Section 37 critics
One of the most common criticisms against Section 37 agreements
involves the lack of transparency. Since negotiations occur behind
closed doors, there is a potential danger that while broader public
interests may be addressed, local communities are left out of the
process.
Also, since city councillors and planning staff prefer to negotiate
once the density and height of the development is finalized, Section 37
agreements are often negotiated only a few weeks before the zoning
bylaw amendment is passed, leaving little time for consultation with
the community.
The public must essentially trust that the councillor and planning
staff have sufficient understanding of local concerns and how the
proposed development would affect the community. Some critics brand it
“let’s make a deal” planning.
Even councillors who in principle are opposed to Section 37, have
received monies to pay for their pet projects. For example when Lowe’s
wanted approval to build in councillor Rob Ford’s ward in 2010, he had
Lowes spend $75,000 to upgrade the locker rooms used by the Don Bosco
high school football team.
The alleged lack of transparency leads to a second concern: the level
of consistency among negotiated agreements.
Critics have observed that Section 37 agreements may be construed as a
bribe by developers to persuade city officials to approve of bad
planning proposals; or, conversely, an illegal tax imposed by the city
on developers and new homeowners.
Finally, nothing is free. Section 37 costs must be rolled into the
prices paid by the home buyers when they purchase their condos.
—†—
Section 37 — What it is, and why everybody’s fighting about it: Keenan
Toronto Star
By: Edward Keenan Columnist
16 January 2015
Mayor John Tory said this week that he wants “a full review” of the use
of Section 37 of the provincial planning act, after a CBC report about
irate Mimico residents who think their local councillor may have given
a developer a break.
The episode brings a long-simmering debate about the clause in
provincial legislation to a boil.
In Toronto political circles, there may be no more famous clause in a
piece of legislation; like “Catch-22” or “Agent 007,” the numbered term
“Section 37” is used frequently as shorthand by politicians,
journalists and pundits without much explanation. Which can lead to
plenty of confusion.
What is
Section 37 and why does it exist?
Essentially, Section 37 of the planning act is the one that allows for
what other cities call “community benefits agreements.” If the owner of
a property wants to build something that does not comply with zoning
regulations, the owner may voluntarily agree to provide community
benefits in cash or amenities in exchange for approval.
These benefits are negotiated by city planning staff and with local
councillors in the area where the development will be built. Though the
agreements themselves are approved by city council, the use of the
funds is largely controlled directly by the local councillor for use in
projects inside his or her ward.
The purpose of the section in the act is to offset the problems caused
by changes to a neighbourhood when different kinds of developments are
added to it, such as to compensate for increased traffic, population,
or changes to the streetscape new developments bring.
What is the
problem with it?
While many planners and councillors defend it as a valuable tool,
several criticisms have been raised about it inside and outside city
hall.
The biggest criticism is that its efficacy depends a lot on the skill
and creativity of the local councillor. Since each Section 37 agreement
is negotiated separately, there is no real standard or baseline for how
it works, how much certain kinds of allowances will cost a developer,
or what a community should expect in exchange for a big change on their
street. The types of benefits delivered are vulnerable to the same
eccentricity, and often depend on the priorities (or “pet projects”) of
various politicians.
Some developers have decried it as an unfair shakedown. Often the
buildings they propose are types the city wants to encourage — for
example, a midrise building on a main avenue of the city — but
deliberately restrictive zoning laws mean they need to sit down and
play an unpredictable game of “let’s make a deal” with the local city
councilor.
And the funds are not evenly distributed around the city. This presents
a real fairness problem to the extent that, due to austerity measures
imposed by low tax rates, Section 37 funding has become virtually the
only source of funding for things such as playgrounds and community
centres. By nature, Section 37 funds are spent in the communities where
development occurs, which means there is a lot of money to spend in
parts of the city where highrise condo development is concentrated.
This has led to suggestions, by John Tory among others, that the money
should be “pooled” to spend across the city in areas of need.
So, should
we just pool the money and spread it around?
The thing is, Section 37 is not meant to serve as a source of pooled
revenue for the city. We have other sources of money for that —
property taxes, for instance. Specific to new construction, the city
has development charges levied against new building projects that are
specifically meant to generate revenue, and those could easily be
increased if council wants more money for general use. Section 37
agreements are designed to offset changes to a specific neighbourhood
that the specific development entering them will make. Pooling that
revenue for use in other neighbourhoods would take an arguably flawed
process and completely unchain it from its underlying logic.
So should
we just leave it alone?
Some councillors suggest Section 37 is needed and works well as is. But
a number of experts — including Toronto’s chief planner, Jennifer
Keesmaat, respected urban designer and planning expert Ken Greenberg,
and a 2013 report from the Munk School’s Institute of Municipal Finance
and Governance have suggested some reforms. Given that the system is so
arbitrary, often unpredictable, and sometimes seems to provide
incentives contrary to what the city’s approved plans claim to want,
some revision seems desirable. A “full review,” as the mayor suggests,
complete with options for changes to the system, may be the best
approach.
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