Item - 2023.EC1.4

The Economic and Community Development Committee recommends that:  

1. City Council delegate authority to the General Manager, Economic Development and Culture, to allocate directed grants in a manner consistent with Attachment 2, to the report (December 19, 2022) from the General Manager, Economic Development and Culture, to third party non-profit organizations or registered charities as defined in and in accordance with the City's Community Grants Policy up to a value of $500,000 each out of its Council approved budget until the end of the grant cycle in December 31, 2023 and to negotiate, enter into and execute any funding agreements, including any amendment, renewal or extension agreements until the end of December 31, 2023, on such content, terms and conditions deemed necessary by the General Manager, Economic Development and Culture and in a form satisfactory to the City Solicitor.

2. City Council request the General Manager, Economic Development and Culture to report annually to the Economic and Community Development Committee on all directed grants approved and issued through Recommendation 1 above.

3. City Council delegate authority to the General Manager, Economic Development and Culture to continue to offer event sponsorships to third parties including businesses, festivals, non-profit corporations, registered charities and educational institutions up to a value of $500,000 each out of its current Council approved budget and to negotiate, enter into and execute any agreements, including any amendment, renewal or extension agreements until the end of December 31, 2023, on such content, terms and conditions deemed necessary by the General Manager, Economic Development and Culture and in a form satisfactory to the City Solicitor.

4. City Council request the General Manager, Economic Development and Culture to report annually, for information, to the Economic and Community Development Committee on all event sponsorships issued through Recommendation 3 above.

5. City Council authorize the General Manager, Economic Development and Culture or other City division heads as appropriate, in consultation with the City Manager and the Chief Financial Officer and Treasurer as appropriate, to: (a) apply for, receive funds and to negotiate, enter into and execute any agreements, including any amendment, renewal or extension agreements and any ancillary documents (with a value of up to $500,000) with the Government of Canada, Government of Ontario and/or agencies of the federal and provincial governments in support of the City of Toronto’s Corporate Strategic Plan and the Economic Development and Culture Division 2022-23 Strategic Directions and any subsequent strategic plans approved by Council; and (b) distribute these funds as may be stipulated in the governing funding agreement, which may reference the issuance of grants to third party non-profit or charitable organizations, in accordance with the City's Community Grants Policy and in a form satisfactory to the City Solicitor until the end of the grant cycle in December 31, 2026.

6. City Council direct the General Manager, Economic Development and Culture, to report back to the Economic and Community Development Committee on a plan to align the three programs currently called the Cultural Hotspot, Youth Cultural Incubators Stabilization Initiative, and Live Arts Mentor programs, with the City's Community Grants Policy in the third quarter of 2023.

7. City Council authorize the General Manager, Economic Development and Culture, or designate with the appropriate delegated commitment authority, to negotiate, enter into and execute grant agreements of up to $500,000 for grants in support of the Toronto Music Industry Strategy 2022-2026 to third party non-profit or registered charities, as defined in and in accordance with the City's Community Grants Policy until December 31, 2023, on such content, terms and conditions deemed necessary by the General Manager, Economic Development and Culture, in consultation with the City Solicitor.

8. City Council direct the General Manager, Economic Development and Culture, to report back to the Economic and Community Development Committee with an update on aligning the Closed Museum Grant and the Toronto Railway Historical Museum Grant programs with the City's Community Grants Policy and Advancing Reconciliation, Equity and Inclusion - Re-imagining a New Future for Toronto History Museums Plan, and report back in the first quarter of 2024.

As part of its work, the Economic Development and Culture (EDC) Division oversees a diverse portfolio of programs and services, which includes grants to support:

• local art programs, arts and cultural festivals, public art and cultural institutions;
• business retention and expansion activities, business improvement areas, sector development and international trade;
• tourism, and the film, music, and interactive digital media sectors; and,
• historical sites in Toronto. 

In alignment with the City’s strategic priority to invest in people and neighbourhoods, Economic Development and Culture grants support and enhance the business sectors and the cultural fabric of Toronto, helping make it a city that celebrates diversity. This report has a dual purpose: it provides information on the grants issued through Economic Development and Culture programs in 2020, which totalled $38,518,803.73, and in 2021, which totalled $38,719,470.06, and proposes changes to be implemented as part of Economic Development and Culture's overall reform of its grants programs.

While Economic Development and Culture grants are critical to the sustainability of organizations in the business and cultural sectors, efforts are needed to improve their accessibility, transparency and accountability. In 2018, Economic Development and Culture started an internal process to advance these objectives. Since then, Economic Development and Culture has been updating its approach to grant programs and practices, also in alignment with the City of Toronto’s Community Grants Policy introduced in 2019. Informed by this process, changes have been implemented in specific programs, such as the Business Incubation and Commercialization Grant Program, as adopted by Council in April 2022, and the Cultural Festivals Funding Program, adopted by Council in November 2021. This report recommends further changes to grant programs and directed grants (targeted investments to address strategic and/or urgent needs such as COVID-19-related efforts) and outlines next steps.

Combined, the proposed changes chart a way forward to improve granting practices in Economic Development and Culture while recognizing the necessity of retaining a measure of flexibility to support Council priorities, incent innovation and address changing market conditions.