Planning Tools 101 How Planning Tools and Incentives Can

Support Cultural Infrastructure Development

This report was made possible by the generous support of the Ontario Trillium Foundation

This manual is copyrighted by Toronto Artscape Inc. with all rights reserved. Under the copyright laws, this manual cannot be reproduced in any form without the prior written

permission of Toronto Artscape Inc. © by Toronto Artscape Inc. All rights reserved.

The advice and downloadable documents found on www.artscapediy.org are offered based on Artscape’s experience and practice. Creative placemaking projects can be risky, expensive, and time consuming. We recommend that you take the advice of your board, subject specialists and

consultants, and legal counsel as necessary when taking forward your project.

ISBN# 978-0-9877212-0-4

Planning Tools 101: How Planning Tools and Incentives Can Support Cultural Infrastructure Development

INTRODUCTION..................................................................................................................................2

What is Planning Tools 101? ......................................................................................................2 Why is This Important?.................................................................................................................2

LEGISLATION .......................................................................................................................................4 Provincial Legislation ...................................................................................................................4 Municipal Legislation....................................................................................................................5

PLANNING FRAMEWORKS..............................................................................................................6 Community Improvement Plans ................................................................................................6 Regeneration Areas.......................................................................................................................7 Employment Areas ........................................................................................................................7 Targeted Investment in Communities .......................................................................................8

PLANNING TOOLS .......................................................................................................................... 10 Section 37 Funds ......................................................................................................................... 10 Brownfield Financial Tax Incentive and Brownfield Remediation Tax Assistance... 11 Heritage Property Tax Relief.................................................................................................... 11 Property Tax Rebate Program for Registered Charities .................................................... 12 Property Tax Exemptions for Theatres .................................................................................. 12 Tax Increment Equivalency Grants (TIEGs).......................................................................... 12 Development Charge Exemptions .......................................................................................... 13 Municipal Capital Facilities (Below-Market Rent) .............................................................. 13 Capital Loan Guarantee (Line of Credit) ............................................................................... 14

HOUSING ARTISTS .......................................................................................................................... 15 Live/Work Zoning ....................................................................................................................... 15 Artist Live/Work Zoning ............................................................................................................ 15 Affordable Housing for Artists ................................................................................................ 16

PLACEMAKING TOOLS .................................................................................................................. 17 Provincial ...................................................................................................................................... 17 Municipal ...................................................................................................................................... 17

OTHER PLANNING TOOLS............................................................................................................ 18 Back-End Loaded Lease ............................................................................................................. 18 Density Bonus .............................................................................................................................. 18 Hotel/Motel Tax........................................................................................................................... 18 Inclusionary Zoning ................................................................................................................... 19 Ticket Surcharges ........................................................................................................................ 19 Parking Meter Tax....................................................................................................................... 19 Tax Increment Financing (TIF) ................................................................................................. 19

PLANNING TOOLS 101: KEY RESOURCES ............................................................................... 20

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INTRODUCTION What is Planning Tools 101? Planning Tools 101 is a guide to planning tools used by Artscape, including information on legislation, fiscal tools, incentives and other government assistance that may be used to support the development of cultural infrastructure. We have also included planning tools which we believe may be used to support creative placemaking in the future and pointed to a small number of examples of planning and fiscal tools from other jurisdictions. In 1997 The Creative City Network of Canada formed “the very first effort in Canada to bring together individuals working in municipal cultural service delivery across the country.” Since then, agencies working at the provincial and municipal level have helped build momentum to enhance the role of culture in Canadian cities. In Ontario, Municipal Cultural Planning Incorporated (MCPI) was formed in 2007 to develop Municipal Cultural Planning across the province and better link provincial government agencies, municipalities, cultural service organizations, post-secondary institutions and others engaged in cultural planning. MCPI’s most recent publications, A Toolkit for Ontario Municipalities and a Guide to Cultural Resource Mapping are the most recent additions to a long-standing movement in Canada, the United States, and internationally that calls for direct links between culture and city planning.

While Artscape’s development activities are focused in Toronto, it also shares knowledge with urban centres and communities across Canada and around the world. Because planning regulations are unique to each city, province, and country, the focus of this information is on Toronto, Ontario, Canada. A variety of tools exist outside this geographic boundary informed by the governance of other jurisdictions, a small number of which we have pointed to in other planning and fiscal tools.

We would love to hear about the planning and fiscal tools developed in your community to support Cultural Infrastructure Development. Click here to contact us.

Why is This Important? Creative Placemaking can be a complex business. Coming to grips with the regulations, programs and policies that govern urban space and how they work together is crucial to any development project. The individuals responsible for creating and enforcing these policies are government officials and planning departments who specialize in environmental, social, economic and cultural development. The practice of planning refers to the inner workings of cities, including what can be built within them, how we move through them and the resulting social and environmental effects. This expansive and complex process is influenced by past and present priorities with consideration of future needs. Often seen as an afterthought to the previous three, cultural planning is a vital component as the fourth pillar of building healthy sustainable communities. When implementing development, planners rely upon a variety of documents that describe overarching visions as well as minute criteria to be respected. Each individual regulation may apply to a specific type of development. By knowing exactly what tools are in place it may be possible to use them to support the feasibility, sustainability and impact of a cultural facility project.

