Toronto waterfront developer Quayside has been questioned by tenants

Some Toronto residents are protesting the company chosen to develop 12 acres of land on the city's waterfront, arguing that it raised rents on other buildings by “exorbitant” amounts.

In 2022, Toronto-based developer Dream Unlimited was selected as one of two construction companies to lead the project, which will add more than 800 affordable housing units in the first phase of the development.

However, tenants of the York-South Weston Tenants Union, many of whom live in buildings owned by the Toronto-based developer, say Dream is not up to the task of developing the property and keeping housing affordable.

“We know what happens when public land is given over to a predatory landlord like Dream Unlimited,” the tenants' union said in a statement posted on its website.

Tenants at 22 John St. and 33 King St. in Toronto allege that Dream has “exorbitantly” raised their rents while refusing to participate in the negotiation process. Documents reviewed for CP24 introduced by Dream in 2023 ranged from 4.94 percent to 5.5 percent.

In turn, many tenants have been withholding rent since the beginning of summer.

About 100 tenants and union representatives gathered outside 33 King Street in York-South Weston to demand that the landlord respect rent control. (Allison Hurst/CTV News Toronto)

Tenants say Dream can't be trusted to deliver the type of deep affordable housing needed amid the city's housing crisis.

“This is public land,” Chiara Padovani, co-chair of the York Southwest Landlords Union, told CTV News Toronto on Saturday. “This is where you and I pay.”

The group has started a petition that WaterFront intends to bring to Toronto, asking that the Dream be removed from the project. It has collected just over 130 signatures of its goal of 200 at publication.

When reached for comment, Dream Unlimited told CTV News Toronto that it will continue to address the city's ongoing housing crisis.

“We are working with Waterfront Toronto to build much-needed housing and new public spaces in a zero-carbon, master-planned community,” the company said in a statement.

In response to complaints from tenants that it was overpriced, the developer says it inherited higher-than-guideline rent increase requests during the 2018 sale of 33 King St. As for John Street, Dream emphasizes that the residence is a luxury building. Built after 2018 so not rent controlled.

The company also noted that the offshore project is a completely separate entity from the deals at King and John.

“The objective of acquiring 22 John Street and 33 King Street was to increase affordable housing and improve the lives of its residents,” the company said.

“At Quayside, we will create a sustainable community and continue to add affordable housing to the city,” he continued, adding that he was “honored” to be a part of both projects.

The City of Toronto told CTV News Toronto on Tuesday that while Dream is ready to build the project, it is not intended to be involved in owning or operating the affordable rental housing once it is completed.

“Quayside's development partners, Dream Unlimited and Great Gulf, are involved in supporting the construction of affordable rental units and will provide the land (or general site) for the units under contract with Waterfront Toronto,” he said. said.

Once construction is complete, the city will assume the role of managing the site, partnering with nonprofit organizations.

The city also noted that Dream was selected through a public, competitive process.

Torontonians will remember that the location was previously sought after by Google affiliate Sidewalk Labs. The company hoped to transform the 12-acre site into a high-tech district with public Wi-Fi, heated and lighted sidewalks, and “rain covers” for buildings.

The $1.3 billion proposal also drew criticism from privacy experts over the potential use of the data and from local community members who accused the company of not doing enough to incorporate the recommendations made by the group.

Sidewalk Labs withdrew from development in May 2020 due to “unprecedented economic uncertainty” caused by the COVID-19 pandemic.

Along with affordable housing, the Quayside development boasts two acres of wooded green space, a multi-use arts space and an urban farm that sits atop one of Canada's largest mass timber residential buildings.

The city previously said shovels are expected to be in the ground by 2025, pending approval, and first fill at the site is slated for 2030.

Showing part of the proposed Quayside project in Toronto. (Source: Henning Larsen)

With files from CP24's Chris Fox and CTV News Toronto's Phil Tsekouras.