Minutes Confirmed on April 9, 2024

The Executive Committee:

1. Requested the City Manager include analysis and consideration of driver wages in the forthcoming report on options regarding vehicle-for-hire licensing, and that the City Manager report to the Executive Committee no later than fourth quarter of 2024.

At the December 13-15, 2023 meeting of City Council, the City Manager was requested to report to Executive Committee on the local impact of vehicle-for-hire and private transportation industries, taking into consideration congestion, climate targets, public transit and other factors.

Since that time, I’ve had conversations with drivers who have told me wages and working conditions are their top concerns. These drivers are often newcomers hoping to earn enough to pay their rent and put food on the table. Recently, an independent report validated their concerns by showing that ride-hailing company drivers earned a median wage of $6.37 per hour, far lower than Ontario’s minimum wage of $16.55 per hour. Ride-hailing companies disagree, citing a higher hourly wage, though there is concern that their accounting does not include “idle time” between rides. City Council would benefit from an analysis from City staff of the wages of these workers.

To allow City staff the necessary time to conduct their own analysis of the data related to the findings in the independent report, I am recommending the City Manager be granted additional time to prepare his report.

The Executive Committee recommends that: 

1. City Council authorize the City Manager and the Executive Director, World Cup Hosting 2026, in consultation with the Chief Financial Officer and Treasurer, to:

a. receive funds and to negotiate and enter into any contribution agreements, including any amendment, renewal or extension agreements and any ancillary documents with the Government of Canada, Government of Ontario, and/or agencies or corporations of the Federal and Provincial Governments in support of the FWC26 on terms and conditions satisfactory to the City Manager and the Executive Director, World Cup Hosting 2026, and in a form satisfactory to the City Solicitor; and

b. enter into agreements with third party non profit and charitable organizations to distribute the funding in accordance with the provisions of those agreements, on terms and conditions satisfactory to the City Manager and the Executive Director, World Cup Hosting 2026 and in a form satisfactory to the City Solicitor.

2. City Council authorize the City Solicitor to approve such increases to the current retainer agreement with Osler, Hoskin & Harcourt LLP for the provision of legal services, including those for which Committee or City Council approval would normally be required under City of Toronto Municipal Code Chapter 195, Purchasing, as may be required for the support of FWC26, including for preparation, construction, operations and any resulting claims, funded through the approved FWC26 Toronto budget, to a limit of $600,000, with any further recommended increases to be reported to the Executive Committee for approval pursuant to the regular process for approval under the City’s by-laws.

3. City Council authorize the City Manager and Executive Director, World Cup Hosting 2026, in consultation with the Chief Financial Officer and Treasurer, to negotiate and enter into and/or amend or extend as required, any necessary agreements with the Greater Toronto Airport Authority and PortsToronto (Billy Bishop Toronto City Airport) reflecting the FIFA Host City Agreement obligations in support of Toronto's hosting of the FWC26 including but not limited to financing, event planning and coordination, and airport operations, on terms and conditions satisfactory to the Mayor, the City Manager and the Executive Director, World Cup Hosting 2026 and in a form satisfactory to the City Solicitor.

4. City Council authorize the City Manager and the Executive Director, World Cup Hosting 2026, to administer the FWC26 Toronto Public Engagement and Communications Plan, as described in the supplementary report (February 26, 2024) from the City Manager and the Executive Director, World Cup Hosting 2026.

5. City Council request the Chief Financial Officer and Treasurer to identify the costs of all City FWC26 activities in preparation for the 2025 Budget process.

6. City Council request the City Manager to report back in the third quarter of 2024 with a comprehensive revenue plan to maximize financial opportunities for the City of Toronto associated with hosting the 2026 FIFA World Cup.

The City Manager and the Executive Director, World Cup Hosting 2026 gave a presentation on FIFA World Cup 2026 toronto.

Further to City Council's previous consideration in July 2022 (EX34.8), the City Manager and Executive Director, World Cup Hosting 2026 will be submitting a report to Executive Committee before its meeting on February 29, 2024 that provides an update on hosting the FIFA World Cup 2026 in Toronto including: planning, financial status, economic and community benefits, and intergovernmental negotiations.

