Toronto

Ontario tribunal ruling in favour of developer a 'big blow' for Rail Deck Park, Toronto mayor says

Toronto's plans for a signature park over the city's railway lands were put in jeopardy Wednesday when a provincial tribunal sided with a developer seeking to build mixed-use towers there instead.

Tribunal's rules tower development should go ahead where city wants to create signature park

A view of the tracks as they look now, facing east from Bathurst Street, and where the city wants to build a signature public park. (Kate McGillivray/CBC)

Toronto's plans for a signature park over the city's downtown railway lands were put in jeopardy Wednesday when a provincial tribunal sided with a developer seeking to build mixed-use towers there instead.

The Local Planning Appeals Tribunal ruled the city should've approved a proposal by developers PITS Developments Inc. and Craft Acquisitions Corporation, which owns the air rights above the open rail space near Union Station. 

Instead, city staff privately told Craft in 2016 not to proceed with the 16-acre development, the tribunal decision said. A month later, the mayor's office announced a new public park, referred o as Rail Deck Park, would be built at the site by 2022.

The city formally rejected the developers' request for an official plan amendment in 2018 and they appealed the decision. 

Artist's rendition of Rail Deck Park.
A 2017 rendering of what the City of Toronto envisioned Rail Deck Park to look like. (City of Toronto)

The tribunal's ruling is a "big blow to the future of the park," said Mayor John Tory Wednesday. "I'm deeply disappointed because it makes it more difficult, with the expense and otherwise, for that park to proceed as envisioned." 

He said city staff are reviewing the decision. 

Rail Deck Park was estimated to cost close to $1.7 billion in 2017, and was touted by Tory as a "now or never" opportunity. The 21 acres of green space would stretch across downtown's rail corridor, south of Front Street from Blue Jays Way to Bathurst Street, and is the last remaining site suitable for a signature park. 

"You have to think big in the context of growing a great global city," Tory told reporters Wednesday. "That's what this was about."

The airspace owned by Craft makes up the vast majority of the area where the city envisions the park. The rest of the area is owned by the city, Canadian National Railway, Metrolinx and other developers.

Project already stalled, tribunal says

Craft president Robert Sabato offered to make a deal with the city for airspace rights in 2020, including to sell them for $340 million or rent them for $25 million a year, but that never happened. 

In the offer letter, Sabato said the "family-oriented" development, called the OCRA Project, would have a large public park in its centre and a pedestrian bridge, with a "generous portion" of units being affordable. It could have six towers up to 46-storeys high and 3,500 condo units.

Sabato declined to comment Wednesday, but said his focus will now be working with the city and community on developing the lands. 

The developers will still have to submit their plans to the city and need council's approval before breaking ground.

In its ruling, the tribunal said the city has not taken "any substantive steps over the last almost five years to negotiate the purchase of the Craft property — or to commence expropriation proceedings to acquire it.

"Thus, little has happened since 2016 with respect to the actual creation of Rail Deck Park."