Agenda

This meeting of the Economic and Community Development Committee will be conducted with members participating in person and remotely.

Members of Council, City Officials, and members of the public who register to speak will be provided with the video conference details closer to the meeting date.

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Closed Meeting Requirements: If the Economic and Community Development Committee wants to meet in closed session (privately), a member of the Committee must make a motion to do so and give the reason why the Committee has to meet privately (City of Toronto Act, 2006).

Notice to People Writing or Making Presentations to the Economic and Community Development Committee: The City of Toronto Act, 2006 and the City of Toronto Municipal Code authorize the City of Toronto to collect any personal information in your communication or presentation to City Council or its Committees and Boards. The City collects this information to enable it to make informed decisions on the relevant issue(s). If you are submitting letters, faxes, e-mails, presentations or other communications to the City, you should be aware that your name and the fact that you communicated with the City will become part of the public record and will appear on the City's website. The City will also make your communication and any personal information in it - such as your postal address, telephone number or e-mail address - available to the public, unless you expressly request the City to remove it.

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 toronto.ca/council

This agenda and any supplementary materials submitted to the City Clerk can be found online at toronto.ca/council. Visit the website for access to all agendas, reports, decisions, and minutes of City Council and its Committees and Boards.

Declarations of Interest under the Municipal Conflict of Interest Act

Confirmation of Minutes – February 20, 2024

Speakers/Presentations – The speakers list will be posted online at 8:30 a.m. on March 28, 2024

Communications/Reports

The Deputy City Manager, Development and Growth Services recommends that:

1. City Council request the Deputy City Manager, Development and Growth Services to create a collaborative, cross-divisional working group, with an assigned lead, to be accountable for co-ordinating various City Divisions in delivering the Mount Dennis Community for All Action Plan.

2. City Council request the Deputy City Manager, Development and Growth Services support the Learning Enrichment Foundation in co-hosting a one-day Mount Dennis for All Symposium ("Symposium") in 2024 focusing on anti-displacement strategies, which will include experts in implementing anti-displacement measures.

3. City Council authorize the Deputy City Manager, Development and Growth Services to negotiate and enter into, on behalf of the City of Toronto, any funding agreements with the Learning Enrichment Foundation to provide one-time funding in the amount of up to $35,000 to support the planning and co-hosting of the Symposium and the production of a report on the Symposium results, on terms and conditions satisfactory to the Deputy City Manager, Development and Growth Services, in a form approved by the City Solicitor.

4. City Council request the Deputy City Manager, Development and Growth Services to work with Divisional staff leads to provide an inventory of existing municipal services and assets in Mount Dennis, built upon the Picture Mount Dennis Community Services and Facilities Study, available at the time of the Symposium. 

5. City Council request the Deputy City Manager, Development and Growth Services and Divisional staff leads to work with the local City Councillor, the Learning Enrichment Foundation, and the community of Mount Dennis to develop an “Equity Score Card” to measure the impact of new development in the community and to set goals and targets to support achieving positive equity outcomes, and provide an activity report to the Economic and Community Development Committee in Q4 2024.

6. City Council request the Deputy City Manager, Development and Growth Services and Divisional staff leads to work with the local community to prioritize and achieve positive investments needed from federal, provincial and municipal governments and report with an update to the Economic and Community Development Committee in Q4 2024.

7. City Council request the Deputy City Manager, Development and Growth Services to report in Q4 2024 on progress made in implementing the Mount Dennis for All Action Plan and make any additional recommendations required for its effective implementation.

The purpose of this report is to outline the proposed development, activation, and reporting timeline for the Mount Dennis Community for All Action Plan.

The Mount Dennis area is a residential and mixed-use community in Toronto.  Mount Dennis is a welcoming community where long-time residents have welcomed new immigrants to Toronto, providing opportunity and affordable rental and ownership housing. 

At the same time Mount Dennis is set to become one of the most transit-connected neighbourhoods in Toronto. When the Eglinton Crosstown LRT is complete, Mount Dennis will be the western terminus station and a key interconnection point between the subway and commuter rail systems, providing access to the Kitchener GO Line and UP Express. Ultimately, the population of Mount Dennis is projected to more than double over the next 20 years.

