Decisions

The Executive Committee:

1. Requested the City Manager to ensure that in the forthcoming report on implementation of a universal student nutrition program, the City include exploration of pursuing partnerships with existing child and youth nutrition programs outside of the school year.

Student nutrition programs are community-based meal and snack programs that operate primarily in school settings and are run locally by students, parents, and volunteers. These programs provide students energy and nutrients necessary for learning and development during the school day.

On October 9, 2024, City Council adopted HL16.9, Critical Need For Universal Student Nutrition, which provided an overview of student nutrition programs in Toronto and presented a phased-in plan to implement a universal school food program in Toronto. On October 9, 2024, City Council also adopted EX17.1 Building a Universal Student Food Program in Toronto and requested staff to report back to Executive Committee on the financial and operational requirements to deliver student nutrition programs by January 2025 in the school communities that applied for the 2023-2024 or 2024-2025 school years, were deemed eligible, but were denied due to funding constraints.

In response to City Council direction, this report provides the estimated funding requirements and operational considerations to deliver new student nutrition programs by school communities that applied for the 2023-2024 or 2024-2025 school years, were deemed eligible, but were denied due to funding constraints.

Funding these additional programs for the remainder of the 2024-2025 school year is an estimated $2.2 million and for the 2025-2026 school year is an estimated $3.9 million, excluding start-up costs.

The City Manager's Office was consulted in the development of this report.

The Executive Committee recommends that:  

Establishing a New Purpose-built Rental Homes Incentives Stream

1.  City Council endorse the development of a new Purpose-built Rental Homes Incentives stream under the City’s Rental Supply Housing Program to support 20,000 rental homes, including up to 16,000 purpose-built rental homes and at minimum 4,000 affordable rental homes by:

a.  supporting in the short-term up to 5,600 purpose-built rental homes through a deferral of development charges payable and 15 perecent property tax reduction for 35 years, estimated at $325.0 million; and

b.  requesting the provincial government to support an additional 10,400 purpose-built rental homes by providing a Build More Homes Rebate to the City, equivalent to the value of development charges payable and 85 percent of property taxes owed by eligible projects for 35 years, estimated at $1.0 billion.

2.  City Council direct the Executive Director, Housing Secretariat to require the rental housing projects approved under Part 1 above to deliver at least 20 percent of homes as affordable rental homes (at least 4,000 affordable rental homes) which meet the requirements of the Rental Housing Supply Program, and:

a.  approve financial incentives for at least 1,400 affordable rental homes to be supported through the Rental Housing Supply Program, estimated at $136.2 million; and

b.  request the Federal and Provincial Governments as part of a Canada-Ontario-Toronto Build program, to each provide the City with $225.3 million in grant funding to support the creation of at least 2,600 affordable rental homes beyond those identified in Part 2a above.   

3.  City Council request the Federal Government to immediately allocate a $7.3 billion, three-year portfolio of Canada Mortgage and Housing Corporation low-cost financing at competitive rates and terms for the 20,000 affordable and purpose-built rental homes, and work with the City to accelerate the financing application and underwriting process to complete from start to finish in 90 days.

4.  City Council direct the Executive Director, Housing Secretariat, the Chief Planner and Executive Director, City Planning, and the Executive Director, Development Review, in consultation with the Chief Financial Officer and Treasurer, to develop and recommend for City Council approval in 2025 an appropriate implementation tool for the new Purpose-built Rental Homes Incentives stream, that includes securing the value of City benefits and rental tenure of projects.

5.  City Council request the Chief Financial Officer and Treasurer to consider opportunities for adaptable funding approaches, through the process described in Part 4 above, to support the Purpose-built Rental Homes Incentives stream through a variety of growth-funding tools and revenue sources, and funding provided by provincial and federal governments intended for housing initiatives, in accordance with program requirements, for the purposes of supporting investments in growth-related infrastructure.

6.  City Council request the Executive Director, Housing Secretariat and the Executive Director, Development Review to report back to the Executive Committee before the end of 2025 on the results on the implementation of the new Purpose-built Rental Incentives Stream with recommendations to support the approximately 102,000 affordable and purpose-built rental homes currently proposed and not yet built in the City’s development pipeline to reach construction start by 2030.

A New Multi-Residential Property (Municipal Reduction) Tax subclass

7.  City Council adopt the New Multi-Residential Property (Municipal Reduction) Tax subclass (the "Subclass"), approve the Subclass eligibility criteria and amend City of Toronto Municipal Code Chapter 767, Taxation, Property Tax, to add the Subclass, all in accordance with Attachment 1 to the report (October 30, 2024) from the Deputy City Manager, Development and Growth Services, and the Chief Financial Officer and Treasurer.

8.  City Council direct that the Chief Financial Officer and Treasurer report back to City Council through the 2025 budget process on a recommended rate reduction of 15 percent for the New Multi-Residential Property (Municipal Reduction) Tax Subclass of the municipal portion of the existing New Multi-Residential Property Class rate.

9.  City Council direct the City Clerk to give written notice of the By-law adopting the New Multi-Residential Property (Municipal Reduction) Tax subclass for the City of Toronto to the Municipal Property Assessment Corporation.

10.  City Council direct the Chief Financial Officer and Treasurer to engage the Municipal Property Assessment Corporation to request that properties in the New Multi-Residential Property (Municipal Reduction) Tax Subclass continue to benefit from the rate reduction in future reassessments. 

City Support for 7,000 rental homes including at least 1,400 affordable rental homes

11.  City Council authorize the Executive Director, Housing Secretariat to immediately release a Call for Applications under the new Purpose-built Rental Homes Incentives stream described in the report (October 30, 2024) from the Deputy City Manager, Development and Growth Services, and the Chief Financial Officer and Treasurer, to identify 7,000 rental homes, including at least 1,400 affordable rental homes, in eligible rental housing projects, and to approve:

a.  City benefits available under the Rental Housing Supply Program to eligible affordable rental homes within the approved projects, including capital funding, exemptions from development charges, parkland dedication fees, community benefits charges, if not already exempted by provincial legislation, and the waiver of planning application and building permit fees; and

b.  a deferral of development charges payable by the purpose-built rental units within the approved projects in accordance with Part13 below.

12.  City Council authorize the Executive Director, Housing Secretariat to negotiate and execute, on behalf of the City, any agreements or documents necessary including Municipal Housing Facility Agreements (the City’s Contribution Agreement), with the appropriate legal entities for the developments approved through the Call for Applications described in Part 11 above, to secure the financial assistance for the development and operation of the affordable rental housing, on terms and conditions satisfactory to the Executive Director, Housing Secretariat, and approved by the Chief Financial Officer and Treasurer, and in a form approved by the City Solicitor.

13.  City Council authorize the Executive Director, Housing Secretariat, in consultation with the Chief Financial Officer and Treasurer, to enter into agreements, pursuant to Section 27 of the Development Charges Act, to defer the payment of development charges payable in relation to purpose-built rental units within projects approved through the Call for Applications described in Part 11 above, for as long as they remain as purpose-built rental containing at least 20 percent affordable units and on such other terms and conditions as may be satisfactory to the Executive Director, Housing Secretariat and in a form satisfactory to the City Solicitor.

