Item - 2023.PH4.8

The Planning and Housing Committee recommends that:

1. City Council express its concern to the Minister of Municipal Affairs on the general direction taken in the proposed Provincial Planning Statement as it represents fundamental changes in how growth planning is carried out in the province and by the City of Toronto.

2. City Council support in principle the provisions in the proposed Provincial Planning Statement that encourage the supply of housing, notwithstanding, that references to "Affordable Housing" and "Housing that is affordable to low- and moderate-income households" have not been carried over.

3. City Council request the Province through ERO 019-6813 and outlined in Attachment 1 to the report (May 17, 2023) from the Chief Planner and Executive Director, to:

a. maintain all policy references to “residential intensification” and “redevelopment” in the current Provincial Policy Statement to provide clarity that where sufficient land and servicing exists to accommodate forecast population through infill, the need for greenfield development is diminished.

b. require that large and fast-growing municipalities accommodate a minimum of 50 percent of all residential development within their existing settlement area and that new settlement areas or settlement area expansion lands are planned for a minimum density target of 50 residents and jobs per gross hectare.

c. maintain the density targets of Urban Growth Centres (Growth Plan 2.2.3.2) and policies that directed how Urban Growth Centres will be planned (Growth Plan 2.2.3.1).

d. provide flexibility for municipalities to identify additional higher order transit corridors that deviate from the definition of "higher order transit" in the proposed Provincial Planning Statement.

e. maintain the Growth Plan policies (2.2.4.8 – 2.2.4.10) that support the development of complete communities with a compact built form and affordable housing within MTSAs, on lands adjacent to MTSAs, and along transit corridors.

f. include reference to affordable housing in Provincial Planning Statement Policy 2.4.2.6 given provincial direction to include affordable housing in Protected Major Transit Station Areas through inclusionary zoning.

g. maintain that municipalities may identify a settlement area or allow the expansion of a settlement area boundary only at the time of a 5-year official plan update and only where it has been demonstrated that certain conditions have been met (Provincial Policy Statement 1.1.3.8).

h. lead a provincial-municipal process with large and fast-growing municipalities for the periodic preparation of regional population and employment forecasts. Enable municipalities to continue to be able to adopt higher forecasts.

i. direct municipalities in the Greater Golden Horseshoe to continue using population and employment forecasts of Schedule 3 of the Growth Plan for managing growth to 2051 and ensuring “at least 25 year” supply of land.

j. maintain the current definitions of “affordable” housing and 'low and moderate-income households" OR provide explicit direction for municipalities to set their own definition.

k. maintain the requirement for municipalities to establish targets for housing affordable to low- and moderate-income households (Provincial Policy Statement 1.4.3(a)) and for affordable ownership and affordable rental housing (Growth Plan 2.2.6.1(a)(ii))

l. maintain Growth Plan policy 2.2.6.3 that provides direction to municipalities to use available tools to require that multi-unit residential developments incorporate a mix of unit types to accommodate a diverse range of households sizes and incomes.

m. revise the definition of “housing options” to include consideration for affordable housing, tenure, and unit types to accommodate a range of household sizes.

n. amend proposed policy 2.2.1.b.2, related to the conversion of existing commercial and institutional buildings for residential uses, to include a requirement to maintain or replace employment space within the redevelopment or within an off-site location.

o. enact a Regulation to permit the use of zoning with conditions, pursuant to Section 113 of the City of Toronto Act 2006, that would enable a municipality to secure replacement employment space as part of redevelopments proposing to convert existing commercial and institutional space.

p. enact a Regulation to permit the use of conditional zoning, pursuant to Section 113 of the City of Toronto Act 2006, that would enable the City to require and secure employment space to be provided prior to, or concurrent with any non-employment uses, including residential.

q. revise the Employment Area definition to explicitly include film production, cluster of office uses, stand-alone convenience retail and services to serve businesses and workers within Employment Areas, and enable municipalities to define components of Employment Areas to serve local economies.

r. maintain the current timeframe for when a conversion of employment lands can be considered: only when municipalities are undertaking their 5-year Official Plan review, absent the Municipal Comprehensive Review concept.