Transit expansion in the area is also expected to result in an increased number of development projects which will increase much needed housing supply but which has also been causing concerns among local residents and organizations regarding the future of their community and the potential residential, commercial, and employment displacement.

In recent years, the City has completed a significant amount of study work including the Mount Dennis Secondary Plan, the Picture Mount Dennis Planning Framework, and the Mount Dennis Economic Development Study. The result has been the development of a comprehensive vision and planning framework based on the input from area residents, businesses, local services, non-profit organizations, and Indigenous partners.

In 2022, City Council has requested staff to develop a responsive community focused plan for the Mount Dennis area. Building on the established planning framework, the "Community for All Action Plan" will propose specific actions, strategies and quantifiable targets for preserving and building new affordable housing, improving social and economic outcomes including upgraded infrastructure, enhanced community and social services, retaining and expanding local businesses, and cultivating high-quality parks and outdoor amenities.

In addition, City Council also requested the Deputy City Manager, Community and Social Services to provide biannual reports on the development and implementation of a Mount Dennis Community for All Action Plan.  This report represents the inaugural update report to be considered by the Economic and Community Development Committee.

Sufficient funding is identified within the Housing Secretariat's 2024 Operating Budget to provide a grant of $35,000 to support the Learning Enrichment Foundation in hosting a one-day Symposium in 2024 to gather information, examine best practices and further implement the Mount Dennis for All Action Plan.

The Chief Financial Officer and Treasurer has reviewed this report and agrees with the financial implications as contained the Financial Impact Section.

The General Manager, Economic Development and Culture, the Executive Director, Social Development, Finance and Administration, the Executive Director, Employment and Social Services, and the Interim Chief Planner and Executive Director, City Planning recommend that:

1. City Council adopt the three-pillar framework to advance inclusive economic development, shown in Appendix A, and direct City staff to apply it as the basis for relevant program development and service reviews, plans and strategies related to Toronto’s economic development, including the forthcoming Action Plan for Toronto's Economy.

2. City Council direct the General Manager, Economic Development and Culture, the Executive Director, Social Development, Finance and Administration and the General Manager, Employment and Social Services, in collaboration with other relevant divisions and agencies including the Toronto Public Library, to identify available metrics of economic inclusion/polarization across Toronto and include these in the City’s Economic Dashboard and other reports to Council on city and regional economic development trends.

3. City Council direct the Interim Chief Planner and Executive Director, City Planning, when commencing new or updated Secondary Plans and associated community engagement processes, to consult with the General Manager, Economic Development and Culture, the Executive Director, Social Development, Finance and Administration, and the General Manager, Employment and Social Services on ways to integrate inclusive economic development and mitigation of commercial displacement into the area-based planning process and whether a parallel Community Development Plan process should be initiated jointly.

4. City Council direct the General Manager, Employment and Social Services and the General Manager, Economic Development and Culture, in consultation with the Executive Director, Social Development, Finance and Administration, and Chief Librarian, Toronto Public Library to formally align previous Council directions provided on workforce development with the inclusive economic development framework shown in Appendix A and report back in Q1 2025 on opportunities to better coordinate City-led workforce development initiatives in addition to collaborating with other orders of government with a focus on improving economic outcomes for low-income residents, social assistance clients and equity-deserving communities.

This report proposes the endorsement and application of a three-pillar framework to advance city-wide inclusive economic development (IED) and neighbourhood / area focused community economic development (CED) in Toronto. The three pillars of the proposed inclusive economic development framework are (a) inclusive workforce development and sector pathways; (b) inclusive entrepreneurship and asset ownership; and (c) research, monitoring and equity impact.

This framework posits that inclusive economic development occurs when economic opportunities and outcomes improve across Toronto's population and neighbourhoods - including its Indigenous, Black and equity-deserving communities - in parallel to overall growth of the city and regional economy. Inclusive economic development refers specifically to municipal touchpoints with the labour market and Toronto business sectors, particularly focussed on supports for employment pathways, entrepreneurship and business development.

This framework provides definitions of key terms that can be consistently used by City divisions and agencies. Further, it clarifies how existing initiatives being led by different divisions complement each other but also what gaps remain and what tools may not be available to municipal government. Finally, the report positions inclusive economic development as a necessary objective of the City's forthcoming Action Plan for Toronto’s Economy (APTE), where further inclusive economic development actions will be specified.