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Note: In this guide we have described planning tools and assistance that are, or have been, available to arts and culture in Toronto and Ontario. However, the information is, and is intended to be, general in nature and is for information purposes only. This publication is no substitute for professional advice for your own specific situation, and if such advice is needed, such services should be sought from a competent experienced professional. In addition, the material is time sensitive. Changes in legislation, judicial decisions and commercial practice will make information obsolete or inaccurate over time. CHAPTER MENU

Legislation: Provincial and municipal policy that inform planning and development

Planning Frameworks: Regulations focusing on the development goals of specific locations

Planning Tools: Municipal finance, government assistance, rebates and grants

Housing Artists: Live/work zoning and affordable housing models

Placemaking Tools: Guidelines and urban design programs that enrich public space

Other Planning and Fiscal Tools: Tools in use outside of Ontario that benefit cultural development

LEGISLATION Overarching legislative documents govern urban space, including policies, plans, statements and acts. While some are broader in scope, others explain concrete rules and regulations for the use, rehabilitation, maintenance, conversion, construction and conservation of the places in which we live. In Canada, these documents are mandated at the provincial and municipal level, with the practice of land-use planning fulfilling specific regional goals. Understanding this hierarchy provides context when visioning ideas for new creative placemaking projects as it dictates typology, scale, density, social servicing, open space and accessibility requirements. A vibrant creative sector can enhance quality of life, create local pride and support economic development by attracting talent and tourism from outside areas and from around the world. Though land-use planning may at first seem unrelated to the success of arts and culture, the two are intrinsically linked. In Ontario and Toronto, development and building are guided by several regulatory documents that are periodically updated. Artscape recommends checking to make sure you are referencing the most current version when reviewing any legislation that may influence your development. In Ontario relevant legislation includes:

Provincial Legislation Provincial Policy Statement Note: The Provincial Policy Statement is reviewed every five years

Policy direction of the Ontario Planning Act for all issues regarding land-use and development

Relevant sections include: 1.0 Building Strong Communities, 1.4 Housing, 1.5 Public Space, and 2.6 Cultural Heritage and Archeology

FULL DESCRIPTION FULL TEXT Places to Grow

Employment, transportation, environmental and land use policies to address the challenges imposed by population growth

Includes the Growth Plan for the Greater Golden Horseshoe, and Growth Plan for Northern Ontario

FULL DESCRIPTION FULL TEXT Planning Act

Sets rules for land use planning policy in Ontario Gives authority to municipalities to prepare official plans and zoning bylaws

FULL DESCRIPTION FULL TEXT City of Toronto Act

Legislative framework that provides a series of bylaws for how the City will fulfill both provincial and municipal responsibilities

Section 74 references culture, parks, recreation and heritage FULL DESCRIPTION FULL TEXT

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Municipal Legislation Toronto Official Plan Note: The Toronto Official Plan is updated periodically when policies are updated or appealed.

A vision for future growth in the City of Toronto Arts and culture are continuously referenced Relevant sections include: Shaping the City, Building a Successful City,

and Land Use Designations FULL DESCRIPTION FULL TEXT Toronto Zoning Bylaw Note: As a result of the city-wide Zoning Bylaw No. 1156-2010 being repealed, a new draft of the zoning bylaw is currently being prepared.

The zoning bylaw lays out the rules for how land in the city can be used and what can be built when lands are redeveloped

FULL DESCRIPTION Descriptions and full text for each document can be found by clicking on the links below:

PROVINCIAL Provincial Policy Statement FULL DESCRIPTION FULL TEXT

Places to Grow FULL DESCRIPTION FULL TEXT

Planning Act FULL DESCRIPTION FULL TEXT

City of Toronto Act FULL DESCRIPTION FULL TEXT

MUNICIPAL Toronto Official Plan FULL DESCRIPTION FULL TEXT

Toronto Zoning Bylaw FULL DESCRIPTION ASSOCIATED TEXT

PLANNING FRAMEWORKS Cities can direct growth and investment by designating areas targeted for employment, regeneration and other improvements. By establishing these locations, the types of development that best suit social and economic community needs can be encouraged. In addition to zoning for the use, height and density of a building, cities also use planning frameworks to encourage and establish specific types of infrastructure. While zoning is specific to every block, provinces and municipalities use additional criteria to target local goals. In Toronto, these are outlined in the Official Plan under Secondary Plans, Healthy Neighbourhoods, Employment Areas and Regeneration Areas, as well as in supplementary documents like Community Improvement Plans. When planning cultural development it is useful to consider these designations as they can help determine which locations will benefit most from, and be most beneficial to creative investment.

Community Improvement Plans Cultural Relevance When building creative places it is important to seek locations that are both welcoming to, and will benefit from innovative development. By finding places that have special designation in the early stages of a project, developers may benefit from greater support and assistance. Framework Description Community Improvement Plans (CIP) are used by cities to target maintenance, rehabilitation and development goals in a specific area. CIPs focus public attention on local issues, encourage positive community change and stimulate private-sector investment. In Ontario, CIPs may provide grants, loans and property tax assistance for projects such as:

Brownfield environmental assessment, remediation or redevelopment Commercial building façade improvements Downtown core and waterfront revitalization Preservation and adaptive reuse of heritage buildings Affordable housing Space conversion Structural improvements Energy efficiency improvements Accessibility enhancements

A definition of Community Improvement Plans is found in Section 28 of the Ontario Planning Act. They are further discussed at both the provincial and municipal level with information found in the Community Improvement Planning Handbook (2008), and section 5.2.2 of the Toronto Official Plan. Other Ontario municipalities with CIPs include: Windsor, Oshawa, Ottawa, Stratford, Brockville, Kingston, Guelph, St. Catharines and North Bay.

