November 29, 2018 File No…

November 29, 2018 File No. 97064 VIA EMAIL - Aly.Alibhai@ontario.ca Mr. Aly N. Alibhai Regional Director Municipal Services Office – Central Ontario Ministry of Municipal Affairs and Housing 777 Bay Street, 13th Floor Toronto, Ontario, M5G 2E5 Dear Mr. Alibhai: Guelph, Ontario Canada Re: Official Plan Amendment No. 406 (“OPA 406”) City of Toronto By-law 1111-2018 (passed July 27, 2018) EBR Registry 13-485 We are the solicitors for Canadian National Railway Company (CN) and Toronto Terminals Railway Company Ltd. (TTR). TTR is responsible for the safe and efficient movement of trains throughout the Union Station Rail Corridor (USRC). TTR and CN own 100% of all property rights above 27 feet above the top of the rail of the track in the USRC (including the former CN High Line Rail Corridor) and own in perpetuity rights to lands beneath the 27 foot horizontal to identify locations for and to construct and maintain, on the surface, subsurface and through the 27 feet of the corridor permanent facilities, columns, subsurface structures, and utilities as may be required to support any building/construction that TTR or CN may wish to create permanently or temporarily above the 27 foot horizontal boundary. TTR and CN USRC Property Strata were created as a result of the sale of the USRC by TTR and CN in 2000 to GO Transit with these rights being expressly retained by CN and TTR for the purpose of future development of buildings and structures within and above the USRC and former CN High Line rail corridor. CN and TTR’s air rights, comprise a total area of over 58 acres in downtown Toronto above the USRC between Strachan Avenue and the Don River as illustrated on the attached plan. This is one of the largest private real property holdings in downtown Toronto. Pursuant to an Agreement of Purchase and Sale (Dec. 2013), CN and TTR are under contract to sell to CRAFT Acquisitions Corporation and P.I.T.S. Developments Inc. (collectively “P.I.T.S.”) property strata over that portion of the railway corridor roughly bounded by Blue Jays Way (on the east), Bathurst Street (on the west), Front Street (on the north) and Ice Boat Terrace (on the south) (the “Property”). P.I.T.S. has filed an Official Plan Amendment application to permit the construction of a decking structure over top of the rail corridor together with a mixed-use development consisting of residential, retail, commercial, institutional and significant open space uses. That application (also known as the ORCA project) was deemed complete, refused by the City and appealed to the Local Planning Appeal Tribunal (formerly the Ontario Municipal Board). CN and TTR are seeking party status to that appeal. In addition to the Agreement with Craft and P.I.T.S. TTR and CN have sold other USRC CN and TTR Property Strata over the last 18 years to permit development of structures within and above the USRC to achieve these goals, by construction, inter alia , of: 1.Cambridge Ivanhoe Plaza between Bay and Yonge; 2.Skydome Hotel Plaza and entrance; 3.Walkway to the north of the Skydome on the south side of the USRC between John and Blue Jay Way overhanging USRC. CN and TTR have appealed OPA 395 (the Rail Deck Park OPA) to the Local Planning Appeal Tribunal and a hearing on that appeal is awaiting a hearing. Official Plan Amendment 406 At its Council meeting commencing July 23rd, the City of Toronto formally adopted a new Secondary Plan, the Downtown Plan (Official Plan Amendment 406), herein referred to as “the Plan”. TTR and CN only became aware of this proposed amendment late in the City’s consultation process. As interested and significantly affected stakeholders, TTR and CN share many of the concerns expressed by other stakeholders and landowners to your Ministry concerning these amendments and the process under which it is proposed they be adopted. Our concerns with the Official Plan Amendment 406 were expressed in the attached letter of May 22, 2018. Proposed Official Plan Amendment 406 denies the development rights and potential of the our clients’ USRC Property Strata and is not consistent with the Provincial Policy Statement, fails to conform to the Growth