There are no additional current year financial implications resulting from the adoption of the recommendations contained in this report. The staffing resources required to implement the recommendations in the report can be accommodated within the 2024 Council Approved divisional operating budgets. Any new program or policy areas will be included in the forthcoming Action Plan for Toronto's Economy to be considered as part of future budget processes, subject to the City's financial and resource capacity against other critical City-wide impacts.  

The Chief Financial Officer and Treasurer has reviewed this report and agrees with the financial implications as identified in the Financial Impact section.

The General Manager, Transportation Services and Executive Director, Municipal Licensing & Standards, recommend that:  

1. City Council continue to opt-in to the pilot of large quadricycles under O.Reg. 411/22: Pilot Project - Large Quadricycles made under the Highway Traffic Act, which is scheduled to end in 2032;

2. City Council give authority to the Executive Director, Municipal Licensing and Standards or his or her designate, to issue any number of licences, renewable on an annual basis, for pedicabs that are large quadricycles, and any number of licences for any single operating company.

3. City Council amend City of Toronto Municipal Code Chapter 545, Licensing, as follows:

a. by adding to the end of Section 545-27 the following sentence, "Where a pedicab is a large quadricycle, the number of passengers shall not exceed the number of passenger seats available."

b. by adding to the beginning of Section 545-27A, "Except where a pedicab is a large quadricycle," before "No owner or driver shall permit more than two persons to be passengers in a pedicab at any time without the consent of the Executive Director or his or her designate."

c. to delete Section 545-29.3, which requires the approval of route maps for large quadricycles.

d. to authorize the General Manager, Transportation Services, or their designate to create and amend a list of roadways on which large quadricycles are prohibited from operating, based on the General Manager's opinion of whether the operation of large quadricycles might cause or contribute to traffic management problems, and to post such list publicly.

e. to require the operators of large quadricycles to submit proposed route maps as part of applying for a licence or its renewal and at least 10 business days prior to modifying or adding a route, to the General Manager, Transportation Services, or their designate, for verification that the route complies with the list of prohibited roadways for large quadricycles and that, in the opinion of the General Manager, the proposed routes will not cause or contribute to potential traffic management problems, and must notify Municipal Licensing and Standards no less than five business days upon verification of any changes or additions to their operating routes.

f. the General Manager, Transportation Services shall not verify proposed routes for large quadricycles that do not comply with the following restrictions:

1. Any road with a designated speed limit greater than 40km/h per Chapter 950 Schedule XXXV;

2. No more than one consecutive block of travel on Yonge Street;

3. No more than one consecutive block of travel on Bloor Street or Danforth Avenue;

4. No lefthand turns at unsignalized intersections where at least one of the roads is an arterial road; and

5. No straight-through movements at unsignalized intersections where the road that the large quadricycle is crossing is an arterial road.

g. to authorize the General Manager, Transportation Services, or their designate, to immediately revoke verification of an existing route on the basis of a change in the list of prohibited roadways for large quadricycles or traffic management conditions.

h. by adding to the beginning of Section 545-33 the following, "Except where a pedicab is a large quadricycle," before "No owner and no driver shall calculate fares on any basis other than time, and the number of passengers shall not be used in any way to calculate any rates, fares or payments."

4. City Council amend City of Toronto Municipal Code Chapter 950, Traffic and Parking by adding a new section 950-204A, which states, "No person shall operate a large quadricycle or similar vehicle on a roadway unless operating licensed as a pedicab owner or driver under Toronto Municipal Code, Chapter 545, Licensing."

5. City Council amend City of Toronto Municipal Code Chapter 950, Traffic and Parking by adding a new section 950-204B, which states, "No person shall operate, park, store or leave a large quadricycle on a sidewalk under any conditions."

6. City Council directs the General Manager, Transportation Services to report back at the end of the Provincial Pilot Project - Large Quadricycles (in 2032) or sooner as requested, in collaboration with Municipal Licensing and Standards, Economic Development and Culture and other divisions, as appropriate, to the appropriate Committee(s) about the impacts of large quadricycles on city streets and any recommended by-law changes, based on consultation with relevant stakeholders, including emergency services, the Toronto Transit Commission, business improvement associations, and the public, and in concurrence with any changes to related Provincial regulations as they emerge.