On February 4, 2024 FIFA announced that the City of Toronto will host six matches in the FIFA World Cup 2026 (FWC26), kicking off on June 12, 2026, with the first-ever FIFA World Cup™ men’s match in Canada and featuring the opening match of Canada’s Men’s National Team. Toronto will also host a Round of 32 knockout game on July 2, 2026, adding to the excitement of hosting this event. This marks the first time Canada will host the FIFA World Cup™, and the event will engage millions of fans from around the world.

Toronto's hosting of the FWC26 will bring positive economic and cultural benefits for the city, particularly in the tourism, hospitality, and entertainment sectors. Based on hosting five matches, the total net economic activity[1] expected to be generated by the FWC26 in Toronto is:

- $392 million GDP for the City of Toronto

- Tax revenues totaling $118.9 million in the Toronto region

- $456 million GDP for the province of Ontario

- Tax revenues totaling $138.9 million within Ontario

Toronto's journey to hosting the FWC26 began in 2018 when FIFA awarded hosting the FIFA World Cup 2026 to a joint bid by Canada, Mexico and the United States, with matches to be staged across 16 cities in North America. On June 16, 2022, the City of Toronto was announced as an official Host City for the FWC26. Since that time, planning has actively been underway. This report provides an update on the work to date for Toronto's hosting of the FWC26 including: planning, financial status, economic and community benefits, and intergovernmental negotiations.

With the recent announcement of the match schedule and confirmation that Toronto will host six matches, planning assumptions, cost estimates, revenue and benefit opportunities are being reviewed by City staff.  As planning requirements become more defined, current projections estimate the operations and capital costs to be incurred locally in Toronto to be approximately $380 million (gross). This represents an increase from budget estimates presented to City Council in July 2022(EX34.8). The cost is expected to be shared between the City and the Governments of Ontario and Canada. The Province of Ontario has conditionally committed up to $97 million to support Toronto’s efforts to host the FWC26. The Government of Canada is committed to supporting Toronto in the successful delivery of the FWC26. Although specific federal financial commitments have not yet been confirmed, the Government of Canada continues to work with event parties to ensure that Canada delivers a successful, safe and secure event in 2026 in keeping with their funding policy for hosting International Sport Events (see Financial Impact Section).

The planning and delivery of a project of this size and scope and with specific timelines requires a significant number of contracts with third parties for a variety of goods and services (i.e. capital work, project management, mobility plans, ancillary event execution, venue rentals and services, etc.). To ensure efficiencies for the FWC26 Toronto Secretariat, City Divisions, and contractors and to maintain the required project timelines, this report recommends that Council authorize the City Manager and Executive Director, World Cup Hosting 2026, subject to the budget as approved by Council, to procure, negotiate, award and enter into necessary agreements related to FWC26 Toronto project deliverables.

This approach is similar to authorities authorized by Council in the past to facilitate the process for management of a large project with a significant number of third-party service provider agreements and critical inflexible timelines. Precedent therefore exists for this recommended approach. Approval of these recommendations will mitigate the risk of delay to the project to ensure the City meets FIFA timelines and requirements.

[1] Benefit projections as of October 2023 Sport Tourism Economic Assessment Model (STEAM)

The Executive Committee:

1.  Referred the Item back to the Chief Financial Officer and Treasurer and:

a. directed the Chief Financial Officer and Treasurer to report prior to the 2025 Budget Process on the following:

1. results of public communications and stakeholder engagement, in consideration of any other planned consultations, such as the Stormwater Charge and Water Service Charge;

2. refined estimates and design scenario(s) as applicable; and

3. final implementation plan for 2025, with consideration of any additional revenue tools secured as a result of negotiations with the Provincial and/or Federal Governments; and

b. requested the City Manager and the Chief Financial Officer and Treasurer to undertake a comprehensive parking inventory and report on any additional authorities needed to develop the report in Part 1.a. above, as needed.

At its meeting on September 6, 2023, as part of Item EX7.1: Updated Long-Term Financial Plan (LTFP), City Council directed staff to report back on the development of a levy on commercial parking within the City. It was requested that the report outline a recommended tax, collection and enforcement design, estimated revenues, and required timelines for implementation in 2025.

