Item - 2022.EC27.5

The Economic and Community Development Committee recommends that:

1.  City Council direct the General Manager, Economic Development and Culture to collaborate with the Chief Planner and Executive Director, City Planning to explore the application of the new Section 37 Community Benefits Charge and its potential capacity to provide limited funding for community facilities that may include for-profit and not-for-profit music rehearsal facilities.

2.  City Council direct the General Manager, Economic Development and Culture, in consultation with the Executive Director, Corporate Real Estate Management, the Chief Executive Officer, CreateTO and other relevant City divisions, to develop the terms of a pilot program for for-profit and/or not-for-profit cultural rehearsal studio and production space operators, to identify an inventory of City-owned properties suitable for lease and to develop key terms and conditions of a lease agreement to lease such spaces at below-market rates.

3.  City Council direct the General Manager, Economic Development and Culture, the Chief Planner and Executive Director, City Planning and the Executive Director, Corporate Real Estate Management to report back to the July 6, 2022 meeting of the Economic and Community Development Committee with a summary of work undertaken and tangible results stemming from the recommendations in the report (January 6, 2022) from the Interim General Manager, Economic Development and Culture.

Toronto is the centre of the Canadian music industry and one of the world's premier cities for music. With a thriving music ecosystem that includes a robust complement of iconic live music venues and globally recognized festivals, as well as record companies, recording studios, music publishers, artist management and talent agencies, Toronto also attracts internationally renowned acts while consistently producing some of the world's top musicians across a range of genres.

At the core of Toronto's music scene are its artists. A diverse and thriving grassroots music scene fosters talent development at all stages, enabling career growth for local emerging artists.

Music rehearsal spaces are a vital part of this artist development trajectory. They provide safe, affordable, and accessible places for musicians to hone their craft. Historically, Toronto musicians were able to find commercially available rehearsal space across the city, especially in or near the downtown core. However, over the last two decades, and more markedly within the last five years, the inventory of music rehearsal spaces in Toronto has significantly decreased – and the closure of over 50 percent of remaining rentable rehearsal rooms is expected by early 2022. Local musicians, media, and the music community are gravely concerned, with several community action groups having formed to address the issue.

Toronto's grassroots music scene has faced significant difficulties during the last decade. Rising land values, the effects of gentrification, and increasing commercial and residential rental costs have led to the closure of dozens of live music venues and mounting financial challenges for emerging musicians and the businesses that help sustain the music ecosystem.

Rehearsal spaces occupy a unique place in this ecosystem. Unlike a live music venue, a rehearsal facility's operating model relies on business brought by musicians, rather than the public. Its industry reputation is built on providing musicians with dependable locations, services and equipment and helpful, knowledgeable staff, all at competitive rates. When rehearsal spaces are threatened or go out of business, there is no public and media outcry like that accompanying the loss of a beloved live music venue.

Nonetheless, music rehearsal facilities are a vital, if underappreciated, part of the city's music scene, and have played a central part in fostering generations of artists in Toronto, both local favourites and global stars. Because of the importance of these facilities, the City of Toronto, with a clearly stated mandate to nurture and support its musicians and music industry, must now explore creative solutions to address the current threats to rehearsal spaces.

In responding to Motion MM35.42, which City Council adopted at its meeting of July 2021, this report presents an inventory of existing music rehearsal space in Toronto, created through research done by the City of Toronto's Music Office – a part of the Economic Development and Culture (EDC) division – and augmented with information contributed by members of the Toronto Music Advisory Committee, commercial rehearsal space owners, and individual musicians. This information is presented in a table, as Attachment 1 to the report, and includes each facility's location and City of Toronto ward.

The report also identifies measures for the City to consider implementing to help protect existing music rehearsal space and encourage the growth of new facilities across the City.