Decisions

The Executive Committee recommends that:

1. City Council approve the implementation of a Municipal Non-Resident Speculation Tax on foreign buyers of residential property in the City of Toronto, effective January 1, 2025, at a rate of 10 percent of the value of consideration for the purchase of property.

2. City Council approve the final tax design features for the Municipal Non-Resident Speculation Tax as set out in Attachment 2 to the report (January 16, 2024) from the Chief Financial Officer and Treasurer, and City Council amend the City of Toronto Municipal Code Chapter 760, Taxation, Municipal Land Transfer Tax, to add the Municipal Non-Resident Speculation Tax.

As part of the Updated Long-Term Financial Plan considered in September 2023, City Council directed staff to report back with an implementation plan to introduce a new land transfer tax on foreign buyers of residential property in the City. This report recommends introduction of a new Municipal Non-Resident Speculation Tax on foreign buyers of certain residential property, effective January 1, 2025.

The primarily objective of the Municipal Non-Resident Speculation Tax is to safeguard and enhance the availability of residential housing supply and to maintain a level of affordability in the residential real estate market by discouraging international buyers from purchasing property in the City of Toronto, particularly those buyers who do not intend to live in the property, or where the purchase is for purely speculative motives. Staff are recommending introduction of a 10% rate on the residential purchase price, which, when coupled with other land transfer tax related impacts, is expected to effectively deter real estate speculation.

The Province of Ontario currently levies its own Non-Resident Speculation Tax of 25% of the purchase price on the purchase or acquisition of an interest in certain residential property located anywhere in Ontario by foreign entities (individuals who are not citizens or permanent residents of Canada and foreign corporations) and taxable trustees. Originally implemented in 2017, the purpose of the provincial Non-Resident Speculation Tax was to discourage speculation and thereby 'help to address unsustainable demand' in the Greater Golden Horseshoe area.

To ensure successful implementation, it is recommended that the Municipal Non-Resident Speculation Tax mirror the current provincial Non-Resident Speculation Tax provisions, as outlined further in this report, as it pertains to applicability, rebates, refunds and exemptions. Implementation is being recommended for January 1, 2025, in recognition of a current federal Prohibition on the Purchase of Residential Property by Non-Canadians Act which temporarily bans the purchase of homes by foreign buyers from January 2023 to December 2024.

Overall, the introduction of the Municipal Non-Resident Speculation Tax is expected to have a positive impact on reducing speculation, and where speculation may persist the Municipal Non-Resident Speculation Tax will positively contribute to the City's multi-year budgeting strategy.. Preliminary estimates indicate the City may generate up to $15 million in revenue in 2025, following the lifting of the federal ban.  These estimates have been reflected in the City's enhanced multi-year budget modelling introduced as part of the 2024 budget process and are intended to offset one-time bridging actions applied to the 2024 budget.

In addition, the New Deal Agreement with the Province identified the Non-Resident Speculation Tax as a key opportunity for the City and the Province to strengthen alignment of incentives to help ensure availability of housing to residents. Staff will continue to engage in discussions with the Province to promote alignment between the Non-Resident Speculation Tax and Municipal Non-Resident Speculation Tax, among other financial-related incentives, while monitoring any potential impacts of the federal ban in order to refine estimated impacts for 2025.

The Executive Committee: 

1. Received the report (January 16, 2024) from the Chief Financial Officer and Treasurer for information.

The City of Toronto created positive impact across key Environment, Social, and Governance priorities this year, demonstrating commitment, innovation and transparency, through the performance disclosure and consideration of Environment, Social, and Governance risks and opportunities in the Environmental, Social, and Governance Performance Report ("ESG Report") for 2023 contained in Attachment 1. The objective of the Environment, Social, and Governance Report is to communicate Environment, Social, and Governance commitments, define targeted outcomes, and to account for progress towards sustainability, positive socioeconomic outcomes and good governance, as well as demonstrating transparency, accountability, participation, responsiveness, progress measurement and leadership.

