Item - 2024.EC17.2

The Economic and Community Development Committee recommends that:

1. City Council adopt the definition and guiding principles of Inclusive Economic Development, as informed by community-based partners and included in the report (November 15, 2024) from the General Manager, Economic Development and Culture, the Executive Director, Social Development, Finance and Administration, the Interim General Manager, Employment and Social Services and the Interim Chief Planner and Executive Director, City Planning.

2. City Council request City Divisions and agencies to apply the definition and principles of Inclusive Economic Development in the development and implementation of relevant plans, strategies, programs and service reviews related to employment and entrepreneurship in Toronto, including but not limited to: the Poverty Reduction Strategy, the Community Benefits Framework, the Action Plan for Toronto's Economy, the Toronto Action Plan to Confront Anti-Black Racism, Secondary Plans, Community Development Plans, future Workforce Development strategies/initiatives, and the City’s internal recruitment.

3. City Council request the General Manager, Economic Development and Culture, with relevant Divisions and agencies and in alignment with the City’s Reconciliation Action Plan, to take into account Inclusive Economic Development when working with Indigenous communities to advance the commitment in the Action Plan for Toronto's Economy to co-develop an Indigenous Economic Strategy and provide an update in the first quarter of 2026 through the Year One Progress Report of the Action Plan for Toronto's Economy.

4. City Council request the General Manager, Economic Development and Culture, the Executive Director, Social Development, Finance and Administration, the General Manager, Toronto Employment and Social Services, and the Chief Planner and Executive Director, City Planning, in partnership with other relevant Divisions, to report back on an Inclusive Economic Development Framework co-developed with the Working Table for Inclusive Economic Development as part of the Year One Progress Report on the Action Plan for Toronto's Economy in the first quarter of 2026.

5. City Council request the General Manager, Economic Development and Culture, the Executive Director, Social Development, Finance and Administration, the General Manager, Employment and Social Services, and the Chief Planner and Executive Director, City Planning, in collaboration with other relevant Divisions and agencies, to leverage the Working Table for Inclusive Economic Development to identify any additional Inclusive Economic Development areas and actions to be added to the Action Plan for Toronto's Economy, and report back through its Year One Progress Report in the first quarter of 2026.

The General Manager, Economic Development and Culture gave a presentation to the Economic and Community Development Committee.

This staff report puts forward a definition of Inclusive Economic Development (IED) along with a set of principles to guide the City of Toronto's efforts to advance and support IED and as the basis for co-development with community partners of an IED Framework. It aims to address the findings referenced in several City of Toronto strategies and data products -- including the Poverty Reduction Strategy and the recent Sidewalks to Skylines: A Ten-Year Action Plan for Toronto's Economy (APTE) 2025-2035 -- that the benefits of a high-performing economy have not been equitably shared among Torontonians despite Toronto’s economic success over several decades.

The report responds to Economic and Community Development Committee's referral to staff of an earlier report on Inclusive Economic Development at its July 2024 meeting, and to the direction to develop a revised framework that builds on input from community partners. In September 2024, a full-day consultation was held with over 20 institutional and community partners leading initiatives related to IED, alongside those with lived experience of poverty. The feedback received at the consultation informed the definition, principles and next steps outlined in this report.

The next steps build on action #4 within the APTE, which calls for the creation of a Working Table for Inclusive Economic Development to co-develop an IED Framework. The framework will be co-developed with community partners to clarify roles and responsibilities and establish an IED governance and accountability structure. It will be brought back for consideration of the Economic and Community Development Committee by early 2026.