Item - 2024.PH17.1

Tracking Status

PH17.1 - Community Improvement Plan for the Economic Development and Growth in Employment (EDGE) Incentive Program

Decision Type:
ACTION
Status:
Adopted
Wards:
All

City Council Decision

City Council on December 17 and 18, 2024, adopted the following:

 

1. City Council designate the entire City of Toronto as a Community Improvement Project Area.

 

2. City Council adopt the City-Wide Community Improvement Plan for the Economic Development and Growth in Employment Incentive Program in accordance with the draft community improvement plan included as Attachment 2 to the report (November 21, 2024) from the Interim Chief Planner and Executive Director, City Planning, the General Manager, Economic Development and Culture and the Chief Financial Officer and Treasurer, as amended by the following:

 

a. adding a new Section as follows:

 

Program Budget

 

Approvals under this Community Improvement Plan will be limited based on a projected annual budget cap of $20,000,000.  Applications will be considered on a first-come-first-served basis until such time as future annual grants are projected to exceed the budget cap in any given year.

 

b. amending Schedule 1 to:

 

1. add a definition of Emerging Neighbourhoods as follows:
 

Emerging Neighbourhood: means an area defined by the City of Toronto on the basis that it is facing inequitable outcomes as determined by a Neighbourhood Equity Index and, while surpassing the thresholds that would categorize it as a Neighbourhood Improvement Areas, are prioritized by City Council for investment. 

 

2. expand the eligibility criteria for Enhanced Development Grants to include eligible development within Emerging Neighbourhoods. 

 

3. City Council determine pursuant to section 28(13) of the Planning Act that the Toronto Community Improvement Plan for Brownfield Remediation and Development of Prescribed Employment Uses (By-law 1207-2018, as amended, the “2018 CIP”), that enables the Imagination, Manufacturing, Information and Technology Program, has been carried out, dissolve the community improvement project area designated by By-law 1207-2018, and repeal By-law 1207-2018, as amended.

 

4. City Council delegate to the General Manager, Economic Development and Culture, approval authority in respect of applications for the Economic Development and Growth in Employment Incentive Program development grants, provided the project has an estimated construction value of $100,000,000 or less.

 

5. City Council direct the General Manager, Economic Development and Culture, in consultation with the Chief Financial Officer and Treasurer, to bring forward, no less than annually, as a group:

 

a. for City Council’s consideration, any complete applications for Economic Development and Growth in Employment Incentive Program development grants for projects with an estimated construction value greater than $100,000,000; 

 

b. for City Council’s information, notice of any Economic Development and Growth in Employment Incentive Program development grants approved by the General Manager, Economic Development and Culture under their delegated authority; and

 

c. for City Council’s information, updated projections of the financial impacts of the Economic Development and Growth in Employment Incentive Program, including applications within the pipeline, with an assessment of whether the projected costs align with desired outcomes and whether any adjustments to the Program Budget are necessary.

 

6. City Council authorize staff to introduce an Economic Development and Growth in Employment Incentive Program administration fee of 30 cents per square metre based on eligible gross floor area and that Municipal Code Chapter 441, Fees and Charges, be amended to reflect the new fee.

 

7. City Council authorize the General Manager, Economic Development and Culture to negotiate and execute financial incentive agreements for approved Economic Development and Growth in Employment Incentive Program applications, in a form satisfactory to the City Solicitor.

 

8. City Council authorize the City Solicitor to make such stylistic and technical changes to the draft Community Improvement Plan for the Economic Development and Growth in Employment Incentive Program, as may be required.

 

9. City Council request the General Manager, Economic Development and Culture to develop a work-study program to conduct an inter-jurisdictional analysis that includes, but is not limited to, a comparison of financial incentives, policies, and other strategies used by key competitor economies to support business development, job retention, and growth, to assess the City’s competitiveness; and report on the findings to the Economic and Community Development Committee no later than the first quarter of 2026.

 

10. City Council authorize the appropriate City officials to take such actions as are necessary to implement City Council's decision.

