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MANUFACTURING
A plan to preserve industry in the city
Councillors' proposal will attempt to keep industrial land - and the jobs that go with it - from going to outlying areas
JENNIFER LEWINGTON
CITY HALL BUREAU CHIEF
May 22, 2007
Faced with the disappearance of some industrial jobs and the migration of others to cheaper, roomier spots in the suburbs, city officials are working to roll out a plan this September with a package of financial incentives for manufacturers and tougher rules to protect industrial land from being nibbled away for residential development.
But is the city serious?
Over the past five years, of 27 residential projects (totalling more than 7,000 units) proposed in the city's designated employment districts, 12 have been approved by council and another 11 are pending. Another four were appealed to the Ontario Municipal Board, of which three were approved.
"In general, the city has not been very effective at preserving employment lands," Al Brezina, chairman of the Toronto Industry Network, told council's economic development committee this month.
His lobby group, which represents some of the largest firms in Toronto, called for "land use certainty" to prevent conflicts that erupt when homeowners live near 24-hour a day manufacturing facilities.
Committee member Michael Feldman (Ward 10, York Centre) was more blunt.
"If Toronto becomes a bedroom community, we are out of business," he warned.
Industry contributes $138-million a year in taxes, with jobs paying at well above minimum wage.
But some say the die is cast.
"I have trouble seeing how manufacturing can survive in urban areas when you have high-density residential and the official plan wants more," says Councillor Case Ootes (Ward 29, Toronto-Danforth). "Manufacturing in most cities moves to the suburbs."
A consultant's report to the city on how to maintain and grow its industrial base paints an unexpectedly bright picture of Toronto's employment districts - land set aside for industrial activity. An estimated 93 per cent of land in these districts is occupied, says Russell Mathew of Hemson Consulting, putting Toronto ahead of rival cities in the United States.
But he warns Toronto must step up efforts to protect employment districts - and add 6.7 million square metres of new building space on them - to meet the official plan's ambitious goal of 1.8 million jobs by 2031, up 300,000 from today.
A "minimum starting point," he says, is to resist speculative pressure to convert industrial land to residential use.
The city has new powers to control its destiny, says economic development committee chairman Kyle Rae. Under City of Toronto legislation that took effect last January, council has the final word if it rejects a proposed conversion of industrial land to residential use. In the past, appeals could be made to the Ontario Municipal Board.
"We are now the responsible body," says Mr. Rae (Ward 27, Toronto Centre-Rosedale). But he says the city needs additional flexibility beyond what's allowed under the legislation to offer more tax breaks and incentives so companies with high-value jobs stay put.
That's music to the ears of the employees and co-owners of Pita Break, located near Sheppard Avenue and Allen Road in one of 16 designated employment districts.
A light scent of cinnamon wafts through the air at Pita Break, a fast-growing food processor where workers prepare the latest batch of pita bread and flatbreads for grocery stores in Toronto and markets as far as California.
To 29-year-old Manny Madeiros, who in six years has moved up from driver to production manager at the family-owned bakery, the cinnamon, toasted flour and, some days, oranges and cranberries has added significance.
"It means business," he says. "If you smell something being baked, it means there is business is going on. ... It means we all have work."
The fragrant aroma at the plant in the city's north end also matters to the city as it weighs how best to keep manufacturers and their 165,000 employees within city limits and attract more for the future.
"The city can help with zoning, building permits and other things to reduce bureaucracy," says Guy Ozery, 37, who co-owns Pita Break with brother Alon, 38.
From a small sandwich shop at Yonge and Wellesley 11 years ago, the brothers have built a multimillion-dollar business based on preservative-free, all-natural pita and flatbreads adapted from their Israeli grandmother's family recipes.
Three years ago, they purchased the 40,000-square-foot plant, triple the size of their previous facility a few blocks away. They now operate three shifts a day, shipping within Ontario and to Quebec and the U.S.
The brothers chose their current location because it is only minutes from Downsview subway station. Many of their 110 employees rely on public transit.
"It's easy to look at 905," says Alon Ozery, with its lure of wide roads and other amenities. "But we'd like to stay to retain TTC access for the workers."
The success of businesses like Pita Break gives city officials some heart that industry has a future here - with the right circumstances.
"By saving employment lands, we create a future seed bed for a new generation of manufacturers," says Don Eastwood, general manager of economic development. "It is a legacy we have to have for future generations."
*****
Keeping jobs in the city
City council is expected to debate this week ways for Toronto to keep its manufacturing jobs and attract new ones. A report prepared for the city makes three leading recommendations:
Protect land set aside for industry from being converted to residential use, including a policy to prevent "no net loss" of land earmarked for jobs.
Offer financial incentives to new and existing industry, including tax relief in the form of grants or loans, exemptions for new businesses to pay building and planning fees, and a possible "windfall" tax on a site at risk of being converted to residential use.
Provide economic development support, with a streamlined approval process, and incubators to encourage business innovation and infrastructure (transit and other services) to make employment lands attractive to investors.
Jennifer Lewington
*****
City of industry
One in six workers in Toronto is employed in traditional manufacturing, and city hall wants to protect those jobs. Of those, the top employment sector is food processing.
% of residents...
SERVICES: 78.3%
MANUFACTURING: 16.2%*
CONSTRUCTION: 4.7%
OTHER: 1.6%
...and what they make.
Food: 11.4%
Motor vehicles: 9.8%
Primary and fabricated metals: 7.3%
Chemicals: 4.8%
Machinery and equipment: 4.3%
Pharmaceuticals: 2.6%
Computers and peripherals: 2.2%
Paper: 2.2%
Aerospace: 1.6%
*Percentages do not add up to 100 due to rounding.
