Item - 2023.EX10.15

The Executive Committee recommends that:  

1. City Council amend City of Toronto Municipal Code Chapter 742, Sidewalk Cafés, Parklets and Marketing Displays, generally as outlined in Attachment 1 to the report (November 21, 2023) from the General Manager, Transportation Services and the General Manager, Economic Development and Culture.

2. City Council amend Section 937-3.13 of the City of Toronto Municipal Code Chapter 937, Temporary Closing of Highways, by deleting the phrase "153 consecutive days from May 15 of one year to October 15 of that same year as required for the purposes of permitting parklet cafés" and insert the phrase "167 consecutive days from May 1 of one year to October 15 of that same year as required for the purposes of permitting curb lane cafés".

3. City Council authorize the City Solicitor to introduce the necessary Bills to give effect to City Council's decision and City Council authorize the City Solicitor to make any necessary clarifications, refinements, minor modifications, technical amendments, or By-law amendments as may be identified by the City Solicitor, in consultation with the General Manager, Transportation Services and the General Manager, Economic Development and Culture in order to give effect to Recommendations 1 and 2 above.

4. City Council authorize the General Manager, Economic Development and Culture to change the name of the cost-shared CaféTO Business Improvement Area grant to the CaféTO Dining District Grant Program, and City Council approve the Guidelines for this program as set out in Attachment 3 to the report (November 21, 2023) from the General Manager Transportation Services and the General Manager, Economic Development and Culture, with implementation commencing in 2024.

5. City Council authorize the General Manager, Economic Development and Culture to negotiate and execute on behalf of the City grant agreements related to the CaféTO Dining District Grant Program, in a form acceptable to the City Solicitor.

6. City Council authorize the General Manager, Economic Development and Culture to periodically review and, when necessary, revise the Guidelines for the CaféTO Dining District Grant Program to ensure alignment with the City of Toronto's Community Grants Policy and any other applicable City policy, as may be amended from time to time, or reflect changing food service industry and Business Improvement Area needs and best practices.

The General Manager, Transportation Services gave a presentation on 2024 Curb Lane CaféTO Program.

During the COVID-19 pandemic, the sidewalk and curb lane dining components of the CaféTO program animated Toronto's commercial main streets and supported thousands of local restaurants, food suppliers and hospitality sector jobs.

CaféTO is the City's program that (i) permits use of public property for cafés on sidewalks, (ii) permits use of public property for cafés in the curb lane of roadways, and (iii) allows, through zoning provisions, for dining on private property (no permit required).

After operating (at no cost to participants) in its first three years as a temporary initiative focused primarily on the needs of restaurants, City Council made the curb lane dining stream of CaféTO permanent in February 2023. In doing so, Council approved changes and measures to achieve a balance of uses in curb lanes; make curb lane cafés accessible, safer, and more attractive; and operate the program on a partial cost-recovery basis in view of its mixed private and public benefits, by reintroducing application and permit fees.

As directed by Council and informed by engagement with program participants, this report shares the findings of an operational and governance review of the 2023 curb lane CaféTO program and identifies several planned improvements for the 2024 outdoor dining season, including a streamlined application process for returning and new participants; expedited timelines to enable at least 90% of restaurants to open their curb lane café by the May long-weekend; improved communications; and clarified accountability among the City Divisions delivering the program

This report also recommends updates to the City of Toronto Municipal Code Chapter 742, Sidewalk Cafés, Parklets and Marketing Displays, including providing the General Manager of Transportation Services discretion to approve different minimum setback requirements for curb lane cafés from intersections and pedestrian crossovers if safety is not compromised; allowing curb lane cafés in commercial loading zones where the local councillor has been notified of an application and has no objection; and consistent with the program goals, that curb lane cafés are operational at least three times per week to ensure activation of the curb lane given the significant demand on curb space on our main streets.

Finally, based on an assessment of the feasibility of continuing year-round curb lane café operations within the King Street Priority Transit Corridor and on Duncan Street, this report recommends these locations for outdoor dining be incorporated into the CaféTO program and permit curb lane cafés in these areas to operate year-round generally as they have while incorporating some requirements set out in Chapter 742.

This report recommends implementing the three-year phase-in of fees for curb lane café applications or permits as approved by Council. To achieve the improvements identified in this report, additional City staff and administrative resources will be assigned, effectively increasing the City's subsidy for participating restaurants and its share of total curb lane CaféTO program costs.

In 2024, the curb lane café stream of the CaféTO program is forecast to cost $3.741 million, while revenue from fees is projected to be $0.505 million, requiring an effective City subsidy of $3.236 million. Even when the full application and permit fees approved by City Council in February 2023 are charged in 2025, CaféTO will continue to operate on a partial cost-recovery basis, meaning the City will provide participating businesses with a subsidy and will not recover all of its costs to operate the program.