7. City Council authorize the City Solicitor to introduce the necessary bills to give effect to City Council's decision and City Council authorize the City Solicitor to make any necessary clarifications, refinements, minor modifications, technical amendments, or by-law amendments as may be identified by the City Solicitor, Executive Director, Municipal Licensing and Standards, or General Manager, Transportation Services, in order to give effect to the adopted recommendations.

In 2022, City Council adopted recommendations to opt-in to a Province of Ontario pilot project under the Highway Traffic Act, which allowed the operation of large quadricycles in Toronto under specific conditions. Among the conditions approved by City Council were the requirements that large quadricycle operators must have a valid pedicab licence, and that all routes must be approved by the General Manager, Transportation Services prior to commencing operations. Since 2022, a single company has operated a tour service using large quadricycles on a seasonal basis (May to October). The two operating seasons in 2022 and 2023 have provided valuable learning opportunities for both City staff and large quadricycle operators. This report serves as an update on the Large Quadricycle Pilot Project and provides a summary of feedback from internal and external stakeholders as well as local residents.

It is recommended that the City continue to opt-in to the Province of Ontario's Large Quadricycle Pilot Project. This recommendation is based on findings that conclude large quadricycles did not have identifiable impacts on traffic congestion, transit operations, or public safety in the first two years of the pilot. Input received from local businesses confirms that large quadricycle tours present a small but visible economic development opportunity and support tourism. Further, results from a public survey found that the majority of Toronto resident respondents (77 percent) support the continued use of large quadricycles in Toronto.

Many of the conditions under which large quadricycles were permitted to operate were key to the success of this pilot project in 2022-2023. Therefore, this report recommends that the same roadway restrictions continue to apply to large quadricycles, in addition to the requirement that operators submit proposed routes for approval prior to commencing operations. In addition to these requirements, staff recommend that the General Manager, Transportation Services, or their designate, be granted the authority to establish new route approval conditions for large quadricycles.

Finally, this report recommends that the limit on the number of licences that may be issued to large quadricycles be lifted but that the City prohibit at all times the use of large quadricycles that are not licensed as pedicabs.

There are no current or known future year financial impacts arising from the recommendations contained in this report.

The Chief Financial Officer and Treasurer have reviewed this report and agree with the financial implications as identified in the Financial Impact Section.

1. City Council approve the transition of the 27 pilot parks into park locations where personal alcohol consumption is allowed on a permanent basis with restrictions for health and safety, by amending Toronto Municipal Code Chapter 608, Parks, substantially as set out in Attachment 1, subject to such stylistic or minor substantive changes as are deemed necessary or appropriate by the City Solicitor:

Park Name, Address

Campbell Avenue Playground and Park, 225 Campbell Ave

Cedarvale Park, 443 Arlington Ave

Christie Pits Park, 750 Bloor St W

Corktown Common, 155 Bayview Ave

Dovercourt Park, 155 Bartlett Ave

Dufferin Grove Park, 875 Dufferin St

Earlscourt Park, 1200 Lansdowne Ave

East Toronto Athletic Field, 175 Main St

Eglinton Park , 200 Eglinton Ave W

Greenwood Park, 150 Greenwood Ave

Hillcrest Park , 950 Davenport Rd

June Rowlands Park, 220 Davisville Ave

Lee Lifeson Art Park, 45 Princess Ave

McCleary Park, 755 Lake Shore Blvd E

Milliken Park, 4325 McCowan Rd

Monarch Park, 115 Felstead Ave

Morningside Park, 390 Morningside Ave

Neilson Park - Scarborough, 1555 Neilson Rd

Oriole Park - Toronto, 201 Oriole Pkwy

Queen's Park, 110 Wellesley St W

Riverdale Park East, 550 Broadview Ave

Roundhouse Park, 255 Bremmer Blvd

Sir Winston Churchill Park, 301 St. Clair Ave W

Skymark Park, 3500 Don Mills Rd

Trinity Bellwoods Park, 790 Queen St W

Underpass Park, 33 St. Lawrence St

Withrow Park, 725 Logan Ave

2. City Council approve the administrative process outlined in Attachment 2 and amend Toronto Municipal Code Chapter 608, Parks, substantially as set out in Attachment 1, subject to such stylistic or minor substantive changes as are deemed necessary or appropriate by the City Solicitor, in order to delegate authority to the General Manager to add and remove parks to Schedule A of Chapter 608 provided the criteria listed are satisfied and the local Councillor provides approval.