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Regeneration Areas Cultural Relevance Culture-led regeneration is a known method to encourage investment and resilience in community well-being by helping undesirable locations transform into attractive and vibrant places. This approach has been used around the world, including work done in Canada by Artscape, Arts Habitat Association of Edmonton, Calgary Arts Development, and Fogo Island Arts Corporation. In older industrial areas with a wealth of heritage buildings, development is often encouraged to reuse the existing building stock and create infill that complements existing built form. In turn, it is expected that these areas will attract creative industries and workers such as architects and designers. Framework Description By designating a regeneration area, municipalities can attract investment to specific locations and encourage new development to revitalize the local community. In Toronto, regeneration areas are places that have suffered as a result of changes in the local and global economic environment. Regeneration areas permit mixed uses of land and buildings that may not be allowed in other areas of the city. These include commercial, residential, live/work, institutional and light industrial uses being situated together within the same regeneration area. Section 4.7 of the Toronto Official Plan explains criteria development in regeneration areas must satisfy, such as:

Revitalize areas of city that are largely vacant or underused Create new jobs and homes that use existing infrastructure Restore, re-use and retain existing buildings when possible, particularly heritage structures Improve streetscapes and extend open space Promote the environmental clean-up and re-use of contaminated lands

Outside Toronto, other locations across Canada utilize culture-led regeneration, including Vancouver’s Woodsward District, and Montreal’s Quartier Des Spectacles.

Employment Areas Cultural Relevance The success of employment areas to attract activity can be enhanced through investment in creative space. Toronto’s Long Term Employment Land Strategy recognizes the value of the creative sector to foster innovative ideas, cross-sectoral connections and drive economic prosperity. Relevant to the cultural sector, this strategy encourages the development of incubators for start up-businesses and specialized talent pools. Framework Description Section 1.3 of Ontario’s Provincial Policy Statement describes the role of planning to promote prosperity through employment areas. Employment areas (both lands and districts) encourage economic activity and can have far-reaching effects to help grow communities. Employment areas may receive greater flexibility in the development process through financial and other government assistance. This land-use designation is intended to satisfy projected population and employment forecasts outlined in the Growth Plan for the Greater Golden Horseshoe (2006) and Toronto Official Plan (2007).

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In Toronto, 16 Employment Districts (business parks focusing on specific industries and priorities), and 16 Employment Land Areas (land slated for intensification and/or redevelopment of employment uses in addition to Employment Districts) have been set aside in the Official Plan. Through this designation the City can encourage the concentration of work opportunities that remain scattered throughout the city. Invest Toronto is a government body that provides resources, information and incentives to businesses already situated or exploring locations in Toronto. The City of Toronto website explains Tax Increment Equivalency Grants (TIEGS), Brownfield Remediation Tax Assistance and other subsidies useful to development in employment areas. Similarly, the city of Vancouver’s Metropolitan Core Jobs and Economy Land Use Plan recognizes the necessity of planning to help maintain and grow local employment.

Targeted Investment in Communities Cultural Relevance A positive quality of life can be encouraged through enhancing, developing and promoting programs and services that target relevant community priorities. While the title used to describe a targeted community investment may vary from place to place, cities use special designations to focus investment in specific neighbourhoods. Within this approach, arts-based community development is an effective method to improve social welfare. In Toronto, organizations may increase their chances to fulfill grant eligibility requirements and receive funding for projects that service priority neighbourhoods, a targeted approach to investment in communities. For example, the Toronto Arts Council currently works in collaboration with Working Women Community Centre to develop a cultural space in Victoria Village (located in one of the City’s 13 Priority Neighbourhoods). If realized, a hub will provide both social service and creative programming as an inclusive meeting place. Other notable projects in Toronto’s Priority Neighbourhoods include the Tower Renewal, which focuses investment on the rehabilitation of high-rise rental housing throughout Toronto. By first improving physical structures, this program will then help better connect isolated communities to the rest of the city. Framework Description In 2005, the United Way, in partnership with the City of Toronto, created the Strong Neighbourhoods Task Force to target investment in 13 communities across the Greater Toronto Area (GTA). These areas were selected to target negative issues associated with low-income, safety and accessibility. The spotlight created by targeted investment promotes the allocation of community development and social service infrastructure to improve both individual and neighbourhood well-being. Relevant examples of activities in targeted investment in communities include age and culture specific programming, community safety plans, revitalization and building of affordable housing, improving access to public transit and fresh food or other locally identified issues. The Toronto Official Plan (section 2.3.1) identifies the following revitalization priorities for building healthy neighbourhoods:

Improving local parks, transit, community services and facilities Improving the public realm, streets, and sidewalks

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Improving the quality of existing housing, or building a new range of housing Identifying opportunities for capital or operational funding Identifying partnerships and mechanisms to stimulate neighbourhood investment and a

revitalization strategy Targeted approaches to community revitalization are also found in Vancouver’s City Plan, as well as Ottawa’s Neighbourhood Plan which work to better integrate social services and community infrastructure to encourage well-being.

