Developing unused properties could add thousands of jobs and affordable housing units, proposal says

Thestar.com
Jan 16, 2019
Fancine Kopun

Eleven surplus city properties can be developed to provide more than 10,000 residential units -- one-third of them affordable housing -- so that more low-income earners can live and work in the city, according to a staff report going to city council at the end of January.

The proposed $4.2-billion construction project would also create thousands of jobs, according to Sean Gadon, director of Toronto’s affordable housing office.

Councillor Joe Cressy said his initial reaction to the report on the surplus city properties is generally favourable.

“It represents 13,400 person-years of employment. The 11 sites spread throughout the city cover 40 acres of land, which is the equivalent of half of Kensington Market, or three Distillery Districts,” said Gadon.

In all, 3,629 of the 10,187 new units would be rented at rates ranging on average from $549 to $1,372 per month, making it possible for cashiers and retail workers, nannies and factory workers to live in the city instead of commuting from afar.

The average rents in the affordable housing units should not exceed 80 per cent of annual Canada Mortgage and Housing Corporation average market rents, according to the report.

Another third of the units would be leased at market rents and a third would likely be sold as condominiums, creating mixed-income buildings. The market-rent units and units sold as condominiums would assist in paying for the construction of the affordable homes.

It is also being recommended that the city waive its development charges, planning application fees, building permit fees and property taxes for the affordable units, totalling $280 million in exemptions over 99 years.

“The creativity of this is that there is no draw on the city’s tax revenues to achieve this program,” said Gadon. “All of the inputs are coming from existing land, which is publicly owned, and from the forgiveness of fees and charges that otherwise wouldn’t be collected because these developments wouldn’t have occurred.”

City council approved repurposing the 11 unused city properties as housing developments in December. The initiative, called “Housing Now,” is one part of Mayor John Tory’s promise to provide 40,000 more affordable housing units over the next 12 years.

Councillor Joe Cressy (Ward 10 Spadina-Fort York) said his initial reaction to the report is generally favourable.

“The most valuable asset that the city has is its land, and we must do a much better job of using our land to build a more affordable city. I think it’s fair to say that in the past, far too often we sold off land for a short-term buck, whereas what we need to focus on, and what I think we’re finally starting to focus on, is leveraging our land to build a more affordable city,” Cressy said.

“These parcels of land are located right across the city, which means we’re seeking to embed affordable housing in every neighbourhood in this city, which is the objective. You want to build mixed-income communities.”

The staff report, which goes to executive committee for consideration next Wednesday and to city council on Jan. 30, details an action plan for how “Housing Now” could take shape.

It calls for the establishment of a Housing Secretariat led by an executive director to troubleshoot any problems that arise and liase with city agencies and city councillors.

Gadon said special procurement policies have been requested that would encourage local hiring and create employment, training and apprenticeship opportunities for people who are economically disadvantaged.

He estimates construction of the proposed development would start in 2020, with residents moving in by 2022.

The 11 sites, which are located near mass transit, would otherwise likely have been sold to condo developers, said Gadon.

“It’s a ground-breaking initiative in that it essentially will be predetermining how these sites will be developed and ensuring that there is an opportunity for Torontonians of all backgrounds and all incomes to live here...basically leveraging these city-owned property at transit locations where residents will actually not be required to own cars.”

The development of each of the 11 sites will be put out for bids.

Both private and non-profit agencies will be allowed to bid on the projects.

“I’m expecting that we’ll get a diversity of development partners,” said Gadon. “This is $4.2 billion worth of construction activity, it’s frankly more than one developer could handle.”