3. City Council confirm that a minimum of one park in each City of Toronto ward shall be designated for personal alcohol consumption, with consideration for sensitive uses, health and safety.

4. City Council direct the General Manager, Parks, Forestry and Recreation, in consultation with local Councillors, to identify and designate at least one park location where alcohol is permitted for personal consumption in every City of Toronto ward, in accordance with the criteria, restrictions and process set out in Attachment 1 and 2 by September 2024, and support Councillors' community consultation efforts, as requested.

5. City Council direct the General Manager, Parks, Forestry and Recreation, in consultation with the Executive Director, Municipal Licensing and Standards, and other appropriate Division Heads, to continue to monitor and evaluate park locations where alcohol is permitted for personal consumption, and report back to Economic and Community Development Committee in Q2 2025 with a status update.

In response to City Council direction (2023.EC5.1), this report presents the evaluation findings of the Alcohol in Parks Pilot Program, as implemented from August 2, 2023 to October 9, 2023 in 27 parks.

Overall, the Alcohol in Parks Pilot Program was implemented with a high level of satisfaction among park visitors, few issues arising, and minimal operational impacts.

The vast majority (92 percent) of those who visited a pilot park and responded to the experience survey shared that they were satisfied with their visit. Respondents felt safe, and people who chose to drink at the park were considerate.

There were minimal increases in service requests to 311 for noise, behaviour or garbage/recycling bins at pilot parks, but not all of these are attributable to the pilot, given other activities taking place in the parks, including special events. Further, there was no increased need for police response at the vast majority of pilot parks, and no increase in hospital emergency department visits due to alcohol, compared to the preceding year (2022).

The general public sentiment about alcohol in parks was assessed through a public opinion survey, representative of the Toronto population. The results indicate that 46 percent of respondents were supportive of allowing drinking in parks, 23 percent were neutral and 30 percent were opposed.

Given the findings of the pilot evaluation and adhering to the guiding principles approved by City Council for the program, should Council wish to maintain the pilot parks and/or expand the program, this report provides a path forward for Council's consideration, including transitioning all pilot parks to permanent locations, and directing staff to work with local Councillors to expand the number of parks where drinking is permitted to include at least one park in every ward that meets Council-approved public health and safety criteria. If approved, staff will continue to monitor implementation and provide ongoing updates to local Councillors regarding issues arising in parks where alcohol consumption is allowed as well as report back with a status update in the second quarter of 2025. As part of implementation, this report also recommends implementing an administrative process to streamline the addition and removal of park locations where personal alcohol consumption is allowed through amendments to Toronto Municipal Code Chapter 608, Parks.  

In the development of this report, Parks, Forestry and Recreation consulted Legal Services, Municipal Licencing and Standards, Toronto Public Health, Solid Waste Management Services, Customer Experience - 311, Toronto Paramedic Services, Toronto Fire Services, and Toronto Police Service.

There are no financial impacts resulting from the adoption of the recommendations in this report.

The transition of pilot parks to allow personal alcohol consumption on an ongoing basis and implementing the administrative process to designate additional parks for personal alcohol consumption and to remove parks can be accommodated within existing resources. Operational impacts of allowing alcohol in parks will continue to be monitored by Divisions and any new or emerging financial impacts will be addressed through future budget processes, as needed. 

The Chief Financial Officer and Treasurer has reviewed this report and agrees with the financial implications as identified in the Financial Impact section.

The General Manager, Economic Development and Culture recommends that:

1. City Council approve the renaming of the St. Lawrence Market Neighbourhood Business Improvement Area, as defined by the boundaries described in Attachment 1, to the Old Town Toronto Business Improvement Area.

2. City Council amend the City of Toronto Municipal Code Chapter 19, Business Improvement Areas, as required to reflect the name change of the St. Lawrence Market Neighbourhood Business Improvement Area to the Old Town Toronto Business Improvement Area.