This report identifies and seeks Council’s endorsement on the guiding design principles of a commercial parking levy and provides information that responds to Council’s requests. Following the consideration of this report, staff will undertake the development of a comprehensive parking inventory and conduct additional engagement with stakeholders to further refine and finalize implementation plans, and report back with a status update in advance of the 2025 budget process.

To develop overall design principles, City staff engaged a third-party consultant, Access Planning Ltd., to advise on how to best advance a commercial parking levy, based on their previous experience and expertise in a related file in Vancouver. Access concluded that a commercial parking levy has sufficient policy and revenue rationale to introduce within Toronto and recommended keeping the rules and applicability of the parking levy as simple as possible during the launch. As the City collects more information on the economic and social impacts of the levy, further refinements to the program may be considered to optimize policy objectives.

As a result of this research, staff are recommending the following parking levy design principles in the application of a commercial parking levy:

1.    Apply a commercial off-street parking levy to the entire City of Toronto;

2.    Include both private and publicly owned or operated commercial properties;

3.    Include both unpaid and fee-paid parking facilities including surface parking, underground parking and parking garages;

4.    Include a minimum area threshold, which provides an automatic exemption for the first 300m2  for all properties (equivalent to approximately 10 parking spaces) to reduce the burden of the levy on small businesses; and

5.    Apply a two-zone rate structure based on geographic area:

a.    Zone A – Downtown & Central Waterfront

b.    Zone B – Entire City of Toronto, excluding Zone A.

The proposed parking levy will apply to properties within the Commercial tax class, and the levy will be calculated based on the total areal extent of the property that is used for parking multiplied by a per-square metre rate. An exemption from the levy will apply for the first 300 square metres for all properties.  In addition to the mandatory statutory exemptions from taxation established under Section 268 of the City of Toronto Act, it is recommended that the property tax exemptions of Section 3 of the Assessment Act also apply for various property types. Staff are also recommending refining the definition of “parking area” to exclude certain situations where parking is directly associated with a business use, e.g., vehicle  storage for certain commercial operations, as explained later in the report.

The effectiveness of billing and collecting a parking levy will rely on the City's ability to develop and maintain an accurate inventory of parking areas. As a next step, staff will continue to identify opportunities to compile this information using a combination of approaches and multiple data sources, as there is no single source of information available at this time. This may include geographic data, on-site inspections, data from the Municipal Property Assessment Corporation (MPAC), and owner-supplied information through self-reporting. As part of this report, staff are seeking authorization to engage with third-party resources, as required, to successfully complete the development of a parking inventory. Staff have previously advised that it may take up to 12-18 months to develop the inventory, modify billing systems, complete testing, and notify all commercial property owners in advance of implementation.

Implementation of a commercial parking levy is expected to impact stakeholders and economic and business activities. Following Council’s endorsement of the overarching design principles identified in this report, staff will further engage with the industry on potential impacts. Overall, the introduction of a parking levy is expected to have a positive impact on City priorities and objectives, including reducing congestion and positively contributing to climate action by encouraging Torontonians to use transit or other means to travel. The parking levy will also positively contribute to the City’s multi-year budgeting strategy and long-term financial sustainability. Preliminary estimates based on the proposed design principles indicate the City may generate gross revenues from $100 million to $150 million annually. These estimates have been reflected in the City’s enhanced multi-year budget modelling introduced in 2024 and are intended to offset one-time bridging actions applied to the 2024 budget that enabled critical investments in transit services.

The Executive Committee recommends that:  

1.  City Council direct the Deputy City Manager, Corporate Services to work with the Deputy City Manager, Development and Growth Services, the Chief Executive Officer, CreateTO, the President, Toronto Parking Authority, the Executive Director, Housing Secretariat, the Chief Planner and Executive Director, City Planning, and the Executive Director, of Transit Expansion Division, to undertake a review of all off-street, transit oriented, City-owned parking facilities that may support Council's housing, community or fiscal goals and better align municipal parking services to City and Provincial planning policies, and to report back to City Council by the fourth quarter of 2024 with a list of priority sites, timelines and resource requirements for due diligence to determine 'parking-to-homes' and/or community infrastructure opportunities.  

