I recently wrote this post responding to a tweet by the Chief Planner of Toronto. And towards the end of last year, I wrote a longer piece for developer Urban Capital’s annual magazine. If you missed it, you should definitely download a copy. Not so much for my article, but because, overall, the UC magazines are excellent. (Credit to David Wex.)
Today, I’d like to focus on one specific “performance standard” from Toronto’s mid-rise guidelines that I’ve been thinking about lately. But more specifically, I’d like to focus on a performance standard that was initially contemplated but never actually got adopted.
(I apologize in advance if this post gets a bit too geeky for some of you. It refers to a specific land use policy in Toronto, but it has much broader relevance.)
If you take a look at the final Avenue & Mid-Rise Buildings Study and turn to page 56, you’ll see that Performance Standard #5B (Rear Transition to Neighbourhoods: Shallow Properties) was stricken from the report. It was never adopted as a standard.
So what is this all about?
This performance standard had to do with something called “Enhancement Zones”, which was proposed as a way to deal with shallow parcels of land on Toronto’s main avenues. You see, because of the other performance standards – namely the angular plane (see images below) – the depth of an avenue site is hugely important for determining what can ultimately be built on it.
From the city’s perspective, this is a double edged sword. In the case of exceptionally deep lots, you can actually meet all of the performance standards while at the same time exceeding the recommended densities. But in the case of shallow lots, the performance standards sometimes/often make it so that you can’t even achieve the recommended densities. In fact, a lot of sites simply become un-developable.
To give you a visual for what I’m talking about, here’s a section drawing from a zoning by-law that was adopted by City Council for St. Clair Avenue West in midtown:

Here you can quickly see that if you were dealing with a shallow lot of, say, 25m in depth, you wouldn’t have much left over after taking into account the rear property line setback (7.5m above), the front property line setback, and the 45 degree angular plane. Now you’re beginning to see why I said that it is easier said than done to play creatively within the guidelines envelope (thick black line above). When you look at the feasibility of these projects, you quickly end up getting pushed right up against the glass.
But this is where Enhancement Zones comes in.
The idea here is that an adjacent low-rise residential property (or pair of properties in the case of attached houses) could be included in mid-rise development proposals to create a deeper site that then meets the requisite separation distances between the mid-rise scale and the low-rise scale. To be clear, nothing would be built in the Enhancement Zones. They would just help to relieve some of the setback pressures from the original shallow lot and maybe even create a rear laneway system where one did not exist before.
Below is a drawing from the Mid-Rise Buildings Study showing that new condition. The same 7.5m setback applies at the rear, but now it sits within an Enhancement Zone – formerly an adjacent and separate property. All the text is crossed out because, again, this standard was not adopted.

From a mid-rise development and feasibility standpoint, this makes a lot of sense. Sites that may have been un-developable before, now become developable. This makes it easier for us to achieve the European-scaled mid-rise vision that Toronto has for its avenues.
But for reasons that I am sure you can guess, there are concerns with this performance standard. Probably the most obvious is that, to a certain extent, it destabilizes “neighbourhoods.” And they are intended to be completely stable entities that see little to no intensification. As soon as you allow this to happen, properties sitting in Enhancement Zones would become the prey of developers.
However, there are counter arguments you could make. The owners of these properties would likely receive offers above market value. So maybe they end up better off. At the same time, you could also argue that the more development we unlock outside of “neighbourhoods”, the more stable they can actually remain.
In any event, I’ve been thinking about this lately and I thought it would be interesting to debate the pros and cons of these magical-sounding Enhancement Zones. For those of you inclined to engage in geeky planning discussions, I’d love to hear from you in the comments.
Today I spent the day at the 11th Annual Land & Development Conference here in Toronto. I found it particularly good this year, but it’s now late, I’m tired, and I want to go watch game 6 of the NBA finals. So I think this is going to be a fairly short post.