The purpose of this report is to recommend that the name of the St. Lawrence Market Neighbourhood Business Improvement Area (BIA) be changed to "Old Town Toronto Business Improvement Area". The Business Improvement Area Board of Management voted to support the renaming process and request the City of Toronto to formally change the name of the Business Improvement Area. This name change request was also endorsed by the Business Improvement Area's general membership at its November 23, 2023 Annual General Meeting (AGM).

There are no current or known future year financial implications resulting from the recommendations of this report.

The Chief Financial Officer and Treasurer has reviewed this report and agrees with the financial information as presented in the Financial Impact Section.

The Chief Financial Officer and Treasurer recommends that: 

1. City Council adopt and certify the 2024 recommended Operating Budgets and Levy requirements of the following Business Improvement Areas:
 

2.  City Council elect to have the subclasses for the commercial and industrial property classes apply for 2024, and to apply the respective BIA special levy rate reductions to the subclasses, all as set out in Appendix C.

This report brings forward Business Improvement Area (BIA) annual Operating Budget for approval by City Council as required by the City of Toronto Act, 2006. City Council approval is required to permit the City to collect funds through a special levy on the rateable commercial and industrial properties within the respective Business Improvement Area boundaries. Special levy rate reductions for the subclasses have been set out in Appendix C, for properties in the subclasses of the commercial and industrial property classes.

The Business Improvement Area is an association, independently managed from the City and operated by local businesses and property owners, joining together to organize, finance, and deliver capital streetscape improvements, and to promote economic development in a district with its own governance structure as set out in Chapter 19 of the Toronto Municipal Code and the City of Toronto Act, 2006.

There are currently 84 established Business Improvement Areas in the City of Toronto. City Council previously approved the 2024 Operating Budgets for 60 Business Improvement Areas through Report 1 at its meeting on February 6, 2024 (Item EC9.2). One Business Improvement Area, Historic Queen East, is inactive. Included in this Report 2 is the 2024 Operating Budgets for the remaining 23 Business Improvement Areas for City Council approval. No City funding is required since the financing of individual Business Improvement Area Operating Budgets is raised by a special levy on the rateable commercial and industrial properties within the respective Business Improvement Area boundaries.

Under current Chapter 19 of the Toronto Municipal Code, the Business Improvement Areas By-law does not have specific provision requiring a Business Improvement Area maintain a certain amount in their accumulated surplus. Should a Business Improvement Area find itself in a deficit, be dissolved or becomes inactive, City Council has the authority to collect funds required and liabilities including interests, through the Business Improvement Area levy as stipulated under the By-law. If a board is dissolved and the liabilities exceed the assets assumed by the City, Council shall recover the difference. As directed by City Council at its meeting on July 19, 2022, the General Manager, Economic Development and Culture will conduct additional review and consultation on other issues impacting Business Improvement Areas. To ensure prudent stewardship of public resources and further strengthen financial management and oversight, the issue of maintaining a minimum balance requirement in the Business Improvement Area accumulated surplus reserves will be part of the By-law review. Based on the outcome of the review, City staff will present recommendations including the potential for amendment to the current Chapter 19 of the Toronto Municipal Code, and report back to Council by the second quarter of 2024.

The recommendation in this report reflects the board-adopted 2024 Operating Budgets by the respective Business Improvement Areas’ Boards of Management and General Membership. Complete budgets and supporting documentation have been reviewed by City staff to ensure that the 2024 Operating Budgets for Business Improvement Areas reflect Council’s approved policies and practices.

Financing of the Business Improvement Area Operating Budgets is raised by a special levy on the rateable commercial and industrial properties within the respective Business Improvement Area boundaries, accumulated surplus, grants administrated and funded by the city and/or external parties, donations, sponsorships, festival revenues, and other third-party revenues. The Business Improvement Area Office within the Economic Development and Culture Division (EDC) works with the Business Improvement Areas to ensure that all Business Improvement Areas are aware of the available City grant programs.