14.  City Council authorize the Executive Director, Housing Secretariat and any other member of staff of whom it is requested, to enter into a non-disclosure or similar agreements, on terms and conditions satisfactory to the Executive Director, Housing Secretariat and in a form approved by the City Solicitor, with the appropriate legal entities for the developments approved through the Call for Applications described in Part 11 above to allow information with respect to the developments to be provided to City staff.

15.  City Council authorize the Executive Director, Housing Secretariat to execute, on behalf of the City, any security or financing documents required by the appropriate legal entities for the developments approved through the Call for Applications described in Part 11 above to secure construction and conventional financing and subsequent refinancing, including any postponement, tripartite, confirmation of status, discharge or consent documents where and when required during the term of the City Contribution Agreement, as required by normal business practices, and provided that such documents do not give rise to financial obligations on the part of the City that have not been previously approved by City Council.

16.  City Council direct the Executive Director, Housing Secretariat to consult with the President and Chief Executive Officer, Toronto Community Housing Corporation and the Chief Executive Officer, CreateTO, to assess applications from in-flight housing projects on City-owned and City-controlled land under the Purpose-built Rental Housing Incentives stream, in consideration of other financial support provided by the City to these developments.

17.  City Council approve changes to the Rental Housing Supply Program, as outlined in Attachment 2 to the report (October 30, 2024) from the Deputy City Manager, Development and Growth Services, and the Chief Financial Officer and Treasurer, to further unlock purpose-built rental homes including affordable rental homes.

18.  City Council direct the Executive Director, Housing Secretariat, in consultation with the Deputy City Manager, Development and Growth Services and the Chief Financial Officer and Treasurer, to report directly to the December 17, 18 and 19, 2024 meeting of City Council with updates from the Call for Application process referenced in Part 11 above, including any further approvals necessary to approve additional affordable rental homes.

Toronto is facing two housing crises – one where there is a lack of deeply affordable and supportive homes for low-income, marginalized, and vulnerable residents, as well as those experiencing homelessness; and a more recent one in which rising rents have made it increasingly unaffordable for middle income earners, key workers and professionals to live in the city. To respond to this dual crisis, City Council has pledged to meet the Provincial housing target of 285,000 housing starts in Toronto by 2031, and has expanded its HousingTO 2020-2030 Action Plan (HousingTO Plan) targets to approve 65,000 rent-controlled homes, including rent-geared-to-income (RGI) and affordable rental homes, by 2030.

An adequate supply of purpose-built rental homes is central to a well-functioning housing system that can meet the housing needs of current and future residents. However, Toronto is facing a shortage of purpose-built rental homes as a direct result of insufficient investments from all orders of government since the early 1990s. As governments stepped back from investment in new purpose-built rental homes, new private investment in condominiums increased leading to a situation where 85% of all new rental homes created in Toronto in the past 10 years are from the secondary market (wherein condominium investors rent out their units). These homes provide less security for renters than purpose-built rentals, and on average have rental rates that are over 40% higher than existing purpose-built rental homes.

The current lack of purpose-built rental housing in Toronto is likely to worsen due to high interest rates and financing costs, inflation, and increasing construction costs which have resulted in a significant slowdown in new residential development. Housing starts in the City of Toronto for August and September, 2024, are down 75% and 81% respectively over the same months last year, indicating a significant slowdown in new housing development. Further, industry data indicate that between 18,000 to 26,000 purpose-built rental homes are currently stalled due to challenging market conditions.

All orders of government have historically played a larger role in shaping the housing system to create new purpose-built rental homes than they do today. While there have been recent federal and provincial actions aimed at supporting new rental housing development (including GST/HST waivers on purpose-built rental homes, and development charge discounts for rental units), these have not proven sufficient to significantly increase purpose-built rental housing supply. While the City has made significant investments in housing in recent years, particularly affordable rental housing, the constraints on the City’s finances are considerable and it cannot trade-off investments in infrastructure with un-capped incentives for purpose-built rental housing. Much more action is required from the federal and provincial governments to achieve the level of rental housing growth needed in Toronto, Ontario, and Canada.

The City is prepared to take a number of actions and lead the way in building a housing system that delivers the new rental homes Toronto’s current and future residents and economy needs to thrive. This report recommends City Council unlock 20,000 new rental homes comprised of 16,000 new purpose-built rental homes, and 4,000 affordable rental homes, primarily on private land. This report also recommends City Council invite other orders of government to collaborate with the City in making a generational shift in the housing system, where governments influence the housing system and work with private land-owners and investors to make the delivery of purpose-built rental housing a priority. As directed by Council in June, 2024, staff have undertaken consultation with industry stakeholders, and conducted extensive analysis with an independent third-party consultant, in order to inform the development of the recommendations in this report.

These 20,000 new homes will be delivered under a new Purpose-Built Rental Homes Incentives stream (as part of the recently approved Rental Housing Supply Program). A minimum of 20% of these homes will be provided as affordable rental homes, meeting the City’s new income-based definition of affordable rental housing, and be secured for a target of 99 years and a minimum of 40 years.  

To move immediately to action, this report also recommends City Council:

-  Support 7,000 new rental homes comprised of 5,600 purpose-built rental homes, and at least 1,400 affordable rental homes, to be identified through a rapid call for applications which will be released immediately upon Council approval;

-  Approve a New Multi-Residential Property (Municipal Reduction) Tax Subclass consistent with EX16.8, and direct staff to implement a 15% property tax reduction for all new purpose-built rental developments for a 35-year period as part of the 2025 budget process; and

-  Immediately support the 5,600 purpose-built rental homes by deferring development charges otherwise payable in respect of an eligible development, for as long as the development maintains the rental tenure.

The estimated value of the deferral of developments changes for 5,600 purpose-built rental homes is $210.8 million. Like all new purpose-built rental homes, they will also benefit from the 15% reduction in property taxes for 35 years (estimated value of $114.2 million).

The City’s contributions towards these purpose-built rental homes will complement financial incentives for the at least 1,400 affordable rental homes to be delivered through this call (estimated at $136.2 million, including foregone property taxes for 40 years and waived planning and building fees).

Subject to adoption of this report, staff will report back to Council on an implementation tool to provide incentives for purpose-built rental homes. To this end, staff will consider the use of a Community Improvement Plan, among other options.

The City’s jurisdictional and financial capacity to shift the housing system is limited, and it cannot act alone. As such, this report recommends City Council:

-  Request the Province immediately establish a Build More Homes Rebate estimated at $1.0 billion, for the value of development charges and 85% of property taxes for 10,400 purpose built rental homes. - ----  Upon approval by the Province, the City will release a call for applications to offer incentives for the next 13,000 rental homes, including 20% affordable rental homes (2,600 units);

-  Request the federal government to immediately allocate a $7.3 billion portfolio of low-cost financing to support the delivery of the new affordable and purpose-built rental homes described in this report (20,000 homes total); and

-  Request the federal and provincial governments work with the City in implementing a Canada-Ontario-Toronto Builds program that will align efforts and resources across three orders of government including land, funding & financing, partnerships, and approvals processes, to build more affordable and purpose-built rental homes for low- and moderate-income residents.

The proposed two-phase strategy to reach 20,000 new rental homes, including 4,000 affordable rental homes, is summarized in Table 1 below.