Here’s a summary of some of my key takeaways from the day (a lot of it is Toronto-centric):
Increasingly, the commercial and residential sides of the real estate development business are converging. And it’s being largely driven by the focus on urban intensification and mixed-use.
This is leading to an “institutionalization” of the residential side, which has historically been the domain of smaller private/local companies and rich families.
Merger is creating complexity around asset valuations: Is it about the income (cap rates) and/or the future development potential?
Low rise house prices in Toronto continue to skyrocket. Supply is highly constrained. This has been the story for a number of years now.
High rise condo prices in Toronto continue to be more or less flat (modest increase). The industry is going to need to figure out how to work with and compliment the current surge in rental apartment development. There is an element of competition between the two asset classes.
According the RealNet’s new home price index, the spread between low-rise and high-rise housing in the Greater Toronto Area widened to $326,659 as of this past April (2015).
Rental Apartment Case Studies: Motion on Bay by Concert Properties (Bay and Dundas) was underwrote at $2.60-2.80 psf rents back in 2009. Rents are now in the $3 range. The Heathview by Morguard (Bathurst & St Clair) had $2.80-2.90 psf rents in its pro forma. It achieved and beat these numbers.
There’s a flood of Asian money coming into (1) Vancouver and then into (2) Toronto looking for development projects. There appears to be a lot of impatient and/or dumb capital out there. Challenge remains finding good development sites.
Vancouver is well ahead of Toronto in terms of transit oriented development. The initial intent in Ontario was to create a link between the greenbelt that surrounds Toronto + land use (intensification) + transit. But we haven’t been doing a good job of building transit and developing around it. This ties in nicely with a post I wrote called: The case for planning transit around minimum population densities.
I will end by saying that I found there to be greater transparency at today’s conference. There was a lot of talk about deal specifics and I don’t remember seeing this much detail at past conferences.
Maybe I just wasn’t paying attention closely enough before or maybe the industry is slowly becoming more transparent. I hope it’s the latter.
If you were there today and I missed something groundbreaking, please share it in the comments below!
I recently wrote this post responding to a tweet by the Chief Planner of Toronto. And towards the end of last year, I wrote a longer piece for developer Urban Capital’s annual magazine. If you missed it, you should definitely download a copy. Not so much for my article, but because, overall, the UC magazines are excellent. (Credit to David Wex.)
Today, I’d like to focus on one specific “performance standard” from Toronto’s mid-rise guidelines that I’ve been thinking about lately. But more specifically, I’d like to focus on a performance standard that was initially contemplated but never actually got adopted.
(I apologize in advance if this post gets a bit too geeky for some of you. It refers to a specific land use policy in Toronto, but it has much broader relevance.)
If you take a look at the final Avenue & Mid-Rise Buildings Study and turn to page 56, you’ll see that Performance Standard #5B (Rear Transition to Neighbourhoods: Shallow Properties) was stricken from the report. It was never adopted as a standard.
So what is this all about?
This performance standard had to do with something called “Enhancement Zones”, which was proposed as a way to deal with shallow parcels of land on Toronto’s main avenues. You see, because of the other performance standards – namely the angular plane (see images below) – the depth of an avenue site is hugely important for determining what can ultimately be built on it.
From the city’s perspective, this is a double edged sword. In the case of exceptionally deep lots, you can actually meet all of the performance standards while at the same time exceeding the recommended densities. But in the case of shallow lots, the performance standards sometimes/often make it so that you can’t even achieve the recommended densities. In fact, a lot of sites simply become un-developable.
To give you a visual for what I’m talking about, here’s a section drawing from a zoning by-law that was adopted by City Council for St. Clair Avenue West in midtown:

Here you can quickly see that if you were dealing with a shallow lot of, say, 25m in depth, you wouldn’t have much left over after taking into account the rear property line setback (7.5m above), the front property line setback, and the 45 degree angular plane. Now you’re beginning to see why I said that it is easier said than done to play creatively within the guidelines envelope (thick black line above). When you look at the feasibility of these projects, you quickly end up getting pushed right up against the glass.