Climate action and Environment, Social, and Governance factors are quickly establishing importance and gaining attention globally in both private and public sectors whereby organizations are measured on how well Environment, Social, and Governance-related risks and opportunities are handled. Many corporations are now being formally assessed on Environment, Social, and Governance impact and public entities will be required to follow this practice. The Environment, Social, and Governance Report offers a snapshot of Environment, Social, and Governance performance and an opportunity to reflect on improvements that can be made to City plans, actions and outcomes to successfully manage Environment, Social, and Governance risks and opportunities going forward. Environment, Social, and Governance factors are increasingly being incorporated in the risk assessments of Toronto's credit rating agencies, insurance companies and other investors. As this trend is only expected to grow stronger, it is important to address these factors appropriately and with a sense of urgency.

This report includes key Environment, Social, and Governance highlights and achievements. Toronto continues to build and implement an integrated Environment, Social, and Governance approach, with responsible practices embedded across the organization to build a sustainable, transparent and resilient foundation in order to continue developing a government that is transparent, accountable, sustainability responsible, socially conscious, and minimizes Environment, Social, and Governance risks. This approach ensures progress is established on the commitments made to achieve Environment, Social, and Governance priorities.

The Executive Committee recommends that:

1. City Council determine that the Development Charges By-law have been properly applied to the development project located at 615 Kennedy Road.

2. City Council dismiss the complaint dated July 12, 2023, with respect to 615 Kennedy Road filed pursuant to Section 20 of the Development Charges Act, 1997.

3. City Council authorize City Staff to defend any appeal of City Council’s decision or non-decision to the Ontario Land Tribunal.

The Executive Committee held a statutory public meeting on January 30, 2024, and notice was given in accordance with the Development Charges Act.

This report responds to a complaint filed pursuant to Section 20 of the Development Charges Act, 1997, relating to a development project located at 615 Kennedy Road in Scarborough.

The development project consists of a 10-storey residential apartment building containing 215 dwelling units with two levels of underground parking. The complainant, 615 Kennedy Road Inc., objects to the amount of development charges determined in relation to permit issuance. The complainant applied for a building permit on December 21, 2021 to construct the development. A building permit for the development could not be issued as the proposed construction did not comply with all applicable law. The Building Code Act, 1992 (the “Act”) provides that a Chief Building Official must issue a building permit unless the proposed construction will contravene the Act, the building code or any other applicable law. However, the Act provides that the Chief Building Official may issue a conditional permit for any stage of construction, where the proposal complies with certain applicable laws and where it is the opinion of the Chief Building Official that an unreasonable delay in construction would occur should a conditional permit not be issued. Community Benefits Charges is applicable law for the purpose of issuance of a conditional building permit. The issuance of a conditional permit is at the sole discretion of the Chief Building Official pursuant to the Act.

The complainant requested a below grade conditional permit for the development on June 14, 2022, as the proposed construction still did not comply with all applicable law as required by the Act.   In accordance with City Council’s  conditional permit policy 2016.EX11.7, as further amended by 2023.EX1.6, the complainant entered into a Section 27 Development Charges Agreement with the City executed on April 24, 2023 (Section 27 Agreement).

The Section 27 Agreement stipulates that development charges are determined based on the “higher of” rates on the By-law in effect on the date of issuance of the first building permit or if applicable, rates frozen at site plan or rezoning application. The Section 27 Agreement only deals with the amount and timing of payment of development charges. Other applicable law requirements must be satisfied in order for a building permit to be issued. In respect of this application, the rates are determined by the By-law rates in effect on the date of first building permit issuance. In addition to development charges, the complainant was required to remit payment of a Community Benefits Charge. Pursuant to Article VI of Toronto Municipal Code Chapter 415 (Development of Land), where a Community Benefits Charges payment is required, this payment must be received prior to issuance of the first building permit.  The Development Charges By-law, requiring the payment of development charges and the Community Benefits Charge By-law, requiring the payment of Community Benefits Charges are applicable law for the issuance of a building permit, including a conditional building permit, under the Act.

