Status of Supports for the Retail Sector

Ontario entered Step 3 of its 3-step Re-opening Roadmap on July 16, 2021. This important development, coupled with a recent decline in the city's retail vacancy rates, provide grounds for measured optimism that Toronto's retail sector is now on a recovery trajectory. However, the extent, sustainability, pace, and (geographic and sub-sectoral) distribution of this recovery remains uncertain. In particular, the effect of the withdrawal of Government of Canada wage and rent subsidies for businesses is unknown, as is the long-term impact of increased digital commerce and working from home arrangements on different segments of the retail sector. While retail sales in some categories have largely recovered, sales and employment in food services and accommodation have lagged behind. Consequently, retail businesses will need continued support from the City of Toronto throughout the recovery period to minimize further business losses or the risk of widespread, extended retail vacancies. Together, the City of Toronto's existing (with certain modifications), new (Main Street Recovery and Rebuild Initiative) and potential retail and small business support programs, as described in this report, aim to address business operator needs during the recovery period, while strengthening the ability of Toronto's retail sector to provide employment opportunities and contribute to the vitality of the city's streets, neighbourhoods and economy.

2. City Council authorize the General Manager, Economic Development and Culture or the Deputy City Manager, Community and Social Services to negotiate and execute on behalf of the City of Toronto funding, partnership, training and/or service agreements (some of which are valued at approximately $1.000 million each) with the Government of Canada, the Government of Ontario, the Black Business and Professional Association, plazaPOPS or other third parties related to any Main Street Recovery and Rebuild Initiative programs, provided that such agreements are in a form satisfactory to the City Solicitor. 3. City Council increase the 2021 Council Approved Operating Budget for Economic Development and Culture by $0.455 million gross, $0 net, fully funded by the Government of Canada, to begin delivery of the Main Street Recovery and Rebuild Initiative programs. 4. City Council direct the General Manager, Economic Development and Culture to include an increase to the funding request for the Mural and Street Art Program through reallocation as part of the Economic Development and Culture Division's 2022-2031 Capital Budget and Plan Submission for City Council consideration.