But this is where Enhancement Zones comes in.
The idea here is that an adjacent low-rise residential property (or pair of properties in the case of attached houses) could be included in mid-rise development proposals to create a deeper site that then meets the requisite separation distances between the mid-rise scale and the low-rise scale. To be clear, nothing would be built in the Enhancement Zones. They would just help to relieve some of the setback pressures from the original shallow lot and maybe even create a rear laneway system where one did not exist before.
Below is a drawing from the Mid-Rise Buildings Study showing that new condition. The same 7.5m setback applies at the rear, but now it sits within an Enhancement Zone – formerly an adjacent and separate property. All the text is crossed out because, again, this standard was not adopted.

From a mid-rise development and feasibility standpoint, this makes a lot of sense. Sites that may have been un-developable before, now become developable. This makes it easier for us to achieve the European-scaled mid-rise vision that Toronto has for its avenues.
But for reasons that I am sure you can guess, there are concerns with this performance standard. Probably the most obvious is that, to a certain extent, it destabilizes “neighbourhoods.” And they are intended to be completely stable entities that see little to no intensification. As soon as you allow this to happen, properties sitting in Enhancement Zones would become the prey of developers.
However, there are counter arguments you could make. The owners of these properties would likely receive offers above market value. So maybe they end up better off. At the same time, you could also argue that the more development we unlock outside of “neighbourhoods”, the more stable they can actually remain.
In any event, I’ve been thinking about this lately and I thought it would be interesting to debate the pros and cons of these magical-sounding Enhancement Zones. For those of you inclined to engage in geeky planning discussions, I’d love to hear from you in the comments.
Today I spent the day at the 11th Annual Land & Development Conference here in Toronto. I found it particularly good this year, but it’s now late, I’m tired, and I want to go watch game 6 of the NBA finals. So I think this is going to be a fairly short post.
Here’s a summary of some of my key takeaways from the day (a lot of it is Toronto-centric):
Increasingly, the commercial and residential sides of the real estate development business are converging. And it’s being largely driven by the focus on urban intensification and mixed-use.
This is leading to an “institutionalization” of the residential side, which has historically been the domain of smaller private/local companies and rich families.
Merger is creating complexity around asset valuations: Is it about the income (cap rates) and/or the future development potential?
Low rise house prices in Toronto continue to skyrocket. Supply is highly constrained. This has been the story for a number of years now.
High rise condo prices in Toronto continue to be more or less flat (modest increase). The industry is going to need to figure out how to work with and compliment the current surge in rental apartment development. There is an element of competition between the two asset classes.
According the RealNet’s new home price index, the spread between low-rise and high-rise housing in the Greater Toronto Area widened to $326,659 as of this past April (2015).
Rental Apartment Case Studies: Motion on Bay by Concert Properties (Bay and Dundas) was underwrote at $2.60-2.80 psf rents back in 2009. Rents are now in the $3 range. The Heathview by Morguard (Bathurst & St Clair) had $2.80-2.90 psf rents in its pro forma. It achieved and beat these numbers.
There’s a flood of Asian money coming into (1) Vancouver and then into (2) Toronto looking for development projects. There appears to be a lot of impatient and/or dumb capital out there. Challenge remains finding good development sites.
Vancouver is well ahead of Toronto in terms of transit oriented development. The initial intent in Ontario was to create a link between the greenbelt that surrounds Toronto + land use (intensification) + transit. But we haven’t been doing a good job of building transit and developing around it. This ties in nicely with a post I wrote called: The case for planning transit around minimum population densities.
I will end by saying that I found there to be greater transparency at today’s conference. There was a lot of talk about deal specifics and I don’t remember seeing this much detail at past conferences.
Maybe I just wasn’t paying attention closely enough before or maybe the industry is slowly becoming more transparent. I hope it’s the latter.