While development charges were paid by the complainant, they did not submit payment of the Community Benefits Charges prior to the May 1, 2023 development charges rate increase and, consequently, the building permit was not issued prior to that date. By the time the Community Benefits Charges was paid, the amount of development charges were recalculated based on the new rates in effect at the time, and payment of the difference was requested pursuant to the Section 27 agreement executed by the owner and the City to issue the permit.  The complainant takes the position that they were not informed of the requirement to pay the Community Benefits Charges prior to the permit being issued, and since they paid development charges prior to May 1, 2023, they should not be subject to the increased rate.

According to their complaint, they relied solely on the terms of the Section 27 agreement which only speaks to the requirement to pay the development charges to issue the permit. They claim they were advised of the requirement to pay the Community Benefits Charges at the end of the business day on Friday, April 28, 2023, and there was not enough time for them to send the wire transfer before May 1st. The complainant is not taking issue with the application of the Development Charges By-law, but attempting to indirectly attack the application of applicable law in issuing a Building Permit respecting the payment of the Community Benefits Charges through a section 20 complaint. There is no error in applying the Development Charges By-law.

City staff have reviewed the complaint and are of the opinion that the Development Charges By-law was applied properly, and no error was made in determination of the applicable development charges. The complainant was aware of the requirement to pay the development charges and Community Benefits Charges in full at permit issuance prior to the May 1st increase and staff made several efforts to assist the complainant to ensure that the permit could be issued as it complied with all other applicable law.  This included expediting the appraisal of the site within two weeks to facilitate the calculation of the Community Benefits Charges which generally requires approximately six weeks to complete. Several communications were made between staff and the complainant over email and phone advising that the Community Benefits Charges payment must be made to issue the permit. Ultimately, the Community Benefits Charges payment was made on May 1st and development charges had to be recalculated due to indexing.

The Development Charges By-law provides the timing of calculation and payment of development charges to be determined by applying the rates in effect on the date that the building permit is issued. Prior to May 1st, the amount of development charges was determined to be $6,106,283.90. As the permit was not issued before May 1st due to the outstanding Community Benefits Charges payment, the development charges was recalculated and an additional $2,039,501.57 was requested by Toronto Building for permit issuance. To date, the complainant has not remitted further payment for development charges nor have they requested that the conditional permit be issued.  As such, the conditional building permit has not been issued. Since there was another rate increase on August 15, 2023, the development charge was recalculated again. Currently, the complainant would have to pay $2,548,547.92 to have the permit released. Furthermore, since a long period of time has passed and the requested permit is not an as-of-right permit, but rather, a request for a conditional building permit, the owner would have to demonstrate to the Chief Building Official that an unreasonable delay in construction still exists prior to issuing the permit.  Development charge rates are not a criteria for the consideration of issuing a conditional permit.

This report recommends that the complaint be dismissed. A decision or a non-decision of Council to dismiss the complaint may be appealed to the Ontario Land Tribunal. This report was prepared in consultation with the (Acting) Chief Building Official and Executive Director, Toronto Building and the City Solicitor.

The Executive Committee recommends that:

1. City Council authorize the General Manager, Toronto Shelter and Support Services, or their designate, to accept the donation of $92,675.88 from Private Giving Foundation for the City of Toronto.

2. City Council authorize the General Manager, Toronto Shelter and Support Services, or their designate, to negotiate and sign on behalf of the City a donor agreement with Private Giving Foundation or their designate, on terms and conditions satisfactory to the General Manager, Toronto Shelter and Support Services and in a form satisfactory to the City Solicitor.

3. City Council authorize the General Manager, Toronto Shelter and Support Services, or their designate, to allocate and disburse the donated amount to Robertson House Portfolio.

This report seeks approval from City Council to accept a donation from Private Giving Foundation in the amount of $92,675.88. The donation has been made to Toronto Shelter and Support Services’ Robertson House emergency shelter. Robertson House offers emergency shelter to women and their children experiencing homelessness.

The donation will be used as an opportunity to enhance the programming area of Robertson House. A welcoming, client-centred space for children’s programming helps to improve social, health and recreational outcomes of vulnerable families staying in the shelter program.

The value of this offer exceeds the $50,000 threshold for donation acceptance under the Donations to the City of Toronto for Community Benefits Policy. As a result, City Council approval is required to accept this donation.