The Business Improvement Area operating budgets and changes in levies are board-adopted by the respective Business Improvement Areas’ Boards of Management and General Membership. The 2024 Operating Budgets for the 23 Business Improvement Areas total $16.325 million which requires a special levy in the amount of $9.330 million reflecting a $0.137 million or 1.5% increase in the special levy from 2023. All of the 2024 Business Improvement Area Operating Budgets submitted for consideration are balanced budgets that are managed independently by the Business Improvement Areas and not economically dependent on the City. Detailed budgets of individual Business Improvement Areas discussed in this report are set out in Appendix A.

The Business Improvement Area Operating Budgets have provisions set aside for required capital cost-sharing contributions for those capital projects approved in 2023 or prior and carried forward into 2024, as well as new capital cost-share projects in the 2024-2033 Capital Budget and Plan for Economic Development and Culture through the 2024 Budget process.

The dates at which the 2024 Operating Budgets were adopted by the respective Business Improvement Areas’ Boards of Management and General Membership are provided in Appendix B.

The General Manager, Toronto Shelter and Support Services recommends that:

1. City Council authorize the General Manager, Toronto Shelter and Support Services to:   

a. Provide the remaining reimbursement of a total of $1,440,401 to churches and community organizations who previously received a partial reimbursement for their eligible expenses incurred to September 30, 2023, based on City Council’s direction CC10.2 Immediate Federal Government Support Required for Refugee Claimants in Toronto on September 6, 2023.

b. Explore options for one-time extension of reimbursement to churches and community organizations selected by General Manager, Toronto Shelter and Support Services for eligible expenses incurred towards providing temporary shelter to refugee claimants incurred until December 31, 2023 and provide an update to Council as part of scheduled reports on the City of Toronto’s Homelessness Services Capital Infrastructure Strategy in Q3 2024.

c. Should federal funding not fully cover the funding in part a and b above, City Council authorize the use of any operating surplus realized by the City at the 2023 Year-End, subject to the Surplus Management Policy.

2. City Council direct the General Manager, Toronto Shelter and Support Services to explore opportunities where appropriate to respond to the continued high level of need for shelter from refugee clients and to report back to the Council as part of scheduled reports on the City of Toronto’s Homelessness Services Capital Infrastructure Strategy in Q3 2024.

The unexpected and unprecedented surge in the number of refugee claimants arriving in Toronto has placed significant strain on the City's shelter and other systems. These pressures spiked in late spring and summer 2023, resulting in groups of refugees staying outside the City’s assessment and referral centre on Peter Street, with no space available in the shelter system.

In response, many Black-led churches and community organizations stepped up, opening their doors to provide emergency shelter and supports to hundreds of refugee claimants who were arriving in Toronto homeless.

In late summer, the City provided $150,000 to three leading churches. Additionally, in September 2023, City Council authorized that up to $750,000 be provided to churches and community organizations for eligible expenses incurred by September 30.

The recommendations in this report will ensure that Black-led churches and community organizations are fully reimbursed for costs previously determined eligible and that options for their further reimbursement are identified for City Council's consideration.

The total federal funding commitment to support refugee populations up to March 2024, including funding through the Interim Housing Assistance Program (IHAP) is $240 million. The funding approved by the Federal Government for the 2023 claim is $192.4 million, which leaves a required City of Toronto contribution of approximately 5 percent to cover the 2023 total cost of $202.4 million.

The January to February 2024 claim for IHAP is $41.7 million, with an expected cost forecast of approximately $60 million for Q1 2024. The Federal Government will fund $47.6 million in Q1 from the remaining $240 million balance.

The City of Toronto's original estimate and Federal Government commitment to support refugee populations in shelters in 2024 was $250 million. The balance of the federal commitment is expected to be announced in the Federal Budget on April 16, 2024. With respect to IHAP claims, the Federal Government has accepted the initial payments in 2023 as eligible. Therefore, going forward, City of Toronto expects the 2024 claims to be eligible.   Based on current demand, the City's actual costs are likely to increase above $250 million in 2024.  If additional funding is not received, the churches and community organizations payments could create a net pressure on the City.  Through the 2023 Year-End Operating Variance Report, if surplus is available, funding may be allocated for the payments, as part of the Surplus Management Policy.

The Chief Financial Officer and Treasurer has reviewed this report and agreed with the information as presented in the Financial Impact Section.