Laura Hull –
On October 9, City Council approved developer KingSett Capital’s rezoning application for 214-230 Sherbourne Street to build a new residential tower, a decision condemned by a group campaigning for social housing on the site.
“It took less than sixty seconds for city council to abandon low-income residents and the underhoused who make Dundas and Sherbourne their home and to ignore the harm being caused to our communities by for-profit developers like KingSett,” said a statement by 230 Fightback, which had urged the city to expropriate the site.
“In allowing KingSett to move forward with their plans, city officials and politicians are participating and enabling developers to complete the gentrification and increase unaffordability of the neighbourhood, which has historically been home to low-income people,” the statement said.
KingSett Capital, one of Canada’s largest private equity real estate investment firms, has a history of buying properties, having them rezoned, and selling them to developers for a profit.
It has owned the Sherbourne property since 2022, according to property records obtained by the bridge, after paying about $54 million in an open bid against the city. KingSett’s plan for the new building includes 615 units, including 80 studios, 380 one-bedroom units, 92 two-bedroom units, and 63 three-bedroom units. 230 Sherbourne Street, a heritage building known as the William Dineen House, is to have its facade maintained. Council’s decision “has essentially killed any possibility of the city purchasing the properties. The vote to approve an amendment to the zoning has increased the value of the land and the city will be unable to compete should KingSett decide to flip the properties,” the 230 Fightback statement said.
KingSett’s purchase of 214-230 Sherbourne “essentially hijacked the city’s 5-year plan to build much needed social housing on the site,” it added. Since 2022, the city has been trying to buy properties along Sherbourne Street, including 214 and 230, as part of the Dundas-Sherbourne Neighbourhood Revitalization plan.
Ward 13 (Toronto Centre) Councillor Moise passed a motion requesting KingSett work with the city “to find solutions that ensure an affordable housing component is included in the development, which could include acquiring the site should funding become available and subject to Council approval.”
Another motion requesting Mayor Olivia Chow “to consider allocating any Community Benefits Charge funds collected from these developments towards the Dundas Sherbourne Neighbourhood Revitalization Plan,” was also passed by Moise.
According to a city statement to the bridge, approval of the zoning amendment will not affect the revitalization plan. “The tenure of KingSett Capital’s proposed development has not been determined and it could be a rental building with apartments for lease or a condominium building with units for sale. The zoning approval does not prevent an eventual inclusion of affordable units as part of the development, and the variety of floor plans can help support the City’s housing goals.”
In a letter to 230 Fightback this summer, Councillor Moise said he and Mayor Chow “are committed to utilizing all [the] available resources to acquire properties that can be developed into affordable and rent-geared-to-income housing.” The bridge reached out to Moise for comment, but received no reply before publication.