Public Notice Given

Statutory - Planning Act, RSO 1990

Background Information (Committee)

(November 21, 2024) Report and Attachment 1 from the Interim Chief Planner and Executive Director, City Planning, the General Manager, Economic Development and Culture and the Chief Financial Officer and Treasurer on Community Improvement Plan for the Economic Development and Growth in Employment (EDGE) Incentive Program
https://www.toronto.ca/legdocs/mmis/2024/ph/bgrd/backgroundfile-250855.pdf
Attachment 2: Proposed City-Wide Community Improvement Plan
https://www.toronto.ca/legdocs/mmis/2024/ph/bgrd/backgroundfile-250856.pdf
(November 12, 2024) Notice of Public Meeting
https://www.toronto.ca/legdocs/mmis/2024/ph/bgrd/backgroundfile-250440.pdf
(November 28, 2024) Public Notice
https://www.toronto.ca/legdocs/mmis/2024/ph/bgrd/backgroundfile-250938.pdf

Communications (Committee)

(November 28, 2024) Letter from Elizabeth Chick-Blount, Chief Executive Officer, Buy Social Canada (PH.New)
https://www.toronto.ca/legdocs/mmis/2024/ph/comm/communicationfile-185075.pdf
(November 28, 2024) Letter from Magali Simard, Director of Industry and Community Relations, Cinespace Studios Toronto (PH.New)
https://www.toronto.ca/legdocs/mmis/2024/ph/comm/communicationfile-185197.pdf
(December 4, 2024) Letter from Rosemarie Powell, Executive Director, Toronto Community Benefits Network (PH.New)
https://www.toronto.ca/legdocs/mmis/2024/ph/comm/communicationfile-185297.pdf
(December 5, 2024) Letter from Craig McLuckie, Toronto Industry Network (PH.New)
https://www.toronto.ca/legdocs/mmis/2024/ph/comm/communicationfile-185333.pdf

Communications (City Council)

(December 9, 2024) E-mail from Alexandra Khazzam, Managing Director, Hines (CC.Main)
https://www.toronto.ca/legdocs/mmis/2024/cc/comm/communicationfile-185463.pdf

Motions (City Council)

Motion to Adopt Item (Carried)

PH17.1 - Community Improvement Plan for the Economic Development and Growth in Employment (EDGE) Incentive Program

Decision Type:
ACTION
Status:
Amended
Wards:
All

Public Notice Given

Statutory - Planning Act, RSO 1990

Committee Recommendations

The Planning and Housing Committee recommends that:

 

1. City Council designate the entire City of Toronto as a Community Improvement Project Area.

 

2. City Council adopt the City-Wide Community Improvement Plan for the Economic Development and Growth in Employment (“EDGE”) Incentive Program in accordance with the draft community improvement plan included as Attachment 2 to the report (November 21, 2024) from the Interim Chief Planner and Executive Director, City Planning, the General Manager, Economic Development and Culture and the Chief Financial Officer and Treasurer, as amended by the following:

 

a. adding a new Section as follows:

 

Program Budget

 

Approvals under this Community Improvement Plan will be limited based on a projected annual budget cap of $20,000,000.  Applications will be considered on a first-come-first-served basis until such time as future annual grants are projected to exceed the budget cap in any given year.

 

b. amending Schedule 1 to:

 

1. add a definition of Emerging Neighbourhoods as follows:
 

Emerging Neighbourhood: means an area defined by the City of Toronto on the basis that it is facing inequitable outcomes as determined by a Neighbourhood Equity Index and, while surpassing the thresholds that would categorize it as a Neighbourhood Improvement Areas (NIA), are prioritized by City Council for investment. 

 

2. expand the eligibility criteria for Enhanced Development Grants to include eligible development within Emerging Neighbourhoods. 

