Response to Circulation
From:F. Bruce Graham, Director, Business Development & Retention
City of Toronto Economic Development, Culture & Tourism Department
Economic Development Division
Subject:Request to Amend the Official Plan (W96052) for the Former Scarborough Transportation Corridor and
Abutting Lands, between St. Clair Avenue and Brimley Road
File:W96052
1.Introduction
Land in employment districts throughout the City of Toronto is being redesignated from industrial uses to residential uses
at an alarming rate. As land is removed from the employment uses inventory, so are job opportunities and
industrial/commercial assessment for the city.
The City of Toronto Economic Development Division does not support the proposal by the Urban Planning and
Development Services Department, City Planning Division to redesignate the land on the west side of Brimley Road, south
of the C.N.R. tracks in the former Scarborough Transportation Corridor from Industrial Uses to Residential Uses.
In support of the current Official Plan designation of Industrial Uses of the land on the west side of Brimley Road, south of
the C.N.R. tracks in the former Scarborough Transportation Corridor, this report will discuss the viability of the Knob Hill
Employment District (which the land in question is located in), industrial investment activity in the Scarborough
community, the cost of residential development to the city and the need to protect Toronto's land designated for
employment uses.
2.The Knob Hill Employment District, a Viable Employment District
The Knob Hill Employment District remains a viable employment district providing employment opportunities and
industrial assessment for the City of Toronto.
In 1996, Nike Canada Inc. leased a large portion of the former Livingstone Warehouse facility at 260 Brimley Road and
located their Canadian warehouse/distribution centre on this site. During 1996, extensive exterior improvements were
completed and in 1997 interior alterations were needed to accommodate a new customer service centre. Nike Canada
currently employs 265 and occupies approximately 400,000 sq.ft. at 260 Brimley. The Nike Canada building is in excellent
condition and with more than 500,000 sq.ft. is one of a few very large industrial buildings that exist in the City of Toronto.
Recently, Gran Packaging, a division of Atlantic Packaging began operations on the former Liquid Carbonic site at 255
Brimley Road on the western portion of the site. Gran Packaging manufactures plastic bags at this location and have been
expanding their manufacturing operations to meet the growing demand for their product. Gran have committed a
substantial capital investment in interior alterations and machinery to create what they describe as a "state-of-the-art" bag
manufacturing facility. Gran Packaging occupies 160,000 sq.ft. and currently employ 55 which will be increase to 80 later
this year.
While the Gran Packaging site is not in the subject area, it is across the street from it setting up potential conflicts between
residents and industry if the west side of Brimley Road is redesignated to allow residential uses.
Long time business residents in the area include Babbco Office Services Limited, Art Mould Plastics Ltd., Pedsco
(Canada) Ltd., Hi-Vac Electronics Corp. and O'Hara Technologies Inc. All of these companies have been located in this
vicinity for over 20 years. Employment in the Knob Hill Employment District currently stands at approximately 1,000.
3Industrial Investment Activity in the Scarborough Community
3.1Demand for Industrial Land Remains Strong in the Scarborough Community
Demand for vacant land in the Scarborough community remained strong in 1998. Early indications are that 1999 will be
another strong year. Examples of industrial investment activity on vacant land in the Scarborough community include:
--Viva Magnetics (Canada) Limited, 1663 Neilson Road (located on the southern boundary of Morningside Heights).
Total capital investment of $30 million dollars. The 133,000 sq.ft. manufacturing facility will house between 50-70
employees when completed in 1999.
--Multiple Industrial Units, Sorbara Group, Markham Road south of Finch Avenue East
The first speculative multiple industrial units to be built in a number of years in Toronto East. The 43,000 sq.ft. facility was
completed in the fall of 1998 and has had great success in attracting tenants.
--Multiple Industrial Units, Lebovic Enterprises, 719 Finch Ave. E. & Tapscott Road N/E corner
The 85,000 sq.ft. speculative multiple industrial unit development currently under construction already has one tenant,
Protogon Display, that will occupy 50,000 sq.ft. The project will be completed in July, 1999. Protogon is relocating from
605 Middlefield Road.
--Rex Pak Food Packaging Ltd., Thornmount Drive (Sheppard Ave. E. & Morningside Ave.)
