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Municipalities are constantly trying to find new ways to encourage economic development and create new jobs, especially as urban centres continue to swell with new residents. Through the direct intervention of the local government, certain targeted incentives for businesses can be created in order to attract jobs and become more competitive. Recognizing this, the City of Toronto has created several programs and services to ensure a healthy environment for businesses to thrive.
One of the primary ways the City assists businesses is through the expertise of the Economic Development & Culture Division (EDC). Staff routinely provide one-on-one, personalized assistance to businesses by helping companies navigate through regulatory systems. EDC's popular Gold Star program does just that. Eligible commercial, industrial, institutional and office projects are expedited through the system by City Planning, Economic Development and Toronto Building staff. An Economic Development Officer, assigned to each participating project, provides advice and information to help these projects through the application and approval processes, from the initial application to building occupancy.
Businesses not participating in the Gold Star program can also seek the assistance of an Economic Development Officer through the one-on-one corporate calling program. Each area of Toronto has its own Officer that facilitates business retention and expansion, provides advice and connects clients to City and external partners.
So far, City staff have assisted with the completion of 20 projects in 2014, with an additional 75 projects to come. The combined projects represent 1.9 million square feet of space, 5,500 retained jobs, 1,500 new jobs and $175 million of investment. One of the most significant projects City staff became involved in—familiar with UrbanToronto readers—is Oxford Properties' 100 Adelaide Street West development. The project, representing $270 million in construction investment, participated in the IMIT Incentive Program. A requirement of the program dictates conformity with the Toronto Green Standard as well as the development of an employment plan to support local training and hiring. The development, which is now under construction, met these requirements with the help of staff.
Another major project the City helped facilitate was a 14,000 square foot expansion of the headquarters of Hymopack, an Etobicoke-based plastic bag manufacturer. The expansion, totalling $3 million in construction investment and $5 million in capital equipment investment, was needed to accommodate new equipment for the company which now has several clients in the United States in addition to Canada. The development also qualified for the IMIT Incentive Program and the Gold Star program, with City staff providing input and advice throughout the process. The expansion is now almost complete, with equipment operation expected to begin mid-November.
The wide range of programs and services provided by the City have proved popular, with many businesses offering their testimonials and positive feedback. "The City of Toronto's Imagination, Manufacturing, Innovation, Technology (IMIT) program was a key factor in Coca-Cola's decision to lease a 100,000-square foot, three-storey addition above First Gulf Corporation's existing adaptive reuse development at 333 King Street East," said David Gerofsky, Chief Executive Officer of First Gulf Corporation. "By working closely and quickly with both ourselves and Coca-Cola, the City of Toronto facilitated the move of Coca-Cola's Canadian headquarters to Toronto's downtown core."
Though many of these support services, like the Gold Star program, are only a few years old, they have already made an impact in helping businesses succeed. However, the long-term success of these programs depends largely on the awareness of them; education is key in attracting businesses to these assets. "The City wants to work with businesses of all sizes—small, medium and large companies—and we're here to help," George Spezza, Director of Business Growth Services at the City of Toronto, told us. "We want to streamline the process, cut some of the red tape and we're here to help make their investment more attractive."
City staff work to promote the growth of industries in specific sectors as well by providing information about industry trends and issues. The key sectors targeted by the City are: Business and Professional Services, Design, Education Services, Fashion/Apparel, Film and Television, Financial Services, Food and Beverage, Green, Life Sciences, Music, Technology and Tourism. Each key sector, identified by the City due to their potential for high growth, has been assigned its own dedicated specialist with expertise in the industry.
In addition, the City of Toronto offers support in the form of financial incentives and assistance. The Imagination, Manufacturing, Innovation and Technology (IMIT) Incentive Program encourages development by offering eligible industrial and commercial projects a 60% grant of the increase in municipal taxes attributable to the project over 10 years. An additional 10% is applied to projects within designated Employment Areas and a further 7% when combined with a Brownfield Remediation Tax Assistance (BRTA) application, totalling a 77% grant.
Other financial incentives are offered in the form of property tax rebates, fee exemptions and energy savings initiatives. These include rebates for vacant industrial and commercial buildings, development charge exemptions and a special industrial water rate. Each of these programs were created to support the growth of businesses while also encouraging City priorities such as sustainability and heritage conservation.
For companies looking to expand into new markets, EDC staff provides advice and information about various government programs and services. The team can also connect businesses with the representatives of nine global cities, including Chicago, Frankfurt, and Chongqing, under the City's International Alliance Program. The City's goal through the service is to encourage businesses to diversify and expand their international profile by exploring new markets.
For small businesses hoping to grow, the City's Enterprise Toronto service provides free advice, information and coaching through a team of small business advisors. A broad range of business incubators and incubators which provide advice, training, workshops, mentoring and access to financing are also available through the City. Incubators are essential non-profits, private organizations, universities and colleges that offer entrepreneurial support to accelerate the growth of startups. This vital partnership between incubators and the City helps companies expand their reach.
Tourism has become one of Toronto's key sectors and as a result, the City wants to grow the industry, improve the experience of visitors and encourage return trips by providing sector-specific services. To help attain these goals, the City now provides free training sessions to members of the hospitality, tourism and service industries. The training program began in 2011 and has been a resounding success, with nearly 96% of participants recommending the workshop services.
Finally, companies can consult the Toronto Business Opportunities Bulletin Board for listings of prospects to help them expand. A range of opportunities are included, from companies for sale to buyers looking to purchase a business, making the service akin to an online investment marketplace. Select commercial and industrial properties currently for sale or lease are also featured in the Signature Sites Collection.
The multiple programs and services offered by the City of Toronto are frequently highlighted in Toronto Business News, a publication which updates readers on the state of the local economy, recent investments, key sectors and industry events. Businesses are advised to stay updated by consulting the newsletter that is distributed four times annually. They can also obtain a variety of relevant sector-specific publications and data.
For more information about the services the City offers, check out UrbanToronto's previous article, the official City website or contact your area's Economic Development Officer.
