m going to ask that you don’t do it here.”

In an update on Tuesday, the city tells CityNews, they will be submitting a letter of intent to purchase the properties, subject to council approval. Staff will be bringing a report to council that outlines whether the property aligns with strategic city purposes and that city resources are allocated in the “most cost-effective way,” on April 6 and 7.

Work on a housing development in Toronto’s Lawrence Heights neighbourhood on Nov. 22, 2017. Photo courtesy: THE CANADIAN PRESS/Chris Young

Update on 292-296 Parliament Street

Last summer, the City of Toronto — along with the federal government — jointly funded and announced “new supportive housing.”

As a result, the city purchased 292-296 Parliament Street for $12.6 million, with plans to expedite renovations with the goal of providing homes for approximately 24 people by December 2021.

It appears that the deadline has been missed.

“Construction related to renovation at 292-296 Parliament St. is scheduled to be completed at the end of March 2022,” said Abi Bond, Executive Director of the City’s Housing Secretariat.

“Once construction is complete, an experienced non-profit housing provider will manage the building and will provide 24 new safe, affordable, and supportive homes for people experiencing homelessness.”

The purchase of this property is part of the city’s 24-month, “COVID-19 Housing and Homelessness Response Plan.” The city is hoping to “rapidly create” as many as 3,000 affordable and supportive homes by the end of 2022, as “an urgent response to the COVID-19 pandemic.”

The acquisition of 877 Yonge last year is expected to provide affordable housing and supports for up to 250 residents, 60 of which have already moved in.

“The City is on track to exceed the target set in the Response Plan, and will deliver almost 3,400 housing opportunities by the end of this year,” said Bond.

“The City continues to request the Provincial government provide the operating funding necessary to provide wrap-around support services to support the positive housing and well-being outcomes of future tenants.”