Following City Council's unanimous refusal of Graywood's 48-storey proposal in February 2025, the developer and City staff entered into settlement negotiations.79 In March 2026, Graywood submitted a revised proposal through its counsel at Goodmans LLP, reflecting significant changes to address the City's concerns.80 City Council accepted the settlement at its meeting of March 25, 2026.78
The revised design represents a major reduction from the refused 48-storey tower. The OLT will issue its final order once all settlement conditions are finalized with the City; until then, the settlement remains subject to completion of those conditions.
3D rendering by Graywood Developments to the City of Toronto — 506–516 Church Street.
Settlement approved at City Council — 506–516 Church Street (Councillor Chris Moise, Ward 13).
Site plan showing the settlement building footprint, floor plate, and storey heights.
East-west building sections showing residential units, amenity space, and parking.
3D rendering by Graywood Developments to the City of Toronto — 506–516 Church Street.
Sources: Councillor Chris Moise (Ward 13), Diamond Schmitt Architects settlement plans (March 2026).
No decision has been made on whether the building will be condominiums or rental. According to the project architect (Diamond Schmitt), this will depend on market conditions. As of now, rental is considered more likely, but Graywood has not committed either way.
While the building envelope, height, heritage preservation, and schematic design have been approved by the City, there will be a future phase of design development and refinement. Details such as balconies and other architectural elements will be determined during this phase.
For details on the original 48-storey proposal that was refused by City Council and the OLT appeal process, see the 48-storey proposal and OLT appeal history.
In April 2024, the board signed two private legal agreements with Graywood in connection with the then-approved 14-storey project. These are private documents. Residents who wish to know more about these agreements are welcome to contact the board directly.
The property at 506–516 Church Street is near our building (The Alexus and the Graywood properties are separated by a private property, approximately 24 feet wide, with a two-storey building), connected to us by Donna Shaw Lane — the laneway running between Maitland Street to the north and Alexander Street to the south.1 The development site faces Church Street to the east and backs onto the laneway to the west; our property sits at the southern end of that same laneway, making 506–516 Church Street nearly adjacent to us to the north.
The site is currently occupied by:
The heritage buildings at 508–510 Church Street are formally designated under Part IV of the Ontario Heritage Act (By-law 942-2022).5 Originally built around 1856–1858 as part of a row of semi-detached residences,6 they have been home to Crews & Tangos — a landmark of Toronto's 2SLGBTQ+ community — since 1994.7
This is not the first time Graywood has proposed development at 506–516 Church Street. This proposal begins years ago with a much smaller project — and the current controversy stems from the developer's decision to dramatically increase the scale of what it wants to build.
Graywood CM GP Inc.,12 a Toronto-based real estate developer founded in 1985,13 first proposed a mid-rise mixed-use building for the site. Designed by Diamond Schmitt Architects, it would reach 14–15 storeys with ground floor commercial uses and partial heritage conservation of 508–510 Church Street. Extensive community consultation followed, including multiple public meetings.
City Council approved Graywood's application for a 14-storey mixed-use building containing 165 dwelling units and 798 square metres of retail space16 (Official Plan Amendment No. 605 and Zoning By-law Amendment No. 1054-2022).17 A Section 37 community benefits agreement and Heritage Easement Agreement were required as conditions.18
In connection with the then-approved 14-storey project, our board (MTCC No. 1329) signed two private legal agreements with Graywood CM GP Inc. relating to Donna Shaw Lane. Residents may contact the board for details.
Graywood cancelled the approved 14-storey condominium and returned deposits to purchasers, citing the project was not financially viable at the approved scale.20
Graywood submitted a new planning application (No. 24 226502 STE 13 OZ)22 for a 48-storey, 151.8-metre tower with 574 residential units23 — more than three times the previously approved height. The project is again designed by Diamond Schmitt Architects. See the 48-storey proposal details.
The Director of Community Planning, Toronto & East York District, issued a 25-page Refusal Report recommending the application be refused as incompatible with Church Street Village Character Area policies.24
On a motion by Councillor Chris Moise (Ward 13 – Toronto Centre), the Community Council unanimously recommended City Council refuse the application.25
Graywood, represented by Goodmans LLP (Joe Hoffman),28 filed two appeals with the OLT following Council's refusal — one on the Official Plan amendment and one on the Zoning By-law amendment. The cases are consolidated as Graywood CM GP Inc. v. Toronto (City), lead case OLT-25-000154. See the OLT appeal details.
MTCC No. 1329 applied for and was granted formal Participant status in the OLT proceeding, giving our corporation the right to submit a written Participant Statement setting out our position on the proposed development.31
Following negotiations between Graywood and City staff, a revised proposal was submitted reducing the project from 48 storeys to 18 storeys (60 m excluding mechanical penthouse) with approximately 161 units. City Council accepted the settlement, which includes significant setbacks from Church Street, heritage facade conservation, a $2,000,000 Section 37 contribution, and right of first refusal for existing tenants on commercial space. See details below.
Donna Shaw Lane is the primary access route for our parking garage, service bay, and building deliveries. If construction proceeds, our laneway will experience increased construction traffic. The board has agreements in place with Graywood that address construction access to the laneway. Residents may contact the board for details on those protections.
The settlement reduces the project from 48 storeys to 18 storeys, which will significantly lessen shadow and visual impacts compared to the refused proposal. However, an 18-storey building to the north will still be taller than the previously approved 14-storey project. The settlement's 15-metre setback from Church Street and stepped massing are designed to preserve the low-rise heritage streetscape character. Residents in units facing north would be most affected by any new development on this site.
With the settlement accepted by City Council in March 2026, the project will move through the remaining approval conditions before the Ontario Land Tribunal issues its final order. Construction timing will depend on when all conditions are finalized and building permits are obtained.
If you have questions not addressed in this briefing, or if you made submissions to the City and are interested in coordinating OLT participation, please contact the board at alexuscondominiumboard@gmail.com.
Ward Councillor: chrismoise.ca
City Application Information Centre: toronto.ca/AIC (search "506 Church")
Ontario Land Tribunal: olt.gov.on.ca · 1-866-448-2248
All City of Toronto planning documents referenced in this briefing are part of the public record. The documents below are the primary sources used and are available for residents who wish to review them.
The board has signed two private legal agreements with Graywood in connection with the development. These are internal legal documents and are not available for public distribution. Residents may contact the board directly for details.