Item - 2021.EC24.3

The Economic and Community Development Committee recommends that:

1.  City Council authorize the General Manager, Economic Development and Culture to receive and allocate funds from the Government of Canada (e.g., Federal Economic Development Agency for Southern Ontario) or other third parties for the purpose of supporting main street and small business recovery programs, including the six Main Street Recovery and Rebuild Initiative programs announced on July 13, 2021 and described in the report (September 5, 2021) from the Interim General Manager, Economic Development and Culture.

2.  City Council authorize the General Manager, Economic Development and Culture or the Deputy City Manager, Community and Social Services to negotiate and execute, on behalf of the City of Toronto, funding, partnership, training and/or service agreements (some of which are valued at approximately $1.000 million each) with the Government of Canada, the Government of Ontario, the Black Business and Professional Association, plazaPOPS or other third parties related to any Main Street Recovery and Rebuild Initiative programs, provided that such agreements are in a form satisfactory to the City Solicitor.

3.  City Council increase the 2021 Council Approved Operating Budget for Economic Development and Culture by $0.455 million gross, $0 net, fully funded by the Government of Canada, to begin delivery of the Main Street Recovery and Rebuild Initiative programs.

4.  City Council direct the General Manager, Economic Development and Culture to include an increase to the funding request for the Mural and Street Art Program through reallocation as part of the Economic Development and Culture Division's 2022-2031 Capital Budget and Plan Submission for City Council consideration.

This report provides an update on Toronto's efforts to support the retail sector over the past eight months, requests authority from City Council to implement certain Toronto Main Street Recovery and Rebuild Initiative ("MRRI") programs funded by the Government of Canada, and describes modifications to some existing City retail and BIA programs to better meet business operator and community needs.

This report is a follow-up to the report entitled "Support for the Retail Sector - Update", received by the Economic and Community Development Committee on November 12, 2020, which detailed the initial impacts of the COVID-19 pandemic on Toronto's retail sector and small main street businesses.

Ontario entered Step 3 of its 3-step Re-opening Roadmap on July 16, 2021. This important development, coupled with a recent decline in the city's retail vacancy rates, provide grounds for measured optimism that Toronto's retail sector is now on a recovery trajectory. However, the extent, sustainability, pace, and (geographic and sub-sectoral) distribution of this recovery remains uncertain. In particular, the effect of the withdrawal of Government of Canada wage and rent subsidies for businesses is unknown, as is the long-term impact of increased digital commerce and working from home arrangements on different segments of the retail sector. While retail sales in some categories have largely recovered, sales and employment in food services and accommodation have lagged behind. Consequently, retail businesses will need continued support from the City of Toronto throughout the recovery period to minimize further business losses or the risk of widespread, extended retail vacancies.

Together, the City of Toronto's existing (with certain modifications), new (Main Street Recovery and Rebuild Initiative) and potential retail and small business support programs, as described in this report, aim to address business operator needs during the recovery period, while strengthening the ability of Toronto's retail sector to provide employment opportunities and contribute to the vitality of the city's streets, neighbourhoods and economy.