Item - 2025.PH25.3

The Chief Planner and Executive Director, City Planning, recommends that:

1. City Council amend Zoning By-law 569-2013, as amended, substantially in accordance with the draft Zoning By-law Amendments appended as Attachment 1 to this report, with respect to neighbourhood retail and services on major streets.

2. City Council amend Zoning By-law 569-2013, as amended, substantially in accordance with the draft Zoning By-law Amendments appended as Attachment 2 to this report, with respect to neighbourhood retail and services in neighbourhood interiors.

3. City Council amend Zoning By-law 569-2013, as amended, substantially in accordance with the draft Zoning By-law Amendments appended as Attachment 3 to this report, with respect to home occupations.

4. City Council authorize the City Solicitor to make such stylistic and technical changes to the proposed Draft Zoning By-law Amendments as may be required.

5. City Council direct the Chief Planner and Executive Director, City Planning, in consultation with Municipal Licensing and Standards, Toronto Building, and other appropriate City divisions, to monitor the implementation and effectiveness of the Zoning By-law Amendments and to report to the Planning and Housing Committee following the earlier of two (2) years following the date the Zoning By-law Amendments come into full force and effect, or following the issuance of 200 building permits and/or business licenses, in order to review and recommend any necessary revisions to policy, zoning and/or other changes to improve implementation.

Toronto is a growing city with at least 700,000 new Torontonians expected by 2051. It is expected that some of that growth, enabled through other Expanding Housing Options in Neighbourhoods (EHON) initiatives such as the Laneway Suites, Garden Suites, Multiplex and Major Streets studies, will be accommodated within Toronto's existing Neighbourhoods. Recent research conducted by City Planning shows that within that period, uptake of city-wide residential EHON initiatives could be about 163,785 new units by 2051, including 54,600 by 2031. To support the daily needs of future and current residents, it is necessary to ensure the goods and services they depend on are conveniently located, contributing to walkable and livable communities across Toronto.

Achieving this goal requires a city-wide policy and regulatory environment that is supportive of local businesses and services locating within communities. Despite small-scale retail, service and office uses historically playing an important role in many of Toronto's Neighbourhoods, these types of uses were strictly limited by policies and zoning provisions established in the mid-20th century, many of which remain today. As a result, many of Toronto's current residents have never had these amenities close to their homes, and others have seen them decline over the decades as existing establishments closed, and new ones did not take their place.

The EHON Neighbourhood Retail and Services Study aims to address this challenge for current and future residents through Zoning By-law Amendments (ZBLAs) that would enable small-scale retail, service and office uses to be within reach of communities across Toronto.

The study has been undertaken in three phases.

In July 2022, through Phase One of the study, Council approved an Official Plan Amendment supporting new Neighbourhood Retail and Services Uses and a Zoning By-law Amendment equalizing certain Home Occupation permissions in low-rise Neighbourhoods across the city.

In 2024, through Phase Two of the study, staff consulted with the public on draft ZBLAs, which were brought to Council in December 2024. City Council referred the item back to staff for additional consultation with the public and residents’ associations and preparation of a professional communications campaign through mainstream media channels to explain the proposal and gather feedback.

This report addresses work undertaken in Phase Three of the EHON Neighbourhood Retail and Services Study and responds to City Council direction and recommends approval of three city-wide ZBLAs. The three ZBLAs address the following:

1.  Permit a range of small-scale retail, service and office uses, with appropriate zoning standards related to type, scale and form, on residentially-zoned properties on major streets (see Attachment 1);

2. Permit a small-scale retail store with option for ancillary eating establishment or takeout eating establishment with appropriate zoning standards related to type, scale and form, on residentially-zoned properties on in the interior of Neighbourhoods. Maintain these permissions only on corner lots and properties next to parks, schools and existing commercial sites, but further limit the permissions to corner lots on Community Streets (see Attachment 2); and

3. Update zoning standards for home occupations to implement the previously-approved Official Plan policies for home occupations (see Attachment 3).

The proposed ZBLAs implement the policies of the Official Plan Amendment approved by Council in 2022. The proposed amendments present a balanced approach to permit these uses while minimizing potential for adverse impacts on nearby residents by permitting them in locations, forms and at scales that are compatible with and integrated into Neighbourhoods.

The key changes to the recommended ZBLAs compared to the previous December 2024 report include:

-  maintaining the recommended permissions for home-based businesses, with minor adjustments;

-  maintaining the recommended permissions for small-scale retail, service and office uses on major streets within Neighbourhoods, with minor adjustments;

-  maintaining the recommended permissions for small-scale retail, service and office uses in interior to Neighbourhoods adjacent to parks, schools and existing commercial sites, as well as on corner lots but limiting corner lot permissions to  ‘Community Streets’. Also removing as-of-right permissions for patios in Neighbourhood interiors.

This report also presents the findings from an extensive consultation and communication program, including advertising using social media, online news sites and in TTC transit shelters, city-wide online meetings, in-person pop-up events in every ward, and a survey. The report further recommends a monitoring strategy for the new permissions.

The City Planning Division confirms that there are no financial implications resulting

from the recommendations included in this report in the current budget year or in future

years.

The Chief Financial Officer and Treasurer has reviewed this report and agrees with the

information as presented in the Financial Impact Section.