A variation on the question asked at the last City Conversation is explored in Toronto, where ‘Section 37’ agreements for increased density in return for community benefits are complicated by their ward system. By Raja Moussaoui at the CBC:
In November of last year, a shouting match erupted in Toronto city council chambers. Mayor Rob Ford hurled accusations at Coun. Adam Vaughan, calling a $1 million deal that Vaughan secured with a developer a “shakedown.”
Ford’s outburst is just one snippet in a much greater debate over the ambiguous, ad hoc nature of Section 37 of the Planning Act, a “density for benefit” agreement introduced by the province in 1983. It allows municipalities in Ontario to secure benefits for a community undergoing significant land development. In Toronto, ward councillors can negotiate cash and in-kind benefits from developers looking to build higher and with greater density than is allowed in the zoning.
“Some people think that it’s just a form of blackmail,” said deputy mayor Doug Holyday. “A developer can get more density and make more profit off of a piece of land by paying off the city. In some cases, the money coming into certain areas is astronomical.”
A recent paper by Aaron Moore from the Institute on Municipal Finance and Governance reports that from 2007 to 2011, 159 agreements were reached under Section 37, which includes 386 separate benefits.‘Too much power in councillors’ hands’
These benefits included improvements to public parks, playground and commissioned public artworks. While almost half of these benefits were paid in-kind, the cash benefits alone garnered $137 million.
While the city planning department negotiates the value of the Section 37 benefits, it is up to the discretion of the individual ward councillor of the development area to decide how those benefits will be allocated. Holyday says the planning department needs to take a stronger role in these decisions.
What was referred to as the “shakedown” of a developer is indeed a risk of basing rezoning on “public benefit.” It must be done carefully, and it’s been obvious to a great many folks over a long time span that this is not always the case in Toronto.
The same danger exists in Vancouver and BC. However, I think we’ve much more cautious in our approach, especially in Vancouver and with respect to operations guided by the Vancouver charter. Cash benefits are never received. As well, the freedom to designate selected benefits is limited.
I don’t think you’re correct – I think cash is received.
If a Community Benefit value is established to decide a rezoning application, cash can be submitted in lieu of a Community Benefit. It happened in Chinatown a couple months ago. The developer got what they wanted by paying cash.
Isn’t the public review process one of the checks & balances in this system? Don’t they do that in Hogtown?
@Sean Nelson – The public review process? Where the current majority on council sits through hearings pretending to listen to residents, then proceeds to do ignore their comments and do whatever they want? Not much of a check or a balance.