SOURCE: CITY OF TORONTO, CONFERENCE BOARD OF CANADA
MANUFACTURING
A plan to preserve industry in the city
Councillors' proposal will attempt to keep industrial land - and the jobs that go with it - from going to outlying areas
JENNIFER LEWINGTON
CITY HALL BUREAU CHIEF
May 22, 2007
Faced with the disappearance of some industrial jobs and the migration of others to cheaper, roomier spots in the suburbs, city officials are working to roll out a plan this September with a package of financial incentives for manufacturers and tougher rules to protect industrial land from being nibbled away for residential development.
But is the city serious?
Over the past five years, of 27 residential projects (totalling more than 7,000 units) proposed in the city's designated employment districts, 12 have been approved by council and another 11 are pending. Another four were appealed to the Ontario Municipal Board, of which three were approved.
"In general, the city has not been very effective at preserving employment lands," Al Brezina, chairman of the Toronto Industry Network, told council's economic development committee this month.
His lobby group, which represents some of the largest firms in Toronto, called for "land use certainty" to prevent conflicts that erupt when homeowners live near 24-hour a day manufacturing facilities.
Committee member Michael Feldman (Ward 10, York Centre) was more blunt.
"If Toronto becomes a bedroom community, we are out of business," he warned.
Industry contributes $138-million a year in taxes, with jobs paying at well above minimum wage.
But some say the die is cast.
"I have trouble seeing how manufacturing can survive in urban areas when you have high-density residential and the official plan wants more," says Councillor Case Ootes (Ward 29, Toronto-Danforth). "Manufacturing in most cities moves to the suburbs."
A consultant's report to the city on how to maintain and grow its industrial base paints an unexpectedly bright picture of Toronto's employment districts - land set aside for industrial activity. An estimated 93 per cent of land in these districts is occupied, says Russell Mathew of Hemson Consulting, putting Toronto ahead of rival cities in the United States.
But he warns Toronto must step up efforts to protect employment districts - and add 6.7 million square metres of new building space on them - to meet the official plan's ambitious goal of 1.8 million jobs by 2031, up 300,000 from today.
A "minimum starting point," he says, is to resist speculative pressure to convert industrial land to residential use.
The city has new powers to control its destiny, says economic development committee chairman Kyle Rae. Under City of Toronto legislation that took effect last January, council has the final word if it rejects a proposed conversion of industrial land to residential use. In the past, appeals could be made to the Ontario Municipal Board.
"We are now the responsible body," says Mr. Rae (Ward 27, Toronto Centre-Rosedale). But he says the city needs additional flexibility beyond what's allowed under the legislation to offer more tax breaks and incentives so companies with high-value jobs stay put.
That's music to the ears of the employees and co-owners of Pita Break, located near Sheppard Avenue and Allen Road in one of 16 designated employment districts.
A light scent of cinnamon wafts through the air at Pita Break, a fast-growing food processor where workers prepare the latest batch of pita bread and flatbreads for grocery stores in Toronto and markets as far as California.
To 29-year-old Manny Madeiros, who in six years has moved up from driver to production manager at the family-owned bakery, the cinnamon, toasted flour and, some days, oranges and cranberries has added significance.
"It means business," he says. "If you smell something being baked, it means there is business is going on. ... It means we all have work."
The fragrant aroma at the plant in the city's north end also matters to the city as it weighs how best to keep manufacturers and their 165,000 employees within city limits and attract more for the future.
"The city can help with zoning, building permits and other things to reduce bureaucracy," says Guy Ozery, 37, who co-owns Pita Break with brother Alon, 38.
From a small sandwich shop at Yonge and Wellesley 11 years ago, the brothers have built a multimillion-dollar business based on preservative-free, all-natural pita and flatbreads adapted from their Israeli grandmother's family recipes.
Three years ago, they purchased the 40,000-square-foot plant, triple the size of their previous facility a few blocks away. They now operate three shifts a day, shipping within Ontario and to Quebec and the U.S.
The brothers chose their current location because it is only minutes from Downsview subway station. Many of their 110 employees rely on public transit.
"It's easy to look at 905," says Alon Ozery, with its lure of wide roads and other amenities. "But we'd like to stay to retain TTC access for the workers."
The success of businesses like Pita Break gives city officials some heart that industry has a future here - with the right circumstances.
"By saving employment lands, we create a future seed bed for a new generation of manufacturers," says Don Eastwood, general manager of economic development. "It is a legacy we have to have for future generations."
*****
Keeping jobs in the city
City council is expected to debate this week ways for Toronto to keep its manufacturing jobs and attract new ones. A report prepared for the city makes three leading recommendations:
Protect land set aside for industry from being converted to residential use, including a policy to prevent "no net loss" of land earmarked for jobs.
Offer financial incentives to new and existing industry, including tax relief in the form of grants or loans, exemptions for new businesses to pay building and planning fees, and a possible "windfall" tax on a site at risk of being converted to residential use.
Provide economic development support, with a streamlined approval process, and incubators to encourage business innovation and infrastructure (transit and other services) to make employment lands attractive to investors.
Jennifer Lewington
*****
City of industry
One in six workers in Toronto is employed in traditional manufacturing, and city hall wants to protect those jobs. Of those, the top employment sector is food processing.
% of residents...
SERVICES: 78.3%
MANUFACTURING: 16.2%*
CONSTRUCTION: 4.7%
OTHER: 1.6%
...and what they make.
Food: 11.4%
Motor vehicles: 9.8%
Primary and fabricated metals: 7.3%
Chemicals: 4.8%
Machinery and equipment: 4.3%
Pharmaceuticals: 2.6%
Computers and peripherals: 2.2%
Paper: 2.2%
Aerospace: 1.6%
*Percentages do not add up to 100 due to rounding.
SOURCE: CITY OF TORONTO, CONFERENCE BOARD OF CANADA
