(Report dated June 11, 1998, addressed to the Strategic Policies and Priorities Committee, from the City Clerk)

Subject:1998 Commercial Research Grant Recommendations (Wards 23, 24 and 25)

 Recommendation:

The Municipal Grants Review Committee on June 11, 1998, recommended to the Strategic Policies and Priorities Committee, and Council, the adoption of the attached report (May 21, 1998) from the Commissioner of Economic Development, Culture and Tourism respecting the 1998 Commercial Research Grant recommendations.

(Report dated May 21, 1998, addressed to the Municipal Grants Review Committee from the Commissioner of Economic Development, Culture and Tourism) Purpose:

This report recommends the allocation of 1998 Commercial Research Grants.

Source of Funds:

There are sufficient funds to disburse $22,903.00 of the recommended grants in the Municipal Grants Budget. The remaining $7,597.00 will be disbursed in 1999 in accordance with the Program Guidelines and practices in past years. $25,133.00 is included in the 1998 Operating Budget for Commercial Research Grants. $2,230.00 of this amount is required to pay the final instalments of grants approved in 1997, leaving $22,903.00 with which to pay the first instalments of new grants in 1998.

The recommended grants total $30,500.00. Provision to pay the final $7,597.00 will be included in the 1999 Interim Appropriation Estimates.

Recommendations:

It is recommended that:

(1)the following Commercial Research Grants totalling $30,500.00 be approved:

(a)Bloor Yorkville BIA - $15,000.00

(b)Chinese Chamber of Commerce (East Toronto) Inc. - $1,000.00;

(c)Forest Hill Village BIA - $2,000.00;

(d)Greektown on the Danforth BIA - $2,500.00;

(e)Queen East Business Association - $5,000.00; and

(f)St. Lawrence Neighbourhood BIA - $5,000.00;

(2)the disbursement of the grants be subject to the satisfactory completion of Declaration Forms regarding the adoption of the City of Toronto non-discrimination policy and the other conditions set out in the Commercial Research Program Guidelines (Appendix 1);

(3)the above noted grants be deemed to be in the interests of the municipality; and

(4)the grant request from the Kensington Market Action Committee be denied since it does not comply with the Commercial Research Program Guidelines.

Background:

The Commercial Research Program provides grants to business associations in the former City of Toronto to assist them in hiring professional consultants to undertake research required to plan effective revitalization strategies. The participating business associations must pay at least half of the study costs themselves, and manage the day-to-day operation of the projects.

The City gains public access to the studies that are undertaken. The reports are used to provide research models and information valuable both to other business associations and to City staff working on commercial revitalization and business improvement issues. A list of projects which have been completed since the program was initiated in 1986 and copies of the various studies are available from the Economic Development, Tourism and Culture Department.

The main benefits provided by the Commercial Research Program are that it:

(1)makes it financially feasible for Toronto's smaller BIAs and voluntary business associations to hire professional consultants to assist them with their programming and development;

(2)increases the ability of business associations and BIAs to plan strategically, set priorities, and implement cost-effective business improvement programs;

(3)provides a record of the work undertaken, and a "road map" to guide a business association or BIA over a number of years. This has been particularly useful in cases where there has been a lack of continuity between successive Boards of Management. Economic Development staff have been able to provide new Boards with research and suggestions previously developed for the area, enabling a head start in planning their business improvement programs;

(4)builds a bank of information about retail strips and their markets and suggested strategies for developing the strength of BIA organizations and commercial districts. This information is used both by individual business associations, and by Department staff to better develop commercial policies and work with business associations across the City; and

(5)helps to strengthen the City's small business community, returning the investment made in grants through increased commercial realty and business tax revenues.

The program guidelines and conditions are set out in Appendix 1.

Comments:

(1)1998 Application Process and Program Harmonization:

The Commercial Research Program was developed in the former City of Toronto where it has been in place since 1986. Similar programs were not available in the other former municipalities.

In accordance with the direction provided by Clause No. 8 of Report No. 4 of The Strategic Policies and Priorities Committee, which Council adopted on April 16, 1998, the program was made available to business associations within the former City of Toronto only in 1998. Staff are evaluating the future of the program as part of the review of grant programs and the support provided to BIAs and business associations across the City with the target of recommending an integrated program for implementation in 1999.

Applications for 1998 Commercial Research Grants were invited from the 55 BIAs and business associations in the former City of Toronto that are on the Economic Development Division's mailing list in December 1997. Applications were received from seven associations.

(2)Recommended 1998 Grants:

The following 1998 Commercial Research Grants are recommended. Each grant represents 50 percent of the eligible project costs. The BIAs and business associations are paying for the remainder of the project costs from funds raised from their members.

(a)Bloor Yorkville BIA: $15,000.00 to contribute towards the cost of a $30,000.00 Urban Design Study. The study results will provide a guide to the BIA in planning streetscape improvements over the next five years.

(b)Chinese Chamber of Commerce (East Toronto) Inc.: $1,000.00 to contribute towards a $2,000.00, survey of merchants in the Gerrard/Broadview area to identify issues and concerns. The information will be used by this recently formed business association to help it identify priorities for action.

(c)Forest Hill Village BIA: $2,000.00 to contribute towards a $4,000.00 study of traffic flow patterns along Spadina Road between Montclair Avenue and St. Clair Avenue West. The information will be used to inform the BIA about the impact of various traffic calming measures.

(d)Greektown on the Danforth: $2,500.00 to contribute towards an $18,000.00 project developing two new marketing niches for the Pape/Danforth area (cooking classes and the promotion of the area's beauty salons and products). Only $5,000.00 of the project costs (professional services) are eligible for support from the program, and therefore a $2,500.00 grant is recommended. The remainder of the budget are project implementation costs such as advertising, printing, administrative support, etc., which are not eligible for support from the program, and must be paid for by the business association.

(e)Queen East Business Association: $5,000.00 to contribute towards the $10,000.00 cost of developing a strategic action plan for the businesses along Queen Street East between Yonge and River Streets.

(f)The St. Lawrence Neighbourhood BIA: $5,000.00 to contribute towards the $10,000.00 cost of a streetscape improvement study to guide the BIA in implementing capital improvements in future years.

An application also was received from the Kensington Market Action Committee. However, it was proposed that the required matching funds be provided from a Human Resources Development Canada grant instead of from the business community. This contravenes the program guidelines. Staff are working with the Action Committee, and are investigating other ways of facilitating the project.

As is further described in Appendix 1, Commercial Research Grants are paid in two instalments. The first 75 percent of the grant is provided when the business association indicates that it has paid for its share of the project costs. The final 25 percent is paid at the conclusion of the project after the final report and required documentation has been received. Since the project completion deadline is the March 31 following the approval of the grant, the final instalment usually is paid in the next calendar year after the grant is approved. Therefore, the disbursement of the grants has been budgeted over two years in the past.

Conclusions:

The six Commercial Research Grants recommended in this report all meet the program guidelines, and will contribute to the ability of the participating business associations to plan and implement effective programs for their areas.

Contact Name:

Judy Morgan:

Tel: 392-1003/Fax 392-1380;

E-mail address, jmorgan1@city.toronto.on.ca

(A copy of the Appendix 1 referred to in the foregoing report was forwarded to all Members of Council with the agenda of the Municipal Grants Review Committee for its meeting on June 1, 1998, and a copy thereof is on file in the office of the City Clerk.)