s. strengthen land use policy protections for all Employment Areas across the Province to ensure that these lands support the economy and are viable over the long-term.

t. require that municipalities determine that sensitive land uses proposed near manufacturing, warehousing and other major facilities are compatible or can be made compatible prior to permitting a sensitive land use.

u. retain the existing Growth Plan policy (2.2.5.8) which requires that the development of sensitive land uses, major retail and major office will avoid, or where avoidance is not possible, minimize and mitigate adverse impacts on industrial, manufacturing or other major facilities.

v. maintain the current Provincial Policy Statement and Growth Plan policies that explicitly support energy efficiency, increased vegetation, and improved air quality.

w. maintain and expand the geographic scope of the current Provincial Policy Statement and Growth Plan policies related to natural heritage protection, climate action, intensification, and greenhouse-gas reduction.

x. expand the geographic scope of the Growth Plan's protections for natural heritage systems (4.2.2), water resource systems and watershed planning (4.2.1), and stormwater management (3.2.7) to the entire Province.

y. maintain the Growth Plan's provincially identified Agricultural System.

z. Maintain Growth Plan policy 4.2.8.1 requiring municipalities to develop and implement official plan policies and other strategies related to conserving mineral aggregate resources.

aa. change the definition of "waste management system" to consider the waste hierarchy and is inclusive of and prioritizes resource recovery and environmental outcomes consistent with the Province’s circular economy ambitions.

bb. align the Waste Management policies with the language of the Waste Free Ontario Act and Resource Recovery and Circular Economy Act (RRCEA) and provide guidance on how municipalities are to interpret the Waste Management policies in the Provincial Planning Statement alongside the RRCEA.

cc. include policy direction that requires municipalities to coordinate and plan for appropriate and adequate shared waste management infrastructure.

dd. include policy direction that ensures the provision of lands for integrated waste management, including recycling and processing facilities, and residual disposal/management.

ee. maintain and expand the geographic scope of Growth Plan policy 4.2.1.4 that requires a sub-watershed plan for large-scale development in greenfield areas.

ff. maintain policy references to "key hydrologic features, key hydrologic areas and their functions", from the current Provincial Policy Statement (2.2.1(e)) and expand the geographic scope of Growth Plan policy 4.2.1.2.

gg. include direction in the proposed Provincial Planning Statement that planning authorities shall protect, improve, or restore the quality and quantity of water.

hh. recognize and promote green infrastructure's role in water and stormwater systems.

ii. maintain all transportation related policies in the current Provincial Policy Statement and Growth Plan that support reducing vehicle trips.

jj. include language regarding planning for a transportation system in way that accounts for factors such as equity, cost, air quality, winter maintenance and resiliency.

kk. modify policies concerning the protection of heritage properties to say, “protected heritage property shall be conserved”, recognizing that the definition of “protected heritage property” includes more than lands with built heritage resources or cultural heritage landscapes.

ll. maintain the existing Land Needs Assessment methodology as Provincial guidance to the large and fast-growing municipalities for assessing land needs as a complement to the Provincial Projections Methodology Guideline available to other municipalities.

mm. include as part of the transition regulation that all planning matters (Official Plan Amendments or Zoning By-law Amendments) that predate the in-effect date of the new Provincial Planning Statement be transitioned under the existing planning framework. These include planning matters that are: (1) deemed complete and in process/under review; (2) city-initiated process underway or nearing completion, or (3) Council-adopted but is under appeal or appeal period nearing.

nn. continue to transition Official Plan Amendment 231 as a matter in process that was approved under the Growth Plan, 2006.

oo. acknowledge the importance of and requirement for undertaking integrated planning across the Province.

pp. provide guidance on expectations with respect to municipal engagement with Indigenous communities on land use planning matters that identify best practices.

qq. clarify the scope of a municipality's obligation to identify potential impacts of decisions on the exercise of Aboriginal or treaty rights and how the Province's role in addressing asserted Aboriginal or treaty rights will be integrated in the municipal decision-making process.

rr. add a new policy that enables municipalities to put in place local policies that address the changing nature of office space and needs to reflect the local context.