The Executive Committee recommends that:

1. City Council refuse Imagination, Manufacturing, Innovation and Technology incentives for the following applications:

- 21 Don Roadway-Building 1A- CF EHL (21 Don Roadway) Holdings Inc. (Cadillac Fairview);

- 21 Don Roadway-Building 1B- CF EHL (21 Don Roadway) Holdings Inc.  (Cadillac Fairview); and

- 21 Don Roadway-Building 2A- CF EHL (21 Don Roadway) Holdings Inc. (Cadillac Fairview).

This report provides recommendations on Imagination, Manufacturing, Innovation, and Technology program applications for three proposed projects in East Harbour, an area of land on the east side of the Don River in Ward 14 (Toronto – Danforth).

The three Imagination, Manufacturing, Innovation, and Technology program applications were submitted by Cadillac Fairview on August 11, 2020, and are subject to the South of Eastern Community Improvement Plan, By-law 1324-2012, which was the bylaw in effect at the time of application.

Under this Community Improvement Plan, Imagination, Manufacturing, Innovation, and Technology applications for projects with an estimated construction value above $150 million require City Council approval. Due to the potential financial implications to the City of approving an Imagination, Manufacturing, Innovation, and Technology incentive for a project with a construction value exceeding $150 million, the City contracted with Hemson Consulting Ltd. to provide a third-party review of the subject applications.

Among other factors, staff’s assessment of the applications considers Hemson’s analysis (Attachment 2); the City’s aggregate investment in East Harbour and the surrounding area (in flood protection, transit, roads, and community infrastructure); Toronto’s fiscal position and priorities; and changes to land use planning permissions in East Harbour resulting from the issuance of Minister’s Zoning Order 329/22 (MZO).

For the reasons detailed in this report, staff recommends refusal of the three applications.

This report was prepared by the Economic Development and Culture division in consultation with City Planning, Legal Services, and Finance and Treasury Services divisions.

The Executive Committee recommends that:

1. City Council direct the Chief Planner and Executive Director, City Planning, in consultation with the General Manager, Economic Development and Culture and the Chief Financial Officer and Treasurer, to bring forward for City Council’s consideration, targeting the fourth quarter of 2024, a new City-wide Community Improvement Plan for a Financial Incentive Program consisting of development grants, in the form of Tax Increment Equivalent Grants for certain defined uses and Brownfield Remediation Tax Assistance, substantially addressing the policy considerations in the report (January 16, 2024) from the General Manager, Economic Development and Culture, the Interim Chief Planner and Executive Director, City Planning and the Chief Financial Officer and Treasurer, and the program parameters detailed in Attachment 1 to the report (January 16, 2024) from the General Manager, Economic Development and Culture, the Interim Chief Planner and Executive Director, City Planning and the Chief Financial Officer and Treasurer, including with respect to:

i. eligible uses – no eligibility for office space, except when linked to associated industrial buildings and except in limited circumstances within designated Employment Areas as defined in Toronto's Official Plan;

ii. basis for the provision of Tax Increment Equivalent Grants – grant acts as one of several factors contributing to investment decisions, not necessarily the primary decisive factor;

iii. quantum and term of  Tax Increment Equivalent Grants – basic grant equivalent to 60 percent of the municipal tax increment payable over a five-year period;

iv. approval and financial control requirements - all applications to be approved by City Council and considered as a group no less than once per year; provisions to ensure approved projects are built within certain timelines; expiry of the program after 10 years; inclusion of a program budget target or upset limit with flexibility to address exceptional projects or circumstances, etc.;

v. local employment plan requirements; and

vi. mechanisms to support City goals related to sustainability, job quality and access, and community wealth building.

2. Until such time as any new Community Improvement Plan By-law indicated in Recommendation 1 above is approved and in force, City Council direct the General Manager, Economic Development and Culture, the Chief Planner and Executive Director, City Planning and the Chief Financial Officer and Treasurer to bring forward, no less than annually, as a group: (i) for City Council’s information, notice of any Imagination, Manufacturing, Innovation and Technology development grants approved by the General Manager, Economic Development and Culture under their delegated authority for projects meeting all program eligibility requirements and with a construction value of less than $150,000,000; and (ii) for City Council’s approval, any complete applications for Imagination, Manufacturing, Innovation and Technology development grants for projects with a construction value greater than $150,000,000.

