Item - 2021.PH26.1

The Planning and Housing Committee recommends that:

1. City Council amend the By-law in Attachment 1 as follows: 

a. Amend 5.3 Eligible Improvements of the Commercial Façade Improvement Program by changing the wording "Replacement of doors or windows" to "Replacement of doors or windows with higher energy performance rating doors and windows";

b. Amend 5.3 Eligible Improvements of the Commercial Façade Improvement Program by adding the addition of exterior insulation on the roof and building façades facing on to rear laneways as a new eligible improvement;

c. Amend 6.3 Eligible Improvements of the Commercial Rehabilitation Grant Program by adding the installation of interior insulation, reframing interior walls for the purposes of adding insulation, and the sealing of air leaks as a new eligible improvement;

d. Amend 6.3 Eligible Improvements of the Commercial Rehabilitation Grant Program by changing the wording "HVAC upgrades, including kitchen exhaust/ventilation" to "HVAC upgrades and kitchen exhaust/ventilation, including energy efficient systems that operate on electricity such as heat pumps".

2. City Council approve the by-law in Attachment 1 to the report (September 7, 2021) from the Chief Planner and Executive Director, City Planning and the Interim General Manager, Economic Development and Culture containing a City-Wide Community Improvement Plan for the Renovation and Rehabilitation of Commercial and Industrial Properties, as amended by Recommendation 1 above.

3. City Council authorize the City Solicitor to make any stylistic and technical changes to the draft by-law as may be required before introducing the necessary bill to City Council for enactment.

4. City Council direct the Interim General Manager, Economic Development and Culture, to include the funding request for the expansion of the Commercial Façade Improvement Program as part of the 2022-2031 Capital Budget and Plan submission, for City Council consideration.

5. City Council repeal By-law 1153-2018 once the Community Improvement Plan in Attachment 1, as amended, to the report (September 7, 2021) from the Chief Planner and Executive Director, City Planning and the Interim General Manager, Economic Development and Culture has come into full force and effect. 

6. City Council direct the Interim General Manager of Economic Development and Culture consult with Business Improvement Areas and to consider their feedback when creating an equitable and transparent evaluation matrix to ensure funding distribution is made available to businesses along main streets hardest hit by the pandemic.

The Planning and Housing Committee held a statutory public meeting on September 21, 2021 and notice was given in accordance with the Planning Act.

The purpose of this report is to propose a new Community Improvement Plan to expand the existing Commercial Façade Improvement Program, and establish the Commercial Rehabilitation Grant Program and the Commercial and Industrial Property Improvement Program. The Programs will be delivered by the Economic Development and Culture Division.

The goal of these proposed financial incentives would be to retrofit vacant spaces to accommodate new tenants and support the viability of existing businesses. The COVID-19 pandemic has disproportionately impacted retail and service-based businesses, causing increased vacancies on the City's retail main streets. The pandemic occurred at a time when businesses were already impacted by higher rents, increased competition from on-line retail, and rising operating costs (taxes, utilities, maintenance, and insurance).

Proposed amendments to the existing Commercial Façade Improvement Program would expand the Program city-wide, beyond the current limitation to Business Improvement Area (BIA) boundaries. The changes would also increase the range of eligible improvements and extend the grant to cover all building façades visible to the public. 

To address vacancies and upgrade commercial spaces, the proposed new Commercial Rehabilitation Grant Program would provide grants for interior renovations including leasehold improvements. These changes are intended to attract new tenants to vacant space, help existing businesses upgrade their current premises to make necessary improvements to remain viable, and meet improved health and accessibility standards.

The proposed new Commercial and Industrial Property Improvement Program would provide support to businesses for new or expanded patios on private property, other property and site improvements, and cafes installed in the public right-of-way through the CaféTO Program.

Grants made available to businesses through the Commercial Rehabilitation Grant Program and Commercial and Industrial Property Improvement Program would be funded, initially, by the Government of Canada through its recently announced support for Toronto's Main Street Recovery and Rebuild Initiative. The Commercial Façade Improvement Program is funded through the Economic Development and Culture 10-Year Capital Budget and Plan.

Similar to the existing Commercial Façade Improvement Program, the three grant Programs in the proposed Community Improvement Plan would be offered annually. Applications would be reviewed on a "first-come-first served" basis until funds are exhausted.