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PLANNING TOOLS Planning tools are financial assistance and incentives that are useful to development, including government grants, rebate, and other programs that reduce financial pressure and can help increase a project’s success. Planning tools are different in each province and municipality, and can be used in combination to encourage certain types of development. By offering incentives to cultural organizations, governments increase their ability to provide creative infrastructure that benefits both the city and its residents. In Ontario, planning tools useful to cultural development include: Section 37 of the Ontario Planning Act Brownfield Financial Tax Incentive, Brownfield Remediation Tax Assistance Heritage Property Tax Relief Property Tax Rebates for Registered Charities Property Tax Exemption for Theatres Tax Increment Equivalency Grants Development Charge Exemptions Municipal Capital Facilities (Below Market Rent Lease) Capital Loan Guarantee (Line of Credit)

Section 37 Funds Cultural Relevance Section 37 of the Ontario Planning Act allows municipalities to seek contributions for community improvements from developers in exchange for granting height and/or density beyond what is permitted in the zoning bylaw. Funds generated through Section 37 agreements have created substantial revenue from the private sector for cultural development. These allocations have helped finance heritage conservation and restoration, the preservation, replacement and building of affordable housing, public art, as well as community and cultural facilities. Tool Description Section 37* Agreements are negotiations between a developer and the municipality that secure community benefits in exchange for increased height or density. Community benefits are detailed in Section 5.1.1 of the Toronto Official Plan. Relevant applications of funds from Section 37 (to Artscape and cultural planning) include heritage conservation/restoration, building affordable or rental housing, provision of space for cultural groups and activities, as well as community and cultural facilities. *Note: The City of Toronto Planning and Growth Management committee will consider the issue of allocating Section 37 funds to existing capital budget priorities at an upcoming meeting. The issue was considered by the City of Toronto Executive Committee on April 20, 2011 and was referred to the Planning and Growth Management Committee. Click here to view the agenda item history.

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Brownfield Financial Tax Incentive and Brownfield Remediation Tax Assistance Cultural Relevance In many cities vacant lands remain unused if they are contaminated former industrial sites because the cost of clean-up is high. However, older industrial sites are often found in central locations on valuable urban real estate. The City of Toronto has very little available land and much of what remains vacant in the city’s downtown core are brownfields. The potential value of unused space in neighbourhoods and the city at large can be enhanced by using culture-led regeneration to develop brownfields. Tool Description Brownfields are vacant sites that are contaminated due to their previous (usually industrial) use. Remediation of these sites can revitalize communities, increase neighbouring property values, and support local employment opportunities. Made available through Community Improvement Plans, the provincial Brownfield Financial Tax Incentive* encourages the clean-up and rehabilitation of brownfields to put them back into productive use. In Toronto, Brownfield Remediation Tax Assistance is also used to stimulate new development and meet employment targets in specific areas. Potential project gains through Brownfield Remediation Tax Assistance include the canceling of some or all property taxes and grants for building improvements. In Ontario, many other municipalities have programs and incentives to encourage brownfield redevelopment, including Belleville, Goderich, Hamilton, Kingston, London, Oshawa and Ottawa. Strategies can also be found in British Columbia and Alberta. *Note: Properties will only qualify for assistance where remediation is undertaken to develop the property for employment uses, excluding retail.

Heritage Property Tax Relief Cultural Relevance Heritage properties are powerful places that contribute to the overall character of a city. Through restoration and re-use, these sites can attract new visitors, businesses and residents, and encourage local pride and economic investment. These buildings/areas can be further enhanced through the adaptive re-use of heritage properties for cultural facilities. Tool Description In Ontario, municipalities can provide tax relief ranging from 10 to 40% for owners of heritage properties. Heritage Property Tax Relief is often administered through location-specific Community Improvement Plans to encourage the maintenance, rehabilitation and conservation of heritage properties. Properties eligible for this rebate must be designated under Part IV or V of the Ontario Heritage Act, have a Heritage Easement Agreement and have no outstanding debts owed to the City. The Toronto Heritage Preservation Services includes the Heritage Grant Program which provides grants for up to 50% of costs related to the conservation of heritage properties, and the Heritage Property Tax Rebate Program, whereby eligible heritage properties may receive up to a 40% property tax rebate on identified heritage portions of the property.

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Other municipalities with programs that provide guidelines and assistance for heritage properties include Vancouver, Winnipeg, Ottawa and Halifax.

Property Tax Rebate Program for Registered Charities Cultural Relevance Many arts and cultural groups operate as not-for-profit organizations or registered charities. In Toronto, the Property Tax Rebate Program offers registered charities a 40% property tax rebate if they meet eligibility criteria. This financial assistance can reduce costs associated with buying space or developing property in locations that best suit organizational goals. Tool Description The City of Toronto offers a property tax rebate program for registered charities. Applicants are selected on a yearly basis, and eligibility criteria are outlined on the city’s property tax website. Similarly, property tax rebates are made available to registered charities throughout Ontario, including those located in the Greater Sudbury, York, Peel, and Niagara regions. Eligibility criteria differ from city to city.

Property Tax Exemptions for Theatres Cultural Relevance The performing arts require specialized facilities that are both large enough and properly equipped to showcase a production. These spatial necessities are costly to not-for-profit and small scale groups who face challenges generating revenue to finance yearly activities. Property tax exemption for performing arts venues helps reduce costs associated with buying or developing space. Tool Description The Ontario Assessment Act exempts certain theatres from paying property tax (see Section 3, paragraphs 26 and 27). Theatres that have 1,000 seats or fewer are exempt from paying property tax. Applicable types of theatres include those used for drama, comedy, music, opera or dance performance. If operated by a not-for-profit corporation, larger theatres with more than 1,000 seats may be eligible for a reduction in property taxes. Theatres not exempt from property tax include dinner theatres, bars, nightclubs and adult entertainment venues.