2.  City Council request the Deputy City Manager, Corporate Services to work with the Deputy City Manager, Development and Growth Services, the Chief Executive Officer, CreateTO, the Chief Executive Officer, Toronto Transit Commission, the Executive Director, Housing Secretariat, and the Chief Planner and Executive Director, City Planning, to undertake a review of all existing and future Toronto Transit Commission stations for redevelopment opportunities that may support Council's housing, community, transit service or fiscal goals, and to report back to City Council by  the fourth quarter of 2024 with a list of priority sites, timelines and resource requirements for due diligence to determine better use of transit sites.  

3.  City Council request the Deputy City Manager, Corporate Services to work with the Deputy City Manager, Development and Growth Services, the Chief Executive Officer, CreateTO, the Executive Director, Housing Secretariat, the Executive Director, Transit Expansion, and the Chief Planner and Executive Director, City Planning, to identify City-owned real estate assets suitable to be included in Transit Oriented Communities along current or future transit expansion projects, and to report back to City Council by fourth quarter of 2024 with a list of priority sites, timelines and resource requirements for due diligence to maximize housing and community goals.

4.  City Council direct the Deputy City Manager, Corporate Services to work with the Deputy City Manager, Development and Growth Services and the Chief Executive Officer, CreateTO, to identify funding and resource requirements to undertake the due diligence activities for the review of City-owned Transit-Oriented Parking Lots, City Lands adjacent to Provincial Transit Sites and the Intensification of  Toronto Transit Commission stations, and submit the funding needs through the City's capital budget process. 

5.  City Council direct the Deputy City Manager, Corporate Services, in consultation with the Deputy City Manager, Development and Growth Services, the Chief Executive Officer, CreateTO, the General Manager, Parks, Forestry and Recreation, the Chief Planner and Executive Director, City Planning, and the Executive Director, Housing Secretariat, to undertake a review of Parks, Forestry and Recreation’s facilities and relevant legislative, Official Plan and Municipal Code provisions to enable opportunities to co-locate housing, including rent-geared-to-income, affordable rental and rent-controlled market rental homes, with community recreation facilities in support of City Council's housing goals, and to report back to City Council by the first quarter of 2025 with an outline of legislative and planning matters to be addressed, priority sites for potential housing opportunities and resource requirements for further due diligence. 

With the magnitude of the City’s unfunded capital program and the cost of generational programs such as the housing plan and climate action initiatives, the Long-Term Financial Plan identified the City’s real estate assets as a source for greater value potential. Specifically, evaluating underutilized real estate and deploying strategies to maximize the long-term value of assets for City benefits and fiscal sustainability. This includes fully leveraging the value from surplus lands no longer required for municipal services and from underutilized City properties with higher and better use and public benefit potential (i.e., for housing or mixed-uses). 

This report responds to recommendation 5.d. from item 2023.EX7.1 - Updated Long-Term Financial Plan that was adopted by City Council in September 2023:

"…to report back in advance of City Council’s consideration of the Mayor’s proposed 2024 budget on a review of all City-wide surplus and underutilized real estate assets with a recommended strategy for disposition or change in use as required, with priority consideration given to opportunities which may: 

- Be leveraged to support affordable housing initiatives;

- Enhance the City’s revenue generating potential and/or contribute to the City’s goals of long-term financial sustainability; or,

- Allow for joint ventures or partnerships which benefit the local community".

Through EX9.3 - Generational Transformation of Toronto's Housing System to Urgently Build More Affordable Homes, a list of 92 City-owned properties (both housing ready and with housing potential) were identified to support new affordable housing targets - which responds in part to this recommendation.

In terms of additional real estate portfolio opportunities, the vast majority of City-owned real estate is operationally required by City Divisions, Agencies and Corporations to deliver municipal services. The City does not have an abundance of properties deemed 'surplus' that are both no longer required for municipal service delivery and prime for significant real estate development. However, the City does have many opportunities within its broader real estate portfolio of underutilized properties that can be leveraged and/or redeveloped for higher and better uses, including new housing and mixed uses, co-locating municipal services and/or monetization opportunities.

Based on the City's real estate model, the mandates for CreateTO and the Corporate Real Estate Management (CREM) division include working together to continuously assess the City's mix of real estate assets (i.e., opportunities to buy, sell, lease, enter into partnerships, attract add-on investments, etc.) to enable the City's evolving service needs, drive 'City building opportunities' and be fiscally prudent.

