Item - 2018.ED28.4

The Economic Development Committee recommends that:

1. City Council receive the report (April 10, 2018) from the General Manager, Economic Development and Culture for information.

The film, television and digital media industry is a major economic driver for Toronto, generating about $2 billion in production investment and supporting over 30,000 jobs. However, the industry's continued growth is constrained by a lack of available studio space. While competing jurisdictions such as Vancouver have invested heavily in new space, Toronto's studios are operating at capacity, with limited space available to accommodate new large-scale feature film and television productions. Creating and supporting new opportunities for private investment in studios is a key recommendation in Spotlight on Toronto, the Toronto Film, Television and Digital Media Board's strategic action plan for the screen industry.

Many of Toronto's film studios are clustered in the Port Lands and South of Eastern Employment District, which are recognized by the industry as an attractive location for production due to their proximity to popular shooting locations in the city's downtown core, as well as an existing cluster of creative businesses and support functions. Studios in these areas are facing immediate pressures which could lead to the loss of valuable production space in the near future. First, a number of studios properties have been recently been sold for non-industry uses. In addition, several buildings housing workshop and production space for the screen industry will need to be removed in 2019 in order to accommodate construction as part of the Port Lands Flood Protection project.

With Toronto already facing a shortage of production space, the loss of these studios would have a negative impact on the industry if they are not replaced. Of the approximately 900,000 square feet of (non-captured) film and television studio space available for rental by productions in Toronto, about 60 percent is located in the Port Lands and South of Eastern Employment District. About 220,000 square feet have shut or will shut by the end of 2019, or shortly thereafter, if no remedial actions are taken. Led by the Toronto Film, Television and Digital Media Board and its Co-Chairs, Councillor Paula Fletcher (also the local councillor for this area) and Jonathan Ahee, City Council has deemed studio growth to be a key strategic imperative.

To sustain the industry's competitiveness, the City engaged N. Barry Lyon Consultants Ltd. (NBLC) to develop an action plan to identify replacement sites for these studios, and facilitate the growth of future studio space. This report provides an overview of NBLC's recommended action plan and next steps for its implementation.

NBLC recommends that the City address the immediate need for production space in the Port Lands and South of Eastern by issuing competitive requests for proposals to reopen the former Showline Studios, and potentially construct and operate an added temporary studio on the Showline site. NBLC also recommends finding investors/operators to establish a temporary or permanent studio facility at 29/41 Basin Street. These projects would replace much of the lost space, potentially by the end of 2019. Over the longer-term, NBLC recommends that the City enter into a lease with a private sector partner to build and operate a new major studio complex in the Port Lands at 185 Villiers Street / 625 Lakeshore Boulevard East, creating a foundation for future growth for the film, television and digital media industry in Toronto.

Private sector partners could play an important role in studio expansion in Toronto. NBLC recommends that the City examine tools to support studio development, such as accelerated development approvals and keeping the costs of land in line with industrial uses by protecting them, as much as is possible, from land speculation. Recent announcements made by the private sector to invest in expanded studio space in the Port Lands, including new Cinespace and Pinewood facilities, have begun to address the need for additional production space. Combined, these announcements could lead to the creation of as much as 300,000 square feet of production space to be brought to market over time. Continued investment by the private sector, along with the implementation of NBLC's action plan, will strengthen Toronto's competitive position as a leading global market for film.