Item - 2013.ED19.4

City Council on February 20 and 21, 2013, adopted the following:

1.         City Council endorse the following economic growth and job creation objectives and targets:

a.         Increase employment:

i.          20,000 net new jobs per year as measured by the Toronto Employment Survey;

ii.         eliminate gap between City and national unemployment rate by end of 2018; and

iii.        request the General Manager, Economic Development and Culture, in conjunction with the City Manager, to review opportunities the Federal government has within the Income Tax Act as follows:

a.         tax capital gains at the same level of ordinary income;

b.         cap deductions or convert more deduction categories to tax credits; and

c.         reinvest tax revenues from the above initiatives in public transit and other municipal infrastructure programs that support economic development.

b.         Job Quality:

i.          year over year increase in median hourly wage rate above CPI;

ii.          increase ratio of new jobs in traded sectors to non-traded sectors to 60:40 annually;

c.         Net new commercial office and industrial property assessment:

i.          $400 million net new commercial and industrial current value  assessment per year (this would generate ~$15 million to $20  million in additional property tax revenue); and

d.         Align and harmonize City an ABCCs policies, programs and activities to create an attractive climate for business and investment

i.          Measure of alignment to be developed in 2013.

2.         City Council endorse the following strategies, recommendations and associated actions as also contained in the attached report (January 23, 2013) from the General Manager, Economic Development and Culture, entitled "Collaborating for Competitiveness:  A Strategic Plan to Accelerate Economic Growth and Job Creation in Toronto":

a.         Strategy A - Making Toronto the Most Competitive Big City in North America for Businesses.

Recommendation A.1:

Accelerate investments in commercial and industrial developments that enhance the City's property tax base and/or create permanent jobs.

Action A.1.1:

Ensure Official Plan policies and Zoning By-law regulations provide flexibility to accelerate investments in commercial and industrial developments that enhance the City's property tax base and/or create permanent jobs.

                                    Action A.1.2:

Reduce the time frames for the review of development applications for employment uses and consider implementation of a Development Permit System for Employment Areas.

Recommendation A.2:

Improve cost competitiveness that enhances the City's property tax base and/or creates permanent jobs.

Action A.2.1:

Continue commitment to reduce industrial and commercial property tax ratio to 2.5x residential property tax rate by 2020 or earlier and endorse in principle that all industrial development, and commercial development excluding ground floor and retail components, continue to be exempt from development charges in the upcoming development charges by-law review.

Action A.2.2:

Fully promote the recently renewed and modified Imagination, Manufacturing, Innovation and Technology (IMIT) program.

b.         Strategy B – Ensure Adequate Supply and Availability of Business Input   Essentials.

Recommendation B.1:

Ensure sufficient land is available to accommodate commercial and  industrial employment growth.

Action B.1.1:

Request the Ontario Minister of Finance to consult with the City of Toronto and MPAC to assess the impacts of valuing commercial and industrial properties in areas of rapid development at highest and best use, rather than on current use, and to identify legislative or regulatory options that support and are consistent with the City's competitiveness and business retention objectives.

Action B.1.2:

Ensure Official Plan policies and Zoning By-law regulations provide flexibility to permit compatible offices within employment areas.

Recommendation B.2:

Ensure sufficient infrastructure capacity is available to accommodate  commercial and industrial employment growth forecasts.

Action B.2.1:

Assess the City of Toronto's long-term capital investment program in the context of supporting economic growth and job creation with a specific focus on addressing traffic congestion including a review of the city's transportation hubs and ports, comprehensive transit plan and funding strategy, accessibility of major employment areas and a goods movement strategy and recommend adjustments if and as appropriate.

Action B.2.2:

Encourage and support Toronto Hydro initiatives to renew or replace ageing infrastructure to improve the reliability of electricity supply.

Action B.2.3:

Work with Toronto Hydro and Hydro One to initiate a strategic examination of existing and anticipated future power needs, alternative approaches to supply, distribution, conservation and demand management, including expanding co-generation and district power solutions.

Recommendation B.3:

Facilitate workforce development to ensure equitable opportunities for all  residents, an adequate supply of qualified labour to support economic  growth and reduce social support service costs to the City.

