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City Council has approved a wide-ranging set of zoning changes that expand where small-scale retail and services may operate in Toronto’s residential areas, marking one of the most significant updates to neighbourhood permissions in decades. The decision finalizes Phase Three of the Expanding Housing Options in Neighbourhoods (EHON) Neighbourhood Retail and Services Study, opening the door to corner stores in select Downtown and East End wards while allowing shops, cafés, and other low-impact uses along Major Streets across all 25 wards.
In planning terms, ‘corner stores’ refers to small-scale retail shops permitted on residentially-zoned corner lots, provided they front a designated Community Street. These shops are limited to low-impact formats, such as convenience retail, small cafés with off-site food preparation, and personal services.
Residential properties on major streets across the city can now accommodate a range of ground-floor retail and service uses, with space for professional and wellness offices extended to the second storey. Interior neighbourhood permissions were adopted on a more limited basis, allowing small-scale retail on qualifying corner lots in designated central and East End wards. These permissions were added through amendments at Council, narrowing the rollout to "old" Toronto and East End for this phase. Updates to home-occupation standards were also finalized, alongside direction for a monitoring program, future licensing reviews, and discussions with the Province on cannabis and liquor-related controls.
Under the new zoning, a corner lot on a designated Community Street (or a lot beside a park, school, or existing commercial site) may now host a compact shop with the option for ancillary or takeout food prepared elsewhere. These uses are limited to formats that blend quietly into their surroundings, with patios and higher-impact operations excluded.
The rollout spans the following eight wards:
Ward 4 (Parkdale–High Park)
Ward 9 (Davenport)
Ward 10 (Spadina–Fort York)
Ward 11 (University–Rosedale)
Ward 12 (Toronto–St. Paul’s)
Ward 13 (Toronto Centre)
Ward 14 (Toronto–Danforth)
Ward 19 (Beaches–East York)
Other districts may request entry into the program as further consultation unfolds.
While interior permissions are limited to select wards, the Major Street component applies city-wide. Every ward now allows small-scale retail and services on residential properties fronting designated Major Streets, supporting grocery and convenience shops, cafés, personal services, studios, and community-oriented offices. Council also adopted a series of ward-specific exclusions that remove certain corridors from the map, but the broader framework establishes consistent permissions across Toronto’s arterial network. Council also adopted several amendments carving out several specific streets (primarily in Scarborough, Etobicoke, North York, and parts of midtown) where the new commercial permissions will not apply.
City staff will track how the new permissions function on the ground, reporting back after either two years or the first 100 permits and business licences. The review will assess whether adjustments to zoning, enforcement, or licensing are needed.
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