Through initiatives such as the workplace modernization program (ModernTO), the City's housing plan and the plan for a new Etobicoke Civic Centre as a complete community, the City is already making better use of its real estate. These strategies opened opportunities for new affordable housing, complete communities, broad-based partnerships and long-term fiscal sustainability, and there continue to be opportunities to further this work.

This report identifies three broad real estate opportunities that could support city building, the City's housing plan and fiscal sustainability:

1. Transit-Oriented Parking Lots;

2. City-Owned Land Adjacent to Provincial Transit Sites; and

3. Intensification of Toronto Transit Commission (TTC) Stations.

If approved, the Deputy City Manager, Corporate Services will collaboratively work with partners including the Deputy City Manager, Development and Growth Services, Chief Executive Officer, CreateTO, Chief Executive Officer, Toronto Transit Commission, President, Toronto Parking Authority, Executive Director, Housing Secretariat, Executive Director, Transit Expansion Division and the Chief Planner and Executive Director, City Planning, to identify and consider real estate opportunities that could support Council's housing, community and/or fiscal sustainability goals. This incudes prioritization and a multi-year plan with funding and resource requirements.

Determining the best city building outcome for any City-owned property requires significant due diligence, planning analysis, financial analysis, stakeholder engagement and the development of appropriate business cases for a change in use before coming to Council for subsequent approvals. Further details regarding opportunities in the City-wide real estate portfolio are provided in this report.

The Executive Committee recommends that:

1. City Council reaffirm the policy that maintaining the existing system in a state of good repair is the first priority for investment in transportation.

2. City Council request the Chief Planner and Executive Director, City Planning, in consultation with the Executive Director, Transit Expansion Division, the General Manager, Transportation Services, the Head, Strategy and Foresight, Toronto Transit Commission and other divisions as appropriate, to report back to City Council in third quarter of 2025 on a comprehensive review of Map 4 Higher Order Transit Corridors of the Official Plan to:

a. identify new corridors that would address identified gaps in future higher-order transit service;

b. review existing proposed corridors which may not warrant future higher-order transit service; and

c. propose priorities for advancing work on higher-order transit corridors.

3. City Council request the Chief Planner and Executive Director, City Planning, in consultation with the Executive Director, Transit Expansion Division, the General Manager, Transportation Services, the Head, Strategy and Foresight, Toronto Transit Commission and other divisions as appropriate, to report back to City Council in third quarter of 2025 on a review of Map 3 Right-of-Way Widths Associated with Existing Major Streets of the Official Plan to ensure Map 3 reflects appropriate Right of Way dimensions for potential Bus Rapid Transit and Light Rapid Transit services in the revised Official Plan Map 4, where appropriate.

4. City Council request the Chief Planner and Executive Director, City Planning, the General Manager, Transportation Services, and the Head, Strategy and Foresight, Toronto Transit Commission to advance surface transit priority measures across the City.

5. City Council request the Chief Planner and Executive Director, City Planning and the Executive Director, Transit Expansion, to:

a. work with the Province to advance City interests in the current Metrolinx work on the Sheppard Subway Extension Study; and

b. request Metrolinx to advance planning of a Finch West Light Rapid Transit extension to Woodbine and beyond to Pearson International Airport.

6. City Council request the Chief Planner and Executive Director, City Planning and the Executive Director, Housing Secretariat and other divisions as appropriate, to explore opportunities to advance more affordable and non-market housing around new and existing transit stations and corridors to support the City’s Housing Strategy and build complete communities, including in partnership with Infrastructure Ontario and Metrolinx.

This report provides a high-level assessment of the higher-order transit corridors identified in Official Plan Map 4 Higher Order Transit Corridors in order to provide a comprehensive policy context for on-going discussions on individual transit projects. The report responds to several motions from Council regarding advancing specific proposed higher-order transit projects: Finch LRT west extension to Woodbine GO Station, Waterfront West LRT, and western and eastern extensions to the Sheppard Subway. The report recommends further work to update Map 4 to establish a future transit network plan to respond to Toronto's growth. The analysis in this report is framed in the context of several considerations and challenges that will shape recommendations on advancing higher-order transit development over the coming decade and beyond.

