Item - 2025.EX25.6

The Executive Committee recommends that:  

1. City Council direct the General Manager, Economic Development and Culture, in consultation with relevant City Divisions and Agencies, to develop a Strategy for Advancing the Productivity and Protection of Good Manufacturing and Industrial Jobs in the City of Toronto to stimulate new investment and employment intensification and report back to City Council by second quarter of 2026.

2. City Council direct the General Manager, Economic Development and Culture, in consultation with the Chief Planner and Executive Director, City Planning, and the Chief Financial Officer and Treasurer, to bring forward to the Planning and Housing Committee by fourth quarter of 2025, options to amend the City-Wide Community Improvement Plan for the Economic Development and Growth in Employment (EDGE) Incentive Program to create a time-limited enhancement to incentivize businesses to invest in job creation in the short-term, within the existing annual financial incentive cap for Economic Development and Growth in Employment, by providing an enhanced grant for applications received by December 31, 2027, including assessing such program changes as the following:

a. increasing the incentive level for applicants constructing new buildings or substantially renovating existing buildings in eligible sectors or uses (excluding Transformative Projects) by:

 i. increasing the tax increment equivalent development grant to 100 percent of the cumulative municipal tax increment over a five-year period for applications submitted by December 31, 2027; or

 ii. increasing the total amount of assistance to 100 percent of the municipal tax increment over a maximum seven-year period, or until all eligible remediation costs have been compensated through the program (whichever occurs first), when development grants are provided in conjunction with Brownfield Remediation Tax Assistance, for applications submitted by December 31, 2027;

b. a sunset of this enhancement which returns the program to the current benefit levels and program design for applications received after December 31, 2027; and

c. any other amendments, which are required to implement the above changes to the Economic Development and Growth in Employment Incentive Program.

3. City Council request the Executive Director, Development Review, in consultation with the General Manager, Economic Development and Culture, to add industrial and manufacturing applications to the Priority Development Review Stream and provide a concierge-type service and expedited review of these applications, to advance implementation of Action 34 of the Action Plan for Toronto's Economy (2024.EC16.2) and include an update on details of this initiative with the next report of this plan.

4. City Council direct the City Manager and the Executive Director, Environment, Climate and Forestry, to work with Toronto Hydro and The Atmospheric Fund to engage key stakeholders in the development of a report on “The Electrification Advantage” that outlines the accelerated concrete actions to increase the deployment of local renewables and help achieve the goals of the TransformTO climate strategy, enhance energy security, strengthen the long-term financial and environmental sustainability of Toronto, encourage innovation and job creation, and address long term affordability concerns for Toronto residents and businesses.

5. City Council request the Executive Director, Environment, Climate and Forestry to review the letter (July 16, 2025) from the Vice President, Policy and Programs, The Atmospheric Fund when developing the report on “The Electrification Advantage”.

6. City Council amend City of Toronto Municipal Code Chapter 767, Taxation, Property Tax to expand the eligibility criteria of the Industrial Property Tax Deferral Program to include industrial businesses with an ancillary use in a different tax class at the same property, subject to the satisfaction of the Executive Director, Finance Shared Services and the General Manager, Economic Development and Culture that other uses are ancillary.
 

7. City Council direct the General Manager, Economic Development and Culture to continue to monitor the evolving trade relationship with the United States and report back on the progress of the implementation of the Mayor's Economic Action Plan in Response to United States Tariffs in first quarter of 2026, as part of the Year 1 progress report of Sidewalks to Skyline: Action Plan for Toronto's Economy or before then, if and as necessary.

The Executive Committee recommends that:  

1. City Council direct the General Manager, Economic Development and Culture, in consultation with relevant City Divisions and Agencies, to develop a Strategy for Advancing the Productivity and Protection of Good Manufacturing and Industrial Jobs in the City of Toronto to stimulate new investment and employment intensification and report back to City Council by second quarter of 2026.

2. City Council direct the General Manager, Economic Development and Culture, in consultation with the Chief Planner and Executive Director, City Planning, and the Chief Financial Officer and Treasurer, to bring forward to the Planning and Housing Committee by fourth quarter of 2025, options to amend the City-Wide Community Improvement Plan for the Economic Development and Growth in Employment (EDGE) Incentive Program to create a time-limited enhancement to incentivize businesses to invest in job creation in the short-term, within the existing annual financial incentive cap for Economic Development and Growth in Employment, by providing an enhanced grant for applications received by December 31, 2027, including assessing such program changes as the following:

a. increasing the incentive level for applicants constructing new buildings or substantially renovating existing buildings in eligible sectors or uses (excluding Transformative Projects) by:

 i. increasing the tax increment equivalent development grant to 100 percent of the cumulative municipal tax increment over a five-year period for applications submitted by December 31, 2027; or

 ii. increasing the total amount of assistance to 100 percent of the municipal tax increment over a maximum seven-year period, or until all eligible remediation costs have been compensated through the program (whichever occurs first), when development grants are provided in conjunction with Brownfield Remediation Tax Assistance, for applications submitted by December 31, 2027;

b. a sunset of this enhancement which returns the program to the current benefit levels and program design for applications received after December 31, 2027; and

c. any other amendments, which are required to implement the above changes to the Economic Development and Growth in Employment Incentive Program.

