Toronto City Council has greenlit a plan to use municipal land at 275 Merton St. for the construction of 447 new purpose-built rental homes in midtown. The initiative includes a commitment to make at least 30 percent of these units affordable rentals, with affordability guaranteed in perpetuity. The company behind a potential collaboration that would see a city property transferred to a private developer is headed up by Jennifer Keesmaat, the former chief planner for Toronto.
The plan involved negotiating and executing an agreement of purchase and sale with Markee Missing Middle (Merton) GP Inc. and Markee Missing Middle (Merton) Limited Partnership. This includes a lease agreement for the properties at 267 and 275 Merton St.
Keesmaat is the president and CEO of Collecdev-Markee.
The city-owned property at 275 Merton St. is home to the offices of Toronto, which would need to be relocated to another city office as a result of the deal.
“Through this partnership, the City is supporting a strategic land assembly that will deliver significant city-building benefits, including a substantial number of affordable and market rent-controlled homes,” said Toronto Mayor Olivia Chow, in a statement. “The proposed housing project is a much-needed step towards delivering on the City’s housing targets and will provide options for Torontonians of low-and moderate-income levels.”
City council was asked to authorize several measures to support the project, including waivers for planning application fees, building permits, parkland dedication, and development charges exemptions. Additionally, the proposal includes a 99-year tax exemption for municipal and school purposes for the affordable rental units.
“We need to be thinking differently about how we deliver housing in this city, and this partnership is an example of exactly that,” said Keesmaat. “My hope is it becomes a template for more partnerships to deliver desperately needed affordable housing in our city. Staff with the City and CreateTO have been absolutely fantastic to work with and we are excited to see this advance.”
The project is part of the city’s broader HousingTO 2020-2030 Action Plan, which targets the approval of 65,000 new rent-controlled homes by 2030. The initiative seeks to leverage underutilized city-owned properties to address Toronto’s housing crisis.
Construction of the 275 Merton project is anticipated to begin in the second half of 2025 with first occupancy in mid-2028.