3. City Council request the Chief Planner and Executive Director, City Planning, in consultation with the General Manager, Economic Development and Culture, as part of the Office Space Needs Study to explore opportunities to provide financial incentives, policies and other options to support the conversion or adaptation of vacant office space into other non-residential employment uses, including the potential to utilize as a funding source for such efforts savings from lower than forecast Tax Increment Equivalent Grants payments to office developments covered by an Imagination, Manufacturing, Innovation and Technology Program Financial Incentive Agreement experiencing high vacancy rates.

The purpose of this report is to share the findings of a review of the Imagination, Manufacturing, Innovation, and Technology Financial Incentive Program and the results of a Council directed assessment of the program’s Local Employment Requirement points-based pilot.

The review of the Imagination, Manufacturing, Innovation, and Technology Financial Incentive Program considered the City’s planning and economic development priorities and financial position (including directions from the Updated Long-Term Financial Plan); assessed current and anticipated market conditions (especially with respect to office and industrial sector requirements); and includes an independent third-party evaluation of the Program’s performance, costs and benefits to date informed by consultation with stakeholders.

Drawing on the review's findings, this report recommends that Council authorize staff to develop a more targeted and far less costly employment space development incentive to replace the Imagination, Manufacturing, Innovation, and Technology Financial Incentive Program, focused on the development of commercial/industrial space rather than office space, for Council’s consideration, by the fourth quarter of 2024.

Established in 2008, the Imagination, Manufacturing, Innovation, and Technology Financial Incentive Program has been one of the City's principal measures to incent business development and support job retention and growth, complementing land use planning and property tax policies.

The Imagination, Manufacturing, Innovation, and Technology Financial Incentive Program provides incentives in the form of Tax Increment Equivalent Grants to support the new construction or major renovation of buildings in targeted employment sectors and for certain uses throughout Toronto. The Program also includes an added grant element for Brownfield Remediation Tax Assistance. The provision of development incentives through Imagination, Manufacturing, Innovation, and Technology Financial Incentive is enabled by a Community Improvement Plan by-law authorized under Section 28 of the Planning Act.

Typically, projects approved for Imagination, Manufacturing, Innovation, and Technology Financial Incentive Program receive grants over a ten-year period equivalent to 60% of the increased property taxes paid resulting from the new construction or renovation completed through the development.

Since its inception, 74 projects have been approved for Imagination, Manufacturing, Innovation, and Technology Financial Incentive Program (and/or Brownfield Remediation Tax Assistance) development incentives, with a total construction value of approximately $5.9 billion. Together, these projects are forecast to yield $1.3 billion in new incremental property taxes during the 10-year (or with Brownfield Remediation Tax Assistance up to 12 year) term of their applicable Imagination, Manufacturing, Innovation, and Technology Financial Incentive Program Financial Incentive Agreement, while receiving $729 million in grants from the City, resulting in net municipal tax revenue of $571 million. The majority (84%) of grants issued or committed to date through the Imagination, Manufacturing, Innovation, and Technology Financial Incentive Program are for office space developments.

The Executive Committee recommends that:

1. City Council authorize the Deputy City Manager, Infrastructure Services, or their designate, in consultation with the Chief Executive Officer, Toronto Transit Commission, to finalize negotiations, enter into and execute the Finch West Light Rail Transit - Train Operating and Services Agreement with Metrolinx and the Toronto Transit Commission, based on the Term Sheet set out in Attachment 1 to the report (January 16, 2024) from the Executive Director, Transit Expansion, and any such necessary ancillary or related agreements, amendments and renewals (including with any other relevant parties), all substantially in accordance with the Term Sheet and on such other terms and conditions satisfactory to the Deputy City Manager, Infrastructure Services, the Chief Financial Officer and Treasurer and any other relevant officials, and in a form satisfactory to the City Solicitor.