Table 1 – Summary of Rental Housing Outcomes Proposed through this Staff Report

New federal and provincial housing programs including the Housing Accelerator Fund (HAF) and Building Faster Fund (BFF) have made capital funding contributions contingent on municipalities achieving targets for new housing starts. In addition to meeting the demand for rental homes, increasing new rental housing supply can support the City in accessing much needed capital funding which can be directed to funding new rent-geared-to-income and affordable rental homes, and housing enabling infrastructure.

Without immediate action by all orders of government to shape the housing system by ensuring sufficient supply of purpose-built rental homes, more residents, specifically renters, will experience housing instability and potentially homelessness; Toronto’s health and social service sector will face a deepening key worker staffing crisis; and Toronto’s businesses will be unable to attract the workforce and labour supply they need to grow, thereby limiting our economic growth.

The Executive Committee recommends that:

1. City Council designate the new island in the Port Lands, shown in Attachment 1 to the report (November 1, 2024) from the Interim Chief Planner and Executive Director, City Planning and the General Manager, Parks, Forestry and Recreation, as “Ookwemin Minising” recognizing this as the island's permanent name as it becomes a distinct landform.

2. City Council adopt the name “Biidaasige Park” for the new park in the Port Lands, shown in Attachment 2 to the report (November 1, 2024) from the Interim Chief Planner and Executive Director, City Planning and the General Manager, Parks, Forestry and Recreation.

This report responds to MM5.3 – Place Names in the Port Lands and EX13.5 - New Island, New Beginnings: Furthering Reconciliation and an Indigenous Cultural Framework for the Port Lands.

Over the last year, City staff, in collaboration with MinoKamik Collective and LURA Consulting, facilitated an Indigenous community engagement process to discover, reflect on, and determine Indigenous names for the new island in the Port Lands. The proposed names were lifted up by an Indigenous Advisory Circle (the Circle), comprised of Elders, Knowledge Keepers, language speakers, youth and community members. The process was rooted in Indigenous traditions, teachings and cultural protocols, involving ceremonies, site walks, and deep discussions. The Indigenous Advisory Circle met seven times between April and October 2024. In addition, broader Indigenous communities were engaged at community events, in a survey and in other ways.

Circle discussions centered on the area’s history as former marshland, the cultural significance of the land and water, and long-term environmental restoration and stewardship, with a focus on water and native plants. The historical erasure of Indigenous languages and significance of language revitalization initiatives was also emphasized. The collaborative engagement process is detailed in Attachment 3.

As acknowledged at the April 9, 2024 Executive Committee meeting, the decision to hand over the power to name this place to Indigenous communities was both a symbolic and concrete step in turning words into actions that contribute to truth, justice, and reconciliation. The process itself is as meaningful as the names chosen. This process demonstrates ways of shifting power and priorities with respect for Indigenous worldviews, ways of knowing, cultural protocols, ceremonies, self-determination and leadership.

This report recommends naming the new island in the Port Lands Ookwemin Minising, (pronounced Oh-kway-min Min-nih-sing), meaning “place of the black cherry trees” in Anishinaabemowin/Ojibwemowin. As outlined in Attachment 3, this name honours the natural history of the land, recognizes a vision of environmental restoration, and highlights the future care of Indigenous plant communities. Local Elders recalled the waterfront’s original marshlands near the mouth of the Don River and the trees that grew throughout the waterfront area. The connections between past, present and future resonated with the Circle, with efforts to restore and revitalize both Indigenous names and plants. The name also aligns with other historical Ojibwe place names on Lake Ontario, including Adoobigok (Etobicoke) meaning “place of the alders.”

The area the Circle named Ookwemin Minising was previously referred to by several names through many years of planning, design and construction, including the Lower Don Lands, River Precinct, Cousins Quay, and Villiers Island. In November 2024, the “north plug removal”, a key milestone for the Port Lands Flood Protection project, will connect the Don River with the river valley and complete the transition of the landmass into an Island surrounded by water, from planning concept to physical reality. Ookwemin Minising will therefore be the formal name for this newly formed island, coinciding with its emergence as a significant ecological and cultural landmark on the Toronto waterfront.

Additionally, this report recommends naming the new park surrounding the Island Biidaasige Park, (pronounced Bee-daw-sih-geh), meaning “sunlight shining toward us” in Anishinaabemowin. As outlined in Attachment 3, this name relates to the hopeful light of a new day, shining on waterway restoration and reconciliation and acknowledges the relationship between the earth, water, sun, and moon as relatives and teachers. The name recognizes water awareness as central to the Port Lands Flood Protection project and creation of the renaturalized Don River, valley and park. The name honours the Indigenous water walker movement, Water Walkers including Josephine Mandamin, and the Indigenous communities who have helped highlight the significance of water as essential to life. The name connects with, and ties together, design elements throughout the island, including the bridges and the flow of the river from east to west, in line with the direction of the sunlight’s daily path.

In addition to the two names brought forward in this report, a new name for a portion of Cherry Street that was not realigned, between Commissioners Street and the Keating Channel, was determined by the Circle and will be discussed with landowners and then recommended to the Toronto East York Community Council in December 2024 as part of a staff report on road openings related to the Port Lands Flood Protection project.

Other names for the area will be recommended as needed through future related engagement processes. Other than the portion of Cherry Street referenced above, City staff are not recommending that any other existing civic assets be renamed at this time. Villiers Sankey, a former City surveyor, will continue to be commemorated through Villiers Street, an existing street that will be prominent on the new Island.

Through EX13.5 - New Island, New Beginnings: Furthering Reconciliation and an Indigenous Cultural Framework for the Port Lands, City staff were also directed to report back on an Indigenous cultural framework for waterfront revitalization in the Port Lands. In 2025, staff will present a report on the many ongoing initiatives related to the Reconciliation Action Plan and Indigenous cultural revitalization on the waterfront.

While Indigenous place naming is a significant part of ongoing efforts to advance Indigenous cultural revitalization on the waterfront, it is but a small step in a long journey. There are many ongoing initiatives and future opportunities for advancing Reconciliation Action Plan commitments in a forward-looking framework that involves First Nations, Inuit and Métis communities throughout the process.

Ongoing initiatives that the City and partnering agencies, including Waterfront Toronto and CreateTO, are collaborating on with Indigenous communities span from ecology, native plantings, and land/water stewardship to Indigenous art, design, and interpretive signage to language revitalization through place naming. First Nations rights holders, Elders and Knowledge Keepers, Indigenous artists and designers, urban Indigenous youth and community organizations and others are involved. The many communities involved are collaborating to ensure Ookwemin Minising and surrounding precincts are places with meaning and connection to Indigenous histories, cultures, values, and ways of knowing that center connection to the land, water, plants and animals.

Future opportunities will take shape alongside the evolution of the future mixed-use communities in Ookwemin Minising and the broader Port Lands. These opportunities can include affordable housing, economic development, land and water stewardship, cultural programming and placekeeping through public realm design. These will be discussed with Indigenous communities and begin to be outlined in a framework, with the vision for this new island, Ookwemin Minising, to be a place where Indigenous histories, worldviews, cultures, and ways of life hold a respected, celebrated, prominent and distinctive place on the waterfront. 

