Developers pay Section 37 funds when they exceed building limits in local wards
For Michelle Holland, the figures reflect Toronto’s have and have-not areas, and growing differences between them.
Section 37 of the Ontario Planning Act lets developers pay each time they build bigger than zoning allows.
These Section 37 monies pay for park improvements, library expansions and other amenities in wards where they were given, to make up for the needs extra density brings.
But a city councillor like Holland, whose Ward 35 in Scarborough Southwest receives little development, must deal with crumbling infrastructure and poverty without this help.
After calling for “full and uncomplicated transparency” from the city on how much Section 37 monies are being banked and spent in each ward, Holland saw a listing of Section 37 funds each councillor had banked, as of Sept. 30, 2017.
And next to Kristyn Wong-Tam’s $66.8 million in Ward 27 (Toronto Centre-Rosedale), her $67,000 was “a drop in the bucket.”
The issue smoulders in Scarborough, where politicians often mention disparities between their districts and the city’s wealthier core.
Provincial rules say Section 37 funds must stay in their wards, but this month the Scarborough Community Renewal Organization told Mayor John Tory this must be reviewed, and perhaps changed, to “share the wealth” city-wide.
At an SCRO summit in April, people representing 18 neighbourhood associations voted on the organization’s policy priorities. A centre for skilled trades topped the list, but pooling Section 37 funds across Toronto was second.
The group’s leaders aren’t suggesting how this might work, or even whether Section 37 contributions — negotiated by councillors and city staff behind closed doors — are a good way to pay for density.
Still, they noticed $127 million, or over half the $210 million held last September, was tied to four wards forming Trinity-Spadina and Toronto Centre-Rosedale, meaning, the group says, “12 per cent of Toronto’s residents would benefit from over 50 per cent of the funds.”
Section 37 was always controversial, said Mimi Lau, an urban planner chairing SCRO’s planning committee, but it may be time for the city to help out “disinvested” areas needing more.
Holland, “obviously enthused” the group is championing her issue, said funds over $5 million or perhaps $10 million in each ward should be pooled for use elsewhere.
It’s unlikely councillors from “have” wards would agree, she said, but she’s confident Premier Doug Ford will.
John Filion, whose Ward 23 (Willowdale) ward had $21.8 million banked last fall, said he’d gladly “trade my Section 37 money and not have the development” that produced it.
Even with those contributions, he said, he can’t keep up with local demands for new child-care centres, community centres and parks.
Portions of development charges and park levies — larger amounts than Section 37, when added up — are spread across Toronto, said Filion. “People in Scarborough got a ton of money because of development in my ward.”
This year, he added, Scarborough councillors approved a 34-storey mixed-use building on Markham Road with a “piddling amount” of Section 37 — $832,000. In his ward, Filion insisted, he’d have got at least $4-5 million from the builder.
“You need councillors that will give developers a hard time,” and ask for more, he argued.
Gary Crawford, an incumbent councillor running against Holland, said he supports a review, given Scarborough wards’ disparity with downtown. “I do feel we need to look at this more closely and to disperse this in a more equitable way.”
Suman Roy, a candidate challenging Crawford and Holland’s bids for re-election, said he doesn’t support redistribution of Section 37 out of ward. Instead of looking for “handouts,” councillors should work harder to attract development to their districts, Roy said.
Mike Layton, whose Ward 19 (Trinity-Spadina) had $8.2 million in funds, said they aren’t being spent on “vanity projects.”
Layton said he’s not opposed to changing Section 37 distribution, “but I think you’ll find communities will be less accepting of development if they aren’t getting benefits.”
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