Tax Increment Equivalency Grants (TIEGs) Cultural Relevance Tax Increment Equivalency Grants are an effective tool to stimulate development by lowering property tax rates during the first 10 years of a new development. Through significantly reduced payments, cultural organizations can increase their ability to complete a project. The City of Toronto’s Economic Development Imagination, Manufacturing, Innovation, Technology (IMIT) program recognizes several sectors eligible for TIEGs including creative industries, tourism attractions, convergence centres and incubators. Live/work units are not eligible for IMIT grants. Tool Description TIEGs allow developers to phase in the payment of higher property taxes for increased land

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value resulting from a new project. Tax increments are paid with gradual increases over a 10-year period providing a “tax holiday” of savings up front. The City of Toronto has created a graphic that helps explain TIEG grants work. In Ontario, TIEGs can be applied to development in areas with Community Improvement Plans. TIEGs have specific requirements for how long the grant will be payable (usually 10 years, with an additional two years for a brownfield site). Prior to being given a grant, the developer must enter into a financial incentive agreement with the City. TIEGs have been explored in communities throughout Ontario, including programs in Toronto, Ottawa and Norfolk County.

Development Charge Exemptions Cultural Relevance Development charge exemptions benefit cultural investment by easing financial burdens in building new projects. Incentives like development charge exemptions for eligible cultural projects increase the opportunity for a city to be selected as the location of new development. Tool Description In Ontario municipalities, developers are required to pay development charges which help recover growth-related infrastructure costs from servicing new projects (e.g. new sidewalks, water and sewer upgrades, street lamps, snow removal, etc.). Toronto’s Development Charge bylaw exempts public hospitals, colleges and universities, industrial uses and non-profit housing from paying development charges. Projects that have received a grant under the Imagination, Manufacturing, Innovation and Technology (IMIT) Program (for which creative industries may be eligible) are also exempt from paying development charges. While specific to each municipality, projects built within designated community improvement project areas may also be exempt from paying certain development charges.

Municipal Capital Facilities (Below-Market Rent) Cultural Relevance Finding affordable locations to work and engage in creative development benefits the long-term sustainability of both a project and the administering organization. It is essential that administrators are aware of all opportunities for their project to be granted financial assistance. The provisions made for Municipal Capital Facilities may enhance the feasibility and sustainability of a new development by providing reduced rates to rent property. Finding a location that offers a below-market rent can greatly reduce overhead costs to non-profit and cultural organizations. Additionally, the availability of affordable rates can attract anchor tenants to a new development who will influence local character and become a magnet for similar types of organizations.

Tool Description Municipal Capital Facilities are owned and operated by the municipality, including those used for social and health services, public libraries, community centres, culture, tourism and affordable

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housing. In Ontario, Municipal Capital Facilities can be granted certain financial assistance (lease payments, tax exemptions and development charge exemptions) through Section 110 of the Ontario Municipal Act (2001). Additionally, some landlords who lease Municipal Capital Facilities can pass down this savings to tenants by providing below-market rents to qualifying individuals and organizations.

Under the City of Toronto Act (2006) the city has authority to offer below market rent leases to tenants of Municipal Capital Facilities, including cultural organizations that require a reduced rate to provide continuous programming.

In Ontario, the cities of Hamilton, London, Waterloo and Chatham also have special provisions for Municipal Capital Facilities.

Capital Loan Guarantee (Line of Credit) Cultural Relevance When a cultural organization wishes to embark on a substantial project, they may require a line of credit from a financial institution. Before receiving these funds recipients must qualify by providing a guarantor. Section 83 of the City of Toronto Act (2006) allows the city to act as the guarantor to non-profit cultural and community-based organizations in recognition of the value these groups bring to the city. Tool Description A capital loan guarantee is a necessary requirement that assumes liability in the occurrence where an organization defaults on repayment for a line of credit to a financial institution. This works in the same way as a personal line of credit, where third-party support or collateral is needed for an individual to receive financing. Similar programs exist to help grow development and business in Quebec, Manitoba, North West Territories, Prince Edward Island, New Brunswick and Nova Scotia.

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HOUSING ARTISTS Around the world the presence of creative communities is recognized as an important city-building tool that adds value and character to public space. The majority of Canadian artists earn low-incomes, and as a result of low vacancy and high rates in popular urban centres, face difficulty buying and renting space downtown. To increase the likelihood of artists to remain clustered in cities, various structures have been developed to provide housing that is both affordable and conducive to artists. This includes live/work and artist live/work zoning, as well affordable models like rent geared to income and housing cooperatives.

Live/Work Zoning Cultural Relevance Live/work zoning allows professionals (including artists) to work and live from the same space. In Toronto, live/work zoning was first made possible by a group working to create legislation to legalize artist live/work space in the early 1990s. Description The City of Toronto defines live/work zoning as a “dwelling that is also used for work purposes, provided only the resident(s) of such accommodation work in the dwelling unit.” Toronto’s live/work zoning was developed to help revitalize vacant downtown industrial buildings that did not previously allow residential use. This special provision was necessary as typically land-use zoning separates residential from business use to avoid health and safety concerns. Though well-intended and useful to organizing urban space, this zoning regulation made it illegal for anyone in Toronto, no matter how safe their profession, to live and work in the same space.