The Official Plan emphasizes the importance of maintaining and expanding a strong transit network to support the growth and development of the city and seeks to encourage more movement by transit and active transportation. Transit plays an important role in increasing access to education, employment, and other opportunities city-wide. Increasing transit use helps the City to address its climate change objectives and be more inclusive. Developing complete communities around transit stations and corridors, with higher density employment and residential development, supports the City's housing, economic, and social development objectives.

Several trends, considerations and challenges shape the context in which this assessment of Map 4 is framed:

1. Fiscal gap: The City has a recognized large budget shortfall and unfunded transit capital program. Given the need to prioritize State of Good Repair in the existing system and high construction costs of higher-order transit, further comprehensive preliminary planning analysis of a range of projects is required to develop a strong evidence base upon which Council can decide which projects would deliver the best value for money.

2. Housing and homelessness crisis: The price of housing is a widespread issue affecting Toronto and all of Canada. This is compounded by mismatches in the locations of higher population densities and higher-order transit; there are many areas composed primarily of single-family homes near existing high-order transit and conversely, areas with high population densities that are not as well served by higher-order transit, where residents have poorer transit access to employment and other opportunities. There is a historic trend of changing income distribution within Toronto with less affluent areas of the city shifting from being primarily downtown and near Lake Ontario to Toronto suburbs with poorer transit service. High house prices typically found around higher-order transit highlight the potential for transit-induced displacement when building higher-order transit.

3) Strong population and employment growth trends: Toronto is mandated by the Province to plan for roughly 30% growth between 2016 and 2051 but may exceed this target. A growing population may reinforce existing challenges and further increase the need for more space-efficient transportation such as transit. The current auto and transit transportation infrastructure will not adequately support the anticipated population growth.

4) Growing inequity: The COVID-19 pandemic, housing affordability and an overflowing shelter system have highlighted a growing gap where more people are struggling to meet basic needs. The analysis in this report uses new measures based on the concept of transport poverty to measure equity impacts of higher-order transit projects.

5) Climate emergency: To address a climate emergency, Council committed to reaching net-zero greenhouse gas (GHG) emissions in Toronto by 2040. A large shift to more people taking trips using transit and active modes of transportation is essential to meet this target.

6) Increasing crowding and congestion in the transportation system: Using ridership data provided by the TTC, there are many corridors not currently on Official Plan Map 4 that carry large numbers of riders on buses. Many surface transit corridors in the City experience very slow travel speeds, likely due to operating in mixed heavy traffic conditions. These analyses show the need to improve transit conditions in many parts of the City and not just along a small handful of corridors.

Staff evaluated 20 corridors on Official Plan Map 4 supplemented by four additional corridors with high transit ridership using the Rapid Transit Evaluation Framework (RTEF) established in the Official Plan. The evaluation does not cover new corridors being designed and constructed by Metrolinx nor the City's priority transit projects – the Waterfront East LRT and the Eglinton East LRT – as these projects are already advancing. As this work focuses on longer-term higher order transit, corridors that were part of RapidTO: Surface Transit Network Plan were not excluded. The focus is on how the range of corridors identified on Map 4 would augment the network of existing and under-development corridors, and guide future decision making.

Metrolinx is currently undertaking an Initial Business Case examining Line 4 extensions both westwards to Sheppard West Station and eastwards to McCowan Road. This report recommends that City staff engage with Metrolinx in this project to advance City interests along this important corridor. The Sheppard corridor between McCowan Road and Morningside Avenue is also being considered as part of the Eglinton East LRT, one of the City's priority projects.

Metrolinx is also delivering the Finch West LRT and the new Woodbine GO Station. This report notes the value of planning for the extension of the Finch LRT, initially to Woodbine and then further to connect to Pearson Airport, and recommends the City urge the Provincial government to include planning for this important LRT connection in its work.

Given that many of the top corridors in this evaluation are not included in Official Plan Map 4 and that Map 4 does not establish priorities, this report recommends a further comprehensive evaluation of this map to identify new corridors required to respond to demand, to review existing proposed corridors to ensure that they should remain on Map 4, and to propose priorities for advancing higher-order transit corridors.

Given that most of the top corridors in this report were light rail transit or bus rapid transit, staff also recommend a review of Official Plan Map 3 Right of Way Widths Associated with Existing Major Streets to ensure that adequate right-of-way is protected for future surface higher-order transit corridors identified on a revised Official Plan Map 4.