The Executive Committee recommends that:

1. City Council approve the preferred development proponent identified in Confidential Attachment 3 (the “Preferred Proponent”) and the key terms as set out in Confidential Attachment 4 (the “Key Terms”) to the report (October 15, 2024) from the Chief Executive Officer, CreateTO for the redevelopment of 610 Bay Street and 130 Elizabeth Street.

2. City Council authorize the Board of Directors, CreateTO to direct the Chief Executive Officer, CreateTO, in consultation with the Executive Director, Housing Secretariat and the Executive Director, Corporate Real Estate Management, to negotiate transaction agreements, including one or more ground leases, one or more municipal housing facility agreements ("Contribution Agreements"), and such other documents as may be necessary to finalize the arrangements with the Preferred Proponent (the "Agreements"), substantially on the terms identified in Confidential Attachment 4 to the report (October 15, 2024) from the Chief Executive Officer, CreateTO and such other terms and conditions deemed appropriate by the Chief Executive Officer, CreateTO, the Executive Director, Housing Secretariat and the Executive Director, Corporate Real Estate Management.

3. City Council authorize the Executive Director, Corporate Real Estate Management, in consultation with the Chief Executive Officer, CreateTO and the Executive Director, Housing Secretariat, to execute, on behalf of the City, one or more ground leases and such other documents as may be necessary to finalize the arrangements with the Preferred Proponent, substantially on the major terms and conditions set out in Confidential Attachment 4 to the report (October 15, 2024) from the Chief Executive Officer, CreateTO, and such other terms as deemed appropriate by the Executive Director, Corporate Real Estate Management, in consultation with the Chief Executive Officer, CreateTO,  the Executive Director, Housing Secretariat, and in a form satisfactory to the City Solicitor.

4.  City Council authorize the Executive Director, Housing Secretariat, in consultation with the Chief Executive Officer, CreateTO and the Executive Director, Corporate Real Estate Management, to execute, on behalf of the City, one or more Municipal Housing Facility Agreement(s) ("Contribution Agreement(s)") and such other documents as may be necessary to finalize the arrangements with the Preferred Proponent, substantially on the major terms and conditions set out in Confidential Attachment 4 to the report (October 15, 2024) from the Chief Executive Officer, CreateTO, and such other terms as deemed appropriate by the Executive Director, Housing Secretariat, in consultation with the Chief Executive Officer, CreateTO,  the Executive Director, Corporate Real Estate Management, and in a form satisfactory to the City Solicitor.

5. Subject to City Council adoption of Recommendations 1, 2, 3, and 4 above, City Council direct the Deputy City Manager, Corporate Services and the Chief Financial Officer and Treasurer to direct the revenue generated by the redevelopment of the Properties in the amount identified in Confidential Attachment 1 to the supplementary report (October 30, 2024) from the Deputy City Manager, Corporate Services and the Deputy City Manager, Development and Growth Services to the Land Acquisition Reserve Fund (XR1012).

6. Subject to City Council adoption of Recommendations 1, 2, 3, and 4 above, City Council:

a. authorize the affordable rental housing units to be constructed on the Properties to be eligible, under the City's Rental Housing Supply Program, for waivers of fees for planning applications, building permits, and exemptions from parkland dedication, community benefit charges and development charges, unless already paid or exempted by provincial legislation; and

b. authorize an exemption from taxation for municipal and school purposes for the duration of the term for the affordable rental housing units to be developed on the Properties.

7. City Council authorize City staff to cancel or refund any taxes paid after the effective date of the exemption from taxation for municipal and school purposes as set out in the municipal housing facility agreement (the "Contribution Agreement").

8. City Council authorize the Executive Director, Housing Secretariat to execute, on behalf of the City, any security or financing documents required by the proponent to secure construction and conventional financing and subsequent refinancing, including any postponement, tripartite, confirmation of status, discharge or consent documents where and when required during the term of the Contribution Agreement, as required by normal business practices, and provided that such documents do not give rise to financial obligations on the part of the City that have not been previously approved by City Council.

9. City Council direct that Confidential Attachments 1, 2, 3 and 4 to the report (October 15, 2024) from the Chief Executive Officer, CreateTO remain confidential as they relate to a proposed or pending disposition of property by the City and a plan to be applied to negotiations carried on or to be carried on by or on behalf of the Board of Directors of CreateTO and the City.

10. City Council authorize the public release of the name of the Preferred Proponent at the discretion of the Chief Executive Officer, CreateTO, in consultation with the Executive Director, Corporate Real Estate Management and the Executive Director, Housing Secretariat.

11. City Council direct that the information in Confidential Attachment 1 to the supplementary report (October 30, 2024) from the Deputy City Manager, Corporate Services and the Deputy City Manager, Development and Growth Services remain confidential at this time as it relates to a proposed or pending disposition of properties by the City and a plan to be applied to negotiations carried on or to be carried on by or on behalf of the Board of Directors of CreateTO and the City.

12. City Council authorize the public release of Confidential Attachment 1 to the supplementary report (October 30, 2024) from the Deputy City Manager, Corporate Services and the Deputy City Manager, Development and Growth Services at the discretion of the Deputy City Manager, Corporate Services and the Deputy City Manager, Development and Growth Services.

At its meeting on October 29, 2024, the Board of Directors of CreateTO considered Item RA14.1 and made recommendations to City Council.

Summary from the report (October 15, 2024) from the Chief Executive Officer, CreateTO:

The purpose of this report is to provide an update on the CreateTO led Request for Proposal (“RFP”) and proponent selection for the redevelopment of 610 Bay Street and 130 Elizabeth Street that prioritizes: the delivery of affordable housing; a Paramedics Multi-Hub; delivery of commercial space targeted to the Medical Sciences sector; and adaptive reuse of a significant heritage building.

On November 24, 2022, under the scrutiny of a Fairness Monitor, CreateTO in conjunction with City stakeholders, issued a Request for Expressions of Interest (“REOI”) to the development and not-for-profit communities as Stage One of a Two-Stage Market Offering Process. Bids were received on February 9, 2023. Under the direction of a Fairness Monitor, the REOI submissions were reviewed, scored, and shortlisted. On June 14, 2023, City Council through Item 2023.GG4.26 approved a shortlist of proponents (the “Shortlisted Proponents”). On September 8, 2023, an RFP was issued to the Shortlisted Proponents. Bids were received on December 8, 2023.

On January 26, 2024, a Minister’s Zoning Order (“MZO”) was issued for a new protected air ambulance flight path for St. Michael’s Hospital and the Hospital for Sick Children, limiting the maximum developable height at 610 Bay Street. Meetings were convened with the Fairness Monitor to address the impacts of the MZO and a revised financial package based on a long-term land lease to reflect a change in City priorities concerning land sales. Following discussions with the Fairness Monitor, an Addendum to the RFP, supported with supplementary reports, and documents were prepared and reviewed by the Fairness Monitor. The Fairness Monitor confirmed there were no fairness concerns with the proposed Addendum.

On April 4, 2024, an Addendum to the RFP, and supplementary reports, documents and directions was released requesting proponents revise their proposals to address the impacts of the MZO and a revised financial package based on a long-term land lease.

