Item - 2024.EC14.8

The Executive Director, Social Development, Finance and Administration recommends that:

1. City Council adopt the Downtown East 2025-2030 Action Plan, outlined as Attachment 4 and direct the Executive Director, Social Development, Finance and Administration and other relevant Divisions, to include the staffing and resources needed to implement the 2025-2030 Action Plan through the 2025 Budget Process for consideration to advance the Downtown East Action Plan, and report back to the Economic and Community Development Committee with a mid-implementation Progress Report in 2026.

2. City Council authorize the Executive Director, Social Development, Finance and Administration to enter into any agreements integral to implementing these recommendations, within the resources in the approved operating budget, upon terms satisfactory to them, and in forms and terms satisfactory to the City Solicitor, to support implementation of the Downtown East Action Plan, as required.

3. City Council authorize the Executive Director, Social Development, Finance and Administration to create a grant program to provide funding to not-for-profit organizations in accordance with the City's Community Grants Policy.

The Downtown East area is defined as Bloor Street to the north, Front Street to the south, Bay Street to the west, and the Don Valley Parkway to the east. Many distinct neighbourhoods are in this area, including Moss Park, St. James Town, Church-Wellesley Village, Regent Park and Cabbagetown. These neighbourhoods have resilient social networks, a history of community involvement, and local identities. Alongside being a destination for people across the city for jobs, services, entertainment and tourism, Downtown East also faces a multitude of complex social challenges amidst its vibrancy and economic activity. The 2020-2024 Downtown East Action Plan was developed to address these entrenched issues, ranging from poverty and homelessness to mental health and substance use crises. Despite the onset of the COVID-19 pandemic impacting implementation, significant progress has been made through multi-sectoral collaboration and targeted initiatives.

The Action Plan, guided by extensive stakeholder collaboration, has delivered tangible outcomes in community safety, housing strategy advancement, and the provision of support services to meet urgent and emerging needs. Piloted initiatives and citywide strategies have evolved to amplify impact. Notwithstanding concerted efforts, significant ongoing challenges persist; most notably, housing affordability, healthcare access, and sustainable funding for initiatives that support the outcomes of the Action Plan.

Key lessons from the implementation of the first phase emphasized the importance of collaborative partnership building, enhanced community engagement, and strategic alignment to maximize impact. Addressing systemic challenges such as service gaps and sustainable program funding remains crucial for long-term success. The 2025-2030 Downtown East Action Plan will continue to prioritize safe, inclusive communities, cross-sector collaboration, stability for those experiencing marginalization, and a model for City responses to complex issues.

Staged implementation strategies, ongoing communication, sustained funding, and enhanced monitoring and evaluation mechanisms are outlined as critical components for effective implementation of the next phase of the Action Plan. Continued partnership between stakeholders and the City of Toronto, coupled with proactive community engagement, will be essential to address the evolving needs of the Downtown East and foster a more resilient and inclusive community.

This report seeks approval to adopt the Downtown East 2025-2030 Action Plan and implement the actions as identified in Attachment 4. This would be the second five-year Action Plan for the area.

The original Five-Year Action Plan (2019-2024) was approved by Council in July 2019 and, the City has supported the implementation of the Downtown East Action Plan through existing resources from a number of City divisions, since 2020.

Social Development, Finance and Administration's base Operating Budget has included annual funding of approximately $1.47 million (gross and net) that has been fully allocated to support the implementation of the Action Plan. Other Divisions and Agencies supported the Action Plan based on ongoing resources and activities that were already occurring.

The new Five-Year (2025-2030) Downtown East Action Plan continues to focus on safety and inclusivity and includes recommended actions and activities that the City should prioritize over the next few years. Some are ready for implementation, and other core and signature projects may require longer-term reviews, more strategic planning among City divisions, community engagement, as well as collaborative efforts exploring inter-governmental funding opportunities, prior to execution.

As outlined in Attachment 4 of this report, approximately $2.705 million (gross and net) in additional funding will be required in 2025 to continue existing actions and begin new actions while other actions will use existing resources. Some of the unfunded new or emerging priority actions identified in this term of the Action Plan need to be further reviewed, scoped, and assessed. These unfunded priority actions include new grants of $0.850 million ($0.800 million for a Safe & Inclusive Communities Grant program and $0.050 million for the development of a Strengthening Neighbourhoods Grant program) to help advance the central outcomes of the Downtown East Action Plan with community activation projects.

Social Development, Finance and Administration and other City Divisions will continue to review their capacity and resources and will include funding requests for the unfunded priority actions in the 2025 Budget and future Budget processes for consideration along with other City priorities, subject to the City's financial resource capacity.

The continuation of the Downtown East Action Plan requires ongoing resources and commitment from community stakeholders and multiple levels of government - the City lacks the resources, funding, authority, and jurisdiction to achieve all its goals independently.

The Chief Financial Officer and Treasurer has reviewed this report and agrees with the financial implications as presented in the Financial Impact Section.