A STUDY OF COMMERCIAL GENTRIFICATION AND THE DISPLACEMENT OF SMALL BUSINESSES IN THE DOWNTOWN YONGE STREET NEIGHBOURHOOD by Anna Flood BA, Carleton University, 2014 A Major Research Paper presented to Ryerson University in partial fulfillment of the requirements for the degree of Master of Planning in Urban Development Toronto, Ontario, Canada, 2018 ã Anna Flood, 2018 Author’s Declaration for Electronic Submission of MRP I hereby declare that I am the sole author of this MRP. This is a true copy of the MRP, including any required final revisions. I authorize Ryerson University to lend this MRP to other institutions or individuals for the purpose of scholarly research. I further authorize Ryerson University to reproduce this MRP by photocopying or by other means, in total or in part, at the request of other institutions or individuals for the purpose of scholarly research. I understand that my MRP may be made electronically available to the public. ii A STUDY OF COMMERCIAL GENTRIFICATION AND THE DISPLACEMENT OF SMALL BUSINESSES IN THE DOWNTOWN YONGE STREET NEIGHBOURHOOD ã Anna Flood, 2018 Master of Planning in Urban Development Ryerson University Abstract This research explores the unintended consequences of recent development trends for small businesses along Yonge Street between Bloor Street and College/Carlton Street in Toronto. By examining development projects between 2007 and 2018, the preference for large retail units at ground level with high-rise residential condominium towers above is evident. Heritage buildings and attributes are being demolished, where allowed, to create the base that supports this type of development. New development projects are increasing property values and taxes, and commercial rents. The lack of appropriately sized and priced retail space is displacing successful small businesses. The residents who are new to the neighbourhood are increasingly young persons who have higher incomes and levels of educational attainment. Small businesses may be unable to adapt to their consumer preferences. Key opportunities are identified for the City of Toronto to support successful small businesses in the neighbourhood and to maintain the character and heritage of Downtown Yonge Street. Key words: planning; commercial gentrification; displacement; small businesses; Toronto iii Acknowledgments I wrote this paper with the guidance and support of my professor and supervisor, Dr. Ronald Keeble. My second reader, Steven Ziegler, provided invaluable insight and encouragement. Thank you to my sister, Kristen Flood, for your uninterrupted advice about the world of urban planning and to my mother, Susan Webber, for your continuous encouragement. iv Table of Contents 1. INTRODUCTION .................................................................................................................. 1 Location ...................................................................................................................................... 1 History of Yonge Street .............................................................................................................. 2 Current State of Downtown Yonge Street .................................................................................. 4 Municipal Responses to Gentrification ....................................................................................... 6 2. LITERATURE REVIEW ....................................................................................................... 8 Gentrification .............................................................................................................................. 8 Displacement of Small Businesses ............................................................................................. 9 Importance of Small Businesses to Neighbourhood Character ................................................ 14 3. METHODOLOGY ............................................................................................................... 16 Demographics Analysis ............................................................................................................ 16 Development Examination ........................................................................................................ 16 Case Studies .............................................................................................................................. 17 4. POLICY REVIEW OF DOWNTOWN YONGE STREET ................................................. 18 City of Toronto Official Plan (2006) ........................................................................................ 18 City of Toronto Zoning By-law 438-1986 and City of Toronto Zoning By-law 569-2013 ..... 19 5. DEMOGRAPHIC ANALYSIS OF DOWNTOWN YONGE STREET .............................. 21 Population Growth and Density ................................................................................................ 21 Age ............................................................................................................................................ 22 Household Type and Median Income ....................................................................................... 22 Occupation ................................................................................................................................ 23 Educational Attainment ............................................................................................................ 23 6. DEVELOPMENT APPLICATIONS FOR DOWNTOWN YONGE STREET ................... 25 501 Yonge Street ....................................................................................................................... 27 480 Yonge Street ....................................................................................................................... 33 606 Yonge Street ....................................................................................................................... 43 Analysis..................................................................................................................................... 49 7. CITY OF TORONTO RESPONSES TO COMMERCIAL GENTRIFICATION IN DOWNTOWN YONGE STREET ............................................................................................... 52 Ontario Heritage Act (1990) ..................................................................................................... 52 City of Toronto Historic Yonge Street Heritage Conservation District Plan (2016) ................ 52 City of Toronto Tall Building Design Guidelines (2013) ......................................................... 53 North Downtown Yonge Area Specific Policy No. 382 and Urban Design Guidelines (2013)53 Property Tax Amendments ....................................................................................................... 54 8. CASE STUDIES: MUNICIPALITIES’ RESPONSES TO COMMERCIAL GENTRIFICATION ..................................................................................................................... 57 Zoning ....................................................................................................................................... 57 Community Benefits of Agreements ........................................................................................ 59 Retail Curation .......................................................................................................................... 59 v Historic Preservation ................................................................................................................. 60 Create a Preference for Local Businesses in Publicly-Owned Buildings, and Vacant and Under-Utilized Buildings .......................................................................................................... 61 Provide Affordable Commercial Space through Mission-Driven Entities ............................... 62 Commercial Tenant Protections ................................................................................................ 62 Tax Alleviation Schemes .......................................................................................................... 64 Vacant Commercial Properties Tax .......................................................................................... 65 Civic Stewardship ..................................................................................................................... 65 9. REFLECTIONS, LESSONS, AND RECOMMENDATIONS ............................................ 68 Zoning ....................................................................................................................................... 68 Community Benefit Agreements .............................................................................................. 68 Retail Curation .......................................................................................................................... 69 Historic Preservation ................................................................................................................. 69 Create a Preference for Local Businesses in Publicly-Owned Buildings, and Vacant and Under-Utilized Buildings .......................................................................................................... 69 Provide Affordable Commercial Space through Mission-Driven Entities ............................... 70 Commercial Tenant Protections ...............................................................................................