We knew it was coming. But it's important and worth mentioning again. This week, Toronto City Council adopted new Zoning Bylaw Amendments that will remove most parking minimums across the city. We now join many other cities across North America who have done similar things in order to try and encourage more sustainable forms of mobility.

If you'd like to take a spin through the draft amendments, you'll find them linked here. I haven't gone through them in detail, but I did do a word search for "maximum" given that this week's adoption represents a pretty clear change in perspective. Here's an excerpt from the staff recommendation report that speaks to what I'm talking about:

Recognizing these challenges, this review of the parking standards in the city-wide
Zoning By-law 569-2013 was guided by the principle that parking standards should
allow only the maximum amount of automobile parking reasonably required for a given
use and minimums should be avoided except where necessary to ensure equitable
access. The previous review, which began in 2005, was guided by the principle that the
zoning standards should require the minimum responsible amount of parking for a given
land use. This is inconsistent with Official Plan policies which discourage auto
dependence.

One other thing I found in the documents that went to Council was this map of parking spot selling prices in active high-rise developments across the city. Not surprisingly, downtown and midtown are showing the highest prices per parking space. I can't vouch for the accuracy of all of these dots, but it looks directionally right and I can tell you that at least one of them is correct.

All of us in the industry know how much parking drives decision making. There's a joke (half-joke) that when you're designing a building, first you lay out the parking and then you design all of the residential suites around that structural grid. That's not the way things should be done. The future of this city should not and cannot be centered around the car. This week's adoption is in service of that.

For the last year or so the City of Toronto has been doing a review of parking requirements for new developments. This would include things like how much car and bike parking needs to be provided for each residential unit in a new building. More information on this work can be found here.

City staff are now preparing to release their initial findings and, as I understand it, it is going to include the removal of most minimum parking standards across the city and the introduction of some maximum parking standards. What this should mean is that in most cases you can build as little parking as you want, but in some cases you'll be stopped from building too much of it.

There are lots of examples of other cities doing this. Buffalo is one example and I recently wrote (over here) about what happened to new developments once its minimums were eliminated. Among other things, it revealed where the previous parking requirements were overshooting what the market was actually demanding.

Urban parking is heavily dilutive to new developments. It drives up the cost of new housing. It is also hypocritical to claim that we want to encourage alternative forms of mobility while at the same time mandating that we build a certain amount of car parking. Do we want people to drive or do we want people to do other things? Which is it?

Some will bemoan this inevitable loss of parking (though it was already happening). But I think this is a great thing. It is Toronto growing up and continuing to realize that it's pretty damn hard to build a big and well-functioning global city if everyone is driving around everywhere. Maybe one day we'll even allow e-scooters.

One of the questions that came up after my recent post about land pricing was: what is it going to take to develop underutilized land on the outskirts of city centers?

So today I thought I would talk about a new development project that was also discussed at the Land & Development conference I recently attended. I think will begin to answer this question.

The project today is known as the Rockport Weston Community Hub & Rental Building. And it’s going to include a community cultural hub, 26 live/work artist spaces, and 300 rental apartments. 

It’s located in the Weston neighborhood of Toronto, which is designated as a “Neighborhood Improvement Area.” These are lower-income areas that the city considers to be “at-risk.”

Given this, rents are naturally lower here than in other parts of the city, which means that it’s basically infeasible to develop here. There has been no large scale development in this community since the 1970s!

To put some numbers to this, the developer said they were projecting rents somewhere around “two and a quarter.” So let’s assume for a second that the average apartment rents will be $2.25 per square foot. 

At this rate, it means that a 600 square foot one-bedroom apartment will have a face rent of $1,350 per month. This may seem fairly high, but it almost certainly wouldn’t be enough to get a project like this off the ground under normal market conditions. At least, that’s the case here in Toronto with current cost structures.

So what had to happen was a fairly complicated public-private partnership, which you can read all about here. But at a high level, there seems to have been 3 main economic factors that allowed this project to move forward:

1) The developer was able to acquire the land for cents on the dollar. As I said in this post, land is expensive. So this helps a lot.

2) The developer was able to make use of extra parking in an adjacent building. Assuming that underground parking could cost around $50,000 per stall, this is a huge cost savings.

3) Lastly, the project is benefiting from the public invest made in the airport rail link that now quickly connects this site to both Pearson International and downtown Toronto.

The moral of the story is that infeasible sites require some sort of subsidy or top up to make them work. Or, there needs to be an exceptional circumstance. Because if the rents aren’t there, nobody is going to build. It’s as simple as that.

That said, here’s one idea…

This discussion reminds me of a post I wrote a while back called, The hypocrisy of parking minimums. Frankly, I don’t understand why a city like Toronto still has parking minimums. If anything, we should have parking maximums.

Underground parking is a huge cost that has to get carried by purchasers and renters in a new building. For example, let’s assume that 300 apartment suites would require 180 parking stalls (ratio = 0.6). Assuming $50,000 per stall, that’s a $9 million cost.

So the second takeaway is that it’s probably time we took a good hard look at how we think about and plan for parking in our cities. Especially since the entire mobility space is being quickly disrupted.

Image: Rockport