As Toronto continues to grow rapidly, so does the pressure on the City’s public parkland. In order to meet the increasing demand and availability of public parkland to residents, workers and visitors, the City continues to improve existing park spaces and secure new parkland through the development and redevelopment of residential and commercial sites.
Section 42(3.3) of the Planning Act, as amended by Bill 23, More Homes Built Faster Act, 2022, allows the City of Toronto to harness growth by requiring all new development to contribute to the expansion and enhancement of the City’s parks and open space system as a condition of development.
As a condition of development or redevelopment of land, land may be conveyed to the municipality for park or other public recreational purposes at a rate of two per cent (2%) for non-residential uses and five per cent (5%) for residential uses.
In instances where land is proposed for development or redevelopment for residential purposes within a Parkland Acquisition Priority Area as defined in Chapter 415-Article III of the Toronto Municipal Code, land may be conveyed to the City for park or other public recreational purposes at an alternative rate of one hectare for each 600 net residential units proposed, as amended by Bill 23.
For sites that are:
For all developments that have both residential and non-residential uses, the parkland dedication requirement is calculated proportionally and a rate of two per cent (2%) is applied to all non-residential uses.
The City may also require a payment of cash-in-lieu of parkland, or a combination of land for parks purposes and cash-in-lieu, to the total value of the parkland dedication that would otherwise be required for conveyance.
If the above noted alternative residential parkland dedication rates apply, and the City requires cash-in-lieu of land, the payment is calculated by using a rate of one hectare for each 1,000 net residential units proposed.
For sites that are:
Chapter 3.2.3, Parks and Open Spaces of the Toronto Official Plan provides policies that guide the maintenance, enhancement and expansion of Toronto’s parks and open space system to create healthier and more vibrant communities. Chapter 3.2.3. also provides direction regarding the location and configuration of land deemed suitable for parkland purposes.
The City of Toronto Parkland Strategy, adopted by Council on November 26, 2019, is a 20-year strategic and city-wide plan that guides long-term planning for the creation of new parks, park expansions and improvements, and improved access to existing parks. The Parkland Strategy assesses parkland provision, using the baseline of residential population against the area of parkland available across the city, and aids in the decision-making and prioritization of investment in parkland across the city.
Chapter 415-Article III of the Toronto Municipal Code provides policies for the conveyance of land for park purposes as a condition of development. For residential developments, the applicability of parkland dedication rates is dependent on where the development is located within the city. Areas of Toronto are divided into two categories for parkland dedication purposes:
PAPAs are areas of the city that have been identified as a priority area for parkland acquisition and is subject to the application of an alternative residential parkland dedication rate described above.
Within non-priority acquisition areas, the amount of parkland required is five per cent (5%) for residential development, while for non-residential development, the amount of parkland required is two per cent (2%) of the proposed development site.
As lands are developed, there are three (3) ways in which a parkland dedication requirement, where applicable, can be satisfied:
For applications where the City elects that the parkland dedication shall be satisfied through cash-in-lieu of land, also known as a parks levy, the value of the required payment is determined by Corporate Real Estate Management. The valuation is completed in response to a request submitted through Toronto Buildings resulting from the submission of a building permit application.
No additional action is required on the part of the applicant to initiate an appraisal request of the valuation.
Upon receipt of the appraisal request, Corporate Real Estate Management requires four to eight weeks to assess the proposed development and prepare the formal appraisal. Once the appraisal is prepared, it is circulated to Toronto Buildings and to the applicant. The appraisal includes contact information for the Corporate Real Estate Management staff person assigned to the file.
As per Chapter 415-Article III of the Toronto Municipal Code, payment of the cash-in-lieu of parkland is required prior to the issuance of the first above-grade building permit through Toronto Buildings.
As the City reviews development applications, some types of developments may be deemed exempt from a parkland dedication requirement.
For a full list of exemptions, refer to Chapter 415-30 of Exemptions of the Toronto Municipal Code.
In the event of a dispute between the City and an applicant on the valuation of the cash-in-lieu of parkland dedication payment, per Section 42 of the Planning Act, an applicant can pay the amount required by the City under protest and make an application to the Ontario Land Tribunal. The applicant should consult with their legal counsel to ensure that they follow the proper protocol and submit the correct application and supporting documentation.