Update: Winter 2018

 

Development Charge Review

THE ISSUE:    

The City was reviewing fees to be charged to new developments.  As part of the City’s review, the City was proposing both an increase in the non-residential Development Charges (“DC”) and removal of the non-residential DC exemption.  The non-residential DC exemption, exempts all commercial area in a commercial development, save for ground floor commercial space, from paying DCs.  Removal of the non-residential DC exemption would dramatically impact the economic feasibility of commercial redevelopment. 

NAIOP’S ROLE:   

NAIOP actively engaged staff to successfully maintain the non-residential DC exemption.

NEXT:   

NAIOP is still working with staff on the effective date of any new DCs and the transition period of any increase.  NAIOP will also continue to monitor the non-residential DC exemption as it is scheduled to be reviewed again in early 2019.


Toronto’s Imagination, Manufacturing, Innovation and Technology (IMIT) Incentive Program

THE ISSUE:    

The IMIT program is a business incentive that provides eligible developments a tax rebate on the increased value created by the investment.  City Staff proposed changes to IMIT’s eligibility that would exclude office developments in an expanded financial district and would mandate new green standards for any eligible development.  The report by City Staff also didn’t contemplate any grandfathering of existing applications.

NAIOP’S ROLE:

NAIOP submitted a letter to the January 24th Executive Committee regarding these proposed changes, indicating our opposition to a number of the proposed changes.  Executive Committee ultimately passed the motion to reduce the scope of the IMIT, but NAIOP was successful in getting City Staff to commit to grandfather previously submitted IMIT applications.

NEXT:

Executive Committee’s decision was subsequently deferred by Council.  NAIOP will be engaging with staff and councillors on this issue moving forward.


TOcore Review

THE ISSUE:    

The goal of TOcore is to draft a new secondary plan for Toronto’s Downtown that will set a 25 year vision of the area.

NAIOP’S ROLE:

NAIOP met with planning staff in April and December 2017 to provide feedback on early draft proposals. NAIOP has been coordinating with other interested groups such as BILD to ensure the proper feedback is provided to incorporate into a potentially fundamental set of planning policies for the City.

NEXT:   

Staff is currently considering NAIOP’s Feedback and we are scheduled to meet again in the Spring of 2018.


Expansion of Capping and Clawback Program

THE ISSUE:    

Toronto is expanding its capping and claw-backs program.  Some business will be protected from tax increases over 10% (“Capping”), other businesses that should experience reductions in tax due to their reassessment will instead see those expected reductions “clawed back”.

NAIOP’S ROLE:   

NAIOP submitted a letter to Executive requesting that the capping and claw-back measures be delayed until the assessment methodology issue can be addressed.  Also requested that the City undertake an urgent review of those impacted by claw-backs to ensure no properties have drastic tax increases as a result.

NEXT:   

NAIOP will be engaging City Staff and Councillors on potential solutions to this issue in advance of the expected Staff report in July 2018.