Item - 2023.PH5.2

The Planning and Housing Committee recommends that:

1. City Council adopt Official Plan Amendment 668 in accordance with Attachment 1 to the report (June 19, 2023) from the Chief Planner and Executive Director, City Planning.

2. City Council authorize the City Solicitor to submit the necessary Bills to City Council for enactment upon subsection 1(1) of the Planning Act, as set out in Bill 97, coming into effect.

3. City Council authorize the City Solicitor to make such stylistic and technical changes to the proposed Official Plan Amendment 668 as may be required.

4. City Council request that the Ministry of Municipal Affairs and Housing delay the effective date of the Provincial Planning Statement until January 1, 2024 at the earliest.

The Manager, Strategic Initiatives, Policy and Analysis, City Planning gave a presentation to the Planning and Housing Committee.

The Planning and Housing Committee held a statutory public meeting on July 5, 2023, and notice was given in accordance with the Planning Act.

On April 6, 2023, the Province introduced new policy and legislative changes which include two key components: (1) Helping Homebuyers, Protecting Tenants Act, an Act to amend various statutes with respect to housing and development ("Bill 97"), and (2) the proposed Provincial Planning Statement ("PPS 2023"). Bill 97 received Royal Assent on June 8, 2023.

This is the first of two reports that respond to the Planning Act changes within Bill 97 and Official Plan Amendments required to implement these changes. This report responds to the transition provisions introduced in the new Planning Act subsections related to "areas of employment", while the second report is related to the revised Planning Act definition for "area of employment". The second report is targeted for Planning and Housing Committee in the Fall 2023.

The new definition for “area of employment” will come into force on a day to be named by proclamation of the Lieutenant Governor. It is staff's understanding that the Province will bring these Planning Act changes into force on the same date that  the PPS 2023 comes into effect. It is anticipated that these changes will take effect in Fall 2023. This report recommends that Council request that the Province delay the date the PPS 2023 comes into effect until January 1, 2024 (at the earliest), to provide the City with sufficient time to make the necessary Official Plan amendments.

Bill 97 amends the definition of "area of employment" to expressly exclude institutional uses and commercial uses, including retail and office uses that are not associated with manufacturing, research and development in connection with manufacturing, warehousing, and goods movement.

The proposed exclusion of uses in the revised Planning Act definition would have significant implications for much of the City's General Employment Areas and Core Employment Areas, in particular:

· It is estimated that the revised definition has the potential to remove approximately 25% of the City's General Employment Areas (including office parks) and risk approximately 150,000 jobs currently located in these areas through future land use change.

· Many of the parcels of land with uses that would be excluded from the definition are located in General Employment Areas, which often act as a buffer between sensitive land uses (i.e., residential, institutional, etc.), and Core Employment Areas, which often include heavier industrial uses. A buffer between these uses helps to ensure that adverse effects are avoided due to land use incompatibility and that Core Employment Areas remain economically viable.

The Planning Act changes provide a transition provision that would authorize municipalities to implement Official Plan policies that would permit the continuation of uses excluded by paragraph 2 of the new definition (commercial and institutional uses), in Employment Areas, so long as the use was lawfully established before the definition came into force. Implementing such Official Plan policies would ensure that parcels of land with uses not included in the new definition can continue to be deemed as an "area of employment" and, as such, would remain subject to employment area conversion policies.

This report recommends that Council adopt Official Plan Amendment 668 to authorize the continuation of institutional and commercial uses expressly excluded by paragraph 2 of the new definition that were lawfully established the day before the relevant Planning Act changes comes into effect.