3. City Council request the Executive Director, Development Review, in consultation with the General Manager, Economic Development and Culture, to add industrial and manufacturing applications to the Priority Development Review Stream and provide a concierge-type service and expedited review of these applications, to advance implementation of Action 34 of the Action Plan for Toronto's Economy (2024.EC16.2) and include an update on details of this initiative with the next report of this plan.

4. City Council direct the City Manager and the Executive Director, Environment, Climate and Forestry, to work with Toronto Hydro and The Atmospheric Fund to engage key stakeholders in the development of a report on “The Electrification Advantage” that outlines the accelerated concrete actions to increase the deployment of local renewables and help achieve the goals of the TransformTO climate strategy, enhance energy security, strengthen the long-term financial and environmental sustainability of Toronto, encourage innovation and job creation, and address long term affordability concerns for Toronto residents and businesses.

5. City Council request the Executive Director, Environment, Climate and Forestry to review the letter (July 16, 2025) from the Vice President, Policy and Programs, The Atmospheric Fund when developing the report on “The Electrification Advantage”.

6. City Council amend City of Toronto Municipal Code Chapter 767, Taxation, Property Tax to expand the eligibility criteria of the Industrial Property Tax Deferral Program to include industrial businesses with an ancillary use in a different tax class at the same property, subject to the satisfaction of the Executive Director, Finance Shared Services and the General Manager, Economic Development and Culture that other uses are ancillary.
 

7. City Council direct the General Manager, Economic Development and Culture to continue to monitor the evolving trade relationship with the United States and report back on the progress of the implementation of the Mayor's Economic Action Plan in Response to United States Tariffs in first quarter of 2026, as part of the Year 1 progress report of Sidewalks to Skyline: Action Plan for Toronto's Economy or before then, if and as necessary.

The Mayor’s Economic Action Plan in Response to US Tariffs (referred to as the ‘Tariff Action Plan’ hereafter), outlined actions the City is taking to protect Toronto workers, businesses and residents in response to US tariffs. The Tariff Action Plan, adopted at the March 26 City Council meeting, was developed in close collaboration with City divisions and agencies and the Mayor's Economic Action Team, and is consistent with the Council adopted Sidewalks to Skylines: An Action Plan for Toronto's Economy (APTE).

Since the adoption of the Tariff Action Plan update by Toronto City Council on April 23, City staff across various divisions have been working to implement the actions, monitor the evolving US trade situation, and continue work with the Mayor's Economic Action Team on the next phase of City actions. Notably, as US trade policy and related Executive Orders from the White House continue to evolve, this report outlines the situation at the time of writing.

This purpose of this report is to provide further updates on the Tariff Action Plan for the ten short term actions and six longer term economic objectives. City staff have advanced work since the last report, with highlights including the full implementation of procurement changes to leverage the City’s buying power to support Canadian businesses, a new trade diversification initiative (TradeTO), the success of the Love Local spotlight campaigns, and a 15 percent increase in registrations on the Social Procurement Supplier List.

This report recommends several actions to strengthen and advance the Tariff Action Plan, including, developing a strategy for advancing productivity and protection of manufacturing and industrial jobs, developing options for a time-limited enhancement to the Economic Development and Growth in Employment Incentive Program to incentivize near-term investments in job creation, prioritizing the review of industrial and manufacturing development applications, working with Toronto Hydro and the Atmospheric Fund to advance electrification, and expanding the eligibility of the Industrial Property Tax Deferral Program to include all industrial properties. The report also provides additional updates on steps the City is taking to advance the six long-term economic objectives within the Tariff Action Plan.

Staff continue to closely monitor the evolving trade relationship with the United States and will report back on the progress of the implementation of the Mayor's Economic Action Plan in Response to US Tariffs in Q1 2026, as part of the Year 1 progress report of Sidewalks to Skyline: Action Plan for Toronto's Economy or before then, if and as necessary. 

At its meeting on March 26, 2025, City Council adopted the Mayor's Economic Action Plan in Response to US Tariffs, which laid out ten (10) immediate actions the City is taking in response to United States (US) tariffs. The cumulative effect of these tariffs, along with subsequent announcements, threatens to disrupt global supply chains, impact auto and auto parts manufacturing in Canada, and reduce the productivity of the global economy. Several major financial institutions predict a recession or significant economic slowdown in Canada. 

Since the adoption of the Mayor's Economic Action Plan in Response to US Tariffs - Update by Toronto City Council on April 23, City staff across various divisions have been working to implement the actions, monitor the evolving US trade situation, and continue to work with the Mayor's Economic Action Team on the next phase of City actions. Notably, US trade policy and related Executive Orders from the White House continue to evolve. 

The upcoming supplementary report to Executive Committee will provide an update on the implementation of the Council-approved action plan, outline the situation at the time of writing and the next steps for City response.