Revised bids were received May 13, 2024. Bids were reviewed, evaluated, and scored, resulting in the selection of a preferred development proponent for the mixed-use, mixed-income development at 610 Bay Street and 130 Elizabeth Street.

This supplemental report is intended to accompany the transmittal of the decision of the CreateTO Board Item RA14.1 - "ModernTO: Selection of Proponent for 610 Bay Street and 130 Elizabeth Street"  (October 15, 2024) from the Chief Executive Officer, CreateTO on the redevelopment of 610 Bay Street and 130 Elizabeth Street (the "Properties") and includes confidential financial recommendations as well as recommendations to provide financial incentives for the affordable rental housing secured as part of the redevelopment, as communicated to all proponents as part of the market offering process.

The Properties are one of eight high-value City-owned sites selected through the ModernTO program for city-building purposes. ModernTO is designed to modernize the City’s office portfolio, reduce the City’s office footprint, and free up underutilized properties for city-building opportunities.

Subject to City Council approval, CreateTO staff will work with the Executive Director, Housing Secretariat, Executive Director, Corporate Real Estate Management and the City Solicitor to negotiate and execute the transactions described.

The Executive Committee:

1.  Directed the Executive Director, Social Development, Finance and Administration, and the Chief Technology Officer, Technology Services to coordinate efforts through the Human Services Integration Office to facilitate and promote enrollment in digital equity subsidies and supports for all eligible Torontonians, and include a progress update in the ConnectTO second quarter of 2025 report to City Council.

This interim report on the ConnectTO Program provides information on the City-owned fibre internet infrastructure inventory, including a comparative jurisdictional analysis, historical context, and what is required for City Council to assess the feasibility of establishing a City-owned fibre network. A full program update will be presented at City Council in the second quarter of 2025.

As directed by City Council, City staff conducted an inventory of City-owned fibre across all City divisions, and twelve agencies and corporations to identify existing fibre, and to determine its suitability for the purposes of supporting a municipal fibre network.

The results show that the City does not own fibre. City agencies and/or corporations currently own 464.3 km of fibre infrastructure, all of which is unavailable for repurposing as a network for the delivery of internet services as it has limited capacity and is used to support critical infrastructure and operations. Toronto Hydro, through its subsidiary Toronto Hydro Telecom, previously owned approximately 500 km of municipal fibre that provided City Agencies, Boards and Commissions a favourable competitive rate for fibre access and network services, and was sold in 2008 for $200 million, approved by City Council (see Attachment 1 – Decision History and Attachment 2 – City of Toronto Fibre Network Historical Context).  

Building a municipal fibre network would first require a feasibility study to establish: if a build would be possible, deliver sufficient return on investment and provide public value; and whether a proof of concept should be pursued. The feasibility study is unfunded and would require prioritization in future budgets. Costing and other details would be determined by the feasibility study. A significant investment would likely be required to build a municipal fibre network.

The Executive Committee recommends that:

1. City Council receive the report (October 22, 2024) from the Chief Information Security Officer for information.

City Council directed the Chief Information Security Officer in EX14.3 to extend its mandate with respect to City agencies and corporations and report on responses and compliance rates of each agency and corporation to the Executive Committee in October of each year.

This report provides information about the progress that the Chief Information Security Officer has made in operationalizing the directions of City Council in EX14.3.

The Executive Committee recommends that:

1. City Council amend City of Toronto Municipal Code Chapter 742, Sidewalk Cafés, Parklets and Marketing Displays, generally as outlined in Attachment 1 to the report (October 22, 2024) from the General Manager, Transportation Services and the General Manager, Economic Development and Culture.

2. City Council amend City of Toronto Municipal Code Chapter 441, Fees and Charges, Appendix C, Schedule 2, and Schedule 12, by removing the application fee for public parklets, and amending the permit fees for curb lane cafés and transfer fees for sidewalk cafés in accordance with Attachment 3 to the report (October 22, 2024) from the General Manager, Transportation Services and the General Manager, Economic Development and Culture.

3. City Council amend City of Toronto Municipal Code Chapter 937, Temporary Closing of Highways, as outlined in Attachment 4 to the report (October 22, 2024) from the General Manager, Transportation Services and the General Manager, Economic Development and Culture.

4. City Council amend City of Toronto Municipal Code Chapter 27, Council Procedures, as outlined in Attachment 2 to the report (October 22, 2024) from the General Manager, Transportation Services and the General Manager, Economic Development and Culture.

5. 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, in consultation with the General Manager, Transportation Services and the General Manager, Economic Development and Culture in order to give effect to Recommendations 1 to 4 above.

6. City Council direct the General Manager, Transportation Services and the General Manager, Economic Development and Culture to continue to pilot the expanded use of public parklets for the 2025 CaféTO season, with such guidelines conforming to all requirements in Chapter 742, Sidewalk Cafés, Parklets and Marketing Displays, and considering the following as permitted uses in addition to public space:

a. promotion of Business Improvement Area member businesses; and

b. display of and sale of non-food products.

7. City Council direct the General Manager, Transportation Services and the General Manager, Economic Development and Culture to report back on the feasibility of the expanded use of Marketing Displays on curb lanes.

8. City Council direct that the amendment to City of Toronto Municipal Code Chapter 441, Fees and Charges, in Recommendation 2 above, retroactively be deemed to have come into effect on of January 1, 2024.

9. City Council direct the General Manager, Transportation Services to include necessary resources, including the 15 positions required for sustaining the CaféTO program, for consideration as part of the 2025 Operating Budget submission for Transportation Services.

The CaféTO program supports Toronto's neighbourhoods and local economy by providing expanded outdoor dining opportunities for bars and restaurants. Since 2020, the program has continued to improve and evolve with each outdoor dining season (May 1 to October 15) based on a commitment to the city's economic recovery and balancing the diverse needs of Toronto's communities. While the City has expanded outdoor dining programs to include permitting programs for sidewalk and curb lane cafes, hardscaped surfaced parks, and through zoning provisions on private property, the focus of this report will be curb lane cafés located on the right-of-way, which is led by Transportation Services with support from Economic Development and Culture.

Since the CaféTO program became permanent in 2023, staff have implemented the Council-approved BIA Curb Lane Pilot Program. This initiative also enhances the efficiency of program rollout by allowing Business Improvement Areas (BIAs) to design streetscape and curb lane closures that meet the unique needs of their neighbourhoods. Throughout the 2024 CaféTO season and during the implementation of the Pilot Program, staff frequently engaged BIAs, restaurant operators and industry associations for feedback. This input will be used to inform improvements for the program in 2025.

Following an evaluation of the BIA Curb Lane Pilot Program, this report recommends that the pilot program become permanent and include recommended improvements identified over the 2023 and 2024 implementation seasons. In addition, staff have developed a second pilot program to provide the opportunity for retail businesses to temporarily use public parklets within the BIAs that are part of the Curb Lane Pilot program. It is recommended that this second pilot program be extended for another year to collect additional data. The report also outlines the 2024 CaféTO Property Improvement Program and introduces the new Dining District Grant.