Plan, and fails to comply with the City’s in-force Official Plan. It also fails to recognize the existing development rights afforded the USRC property strata in the City’s Official Plan and corresponding Secondary Plans. OPA 406 does not provide a designation of the USRC that contemplates development and intensification as required by the Growth Plan and PPS. It fails to consider the opportunities for development on the USRC beyond Open Space uses, linkages and connections. CN and TTR support the submissions of P.I.T.S to you made in their letter of November 1, 2018. Our client is very concerned with the City of Toronto’s adoption of OPA 406 on July 27, 2018 and objects to its proposed approval. CN and TTR ask that the Ministry of Municipal Affairs and Housing (the “MMAH”) not approve OPA 406 insofar as it applies to the CN and TTR property strata as shown on the attached plan. Yours very truly, A. Milliken Heisey, Q.C. AMH/lg Encl. cc:Canadian National Railway Toronto Terminals Railway Ira Kagan solicitor for P.I.T.S May 22, 2018 By email clerk@toronto.ca His Worship Mayor John Tory and Members of the City Council 10th floor, West Tower, City Hall 100 Queen St. West Toronto, ON M5H 2N2 Attention: Ms. Ulli Watkiss Your Worship and Members of the City Council: Re: Toronto City Council Meeting May 22-24, 2018 Downtown Secondary Plan, Official Plan Amendment OPA 406 Agenda Item PG29.4 We are the solicitors for Toronto Terminals Railway Co. Ltd. (“TTR”) and Canadian National Railway (“CNR”) with respect to the above-noted matter. TTR and CN are the largest single property owners of development rights and Strata above 27 feet above the top of the rail of the track in the Union Station Rail Corridor ( the “USRC”) (including the former CN High Line Rail Corridor) between Strachan Avenue on the west and the Don River on the east. TTR and CN USRC Property Strata were created as a result of the sale of the USRC by TTR and CN in 2000 to GO Transit with these rights being expressly retained by CN and TTR for the purpose of future development of buildings and structures within and above the USRC and former CN High Line rail corridor. In 2013, TTR and CN entered into an agreement with Craft Acquisitions Corporation (hereinafter “Craft”) and P.I.T.S. Developments Inc. (P.I.T.S.) to sell their development rights and property strata over, under and within that portion of the Union Station Rail Corridor (USRC) roughly bounded by Blue Jays Way (on the east), Bathurst Street (on the west), Front Street (on the north) and Ice Boat Terrace (on the south). In addition to the Agreement with Craft and P.I.T.S. TTR and CN have sold other USRC CN and TTR Property Strata over the last 17 years to permit development of structures within and above the USRC in other locations to achieve these goals, by construction, inter alia , of: 1.Cambridge Ivanhoe Plaza between Bay and Yonge 2.Skydome Hotel Plaza and entrance 3.Walkway to the north of the Skydome on the south side of the USRC between John and Blue Jay Way overhanging USRC As City Council is also aware, our client appealed OPA 395 (the Rail Deck Park OPA) to the Ontario Municipal Board and subsequently the Local Planning Appeal Tribunal and a hearing on that appeal is awaiting a hearing. The reasons in support of the appeal are numerous and overlap with our clients’ objections to OPA 406 on a larger scale. Proposed Official Plan Amendment 406 denies the development rights and potential of the our clients’ USRC Property Strata and is not consistent with the Provincial Policy Statement, fails to conform to the Growth Plan, and fails to comply with the City’s in-force Official Plan. It also fails to recognize the existing development rights afforded the USRC property strata in the City’s Official Plan and corresponding Secondary Plans. Please acknowledge receipt of this correspondence in writing. Kindly ensure that we receive a copy of the City’s decision and provide the author with notice of adoption of any Official Plan Amendment adopted pursuant to this process. Yours very truly, BARRY B. PAPAZIAN BBP:dab copy: The Toronto Terminals Railway Co. Ltd copy: Canadian National Railway Company.