This report recommends advancing surface transit priority measures, such as through the RapidTO: Surface Transit Network Plan. Surface transit priority measures are lower cost than new higher-order transit lines and can be delivered in the short-to-medium-term to help alleviate crowding and congestion on the transit system, support climate change goals by encouraging more travel on transit, better serve areas in the city with higher proportions of equity-deserving people and support a growing population while remaining mindful of the City's financial situation. Higher-order transit planning can be started alongside implementation of these measures to support further long-term growth.

Finally, the correlation between housing prices and proximity to higher-order transit within Toronto is clear. Given the housing affordability crisis within the city, the relationship between housing prices and the proximity to transit, and the City's objective of building complete communities around transit, this report also recommends further work to identify ways to better link the City's desired transit and housing outcomes.

The Executive Committee :

1. Referred the Item to the City Manager for consideration, pending the Province of Ontario's completion of its ongoing review of the accuracy and fairness of Ontario's property assessment system, and subsequent reassessment of properties in Toronto.

City Council on February 6 and 7, 2024, referred Motion MM14.4 to the Executive Committee for consideration.

Toronto Island home owners enjoy a beautiful setting, low crime rates, full municipal services and a year-round ferry. Additionally, this exclusive enclave has some of the lowest residential property tax bills in the City.

Home ownership on Toronto Island is different from the rest of the City. Residents own the house but not the land it sits on, which is leased from the City. Consequently, residential property taxes are extremely low as they are based solely on the house value, not the land and house value like the rest of the Toronto.

Due to these unique circumstances, Toronto Island residents pay significantly lower residential property taxes than everyone else. For example, the average Toronto Island home owner pays approximately $1,530 per year, whereas the average Flemingdon Park tenant pays $4,320 of property tax annually in their rent.

However, given the island setting the cost of providing municipal services there is approximately three times the cost for the rest of the City.

With the current residential property tax rate, Toronto Island residents are not paying their fair share. In fact, the provision of their municipal services is heavily subsidized by taxpayers across the rest of Toronto.

Area Rating is a tool that allows a municipality to consider unique circumstances to apply a tax rate that is reflective of those circumstances. The employment of Area Rating for Toronto Island may be an appropriate measure for determining appropriate residential property tax rates for these special properties.

The Executive Committee:

1. Referred the Item to the City Manager for consideration.

City Council on February 6 and 7, 2024, referred Motion MM14.14 to the Executive Committee for consideration.

Fossil fuel subsidies are bad for consumers, bad for air pollution, bad for climate pollution, and bad for human health. This motion is to support a decision by the Ontario Energy Board (“OEB”) to stop forcing existing customers to subsidize construction of new methane gas pipelines, effective 2025. The Ford government is contemplating overriding this very sensible decision, and forcing Toronto customers to keep subsidizing new fossil fuel pipelines.

The total subsidy exceeds $250 million each year. It breaches Canadas repeated international commitments to phase out fossil fuel subsidies. It causes higher energy bills for both existing gas customers and new homebuyers. It encourages developers to install gas equipment, which locks in fossil fuel dependence and adverse health effects. And it undermines municipal climate progress. Toronto cannot achieve net zero without eliminating the use of fossil gas for building heating. Gas pipelines generally have a 60-year lifetime. With climate damage accelerating so quickly, it is financially and environmentally irresponsible to subsidize new pipelines and to install gas equipment in new units.

Many fast-growing jurisdictions, including New York State and Montreal, are prohibiting methane gas connections in new construction. This lowers energy bills now and avoids expensive retrofit later. It also shows that rapid housing development does not require new gas connections.

If the Ontario Energy Board's decision stands, (Phase 1 of the Enbridge Gas 2024 rebasing application, December 21, 2023), it will:

- Lower energy bills for existing gas customers.

- Encourage cost-effective development decisions: Developers do not have the right incentives now because they do not pay for gas infrastructure and do not pay the ongoing energy costs to run the expensive gas equipment they install.

- Eliminating the pipeline subsidy will encourage developers to install clean, efficient electric equipment that is best for homebuyers, with benefits such as:

- Lower energy bills: Heat pumps and induction stoves are much cheaper to operate.

