Community Improvement Plan for the Economic Development and Growth in Employment (EDGE) Incentive Program

The recommended CIP provides a more targeted employment space development incentive that would replace the existing City-Wide CIP (City of Toronto By-law 1207-2018) that enables the IMIT Incentive Program. The proposed new City-Wide CIP is a key deliverable in support of City Council's new Sidewalks to Skylines: An Action Plan for Toronto's Economy 2025-2035 (APTE), specifically Action 2 that calls for the replacement of IMIT with an incentive program to support targeted employment uses, attract and retain employers, increase high-quality jobs, stimulate investment across the city, drive broader city-building goals, while strengthening Toronto's global competitiveness. The new City-Wide CIP would enable the proposed Economic Development and Growth in Employment (EDGE) Incentive Program, a financial incentive program designed to provide support for critical new investment in targeted economic sectors of importance to Toronto's economy and competitiveness by incentivizing business development and supporting the retention and growth of inclusive jobs. The program would replace the IMIT program and focus on high-growth, export-oriented and visitor-economy sectors that are important to Toronto's economy and workforce, with these sectors typically needing industrial-type spaces. It would support new construction or major renovation of buildings in targeted employment sectors through Tax Increment Equivalent Grants, while also including an element for Brownfield Remediation Tax Assistance (BRTA). This program is more targeted than the IMIT Program in terms of outcomes sought and offers more financial predictability, better administrative controls and enhanced Council oversight. The most notable changes include eliminating eligibility for office buildings (except in instances where the development is approved as a Transformative Project) and reducing the grant amount and term by fifty percent, making the basic grant equal to 60 percent of the municipal tax increment over five years. Additionally, the new CIP introduces improved financial controls, including the requirement for applications with a construction value above $100 million to be approved by City Council, conditions that ensure approved projects are initiated and completed within specified timelines, and an automatic expiration of the program on December 31, 2034, after which no applications will be accepted. Furthermore, the recommended CIP addresses City goals related to sustainability, job quality, access, and community workforce development through both the enhanced grant stream and updating the Local Employment Requirement. The proposed EDGE program to replace the IMIT program strongly aligns with Council direction via the LTFP to redesign the incentive program for stronger alignment with City goals, predictability and affordability. Through the reduction in the grant quantum and the length of grant term, as well as applying more finely targeted eligibility requirements, projections are that future grants during the first ten years of the new proposed EDGE program are unlikely to exceed 6 percent of the total grants committed under the IMIT Program.

2. City Council determine pursuant to section 28(13) of the Planning Act that the Toronto Community Improvement Plan for Brownfield Remediation and Development of Prescribed Employment Uses (By-law 1207-2018, as amended, the "2018 CIP"), that enables the Imagination, Manufacturing, Information and Technology (IMIT) Program, has been carried out, dissolve the community improvement project area designated by By-law 1207-2018, and repeal By-law 1207-2018, as amended. 3. City Council delegate to the General Manager, Economic Development and Culture, approval authority in respect of applications for the Economic Development and Growth in Employment (EDGE) Incentive Program development grants, provided the project has an estimated construction value of $100,000,000 or less. 4. City Council direct the General Manager, Economic Development and Culture in consultation with the Chief Financial Officer and Treasurer to bring forward, no less than annually, as a group: a. for City Council's consideration, any complete applications for Economic Development and Growth in Employment (EDGE) Incentive Program development grants for projects with an estimated construction value greater than $100,000,000; and b. for City Council's information, notice of any Economic Development and Growth in Employment (EDGE) Incentive Program development grants approved by the General Manager, Economic Development and Culture under their delegated authority. 5. City Council authorize staff to introduce an Economic Development and Growth in Employment (EDGE) Incentive Program administration fee of 30 cents per square metre based on eligible gross floor area and that Municipal Code Chapter 441, Fees and Charges, be amended to reflect the new fee. 6. City Council authorize the General Manager, Economic Development and Culture to negotiate and execute financial incentive agreements for approved Economic Development and Growth in Employment (EDGE) Incentive Program applications, in a form satisfactory to the City Solicitor. 7. City Council authorize the City Solicitor to make such stylistic and technical changes to the draft Community Improvement Plan for the Economic Development and Growth in Employment (EDGE) Incentive Program, as may be required. 8. City Council authorize the appropriate City officials to take such actions as are necessary to implement City Council's decision.