Artist Live/Work Zoning Cultural Relevance Throughout the 1970s, 80s and early 90s, many of Toronto’s artists found affordable spaces to live and work in vacant industrial buildings. Not zoned for residential use, tenants of these buildings were not protected by the Residential Tenancies Act and faced evictions, unreasonable rent hikes, police raids and other health and safety concerns. In 1995, then-mayor Barbara Hall’s Artist Live/Work Working Group was formed to help better protect artists residing in industrial zoned buildings. As an outcome to this process, Toronto city council requested that the provincial government amend the Residential Tenancies Act to include live/work within types of residential properties, as well as implement changes to the Ontario Building Code to recognize and regulate live/work space. Artscape West Queen West was the first building to be granted the exclusive artist live/work zoning that was established through this process. Description In the city of Toronto, artist live/work zoning is exclusive to affordable housing, and is described as “a suite consisting of a studio area used for the production of art, and a living area containing not more than one habitable room.” This definition means artist live/work units can be larger than

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typical social housing dimensions to include necessary features like higher ceilings, sound proofing, load-bearing floors, storage, as well as proper ventilation and electrical wiring. Toronto Community Housing permits some affordable housing providers to have special mandates that cater to certain groups. In addition to artist live/work space, other buildings may be exclusive to seniors, single mothers or specific ethno-cultural groups. The city of Vancouver also has an effective policy that describes different types of live/work and work/live arrangements, including artist live/work space.

Affordable Housing for Artists Cultural Relevance Affordable housing allows creative communities to retain desirable and supportive living environments that they may not otherwise access through their own economic means. Description Different from live/work and artist live/work space which are not always based on below-market rates, models such as rent-geared-to-income (RGI), and housing cooperatives provide affordable housing for artists and other low-income individuals and families. Predating housing development by Toronto Artscape, Arcadia (1986), Performing Arts Lodge (1986) and Beaver Hall (1988) developed affordable housing models for Toronto’s artists.

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PLACEMAKING TOOLS Complementary to the building of creative spaces, placemaking tools are used to improve the public realm and generate civic improvements through things like public art, streetscaping, gardening and property repairs. When used effectively, they may enhance urban design and influence how people move through, enjoy and use public space. Placemaking tools are unique and distinct to each city and region and provide various types of resources and financial assistance. Making effective use of the available tools can both attract visitors and contribute to the everyday quality of life for local residents. Below are links to some placemaking tools found in Ontario and Toronto. Click here to learn more about Approaches to Creative Placemaking.

Provincial Planning By Design: A Healthy Communities Handbook

http://www.mah.gov.on.ca/Page6737.aspx

Citizens Guide To Land-Use Planning http://www.mah.gov.on.ca/PageFactory.aspx?PageID=338

A Kids Guide To Building Great Communities http://www.ontarioplanners.on.ca/pdf/kids_guide.pdf

Municipal Quality Of Life For Economic Prosperity

http://www.mah.gov.on.ca/Page1525.aspx

Archaeology Management Plans http://www.mah.gov.on.ca/Page7302.aspx

Municipal

Percent for Public Art Program http://www.toronto.ca/culture/public_art.htm http://www.toronto.ca/culture/public_art/program.htm

Business Improvement Areas http://www.toronto.ca/bia/about.htm

Urban Design Streetscape Manual http://www.toronto.ca/planning/urbdesign/streetscape/index.htm

Commercial Façade Improvement Program http://www.toronto.ca/bia/financial_incentive_programs.htm#1

Competitiveness, Creativity and Collaboration (CCC) Investment Program

http://www.toronto.ca/grants/pdf/cccip_brochure.pdf

Heritage Preservation Services http://www.toronto.ca/heritage-preservation/index.htm

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OTHER PLANNING TOOLS Cities around the world make use of innovative tools to help finance arts and culture. While some governments provide substantially more assistance than others, knowing what has been successful elsewhere can help shape local policy in your area with the hopes of better supporting cultural development. This working list showcases some planning tools currently being employed to support cultural development. Please click here to let us know of any other tools that have been useful in your own experience.

Back-End Loaded Lease A back-end or rear-end loaded lease is a financing model that lowers initial costs by reducing the amount of the required lease payments upfront. The amount is increased incrementally and reaches its full payment amount over a designated period of time. This model is useful to non-profit organizations and start-up businesses that may not be as profitable in their early years of development. By working up to full payment, organizations can spend time creating business models that support their long-term sustainability. The Consortium for School Networking in Washington D.C., for example, uses a back-end loaded lease to provide students with laptops.

Density Bonus Density bonus programs permit developers to increase the floor area ratio (FAR) of a new building in return for funds directed towards improvements for the surrounding community. Sometimes when developers enter into legal proceedings with a municipality to increase the scale of a project, the outcomes are often unpredictable and sometimes inequitable. What’s more, these compromises do not always target what is most needed in a specific community. Through standardized density bonus programs cities can actively regulate how private funds are used to build public space for things like community centres, affordable housing, heritage preservation, cultural facilities, parks and other social service infrastructure. In Canada, density bonus programs currently exist in British Columbia, and the city of Grand Prairie, Alberta.

Hotel/Motel Tax Because many hotel patrons go to theatre shows and other arts and cultural events while traveling, some cities or municipalities have a hotel/motel tax which is used to support the financing of cultural development. By passing costs on to patrons, additional revenues can be generated for the creative sector. The hotel tax is used in many Canadian provinces to generate funds for tourism industries, and in 1997 the Hotel Tax Act was developed in British Columbia.

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Inclusionary Zoning Inclusionary zoning requires developers to provide a certain percent of affordable housing in new developments. This ensures affordable housing is spread throughout a city, is not isolated or concentrated in one particular neighbourhood and continues to be built alongside all new development. In Canada, inclusionary zoning is currently being explored in Toronto, Ottawa, Banff and Canmore, with programs already existing in Vancouver.