Furthermore, this report recommends technical updates to the City of Toronto Municipal Code Chapter 742, Sidewalk Cafés, Parklets and Marketing Displays. The recommended changes include:

-Adjusting the timeline to cancel a café permit application if permit fees have not been paid;

-Amending the community notification process for flankage café applications;

-Allowing permit holders on King Street East and West, between Jarvis Street and Bathurst Street, the option to apply for and operate curb lane cafes seasonally, from both October 16 to April 30, and from May 1 to October 15.

Additional technical and wording amendments to Chapter 742 and 937, Temporary Closing of Highways, Chapter 27, Council procedures and Chapter 441, Fees and Charges are also proposed.

The Executive Committee recommends that:

1. City Council amend Section 937-3.9 of City of Toronto Municipal Code Chapter 937, Temporary Closing of Highways, to:

a. delete the phrase "Regional Express Rail" where it occurs and replace it with the phrase "GO Expansion Program"; and

b. delete the phrase "March 31, 2025" and replace it with "December 31, 2031" such that the General Manager, Transportation Services will be delegated the authority to temporarily close to vehicular and pedestrian traffic highways or portions of highways for a period up to and including 365 consecutive days, until December 31, 2031, with the exception of those highways listed in Section 937-4 of Chapter 937, as required for the purposes of the construction of the Metrolinx GO Expansion Program, and to exempt the General Manager, Transportation Services in carrying out this extended delegation from Section 937-5 of Chapter 937, Temporary Closing of Highways, that being the requirement to notify the local Ward Councillor of the pending closure and the requirement to report on the proposed closure if so requested by the local Ward Councillor.

2. City Council authorize the General Manager, Transportation Services, upon confirmation from Metrolinx of the total cost of the basic grade separation for the road-under-rail grade separation along Steeles Avenue East, east of Kennedy Road, and upon confirmation of the municipal cost contribution for the basic grade separation, to issue an invoice and/or receive payment from The Regional Municipality of York to recover 50 percent of the municipal cost of the basic grade separation.

3. City Council request the General Manager, Toronto Water and the Executive Director, Transit Expansion to:

a. report back to the April 14, 2025 meeting of the Executive Committee on Metrolinx’s compliance with Toronto Water’s design review processes on the Barrie Rail Corridor; and

b. request Metrolinx to undertake an investigation and provide an engineering report that addresses the localized flooding of homes and other properties caused by Metrolinx’s regrading of the Barrie Rail Corridor, lack of maintenance of Metrolinx catch basins along the Barrie Rail Corridor, and which includes steps for mitigation and cost sharing to rectify issues.

The purpose of this report is to provide City Council with an update on Metrolinx’s progress on the GO Expansion Program (GOE Program). The GOE Program will expand and improve service on the GO rail network to meet the needs of Toronto and the growing region. The information contained in this report reflects the status of the GOE Program’s three main packages of work, namely, Enabling Works, Off-Corridor and On-Corridor Works (OnCorr) provided to Transit Expansion by Metrolinx, since City staff last reported to Executive Committee in October 2023.

The GOE Program is comprised of multiple projects. Metrolinx is currently in the construction phase for the majority of the Enabling Works and some Off-Corridor Works, which will be followed by OnCorr works. OnCorr, which contains the electrification and additional track installation along certain corridors, is currently in a development phase, where the scope, design, and pricing are being re-evaluated.

City staff are engaged in reviewing GOE Program designs, facilitating permits and approvals, and generally advocating for and protecting City interests through all stages of Metrolinx’s project delivery. City staff are guided by existing agreements between the City and Metrolinx, such as the Council-approved GO Expansion Master Agreement.

This report includes a request from the General Manager, Transportation Services for a time extension of the temporary delegation of authority to allow for up to 365-day consecutive road, lane and sidewalk closure permits to support the GOE Program from March 31, 2025, to December 31, 2031. In addition, this report also seeks Council authority to receive funds from the Region of York for their share of the capital costs of the Steeles Avenue Grade Separation.

The Executive Committee recommends that:

1. City Council authorize that the 2025 interim levy for all property classes be based on 50 percent of the total 2024 taxes billed for each property, adjusted, as necessary, to reflect any additional taxes added to the previous year's taxes as a result of assessment added to the tax roll.

2. City Council authorize that the interim levy apply to assessments added to the tax roll for 2024 that were not on the assessment roll when the By-law was passed.

3. City Council authorize that:

a. the interim bill payment due dates for property tax accounts paid on the eleven (11) installment pre-authorized tax payment plan be: February 18, March 17, April 15, May 15, and June 16, 2025;

b. the interim bill payment due date for the two (2) installment pre-authorized tax payment plan be March 3, 2025; and

c. the interim bill payment due dates for all other property tax accounts on the regular instalment option or on the six (6) instalment pre-authorized tax payment plan be: March 3, April 1, and May 1, 2025.

4.  City Council authorize the introduction of the necessary Bills in City Council providing for the levy and collection of the 2025 interim taxes prior to the adoption of the estimates for 2025, which By-law, when enacted, will be effective as of January 1, 2025.

This report requests Council authority to adopt the necessary by-law to levy interim property taxes for all property classes for 2025 and to prescribe applicable interim bill payment due dates. The 2025 interim levy will raise approximately $2.85 billion for City purposes and will provide for the cash requirements of the City until such time as the 2025 Operating Budget and 2025 final property tax levy are approved by Council.

The Executive Committee recommends that:

1. City Council amend the Terms of Reference for the Aboriginal Affairs Advisory Committee to include a minimum of six meetings and a maximum of 12 meeting per year.

 At its meeting on October 8, 2024, the Aboriginal Affairs Advisory Committee considered Item AA1.3 and made recommendations to the Executive Committee.

Summary from the October 8, 2024 meeting of the Aboriginal Affairs Advisory Committee

The Committee will be able to discuss the preferred path forward, including any changes to the Terms of Reference and Committee Procedures.

The Executive Committee:

1. Requested the General Manager, Parks, Forestry and Recreation to present an update to the Toronto Accessibility Advisory Committee at its December 11, 2024 meeting, on their plans to ensure Toronto's beaches are accessible for those with disabilities, including those who use mobility aids.

2. Requested the General Manager, Parks, Forestry and Recreation to include the answers to the questions in the communication (October 16, 2024) from Jane Anderson, in the presentation.

3. Requested the General Manager, Parks, Forestry and Recreation to invite “Friends of Hanlan's” to present to the Toronto Accessibility Advisory Committee at its December 11, 2024 meeting, on their work-to-date to help ensure Hanlan's Point is accessible for those with disabilities, including those who use mobility aids.

At its meeting on October 17, 2024, the Toronto Accessibility Advisory Committee considered Item DI9.6 and made recommendations to the Executive Committee.

Summary from the Toronto Accessibility Advisory Committee:

A recent CBC news story (https://www.cbc.ca/news/canada/toronto/toronto-beach-accessibility-1.7206872) brought much needed awareness about the lack of beach access throughout most of Toronto’s public beaches. For those using mobility aids, parents with strollers, and anyone else who finds sandy terrain challenging to navigate, options are slim to none for enjoying a beach experience in Toronto. While many provincial parks and municipalities are making beach access a priority, beach access in Toronto is clearly not being considered.

