The City of Toronto is pursuing proposed amendments to zoning bylaws aimed at facilitating and enhancing the process of establishing small businesses in residential neighborhoods that lack convenient access to essential shops and services. This initiative comes amidst a backdrop of a significant decline in retail and service establishments within neighborhoods, which saw a drop of 34 percent between 1989 and 2019.

Neighborhoods account for approximately 35 percent of Toronto's land area. The proposed changes would permit businesses of up to 1,600 square feet to operate on major streets designated as residential, while those located within neighborhoods would be limited to 1,200 square feet. Additionally, these changes would enable individuals to run certain types of businesses from their homes, apartments, garages, or sheds, allowing them to serve customers and hire up to two employees.

Michael Noble, manager of strategic initiatives in city planning for the City of Toronto, explained that in recent years, the City Council had enacted numerous changes to facilitate housing development, including duplexes, triplexes, fourplexes, townhouses on major streets, and up to six-storey apartment buildings in various parts of the city. Noble emphasized the need for these services to remain within walking distance for residents, especially as new buildings and inhabitants move into neighborhoods.

In conjunction with the objectives of accessibility and walkability, the City believes these zoning changes will better align with the ongoing transformations in neighborhoods. The increased prevalence of remote work and home-based businesses has amplified the demand for local amenities to be nearby, fostering a supportive environment for small, local businesses that contribute to the local economy and neighborhood vitality.

The final report addressing these bylaw changes was reviewed by City Council last December, prompting feedback from numerous residents’ associations. The 100 Vaughan Road Tenants Association expressed enthusiastic support, highlighting the potential for new local businesses to invigorate neighborhoods and expand access to diverse shops. Co-chair Erin Taylor noted that for many residents without personal outdoor space, these businesses serve as crucial community gathering spots, enhancing the overall vitality of the city.

Despite the support, the Northcliffe Village Residents Association raised several concerns. Chairperson Duarte Esteireiro emphasized the paramount importance of resident safety, particularly regarding potential increases in vehicle traffic resulting from nearby businesses. While they acknowledge the convenience of having walkable retail options, Esteireiro mentioned the potential risks posed by delivery vehicles and e-bikes in a neighborhood that is home to multiple schools within close proximity.

Noble clarified that the City would not mandate parking provisions for these new neighborhood businesses, with the intention of preventing an influx of visitors from outside areas, although controlling such outcomes remains challenging. Esteireiro further expressed disappointment at the prospect of sacrificing housing for commercial retail space in his neighborhood, questioning the necessity of such changes in an area where most residents already have access to major retail streets.

Concerns were also voiced regarding specific types of businesses, particularly restaurants or cafes that might apply for liquor licenses, which could transform neighborhood dynamics. The Northcliffe Village Residents Association's letter highlighted the potential for convenience stores to evolve into bars once on-site seating is permitted. In response, Noble mentioned that city planners are considering restrictions that would limit businesses to takeout only, preventing patrons from consuming alcohol on the premises.

City staff are currently engaging with the public to gather opinions on the proposed zoning changes, having referred the December report back for further consultation. Virtual meetings have been held, alongside an ongoing online survey until September 30. In-person consultations began in July and are scheduled until August 28 at various locations throughout the city, including farmer's markets and community parks.

• August 16: Ward 12, Toronto-St. Paul’s: The Stop Farmers Market, 8 a.m. to 1 p.m.
• August 19: Ward 16, Don Valley East: Aga Khan Park Movie Night, 7 to 9 p.m.
• August 20: Ward 15, Don Valley West: Mount Pleasant Village BIA Movie Night, 7:15 to 9:15 p.m.
• August 23: Ward 22, Scarborough-Agincourt: Agincourt Mall, 1 to 3 p.m.
• August 26: Ward 14, Toronto-Danforth: Queen/Saulter Branch Library from 5:30 to 7:30 p.m.
• August 28: Ward 9, Davenport: Dufferin Grove Park Farmers Market, 3 to 7 p.m.

The City staff plans to report back to City Council and the planning and housing committee by the end of October, detailing updates based on public feedback. Depending on the duration of the approval and amendment processes, the implementation of the zoning changes could begin as early as 2026.