Ticket Surcharges Similar to the hotel tax, ticket surcharges are imposed upon patrons of theatre shows, concerts and events through additional surcharges on ticket purchases that generate revenue for arts and culture. Ticket surcharges are used in Vancouver’s Queen Elizabeth Theatre and Vancouver Playhouse, as well as at Toronto’s St. Lawrence Centre for the Arts.

Parking Meter Tax Like the hotel tax and ticket surcharges, a parking meter tax assumes that vehicles which park near cultural venues will spend money at surrounding restaurants and stores. The parking meter tax uses revenue generated by parking charges to reinvest in arts and cultural programming. Old Pasadena, California uses a parking meter tax to generate funding for streetscape improvements that are applied to surrounding businesses.

Tax Increment Financing (TIF) Tax increment financing is a U.S.-based model that uses private sector financing to significantly reduce costs for new public infrastructure. Funds are generated based on the expected tax revenues from increased property value in redeveloped areas which are then applied to finance current public improvements. TIF uses an increment structure similar to TIEGs, except financing is drawn from the private instead of the public sector. The application of TIF is currently being explored by the Ontario Ministry of Finance Tax Increment Financing Act (2006), however legislation has not yet been implemented. The city of Calgary uses the Community Revitalization Levy, a tool that works in a similar way as TIF.

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PLANNING TOOLS 101: KEY RESOURCES Introduction Creative City Network of Canada http://www.creativecity.ca/ Municipal Cultural Planning Incorporated http://www.ontariomcp.ca/ Legislation PROVINCIAL (Ontario) Provincial Policy Statement http://www.mah.gov.on.ca/Asset1421.aspx Places to Grow https://www.placestogrow.ca/index.php?option=com_content&task=view&id=9&Itemid=14 Ontario Planning Act http://www.e-laws.gov.on.ca/html/statutes/english/elaws_statutes_90p13_e.htm MUNICIPAL (Toronto) City of Toronto Act http://www.e-laws.gov.on.ca/html/statutes/english/elaws_statutes_06c11_e.htm Toronto Official Plan http://www.toronto.ca/planning/official_plan/pdf_chapter1-5/chapters1_5_dec2010.pdf Toronto Zoning By-law http://www.toronto.ca/zoning/index.htm Planning Frameworks COMMUNITY IMPROVEMENT PLANS Ministry of Municipal Affairs and Housing: What is a zoning bylaw? http://www.mah.gov.on.ca/Page1758.aspx Ministry of Municipal Affairs and Housing: Community Improvement Planning Handbook http://www.mah.gov.on.ca/Page1297.aspx Ontario Planning Act: Section 28 http://www.e-laws.gov.on.ca/html/statutes/english/elaws_statutes_90p13_e.htm#BK46

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REGENERATION AREAS Section 4.7: Toronto Official Plan http://www.toronto.ca/planning/official_plan/pdf_chapter1-5/chapters1_5_dec2010.pdf EMPLOYMENT AREAS City of Toronto: Employment Districts Profile 2010 http://www.toronto.ca/demographics/pdf/employment-districts-profile-2010.pdf Long-Term Employment Land Strategy City of Toronto report http://www.toronto.ca/business/employment-land-strategy.htm Invest Toronto http://www.investtoronto.ca/ Invest in Toronto Business Incentives http://www.toronto.ca/invest-in-toronto/incentives.htm Growth Plan for the Greater Golden Horseshoe https://www.placestogrow.ca/index.php?option=com_content&task=view&id=9&Itemid=14 Toronto Official Plan http://www.toronto.ca/planning/official_plan/introduction.htm TARGETED INVESTMENT IN COMMUNITIES Map of Priority Investment Neighbourhoods (2009) http://www.toronto.ca/demographics/pdf/priority2006/priority_areas_with_neighbourhoods.pdf Strong Neighbourhoods Task Force (Toronto) http://www.strongneighbourhoods.ca/ Planning Tools SECTION 37 AGREEMENTS Section 37 of the Planning Act http://www.toronto.ca/planning/section37.htm Section 5.1.1 of the Toronto Official Plan summarizes Section 37 and Community Benefits. See http://www.toronto.ca/planning/official_plan/introduction.htm. Ministry of Municipal Affairs and Housing on Section 37 http://www.mah.gov.on.ca/Page6845.aspx

BROWNFIELD FINANCIAL TAX INCENTIVE & BROWNFIELD REMEDIATION TAX ASSISTANCE

Brownfield Financial Tax Incentive http://www.mah.gov.on.ca/Page5077.aspx Brownfield Remediation Tax assistance http://www.toronto.ca/invest-in-toronto/incentives-brta.htm

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Brownfield Redevelopment Toolbox http://www.aboutremediation.com/Toolbox/Introduction.asp Ontario Municipalities with Brownfield Policies http://www.mah.gov.on.ca/AssetFactory.aspx?did=8901 The Toronto Community Improvement Plan for Brownfield Remediation and Development of Prescribed Employment Uses http://www.toronto.ca/business/pdf/city-wide-CIP-notice.pdf Financing a Brownfield Redevelopment http://www.mah.gov.on.ca/Page223.aspx BY-LAW No. 516-2008: To designate the City of Toronto as a Community Improvement Project Area and to adopt the City-Wide Community Improvement Plan for Brownfield Remediation and Development of Prescribed Employment Uses http://www.toronto.ca/planning/pdf/waterfrontcip_citywide_08_0516_bylaw.pdf HERITAGE PROPERTY TAX RELIEF Heritage Property Tax Relief http://www.mtc.gov.on.ca/en/heritage/heritage_tax_relief.shtml Ontario Municipal Act: section 365.2 http://www.e-laws.gov.on.ca/html/statutes/english/elaws_statutes_01m25_e.htm City of Toronto Act: section 334 http://www.toronto.ca/committees/pdf/torontoact.pdf Ontario Heritage Act http://www.e-laws.gov.on.ca/html/statutes/english/elaws_statutes_90o18_e.htm Toronto Heritage Preservation Services http://www.toronto.ca/heritage-preservation/index.htm