4. City Council confirm that film production will continue to be considered a form of manufacturing for the purposes of land use planning and interpretation of official plan policies and zoning standards.

5. City Council forward Attachment 2 to the report (May 17, 2023) from the Chief Planner and Executive Director to the Minister of Municipal Affairs and Housing and the Minister of Economic Development, Job Creation and Trade from the Film Commissioner and Director, Entertainment Industries related to the impacts the proposed Provincial Planning Statement has on the City’s film production Industry.

6. City Council forward a copy of the report (May 17, 2023) from the Chief Planner and Executive Director to the Premier of Ontario, the Minister of Municipal Affairs and Housing, the Minister of Economic Development, Job Creation and Trade, the Leader of the Official Opposition, all Ontario MPPs, the Association of Municipalities of Ontario, and all Ontario municipalities for their information and consideration.

7. City Council request that the Minister of Municipal Affairs and Housing undertake dedicated consultation with affected industry stakeholders on any changes to policies related to the protection of employment lands in advance of proceeding with the proposed Provincial Planning Statement.

The policy led planning system under which municipalities within the Greater Golden Horseshoe (GGH) Area have operated since 2006 has experienced numerous changes over the last 5 years requiring the City to continuously review, examine and adapt our planning policies and practices. On April 6, 2023 as part of Bill 97, the Ministry of Municipal Affairs and Housing introduced a draft Provincial Planning Statement that is intended to replace the current Provincial Policy Statement and the Growth Plan for the Greater Golden Horseshoe. Some policies of the Growth Plan are intended to be incorporated into the new Provincial Planning Statement and the Growth Plan is proposed to be repealed.

The proposed repeal of the Growth Plan now treats the region generally the same as any other part of the Province despite it being home to 70% of Ontarians. While some Growth Plan policies are found in the proposed Provincial Planning Statement, virtually all the foundational ones have been eliminated and the overall policy intent of establishing a regional plan to lay out and coordinate planning, resource and infrastructure management efforts has been abandoned. Absent a comprehensive and coordinated regional growth management framework, potential unintended consequences may include, loss of agricultural land and associated worsening food insecurity, degradation of the natural heritage system and it's ability to mitigate the impacts of climate change, impacts on water quality, uncoordinated infrastructure planning that increases costs for local and regional governments, uncoordinated and unsustainable development patterns that encourage car dependency, and the loss and removal of employment lands needed to support a diverse economic base.

The direction for regional planning implied in the draft Provincial Planning Statement represents a seminal change in the land use planning system in the GGH that together with recent and potential future governance changes pose risks to the widely recognized benefits of coordinated and integrated land use, resource and infrastructure planning and calls into question progress toward widely understood and desirable outcomes around climate adaptation, inclusion, economic and financial stability over the next decades. Growing imperatives around housing supply and paying for infrastructure should spark an evolution in regional planning through a focussed collaborative process around making the Growth Plan work better, without jettisoning its fundamental goals around limiting sprawl and long-term land use predictability.

The Province has provided stakeholders 60 days to review the proposed document and comments are due no later than June 5, 2023. Staff will submit the recommendations from Planning and Housing Committee to the provincial ERO posting and will submit additional comments received at City Council's meeting on June 14-16, 2023 as supplementary information to the recommendations contained in this report.

This report outlines staff comments on the proposed Provincial Planning Statement as itemized in Attachment 1. The recommendations contained in this report address concerns raised by City staff intended to inform the Ministry of the City's comments and suggested revisions to the proposed Provincial Planning Statement. Staff from City Planning, Engineering & Construction Services, Economic Development & Culture, the Housing Secretariat, Toronto Water, Parks, Forestry & Recreation, Corporate Finance and Legal Services reviewed and provided comments organized in the following six themes:

1. Regional Planning;

2. Housing;

3. Employment Lands Planning;

4. Environment;

5. Infrastructure; and

6. Implementation