The Executive Committee:

1. Requested the Waterfront Secretariat, in consultation with the Executive Director, Corporate Real Estate Management, to present an update to the Toronto Accessibility Advisory Committee at its December 11, 2024 meeting, on what they plan to do about inaccessible services offered by water taxi service companies such as TikiTaxi, Toronto Harbour Water Taxi and Pirate Taxi Toronto.

2. Requested the Waterfront Secretariat to include an update on how they are making the Toronto islands more accessible overall in the presentation.

At its meeting on October 17, 2024, the Toronto Accessibility Advisory Committee considered Item DI9.7 and made recommendations to the Executive Committee.

Summary from the Toronto Accessibility Advisory Committee:

Toronto’s private water taxi services are not accessible for those using mobility aids. Limited to using the City’s crowded ferry service, people using mobility aids often find it challenging to get to Toronto Island and back in a manner that meets their needs for comfort, choice, and spontaneity. For a city with the largest disability population in Canada, consisting of residents, visitors and tourists, this is not an acceptable standard.

The Executive Committee recommends that:

1. City Council direct the City Manager to update all City of Toronto Relationship Frameworks to include gender-inclusive language.

At its meeting on September 23, 2024, the Two-Spirit, Lesbian, Gay, Bisexual, Transgender and Queer Advisory Committee considered Item QS4.6 and made recommendations to the Executive Committee

Summary from the letter (September 13, 2024) from Councillor Moise

This motion seeks to recommend the Executive Committee to direct the City Manager to update all City of Toronto relationship frameworks to contain gender-neutral language. This includes not only the replacement of gender-specific language but also a thorough review of all underlying assumptions that may inadvertently reinforce binary assumptions about gender.

Gendered language, though traditionally used, marginalises certain communities, and exclude others from conversations. By updating our relationship frameworks to employ gender-neutral language, we are taking a significant step towards ensuring our city is inclusive and respects the identities of all individuals.

The City of Toronto prides itself on its diversity, inclusivity, and commitment to equality. This step is a critical part of the ongoing effort to ensure that our policies, procedures, and conduct reflect these values. By making this change, we are setting a positive example for other municipalities, organisations, and businesses—demonstrating that inclusive language should not be an add-on, but a fundamental part of how we communicate.

The Executive Committee recommends that:

1. City Council receive the Federation of Canadian Municipalities Board of Directors Gathering Summary for September 2024 outlined in the letter (October 21, 2024) from Councillor Paul Ainslie for information.

As one of the City of Toronto appointees to the Federation of Canadian Municipalities Board of Directors, I am writing to provide an update on the recent FCM Board of Directors Gathering held in Ottawa on September 18-19. This gathering was a valuable opportunity for board members to receive targeted information, engage in discussions, and prepare for the upcoming fall and winter. Key focus areas of the meeting included:

- Reconciliation: We discussed FCM's developing Reconciliation strategy and engaged in facilitated roundtable discussions to gather input from board members. This was a positive step towards empowering board members to become Reconciliation champions in their home municipalities.

- New Board Member Orientation: We welcomed and oriented new board and committee members, providing them with information on the current context and major issues facing our municipalities.

- Electoral Readiness and Strategic Planning: FCM's senior leadership presented on current priorities and the steps being taken to position municipal needs ahead of a future election. Additionally, our CEO, Carole Saab, provided an update on the development of our overall strategic plan.

- Green Municipal Fund: We highlighted the success of the Green Municipal Fund in driving positive impacts for Canadian communities and discussed ongoing and new programs.

- Legal Defense Fund: We updated our board on the status of the Legal Defense Fund and its key role in supporting our capacity to intervene in precedent-setting federal appellate cases.

The meeting was a productive and informative event that will help position FCM and its member municipalities for success in the coming months.

I invite you to review the attached September Summation sheet, with details the work accomplished at the Board of Directors Meeting. Summation sheet

The Executive Committee recommends that:

1. City Council support the Good Road Association in their request to the Province of Ontario to establish an Ontario Rural Road Safety Program.

2. City Council forward a copy of the Item to The Honourable Doug Ford, Premier of Ontario, The Honourable Prabmeet Sarkaria, Minister of Transportation, The Honourable King Surma, Minister of Infrastructure, The Honourable Rob Flack, Minister of Agriculture, The Honourable Lisa Thompson, Minister of Rural Affairs, The Honourable Trevor Jones, Associate Minister of Emergency Preparedness and Response, The Honourable Sylvia Jones, Minister of Health and the Good Roads Association.

As a Good Roads Board of Directors representing the City of Toronto, I am writing to express the strong support for the establishment of an Ontario Rural Road Safety Program, as outlined in the recent proposal by Good Roads.

Ontario roads are experiencing a troubling rise in fatalities. In 2023, there were 616 deaths and 36,090 injuries, with fatalities increasing nearly 20 percent over the past decade. The 2021 Ontario Road Safety Annual Report (ORSAR) reveals a concerning disparity: while rural Ontario has only 17 percent of the province's population, 55 percent of road fatalities occur on its roads. This disproportionate risk necessitates immediate action.

Simultaneously, municipal insurance premiums continue to rise. In the absence of joint and several liability reform, municipalities must explore innovative ways to manage risk, particularly on their roads.

This program is critical to addressing the alarming rise in fatalities and injuries on rural roads in our province. As the data clearly demonstrates, rural roads disproportionately pose a greater risk to drivers and pedestrians, despite representing a smaller portion of the population.

The program's multifaceted approach, which includes targeted safety audits, installation of modern safety infrastructure, and a focus on cost-effectiveness, offers a promising solution to this pressing issue. By the Province investing in rural road safety, we can not only save lives but also alleviate the burden on our healthcare system and reduce the financial strain on municipalities.

I am requesting that the City Council adopt this resolution supporting this program and forward it to the Premier and Minister of Transportation. By acting now, The City of Toronto can demonstrate support and commitment to the safety of all Ontarians and make a significant difference in reducing road fatalities.

Good Roads believes, the program is not only important for rural communities but also has broader implications for the entire province. By improving road safety in rural areas, we can reduce the number of accidents that occur on major highways and improve overall traffic flow.

We urge you to prioritize this issue and take immediate action to support the Ontario Rural Road Safety Program. Thank you for your immediate attention to this urgent matter.

The Executive Committee recommends that:

1. City Council receive the Good Roads Board of Directors Meetings update on September 26 and September 27, 2024 for information.

As the Third Vice President and City of Toronto the Board of Directors representative, I attended the Board of Directors Meetings on September 26 and September 27, 2024. The meetings provided insights into the current state and future direction of road infrastructure and transportation. The meetings focused on:

-Policy Updates: The meeting offered a platform to discuss and understand the latest policy developments and initiatives related to road infrastructure. This knowledge is essential for [Your Role/Responsibilities] as it allows me to align our [Organization/Department] with the evolving regulatory landscape.
-Industry Trends: The Good Roads Board meeting brought together experts from various sectors, providing a unique opportunity to learn about emerging trends, technologies, and best practices in road construction, maintenance, and management. This information will help us stay ahead of the curve and adopt innovative solutions.
-Networking Opportunities: The event facilitated valuable networking with industry professionals, government officials, and other stakeholders. Building relationships with these individuals is crucial for [Your Organization/Department] as it can lead to collaborations, partnerships, and shared knowledge.
-Advocacy and Engagement: By attending the meeting, I was able to gain a deeper understanding of the challenges and opportunities facing our region's road infrastructure. This knowledge will inform our advocacy efforts and allow us to engage more effectively with decision-makers to ensure that our priorities are reflected in future plans and policies.