2. City Council forward the Item to the Toronto Transit Commission Board.

The Finch West Light Rail Transit is an 11-kilometre light rail transit line that will run along the surface of Finch Avenue West between the existing Finch West Subway Station and the new Humber College Station, with 18 stops that will link to Line 1 (Yonge-University line), Toronto Transit Commission (TTC) buses, as well as GO Transit, MiWay, Viva, and Zum transit services. The Province, through their agency Metrolinx, has ownership of the Finch West Light Rail Transit and is funding the construction and delivery of the project, as established by the 2012 Light Rail Transit Master Agreement.[1] As per the Master Agreement, the City is responsible for funding operations and day-to-day maintenance (i.e., non-lifecycle maintenance) of the Finch West Light Rail Transit and the TTC is responsible for operating the Finch West Light Rail Transit. The City will be reimbursed for annual operating funding over three years beginning in 2024 for the Finch West Light Rail Transit through the Ontario-Toronto New Deal. At this time, Metrolinx anticipates that the Finch West Light Rail Transit will achieve Substantial Completion and be ready for revenue service operation by the end of 2024.

A clear understanding and agreement between the City, TTC and Metrolinx on the operating procedures, funding obligations, approvals, dispute resolution and decision-making processes is critical to the successful implementation and operation of the Finch West Light Rail Transit. This report recommends terms negotiated by the City and TTC with Metrolinx that expand on the terms of the 2021 Revised Agreement in Principle[2]. The terms in this report outline the details that will govern the City’s funding obligations, the TTC’s operating performance and maintenance requirements, revenue and payment processes, renewal and dispute terms, and processes for resolving non-fulfillment of obligations. As such, this report seeks City Council authority for City staff to execute the Finch West Light Rail Transit Train Operating and Services Agreement with the TTC and Metrolinx, based on the key terms identified in this report and set out in Attachment 1. Should City Council approve the recommendations in this report, the Train Operating and Services Agreement is expected to be executed in the first quarter of 2024.

[1] https://www.toronto.ca/legdocs/mmis/2012/cc/bgrd/backgroundfile-53862.pdf
[2] https://www.toronto.ca/wp-content/uploads/2021/08/9672-revised-ontario-toronto-agreement-in-principle-2021.pdf

The Executive Committee recommends that:

1. City Council endorse, in principle, the Surface Transit Network Plan as depicted in Attachment 1 to the report (January 16, 2024) from the General Manager, Transportation Services and City Council direct the General Manager, Transportation Services to use the Surface Transit Network Plan as the basis of Transportation Services’ planning and programming of surface transit priority projects.

2. City Council direct the General Manager, Transportation Services, in consultation with the Chief Planner and Executive Director, City Planning and the Chief Executive Officer, Toronto Transit Commission, to initiate three additional roadway-specific studies, public consultation, and design of the following individual roadways proposed for surface transit priority, and to bring study findings and recommendations to the appropriate Committee and City Council for approval at the appropriate time:

a. Finch Avenue East between Victoria Park Avenue and McCowan Road;

b. Dufferin Street between Wilson Station and Dufferin Gate;

c. Lawrence Avenue East between Victoria Park Avenue and Morningside Avenue; and

d. Steeles Avenue West between Pioneer Village Station and Bathurst Street.

3.  City Council request the General Manager, Transportation Services, as part of Recommendation 2.b. above, the roadway specific study for Dufferin Street between Wilson Station and Dufferin Gate, to take into account the projected level of multi-residential development intensification along Dufferin Street and consideration for additional multi-modal trips from residents; and conversely, request that all future planning processes and associated studies along this corridor take into account potential future implementation of the RapidTO: Surface Transit Network Plan along Dufferin Street.

4. City Council direct the General Manager, Transportation Services, in consultation with the Chief Planner and Executive Director, City Planning and the Chief Executive Officer, Toronto Transit Commission, to consult with the local Councillors, Duke Heights Business Improvement Area and post-secondary institutions to identify key considerations and stakeholders that will inform the roadway-specific study, public consultation, and design for Steeles Avenue West between Pioneer Village Station and Bathurst Street.

5. City Council direct the General Manager, Transportation Services to forward a copy of the report (January 16, 2024) from the General Manager, Transportation Services to the Toronto Transit Commission Board.

