The proprosal seeks to find ways to attract investors to priority neighbourhoods, such as the Jane-Finch corridor.
After years of channelling public dollars to social services in Toronto's 13 poorest neighbourhoods, the city should try to kick-start revitalization by waiving development charges on new private-sector projects in those areas, according to a proposal tabled in council by two of Mayor Rob Ford's closest allies.
"The idea is a very simple one," says economic committee chair Michael Thompson (Scarborough Centre). "A lot of times it appears that a lot of development takes place in the core. [But]when it reaches the suburbs, it doesn't reach the priority neighbourhoods."
The proposal to waive charges seems at odds with the mayor's plan to rely on development levies to entice private investors to build the Sheppard subway. Planning experts also wonder whether a market-minded approach will prove to be enough of a carrot. And critics warn that the foregone revenue could affect services to those same communities.
The motion, moved by council speaker Frances Nunziata (York- South Weston) and Mr. Thompson, asks planning officials to come up with ideas to entice private investment in priority neighbourhoods, which have endured rising levels of poverty and crime as jobs have fled to the 905 and beyond. City staff will report on the feasibility of the strategy at the next executive committee meeting.
"Ninety per cent of the stores on Weston Road are vacant," says Ms. Nunziata, whose ward includes Weston-Mt. Dennis. "We need an incentive for [developers]to come into the area."
United Way of Greater Toronto CEO Susan McIsaac agrees the city needs to find new ways to spark economic activity in the priority neighbourhoods. However, a report released by the group in January recommends other strategies, such as flexible zoning rules designed to allow mixed-use development for small businesses, as well as more infill housing and retail venues in the vacant spaces between apartment towers.
Some councillors worry that simply waiving fees could deprive the city of funds it needs to finance infrastructure, including community services. "You'd get development without the accompanying funds," warns Janet Davis (Beaches East York), whose ward includes the Crescent Town neighbourhood.
The city in 2010 earned $90-million in development charge revenue, twice the 2009 level. The rates jumped 25 per cent last month after a two-year freeze, approved by the former council to help the building industry ride out the recession.
That perk helped revive development in some areas, but the move proposed by Ms. Nunziata and Mr. Thompson may not yield prompt results. "It's not going to work instantly," predicts Stephen Dupuis, who heads the Building Industry and Land Development Association. "I doubt there's a whole lot of land holdings sitting [in those areas]waiting for an incentive."
"The problem in those neighbourhoods is lack of demand, not lack of supply," adds planner Joe Berridge, noting that development-charge holidays or other measures, such as tax increment financing, won't create local economic activity.
But that market reality may be shifting in places. Mr. Thompson is talking to developers about putting up a large mixed-use project near the edge of one priority neighbourhood in his ward, and has been searching for ways to seal the deal.
As for Weston-Mt. Dennis, in Ms. Nunziata's ward, the area in coming years will see the arrival of new transit stops for the Eglinton Crosstown LRT and the rail link to Pearson. With the abundance of vacant lots near planned stops, says Ms. Nunziata, "there are a lot of development opportunities."
Special to The Globe and Mail