The Good Roads Conference is tabled for March 30 – April 2, 2025, in Toronto. Conference - Good Roads

The Executive Committee recommends that:

1. City Council approve a temporary increase to the Municipal Accommodation Tax from 6 percent to 8.5 percent effective June 1, 2025 to July 31, 2026, and direct the Chief Financial Officer and Treasurer to include the additional revenue towards FIFA World Cup 2026 related costs in the 2025 and 2026 Budgets for the Mayor's consideration as part of future budget processes.

2. City Council authorize the introduction of the necessary Bills in Council to give effect to City Council's decision by amending City of Toronto Municipal Code Chapter 758, Taxation, Municipal Accommodation Tax.

3. City Council request the Chief Financial Officer and Treasurer to report back through the 2026 Budget Process with an update on the additional increase in Municipal Accommodation Tax revenue generated, and revised estimates up until July 31, 2026.

4. City Council direct the Executive Director, FIFA World Cup Hosting 2026 and the Chief Procurement Officer to proceed in accordance with the revised procurement plan to procure the goods and services required for the delivery of FIFA World Cup 2026 set out in Revised Confidential Attachment 1 to the revised report (October 28, 2024) from the Executive Director, FIFA World Cup Hosting 2026, the Chief Procurement Officer and the Chief Financial Officer and Treasurer.

5. City Council adopt the confidential instructions to staff in Revised Confidential Attachment 1 to the revised report (October 28, 2024) from the Executive Director, FIFA World Cup Hosting 2026, the Chief Procurement Officer and the Chief Financial Officer and Treasurer.

6.  City Council amend the 2024-2033 Capital Budget and Plan for Parks, Forestry and Recreation set out in Revised Confidential Attachment 1 to the revised report (October 28, 2024) from the Executive Director, FIFA World Cup Hosting 2026, the Chief Procurement Officer and the Chief Financial Officer and Treasurer.

7. City Council amend the 2024-2033 Capital Budget and Plan for Exhibition Place set out in Revised Confidential Attachment 1 to the revised report (October 28, 2024) from the Executive Director, FIFA World Cup Hosting 2026, the Chief Procurement Officer and the Chief Financial Officer and Treasurer.

8. City Council direct that Revised Confidential Attachment 1 to the revised report (October 28, 2024) from the Executive Director, FIFA World Cup Hosting 2026, the Chief Procurement Officer and the Chief Financial Officer and Treasurer remain confidential at this time as it pertains to criteria to be applied to negotiations carried on or to be carried on by or on behalf of the City of Toronto and be made public at the discretion of the Chief Procurement Officer following the award or closing of the contemplated procurement transactions.

9. City Council direct the Chief Financial Officer and Treasurer to explore opportunities to differentiate the temporary increase to the Municipal Accommodation Tax on patrons' hotel bills, in consultation with the Greater Toronto Hotel Association.

10. City Council request the Government of Ontario and Government of Canada remove the Harmonized Sales Tax on the City of Toronto's Municipal Accommodation Tax.

11. City Council direct the City Manager and the Chief Financial Officer and Treasurer to review the City's funding contributions to Destination Toronto and report on any recommended changes through the 2025 Budget process.

12.  City Council direct the General Manager, Economic Development and Culture to report through the 2025 Budget process on opportunities to support the visitor economy in advance of FIFA World Cup 2026, in consultation with Destination Toronto and relevant City Divisions and Agencies.

13. City Council direct the Chief Financial Officer and Treasurer to provide a status update and further any further recommendations on Revenue Opportunities to Support Hosting Obligations by the fourth quarter of 2025.

At its meeting on November 4, 2024, the FIFA World Cup 2026 Subcommittee considered
Item FWC2.1 and made recommendations to City Council.

This report provides an update on planning for the FIFA World Cup 2026 (FWC26) in Toronto, including a revenue strategy identifying ways to offset expenditures, a progress update on community workforce development and business opportunities for local and diverse suppliers through FWC26 procurements, and current state of play of the procurements, including awarded contracts to date and requests to award and negotiate on items captured in a confidential attachment. 

With planning ongoing and budget estimates converting from forecast to actuals, the cost of some goods and services quoted back are higher than projected. This report puts forward a revision to the procurement plan for goods and services for both capital and operational services previously approved by City Council on July 24, 2024 (EX16.32).

As has been previously reported to City Council, the estimated costs to host the FWC26 in Toronto total $380.0 million, which includes all operations, safety and security, and capital upgrades to ensure the City meets all FIFA requirements. Of the $380.0 million required to deliver the games $201.4 million is being offset by provincial and federal funding, resulting in the City required to identify a total of $178.6 million (or 47% of total costs). Of this, $83.6 million in revenue has been previously identified through existing municipal sources, commercial rights sales, rental fees, and in-kind contributions. As requested through EX11.12 – Update on Hosting FIFA World Cup 2026, this report outlines additional financial opportunities to the City of Toronto to offset the $95.1 million in remaining funding requirements without impacting the property tax base, including a review of existing revenue tools and new opportunities made available by hosting the games, such as donations, merchandise sales, music royalties, new commercial sales opportunities and revenues specific to FIFA Fan Festival. The FWC26 Toronto Secretariat, in consultation with Finance & Treasury, will continue to explore these targeted revenue opportunities. As they are further developed and refined, staff will report back to the FWC26 Subcommittee, as applicable, with additional information.

As the world’s most-watched sporting event, FWC26 represents a major economic opportunity for Toronto, the Province of Ontario, and Canada, as it welcomes hundreds of thousands of visitors. As noted above, the City is responsible for 47% of total costs, however has limited tools to capture revenue associated with the economic activity and benefits associated with hosting the games. Staff have undertaken a review of available funding sources to support the delivery of the FWC26 with the objective of restricting any potential impact on the existing property tax base and planned projects.

Of the revenue tools enabled by the City of Toronto Act, 2006 (COTA), the Municipal Accommodation Tax (MAT) provides the most effective opportunity to generate revenue directly from increased economic activity resulting from FWC26, while ensuring no impact to the City’s property tax base. Implementing a temporary incremental increase to the MAT, applied to hotels and short-term rentals, of 2.5% over a 14-month period (June 1, 2025 – July 31, 2026) is projected to generate an additional $56.6 million in revenue, offsetting the majority of the remaining funding requirement. It is anticipated that any potential impacts on hospitality operators will be largely offset by increased room demand and related visitor spending in the lead up, during, and following the FWC26, as well as substantial future benefits due to Toronto’s global visibility gained from hosting the FWC26.

In addition to recommending a temporary increase, staff will continue to monitor base performance of the MAT prior to the FWC26, along with other corporate revenues, which could help to further alleviate any remaining budget pressures. Further, to address any remaining funding requirements, staff also remain committed to ensuring cost mitigation strategies are in place for the delivery of the games to minimize financial impacts on the City of Toronto, residents, and businesses.