 

3. City Council determine pursuant to section 28(13) of the Planning Act that the Toronto Community Improvement Plan for Brownfield Remediation and Development of Prescribed Employment Uses (By-law 1207-2018, as amended, the “2018 CIP”), that enables the Imagination, Manufacturing, Information and Technology (IMIT) Program, has been carried out, dissolve the community improvement project area designated by By-law 1207-2018, and repeal By-law 1207-2018, as amended.

 

4. City Council delegate to the General Manager, Economic Development and Culture, approval authority in respect of applications for the Economic Development and Growth in Employment (EDGE) Incentive Program development grants, provided the project has an estimated construction value of $100,000,000 or less.

 

5. City Council direct the General Manager, Economic Development and Culture in consultation with the Chief Financial Officer and Treasurer to bring forward, no less than annually, as a group:

 

a. for City Council’s consideration, any complete applications for Economic Development and Growth in Employment (EDGE) Incentive Program development grants for projects with an estimated construction value greater than $100,000,000; 

 

b. for City Council’s information, notice of any Economic Development and Growth in Employment (EDGE) Incentive Program development grants approved by the General Manager, Economic Development and Culture under their delegated authority; and

 

c. for City Council’s information, updated projections of the financial impacts of the Economic Development and Growth in Employment (EDGE) Incentive Program, including applications within the pipeline, with an assessment of whether the projected costs align with desired outcomes and whether any adjustments to the Program Budget are necessary.

 

6. City Council authorize staff to introduce an Economic Development and Growth in Employment (EDGE) Incentive Program administration fee of 30 cents per square metre based on eligible gross floor area and that Municipal Code Chapter 441, Fees and Charges, be amended to reflect the new fee.

 

7. City Council authorize the General Manager, Economic Development and Culture to negotiate and execute financial incentive agreements for approved Economic Development and Growth in Employment (EDGE) Incentive Program applications, in a form satisfactory to the City Solicitor.

 

8. City Council authorize the City Solicitor to make such stylistic and technical changes to the draft Community Improvement Plan for the Economic Development and Growth in Employment (EDGE) Incentive Program, as may be required.

 

9. City Council request the General Manager, Economic Development and Culture to develop a work-study program to conduct an inter-jurisdictional analysis that includes, but is not limited to, a comparison of financial incentives, policies, and other strategies used by key competitor economies to support business development, job retention, and growth, to assess the City’s competitiveness; and report on the findings to the Economic and Community Development Committee no later than the first quarter of 2026.

 

10. City Council authorize the appropriate City officials to take such actions as are necessary to implement City Council's decision.

Decision Advice and Other Information

The Planning and Housing Committee held a statutory public meeting on December 5, 2024, and notice was given in accordance with the Planning Act.

Origin

(November 21, 2024) Report from the Interim Chief Planner and Executive Director, City Planning, the General Manager, Economic Development and Culture and the Chief Financial Officer and Treasurer

Summary

This report recommends for City Council’s consideration a new City-Wide Community Improvement Plan (CIP) that reflects the direction provided by City Council on September 6, 2023 in response to recommendations under the Updated Long-Term Financial Plan (LTFP) to evaluate the effectiveness and outcomes of financial incentives provided under the Imagination, Manufacturing, Innovation and Technology (IMIT) program to date, and further direction from City Council on the Review of the IMIT Program adopted February 6, 2024. The recommended CIP provides a more targeted employment space development incentive that would replace the existing City-Wide CIP (City of Toronto By-law 1207-2018) that enables the IMIT Incentive Program.

 

The proposed new City-Wide CIP is a key deliverable in support of City Council’s new Sidewalks to Skylines: An Action Plan for Toronto’s Economy 2025-2035 (APTE), specifically Action 2 that calls for the replacement of IMIT with an incentive program to support targeted employment uses, attract and retain employers, increase high-quality jobs, stimulate investment across the city, drive broader city-building goals, while strengthening Toronto’s global competitiveness.