Action B.3.1:

Integrate and coordinate implementation of the Workforce Development Strategy, Toronto Child Care Service Plan, Toronto Newcomer Strategy, Toronto Strong Neighbourhoods Strategy and Collaborating for Competitiveness.

c.         Strategy C – Encourage Business Investment and Formation.

Recommendation C.1:

Help small and medium size enterprises form and prosper.

Action C.1.1:

Work with seasoned entrepreneurs, industry associations, and business organizations to establish wider networks of incubators, accelerators and mentors.

Action C.1.2:

Request the Province of Ontario to amend legislation respecting the Vacant Unit Rebate provision for commercial and industrial properties to permit municipal councils to establish graduated vacant unit rebates to induce and incent owners and tenants to meet eligibility criteria that align with the municipalities economic growth and job creation objectives; and further, request the General Manager, Economic Development and Culture, to report on options for changes to the Vacant Unit Rebate by the 4th quarter of 2013.

Recommendation C.2:

Attract companies and investment to Toronto.

Action C.2.1:

Foster effective foreign direct investment attraction  (business and capital) through a better co-ordinated sales and marketing approach using Invest Toronto,  regional bodies (e.g. GTMA), sector organizations such as the Toronto Financial Services Alliance and Tourism Toronto, the City’s partner and friendship cities, provincial and federal agencies.

d.         Strategy D – Boost Business Growth.

Recommendation D.1:

Strengthen and grow high-value sectors particularly those with high economic multipliers.

Action D.1.1:

Increase participation of Toronto based businesses in existing sector-based export development and market-entry programs by ensuring programs are promoted and delivered in Toronto.

Action D.1.2:

Lever the City's relationship with our international alliance partners and friendship cities as well as with bi-lateral business associations to establish cross-border business oriented partnerships, develop new markets and trade alliances, and act as a catalyst for new investment, as well as business, educational and cultural exchanges.

Action D.1.3:

Lever major events, such as the Pan/Para Pan American Games, to stimulate business alliances (including cultural relationships), develop and expand markets and attract investment.

Recommendation D.2:

Strengthen support for retaining and expanding manufacturing.

Action D.2.1:

Proactively outreach to identify and assist Toronto based manufacturers seeking global product mandates including accelerating necessary municipal approvals and advocating to/with other orders of government.

Action D.2.2:

Provide an annual report on the state of Manufacturing in Toronto to keep a special focus on this group of high value sectors.

3.         City Council approve the establishment of an Economic Growth and Job Creation Advisory Committee led by the Mayor with membership drawn from business, labour and academia, and the United Way, with an emphasis on diversity, as well as the Chair of the Economic Development Committee, the Chair of the Planning and Growth Management Committee, the Chair of the Public Works and Infrastructure Committee and two Councillors at large.

4.         City Council approve an Economic Growth and Job Creation Staff Team, chaired by the General Manager, Economic Development and Culture, with membership drawn from City divisions, agencies, boards, commissions and corporations that impact economic growth and job creation.

5.         City Council request the Economic Growth and Job Creation Staff Team, to report to the Economic Development Committee on how the economic growth and job creation targets will be achieved and identify appropriate lines of accountability while recognizing the multi-stakeholder nature of collaborative initiatives.

6.         City Council request the City Manager to investigate the inclusion of an "Economic Lens" in City staff reports to Council.

7.         City Council request the General Manager, Children's Services, in conjunction with the General Manager, Toronto Employment and Social Services, to include in the next Workforce Development Strategy Progress Report, information on the number and cost of childcare subsidies required to reduce the unemployment rate in Toronto by one (1) percent.

8.         City Council direct the General Manager, Economic Development and Culture, as part of the Strategic Plan to Accelerate Economic Growth and Job Creation in Toronto, to actively assist the Chief Planner with the retention of Employment Lands, including providing expert evidence at Ontario Municipal Board hearings.

9.         City Council direct the General Manager, Economic Development and Culture to report back to the Economic Development Committee, as the Division implements this job strategy on an annual basis, on how job quality is enhanced through a year over year increase in the median hourly wage rate over CPI.