PROPERTY TAX REBATE PROGRAM FOR REGISTERED CHARITIES

City of Toronto Property Tax Rebate Program http://www.toronto.ca/taxes/property_tax/tax_rebates.htm PROPERTY TAX EXEMPTIONS FOR THEATRES Ontario Assessment Act http://www.e-laws.gov.on.ca/html/statutes/english/elaws_statutes_90a31_e.htm

TAX INCREMENT EQUIVALENCY GRANTS (TIEGS)

Ontario Ministry of Housing Tax Increment-based Financing http://www.mah.gov.on.ca/Page1301.aspx Municipal Financial Tools for Planning and Development Series Info Sheet http://www.mah.gov.on.ca/Asset1089.aspx

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City of Toronto Business Incentives: Imagination, Manufacturing, Innovation, Technology (IMIT) http://www.toronto.ca/invest-in-toronto/incentives-imit.htm

DEVELOPMENT CHARGE EXEMPTIONS

2009 City of Toronto Development Charges By-law http://www.toronto.ca/legdocs/bylaws/2009/law0275.pdf 1997 Development Charges Act http://www.e-laws.gov.on.ca/html/statutes/english/elaws_statutes_97d27_e.htm City of Toronto Development Charges information http://www.toronto.ca/finance/dev_charges.htm

MUNICIPAL CAPITAL FACILITIES (BELOW MARKET RENT)

Section 110: Ontario Municipal Act http://www.e-laws.gov.on.ca/html/source/regs/english/2006/elaws_src_regs_r06603_e.htm Ontario Regulation 598/06, Municipal Capital and School Facilities, City of Toronto Act, 2006 http://www.e-laws.gov.on.ca/html/regs/english/elaws_regs_060598_e.htm City of Toronto, List of Grants http://www.toronto.ca/grants/index.htm

CAPITAL LOAN GUARANTEE (LINE OF CREDIT)

Policy for the Provision of Line of Credit and Loan Guarantees for Cultural and Community-Based Organizations http://www.toronto.ca/legdocs/mmis/2008/ex/bgrd/backgroundfile-10355.pdf Section 83: City of Toronto Act http://www.e-laws.gov.on.ca/html/statutes/english/elaws_statutes_06c11_e.htm#BK101 Housing Artists Ontario Non-Profit Housing Association http://www.onpha.on.ca/AM/Template.cfm?Section=Asset_Management Hill Strategies. (2009. Artists in Large Canadian Cities http://www.hillstrategies.com/resources_details.php?resUID=1000322&lang=0 Toronto Community Housing http://www.torontohousing.ca/ Ontario Landlord and Tenant Board http://www.ltb.gov.on.ca/en/index.htm Ontario Building Code http://www.e-laws.gov.on.ca/html/regs/english/elaws_regs_060350_e.htm

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Ontario Residential Tenancies Act http://www.ltb.gov.on.ca/en/Law/STEL02_111323.html Canadian Mortgage and Housing Council, Affordable Housing Centre http://www.cmhc-schl.gc.ca/en/inpr/afhoce/index.cfm Beaver Hall http://beaverhallcoop.blogspot.com/ Arcadia http://arcadiatoronto.com/ Performing Arts Lodge http://www.paltoronto.org/ Placemaking Tools PROVINCIAL Planning By Design: A Healthy Communities Handbook http://www.mah.gov.on.ca/Page6737.aspx Citizens Guide To Land-Use Planning http://www.mah.gov.on.ca/PageFactory.aspx?PageID=338 A Kids Guide To Building Great Communities http://www.ontarioplanners.on.ca/pdf/kids_guide.pdf Municipal Quality Of Life For Economic Prosperity http://www.mah.gov.on.ca/Page1525.aspx MUNICIPAL Percent for Public Art Program http://www.toronto.ca/culture/public_art.htm http://www.toronto.ca/culture/public_art/program.htm Business Improvement Areas http://www.toronto.ca/bia/about.htm Urban Design Streetscape Manual http://www.toronto.ca/planning/urbdesign/streetscape/index.htm Commercial Façade Improvement Program http://www.toronto.ca/bia/financial_incentive_programs.htm#1 Competitiveness, Creativity and Collaboration (CCC) Investment Program http://www.toronto.ca/grants/pdf/cccip_brochure.pdf Heritage Preservation Services http://www.toronto.ca/heritage-preservation/index.htm

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Other Planning Tools Creative Cities Network of Canada Public Art Toolkit http://www.creativecity.ca Project for Public Spaces, Funding sources for Public Art. New York, New York http://www.pps.org/artfunding/ Sample Incentives: Canada, U.S, U.K, Toronto http://www.toronto.ca/legdocs/mmis/2008/pg/bgrd/backgroundfile-12581.pdf Christopher Walker. Artist Space Development Financing. Urban Institute. Washington, D.C: 2007. http://www.urban.org/publications/1001175.html Arjo Klamer et al. European Parliament. Directorate General, Internal Policies of the Union. Financing Arts and Culture in the European Union, 2006. http://www.culturalpolicies.net/web/files/134/en/Financing_the_Arts_and_Culture_in_the_EU.pdf

ISBN# 978-0-9877212-0-4