 

The new City-Wide CIP would enable the proposed Economic Development and Growth in Employment (EDGE) Incentive Program, a financial incentive program designed to provide support for critical new investment in targeted economic sectors of importance to Toronto’s economy and competitiveness by incentivizing business development and supporting the retention and growth of inclusive jobs. The program would replace the IMIT program and focus on high-growth, export-oriented and visitor-economy sectors that are important to Toronto’s economy and workforce, with these sectors typically needing industrial-type spaces. It would support new construction or major renovation of buildings in targeted employment sectors through Tax Increment Equivalent Grants, while also including an element for Brownfield Remediation Tax Assistance (BRTA).

 

This program is more targeted than the IMIT Program in terms of outcomes sought and offers more financial predictability, better administrative controls and enhanced Council oversight. The most notable changes include eliminating eligibility for office buildings (except in instances where the development is approved as a Transformative Project) and reducing the grant amount and term by fifty percent, making the basic grant equal to 60 percent of the municipal tax increment over five years. Additionally, the new CIP introduces improved financial controls, including the requirement for applications with a construction value above $100 million to be approved by City Council, conditions that ensure approved projects are initiated and completed within specified timelines, and an automatic expiration of the program on December 31, 2034, after which no applications will be accepted. Furthermore, the recommended CIP addresses City goals related to sustainability, job quality, access, and community workforce development through both the enhanced grant stream and updating the Local Employment Requirement.

 

The proposed EDGE program to replace the IMIT program strongly aligns with Council direction via the LTFP to redesign the incentive program for stronger alignment with City goals, predictability and affordability. Through the reduction in the grant quantum and the length of grant term, as well as applying more finely targeted eligibility requirements, projections are that future grants during the first ten years of the new proposed EDGE program are unlikely to exceed 6 percent of the total grants committed under the IMIT Program.

Background Information

(November 21, 2024) Report and Attachment 1 from the Interim Chief Planner and Executive Director, City Planning, the General Manager, Economic Development and Culture and the Chief Financial Officer and Treasurer on Community Improvement Plan for the Economic Development and Growth in Employment (EDGE) Incentive Program
https://www.toronto.ca/legdocs/mmis/2024/ph/bgrd/backgroundfile-250855.pdf
Attachment 2: Proposed City-Wide Community Improvement Plan
https://www.toronto.ca/legdocs/mmis/2024/ph/bgrd/backgroundfile-250856.pdf
(November 12, 2024) Notice of Public Meeting
https://www.toronto.ca/legdocs/mmis/2024/ph/bgrd/backgroundfile-250440.pdf
(November 28, 2024) Public Notice
https://www.toronto.ca/legdocs/mmis/2024/ph/bgrd/backgroundfile-250938.pdf

Communications

(November 28, 2024) Letter from Elizabeth Chick-Blount, Chief Executive Officer, Buy Social Canada (PH.New)
https://www.toronto.ca/legdocs/mmis/2024/ph/comm/communicationfile-185075.pdf
(November 28, 2024) Letter from Magali Simard, Director of Industry and Community Relations, Cinespace Studios Toronto (PH.New)
https://www.toronto.ca/legdocs/mmis/2024/ph/comm/communicationfile-185197.pdf
(December 4, 2024) Letter from Rosemarie Powell, Executive Director, Toronto Community Benefits Network (PH.New)
https://www.toronto.ca/legdocs/mmis/2024/ph/comm/communicationfile-185297.pdf
(December 5, 2024) Letter from Craig McLuckie, Toronto Industry Network (PH.New)
https://www.toronto.ca/legdocs/mmis/2024/ph/comm/communicationfile-185333.pdf

Motions

1 - Motion to Amend Item (Additional) moved by Councillor Brad Bradford (Carried)

That:

 

1. City Council designate the entire City of Toronto as a Community Improvement Project Area.


2 - Motion to Amend Item moved by Councillor Gord Perks (Carried)

1. Amend Attachment 2 by adding the following new Section:

 

“Program Budget

 

Approvals under this Community Improvement Plan will be limited based on a projected annual budget cap of $20,000,000.  Applications will be considered on a first-come-first-served basis until such time as future annual grants are projected to exceed the budget cap in any given year.”