The General Manager, Transportation Services and the Director, Planning, Design and Management, Transportation Services gave a presentation on RapidTO: Surface Transit Network Plan.

While the majority of transit planning efforts in the City of Toronto are focused on higher-order transit initiatives, bus and streetcar routes provide transit services across most parts of the city as complements to, and extensions of, the higher-order transit network. Currently, 70 percent of all Toronto Transit Commission journeys include a surface transit trip.

Improving the reliability of bus and streetcar transit supports the City's priority of keeping Toronto moving. A reliable surface transit network is essential to enable people to move around the city and access employment, business/retail, education and recreational/cultural facilities, particularly for Neighbourhood Improvement Areas and equity-deserving communities. Improving transit services in the inner suburbs is a key recommendation of the City of Toronto’s Poverty Reduction Strategy. Supporting transit reliability is critical for meeting the City’s TransformTO Climate Action Strategy’s goal of 75 percent of trips under a 5 kilometres area walked, biked, or by transit by 2030.

The Official Plan identifies that “recognizing their importance, the network of bus and streetcar routes will be enhanced to improve service reliability and travel times by reducing interference from other road traffic through the implementation of transit priority measures, and by improving operational efficiency and rider convenience by such means as providing more frequent service.”

The Surface Transit Network Plan aims to create a comprehensive network of surface transit priority corridors along arterial roads through the use of tools such as reserved lanes, intersection and signal improvements and customer comfort improvements at transit stops to prioritize public transit in the City's road network. The Surface Transit Network Plan was referred to as the RapidTO: Surface Transit Network Plan during the consultation process.

This report seeks City Council endorsement in principle of the overall Surface Transit Network Plan, provides a status update on four projects where roadway-specific studies have been completed or initiated, seeks City Council endorsement of the initiation of three (3) additional roadway-specific studies in the near-term (2024-2025), and responds to a related request from Infrastructure and Environment Committee.

Staff from Transportation Services, City Planning and the Toronto Transit Commission worked collaboratively to develop the Surface Transit Network Plan with consideration for roadways identified in the City of Toronto Official Plan's Surface Transit Priority Network (Map 5), the Toronto Transit Commission's 5-Year Service Plan and 10-Year Outlook, as well as other bus and streetcar routes with more than 20,000 daily riders.

In developing the plan, feedback was received from over 7,100 participants over two phases of consultation with local community representatives and the public:

In Phase 1 (October to November 2021), participants were asked to rate and provide feedback on the importance of evaluation criteria in selecting bus and streetcar roadways to prioritize. There was overall support for the initial evaluation criteria presented, and a new criterion for connectivity to Major Destinations was added as a result of the consultation feedback.

In Phase 2 (March to April 2022), participants were asked to provide feedback on the list of roadways to be prioritized over the next ten years. Overall, participants expressed support for the initial twenty (20) roadways. Many survey respondents expressed support for accelerated implementation and some frustration about the need to undertake more studies for individual roadways.

Assessment of technical data and public input helped inform the identification, evaluation, and prioritization of 47 candidate roadways for surface transit improvements. As a result, twenty (20) priority roadways have been identified to be included in the Surface Transit Network Plan over the next ten years. Attachment 1 shows the location of the Surface Transit Network Plan priority roadways, along with the 27 candidates for long-term planning studies across the City of Toronto.

Corridors identified for roadway-specific studies will be subject to further feasibility analysis to determine suitable surface transit priority measures and development of design options. Public consultation for each corridor will strive to engage residents and local community groups through online and in-person consultation activities, where possible. Staff will work with Councillors' offices to identify key groups, such as residents, businesses and other community representatives, that should be included in outreach and notification efforts. The public will have an opportunity to review and provide feedback on proposed design options.

Confirmation of the preferred design will be developed with both technical

analysis and community input. The preferred option would be recommended in an

implementation report to the appropriate Committee for Council approval,

before proceeding to implementation.

As previously directed by Council, there are four (4) projects where roadway-specific studies have been completed or initiated associated with the Surface Transit Network Plan: Eglinton Avenue East, Jane Street, Steeles Avenue, and Victoria Park Avenue. This report contains updates on each of these studies.