If you were there today and I missed something groundbreaking, please share it in the comments below!
Back in 2011, the The Pembina Institute published a report called, Building transit where we need it. And in it they quite clearly outlined the population densities that are needed to make various types of transit investment cost effective.
For subway they specify a minimum population density of 115 people per hectare and for light rail (LRT) they specify a minimum population density of 70 people per hectare.
And the reason for this is because there’s a strong correlation between population density (i.e. land use) and transit ridership. The two go hand in hand and should not be decoupled. If population densities are too low (as they are, for example, along the Sheppard subway line here in Toronto), people don’t take transit. They drive.
Here’s a chart from the report showing the current and projected population densities for Toronto’s existing and proposed routes (keep in mind this is from 2011).

So what does this chart tell us?
Subways don’t make a lot of sense in many parts of the city. LRT will do just fine.
The Sheppard subway line is an under-utilized asset. Even by 2031 we’ll barely be reaching the requisite population densities.
The Bloor-Danforth corridor could use more intensification.
The Yonge-University-Spadina line is going to need to relief.
Unfortunately, transit decisions are often made based on politics instead of data. And that results in subways in places that don’t make a lot of sense. That’s unfortunate because it means less riders, less revenue, and more subsidies.
The other challenge with running subways through low density neighborhoods is that it then creates tension when the city and developers go to intensify those neighborhoods through transit-oriented development. (See #DensityCreep.)
But if we’re going to be fiscally irresponsible about where we deploy our transit capital, the least we could do is upzone the surrounding areas and impose minimum population densities.
In fact, here’s what I think we should do: Land use should be bundled with the transit decision.
Instead of asking where the subway station should go, we should be asking where the subway station should go and all the density needed to bring the area up to a certain minimum population density. And if that second criteria for whatever reason can’t be met, then we don’t build the line.
I wonder if we framed the question in this way if it would change where subway lines get approved. What do you think?
Back in 2011, the The Pembina Institute published a report called, Building transit where we need it. And in it they quite clearly outlined the population densities that are needed to make various types of transit investment cost effective.
For subway they specify a minimum population density of 115 people per hectare and for light rail (LRT) they specify a minimum population density of 70 people per hectare.
And the reason for this is because there’s a strong correlation between population density (i.e. land use) and transit ridership. The two go hand in hand and should not be decoupled. If population densities are too low (as they are, for example, along the Sheppard subway line here in Toronto), people don’t take transit. They drive.
Here’s a chart from the report showing the current and projected population densities for Toronto’s existing and proposed routes (keep in mind this is from 2011).

So what does this chart tell us?
Subways don’t make a lot of sense in many parts of the city. LRT will do just fine.
The Sheppard subway line is an under-utilized asset. Even by 2031 we’ll barely be reaching the requisite population densities.
The Bloor-Danforth corridor could use more intensification.
The Yonge-University-Spadina line is going to need to relief.
Unfortunately, transit decisions are often made based on politics instead of data. And that results in subways in places that don’t make a lot of sense. That’s unfortunate because it means less riders, less revenue, and more subsidies.
The other challenge with running subways through low density neighborhoods is that it then creates tension when the city and developers go to intensify those neighborhoods through transit-oriented development. (See #DensityCreep.)
But if we’re going to be fiscally irresponsible about where we deploy our transit capital, the least we could do is upzone the surrounding areas and impose minimum population densities.
In fact, here’s what I think we should do: Land use should be bundled with the transit decision.
Instead of asking where the subway station should go, we should be asking where the subway station should go and all the density needed to bring the area up to a certain minimum population density. And if that second criteria for whatever reason can’t be met, then we don’t build the line.
I wonder if we framed the question in this way if it would change where subway lines get approved. What do you think?
Share Dialog
Share Dialog
Share Dialog
Share Dialog
Share Dialog
Share Dialog