- Avoid future retrofit costs: Installing electric equipment now will avoid retrofit costs that would otherwise be needed in the future for homes to get off fossil fuels.

- Eliminate carbon monoxide poisoning: Electric equipment eliminates the risk of carbon monoxide poisonings and fatalities from gas appliances.

- Indoor air quality: Gas stoves emit toxic gases into homes, which can contribute to respiratory problems, especially in children, seniors, and asthma sufferers.

- Safety and convenience: Induction stoves heat water faster than gas, are easier to clean, and are safer for children as the surface does not get hot.  Heat pumps are stronger and more efficient than traditional air conditioners, providing better and cheaper cooling in the summer.

- Encouraging less gas helps to avoid the carbon pollution that is already causing more frequent wildfires, drought, and green Christmases.

- Jobs and growth: Electric heating is better for our economy. Spending on gas flows out of the province and is lost to our economy. Spending on electricity will fund the growth of made-in-Ontario electricity generation, distribution, and transmission, creating good jobs, economic growth, and government revenue.:

The City has a strong interest in seeing this decision stand, both for the sake of lowering residents energy bills and ensuring policies that are consistent with the City’s climate targets. It is therefore important that the City write to the Minister of Energy in support of the Ontario Energy Board decision.

This motion is urgent because the Ontario Government is actively considering immediate action to force the Ontario Energy Board to continue making customers subsidize fossil fuel expansion, and Toronto’s voice is needed to discourage this.

The Executive Committee:

1. Directed the City Manager to ensure that the governing bodies overseeing the decision on the naming City of Toronto assets consider Dudley Laws, Charles Roach, Chloe Cooley and John M. Tinsley among the broader list of names for consideration to rename assets, along with names of anti-racism trailblazers and leaders to highlight the City of Toronto’s commitment to anti-racism.

At its meeting on February 9, 2024, the Confronting Anti-Black Racism Advisory Committee considered Item CR2.4 and made a recommendation to Executive Committee.

The Executive Committee recommends that:

1. City Council amend the City of Toronto Municipal Code Chapter 778, Taxation, Vacant Home Tax, to extend the declaration due date in 2024 for the 2023 Taxation Year to March 15, 2024.

2. City Council authorize the introduction of the necessary Bills in Council to give effect to City Council's decision.

The City of Toronto implemented a Vacant Home Tax in 2022. Because property status can change year-to-year, all property owners are required to declare the occupancy status of their property on an annual basis, even if they live there or fall under one or more exemptions. The declaration will determine whether the Vacant Home Tax applies and is payable.

In October 2023, City Council approved an updated communications plan related to the Vacant Homes Tax, which included increased communications with property owners who do not speak English as their first language. The 2024 process also included an earlier opening date, as well as pop-up sessions to support those who require assistance to submit their declaration.

For the 2023 taxation year, the deadline for property owners to declare their status was set at February 29, 2024. Given that the Vacant Home Tax is still relatively new for residents, and in recognition that the City wants to ensure all property owners have the opportunity to complete their declaration, I am recommending that Council extend the declaration deadline by an additional two-week period. If City Council adopts the proposed declaration deadline extension, to March 15, 2024, residential property owners will have until that date to submit the declaration.

City Council will not, however, be able to consider the proposed extension until its next regular meeting on March 20-22, 2024. As such, property owners are encouraged to submit their declaration as soon as possible to prevent any late submission fees from being charged.

To submit your declaration or for additional information, including exemptions, visit:

https://www.toronto.ca/services-payments/property-taxes-utilities/vacant-home-tax/vacant-home-tax-declaration-of-occupancy-status/

Announcements
The Chair acknowledged that the Executive Committee was meeting on the traditional territory of many nations including the Mississaugas of the Credit, the Anishnabeg, the Chippewa, the Haudenosaunee and the Wendat peoples and is now home to many diverse First Nations, Inuit and Métis peoples. The Chair also acknowledged that Toronto is covered by Treaty 13 with the Mississaugas of the Credit.

Where the Members of the Executive Committee listed in the attendance for this meeting participated remotely, they were counted for quorum as permitted by Section 189(4.2) of the City of Toronto Act, 2006, and City Council's Procedures.