Item - 2024.PH12.4

The Planning and Housing Committee:

1. Directed the Chief Planner and Executive Director, City Planning, to continue consultation on the proposed zoning by-law framework, with outreach to residents' associations, industry, City divisions, and other stakeholders, and report back with recommended Zoning By-law amendments in the fourth quarter of 2024.

2. Directed the Chief Planner and Executive Director, City Planning, to further consider the effect of Official Plan Amendment 727 and the Zoning By-law Amendment on facilitating neighborhood retail and services in townhouse and small-scale apartment buildings along major streets, and report back on any needed adjustments in support of Official Plan Amendment 612 in the fourth quarter of 2024.

This report presents a proposed zoning approach to permit certain small-scale retail, service and office uses on Residentially-zoned properties within Neighbourhoods city-wide. The report seeks endorsement of the Planning and Housing Committee to undertake continued consultation on the proposed zoning approach.

The Neighbourhood Retail and Services study is part of the Expanding Housing Options in Neighbourhoods (EHON) work program, which is a set of initiatives and strategies to introduce gentle intensification within designated Neighbourhoods in a form that makes efficient use of land, infrastructure and existing services. Neighbourhood Retail and Services are small-scale retail, service and office uses meant to support walkable and complete communities. This initiative supports and benefits from the development of new homes in Neighbourhoods driven by the EHON initiatives as well as other City initiatives.

The proposed draft Zoning By-law would provide as-of-right zoning city-wide with changes differentiated based on the location and type of streets. The first group are the major streets identified on the Official Plan Map 3. These streets act as thoroughfares and transportation corridors, as well as the edges and boundaries of the Neighbourhoods. The second group are the spectrum of less active streets that make up the interior of Neighbourhoods, and include collector roads, local roads and laneways as defined in the City’s Road Classification System.

On major streets, a broad range of retail, service and office use options are proposed to be permitted in a variety of building types, including the potential for a commercial-only building. These uses include but are not limited to an art gallery, wellness centre, production studio, repair shop, personal service shop, eating establishment, social club, and performing arts studio.

In the interior of Neighbourhoods, the range of proposed uses would be limited to a small retail store, with permissions for the serving of hot beverages and low-risk or pre-packaged, ready-to-eat food items that would allow the store to serve as a local café. Locations would be limited to corner sites and sites adjacent to existing non-residential uses, such as schools and parks.

Additional flexibility would also be provided for home-based businesses in all locations to accommodate up to two employees in addition to the resident of the home and to allow customers or clients to visit the premise for services. Home occupations would also be permitted to operate out of ancillary buildings, such as a rear garage. In all cases, a cap on non-residential gross floor area would limit the size of an individual establishment as well as the total non-residential floor area in a building.

These proposals reflect the direction of Official Plan Amendment 612, approved in July 2022 which updated Policy 4.1.3, adding language that supports new small-scale retail, service and office uses in Neighbourhoods. The proposed zoning approach is informed by an ongoing study workplan, including research and analysis of existing conditions and other jurisdictions, as well as consultation with City staff, stakeholders, and the business community.

The draft Zoning By-law appended to this report will form the basis of a city-wide consultation program, proposed for May and June 2024, to inform a refined Zoning By-law Amendment and final report to be brought to Planning and Housing Committee for consideration in late 2024.