Subject to City Council approval of the Surface Transit Network Plan, three (3) additional roadway-specific studies are proposed to be initiated in the near-term (2024-2025) to move forward on feasibility study, design, and community consultation for the following roadways:

- Finch Avenue East between Victoria Park Avenue and McCowan Road;

- Dufferin Street between Wilson Station and Dufferin Gate; and

- Lawrence Avenue East between Victoria Park Avenue and Morningside Avenue. Transit signal priority and improving accessibility at bus stops will be considered east of Morningside Avenue.

Finch Avenue East, Dufferin Street, and Lawrence Avenue East were identified as priority corridors in Toronto Transit Commission’s 5-Year Service Plan and 10-Year Outlook. Dufferin Street and Lawrence Avenue East were identified as high priority corridors under the Surface Transit Network Plan evaluation framework. The above referenced sections of these roadways are being recommended for near-term study to leverage potential opportunities for delivery as part of upcoming capital projects. Initiation of feasibility studies for the remaining segments of Finch Avenue East and Lawrence Avenue East will be considered at a future time.

Each roadway-specific study will require two to three years to undertake feasibility study, design, and community consultation prior to seeking City Council approval for implementation of the proposed changes which will include a phased approach to accelerate implementation of shorter segments of the roadway, where possible.

While the Surface Transit Network Plan looks at delivering large scale surface transit improvements on priority roadways, there are other concurrent programs that aim to implement localized transit priority measures city-wide to enhance service.  Actions include:

- Delivering up to 12 stand alone queue jump lanes in the next 5 years;

- Implementing transit signal priority to 50 locations annually; and

- Implementing targeted regulatory measures at 10 locations per year.

More information about these actions along with other transit improvements will be presented in the Toronto Transit Commission’s 5-Year Service and Customer Experience Action Plan to be submitted to the Toronto Transit Commission Board in the first quarter of 2024.

In partnership with Toronto Transit Commission and City Planning, Transportation Services will report to the appropriate Committee and City Council at key milestones as part of the implementation of the Surface Transit Network Plan.

The Executive Committee recommends that:

1. City Council adopt the confidential instructions to staff in Confidential Attachment 1 to the report (January 16, 2024) from the Deputy City Manager, Corporate Services.

2. City Council authorize the public release of Confidential Attachment 1 to the report (January 16, 2024) from the Deputy City Manager, Corporate Services once adopted by City Council.

3. City Council authorize the public release of Confidential Attachment 2 to the report (January 16, 2024) from the Deputy City Manager, Corporate Services following the closing of any legal and financial transactions.

This report provides an update and recommendations around the next phase of procurement and construction of the George Street Revitalization project which are further described in detail in Confidential Attachment 1 and Confidential Attachment 2.

In 2013, Toronto City Council approved proceeding with the George Street Revitalization project, which would include a new facility to replace the existing Seaton House men's shelter and facilitate the co-location of a long-term care home, shelters services, affordable housing, and a community service hub. City Council also approved delivering the project through an alternative financing and procurement (public-private partnership, "P3") model with Infrastructure Ontario and Lands Corporation (known as Infrastructure Ontario, "IO") acting as procurement lead.

The George Street Revitalization project is a core project of the Downtown East Action Plan and advances several initiatives to address the barriers and needs of community members from equity-deserving groups who have a history of accessing services in Toronto's Downtown East area.

The proposed George Street Revitalization project is on George Street between Gerrard Street East to the north and Dundas Street East to the south. George Street is located in the Garden District in downtown Toronto and is also part of the Moss Park neighbourhood, one of City’s most animated, diverse and dense communities with a historic role as an inclusive place for vulnerable populations.

The Executive Committee recommends that:

1. City Council receive the Item for information.

Please find attached an extract from the Minutes of the Public meeting of the Toronto Police
Services Board held on October 19, 2023, regarding City Council Decision – MM11.37 – Keeping Toronto Safe from Hate.

The Board agreed that a copy of this Minute be forwarded to the Executive Committee for
information.