March 4, 1999
To:Budget Committee
From:City Clerk
Subject:Funding for 761 Community Development Corporation
Recommendation:
The Municipal Grants Review Committee on March 4, 1999, recommended to the Budget
Committee, and the Strategic Policies and Priorities Committee, the adoption of the attached
report dated February 25, 1999, from the Commissioner of Community and Neighbourhood
Services respecting funding for 761 Community Development Corporation.
City Clerk
R. Dyers/tl
Item No. 3
(Report dated February 25, 1999, addressed to the
Municipal Grants Review Committee from the
Commissioner of Community and Neighbourhood Services)
Purpose:
This report confirms the City of Toronto support for the 761 Community Development
Corporation.
Funding Sources, Financial Implications and Impact Statement:
The recommendations contained in this report will pre-commit $83,750.00 of the 1999
consolidated grants budget request of $45,133,300.00.
Recommendations:
It is recommended that:
- funding in the amount of $83,750.00 be provided to the 761 Community Development
Corporation;
- the funding in Recommendation No. (1) be provided from the following grants programs,
Economic Development Partnership, Homeless Initiatives Fund, Community Services
Grants Programs, and the grants contingency once the 1999 Operating Budget has been
approved;
- the recommended funding be administered by the Shelter, Housing and Support Division
of the Community and Neighbourhood Services Department;
- staff work with the Board of 761 Community Development Corporation to develop
alternative sources of funding for the Executive Director's position; and
- the appropriate City officials be authorized and directed to take the necessary action to give
effect thereto.
Council Reference/Background/History:
The 761 Community Development Corporation (761 C.D.C.), developed with the assistance
of the former City of Toronto, actively seeks out and develops business and employment
opportunities for persons experiencing long-term poverty. It operates from a building jointly
renovated by the former City and the United Church, and legally dedicated by way of a
ten-year agreement to serve as a community action centre for this purpose.
For the past four years, a staff person from Urban Planning and Development Services has
been assigned full-time to assist in the establishment of the 761 Community Development
Corporation as an innovative vehicle to develop economic approaches to the issue of
long-term poverty. In addition, the City provided grants totalling $35,000.00 in 1998. The
total value of the staff secondment and grant allocations was approximately $100,000.00.
The Municipal Grants Review Committee approved a report entitled "City of Toronto Support
for 761 Community Development Corporation," at its meeting of July 20, 1998. This report
recommended that a consultant be retained to conduct a review of the financial and
administrative relationships with the 761 C.D.C. and to recommend a sustained and long-term
financial and administrative structure for the 761 C.D.C.
The firm of Ward Consultants was retained to carry out the review, which was completed in
January 1999. Staff have now reviewed the consultants report and met with the Board of the
761 C.D.C. to discuss the review and the recommendations contained in this report.
Comments and/or Discussion and/or Justification:
"Taking Responsibility for Homelessness", the report of the Mayor's Homelessness Action
Task Force, identifies community economic development activity as an important prevention
strategy. The report states "Traditional job creation, job readiness, and job placement
approaches have not been effective in connecting socially isolated people with the mainstream
economy... These (CED) businesses use the economy to create community. Social
participation is at least as important as economic participation". The report also recognizes
761 C.D.C. as a primary CED provider and the need for additional City resources in this area.
Given the unique mandate of the 761 C.D.C., a number of City Departments/Divisions have
an interest in the work of the agency. Staff of the Urban Planning and Development Services
Department, Economic Development, Culture and Tourism Department, and Shelter Housing
and Support, and Social Development and Administration Divisions of the Community and
Neighbourhood Services Department have been involved in discussions regarding the City
role with 761 C.D.C.. The Shelter, Housing and Support Division has an existing funding role
with respect to CED and will act as the lead division, with both Economic Development and
Social Development and Administration to provide additional in kind supports.
1999 Funding Level:
A total commitment of $83,750.00 is recommended. Funding at this level will maintain the
funding level provided in 1998 and provide additional funds to enable 761 C.D.C. to hire an
Executive Director to replace the seconded staff from Urban Planning and Development
Services. Pre-commitment is required because the City staff secondment will end on March
31, 1999, and the Board of 761 C.D.C. has asked the City of Toronto for a formal
commitment of support before they initiate the hiring process for an Executive Director.
Long Term Support:
There are a number of possible sources for long-term support for the core administrative costs
of 761 C.D.C. City staff will work with the organization to pursue funding relationships with
the United Way of Greater Toronto, foundations, and potential private sector support.
However, the agency does not have the immediate resources to hire an Executive Director.
The consultant's report identified a number of strategic issues that 761 C.D.C. should address
over the next year and the Board of 761 C.D.C. has adopted a workplan to address these
issues. With a number of significant organization issues yet to be resolved City staff have
advised the Board of 761 to consider hiring an Executive Director on a contract basis.
Conclusion:
Community economic development has clearly been identified by the Mayor's Homelessness
Action Task Force as an important preventative strategy that should be supported by the City.
761 C.D.C. is one of the few existing community resources with the mandate and expertise to
provide support to CED initiatives.
Contact Name:
Chris Brillinger
Tel: 392-8608