The new 90,000 sq.ft. building is in the planning stages. It is expected to be completed in the early summer of 1999. Rex
Pak will be relocating from their facility at 1399 Kennedy Road.
3.21998 Industrial Investment Activity Hits Highest Level in 1990's
The 1998 value of industrial building permits in the Scarborough community was the highest level achieved in the 1990's.
At $46.8 million it more than doubled the 1997 figure. Through their investment activity, these companies have shown that
the Scarborough community is a desirable location for their business. Highlights of the industrial investment activity in
1998 included:
--Lily Cups Limited, 2121 Markham Road
140,000 sq.ft. addition to existing manufacturing facility
--Audio Products International, 3641 McNicoll Avenue
52,000 sq.ft. addition to their 102,000 sq.ft. facility
--IDMD, 45 Progress Avenue
106,000 sq.ft. addition to existing facility
--Atlantic Packaging Product Ltd., 350 Midwest Road
46,000 sq.ft. addition to existing facility
4.Protection Required to Retain Stability in the Knob Hill Employment District
Redesignating the lands west of Brimley Road from industrial area uses to residential uses would put pressure on the owner
of 260 Brimley to consider demolishing the building and look at residential uses for the site. A large residential community
located on the west side of Brimley may conflict with the industrial operation at 255 Brimley Road (Gran Packaging).
Unfortunately, the negative externalities of industrial operations, such as noise, light and hours of operation, extend beyond
the boundaries of their property. By locating in employment districts, the industrial users are able to minimize their impact
on the residential communities. When residential uses are introduced in employment districts, the two uses are usually in
conflict and the rationale for maintaining an employment district is defeated.
By redesignating 260 Brimley Road, the landlord is in the position to reconsider leasing the site for industrial uses and to
redevelop the site for residential uses. The property tax revenue loss as well as job losses have to be considered prior to
initiating a redesignation on this site as well as the neighbouring lands for residential uses.
5.The Cost of Residential Development to the City of Toronto
With the current City of Toronto tax rate for industrial over eight times greater than the residential tax rate, the benefits of
industrial development to the city in terms of property tax generation are enormous. Industrial property taxes support soft
services such as recreational programs and library services enjoyed by the residents of Toronto. Although these programs
and services are financially supported by the industrial community, they are rarely used by them.
6.Jobs and Assessment Threatened in the 1990's
In the 1990's, the Scarborough area has seen many sites located in employment districts redesignated to non employment
uses; three notable examples are:
-Most of the land in the Morningside Heights area in the Tapscott Employment District being redesignated for
residential uses.
Area: to be determined after OMB provides its written decision
-Most of the land in the Centennial Industrial District being redesignated for residential uses.
Area: approximately 110 acres
-The former Honeywell site at Birchmount & Ellesmere which is now a Tridel residential development.
Area: approximately 36 acres
-The CN land west of McCowan Road in the Knob Hill Employment District now a residential development.
Area: approximately 27 acres
With the loss of most of the greenfield industrial designated land in Morningside Heights to residential uses, it is
imperative the City of Toronto retain viable employment generating sites, such as the west side of Brimley Road in the
Knob Hill Employment district, for employment uses.
If the City of Toronto is to promote itself as a great place for business to locate, then we must have sites for these
businesses to locate on. Redesignating land from employment to residential uses serves to drive away business diminishing
employment and industrial assessment.
7.Conclusion
The City of Toronto's land designated for employment uses is slowly being consumed by residential encroachment. To
fully understand the scope of Toronto's employment lands and the impact the loss of employment lands to residential uses
has on the City of Toronto, a comprehensive industrial land use study for the City of Toronto should be completed before
the redesignation of the land on the west side of Brimley Road, south of the C.N.R. tracks be considered.
8.Contacts
F. Bruce Graham
D. Ronald Rea
Neil D. Farmer