 

2. City Council request the General Manager, Economic Development and Culture to develop a work-study program to conduct an inter-jurisdictional analysis that includes, but is not limited to, a comparison of financial incentives, policies, and other strategies used by key competitor economies to support business development, job retention, and growth, to assess the City’s competitiveness; and report on the findings to the Economic and Community Development Committee no later than the first quarter of 2026.

 

3. Amend Recommendation 4 by adding:

 

“c. for City Council’s information, updated projections of the financial impacts of the Economic Development and Growth in Employment (EDGE) Incentive Program, including applications within the pipeline, with an assessment of whether the projected costs align with desired outcomes and whether any adjustments to the Program Budget are necessary.”


3 - Motion to Amend Motion moved by Councillor Parthi Kandavel (Lost)

That:

 

1. Part 1 of the Motion by Councillor Perks be amended by deleting $20,000,000 and replacing it with $50,000,000


4 - Motion to Amend Item (Additional) moved by Councillor Jamaal Myers (Carried)

1. Amend the following to add the text in bold:

 

Pg. 7

This would be achieved by automatically qualifying eligible projects located in Neighbourhood Improvement Areas or Emerging Neighbourhoods for the enhanced grant stream, offering additional eligibility for associated and ancillary office space in designated Employment Areas, and significantly limiting eligibility for stand-alone office buildings, which are predominantly located in the City’s Downtown core

 

Pg. 13

In Neighbourhood Improvement Areas and in Emerging Neighbourhoods, projects would be eligible for an Enhanced Development Grant (i.e., 70% of the tax increment over 5 years) under the EDGE Incentive Program.

 

Pg. 18

The introduction of the new CIP represents a pivotal opportunity to align these key policies and strategies in a cohesive manner. Under the EDGE Incentive Program, applicants in eligible sectors that align with Council objectives—such as sustainability, community workforce development, and job quality—or those undertaking developments within a Neighbourhood Improvement Area or an Emerging Neighbourhood, would qualify for a grant Community Improvement Plan for the EDGE Incentive Program Page 19 of 27 equal to 70% of the municipal tax increment over a five-year period, increasing to 77% if a combined brownfield incentive applies.

 

Pg. 19

o qualify for an Enhanced Development Grant, applicants, in addition to meeting all basic eligibility requirements must agree to meet one or more of the following criteria: • Be located within a Neighbourhood Improvement Area or Emerging Neighbourhood. The Neighbourhood Improvement Areas or Emerging Neighbourhoods map that is current at the time of application shall be used to determine eligibility, as the designations are subject to change; or,

 

Pg. 26

Enhanced Grants (70% of the tax increment over 5 years) for projects who align with Council objectives— such as those related to sustainability, community workforce development, or job quality—or for eligible developments within a Neighbourhood Improvement Area or Emerging Neighbourhood


5 - Motion to Adopt Item as Amended moved by Councillor Gord Perks (Carried)

6 - Motion to Reconsider Item moved by Councillor Jamaal Myers (Carried)

That in accordance with the provisions of Chapter 27, Council Procedures, reconsider Item PH17.1 as it pertains to the Motion 4 by Councillor Myers.


7 - Motion to Amend Item (Additional) moved by Councillor Jamaal Myers (Carried)

1. Amend Attachment 2, Schedule 1, Economic Development and Growth in Employment (EDGE) Incentive Program, Proposed City-Wide Community Improvement Plan By-law, to

 

a. add a definition of Emerging Neighbourhoods as follows:
 

Emerging Neighbourhood: means an area defined by the City of Toronto on the basis that it is facing inequitable outcomes as determined by a Neighbourhood Equity Index and, while surpassing the thresholds that would categorize it as a Neighbourhood Improvement Areas (NIA), are prioritized by City Council for investment. 

 

b. expand the eligibility criteria for Enhanced Development Grants to include eligible development within Emerging Neighbourhoods. 


8 - Motion to Adopt Item as Amended moved by Councillor Jamaal Myers (Carried)
Source: Toronto City Clerk at www.toronto.ca/council