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

Subject:City of Toronto Support for 761 Community Development Corporation

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 joint report (June 10, 1998) from the Commissioner of Urban Planning and Development Services and Commissioner of Community and Neighbourhood Services respecting City of Toronto support to 761 Community Development Corporation.



(Joint Report dated June 10, 1998, addressed to the Municipal Grants Review Committee, from the Commissioner of Urban Planning and Development Services and Commissioner of Community and Neighbourhood Services)

Purpose:

This report recommends a grant of $15,000.00 to the 761 Community Development Corporation (761 C.D.C.) to support its employment and business development activities for persons experiencing long term poverty. In addition, it recommends an expenditure of $10,000.00 for hiring an outside consultant to carry out an organizational review and to recommend an appropriate long term relationship between the 761 C.D.C. and the City.

Funding Sources, Financial Implications and Impact Statement:

The total recommended amount is $25,000.00. Funds are available in the grants contingency account. There are no other financial implications.

Recommendations:

It is recommended that:

(1)a grant in the amount of $15,000.00 be provided from the grants contingency account to the 761 Community Development Corporation for the purpose of supporting its employment and business development activities among persons experiencing long term poverty and that this amount be in addition to the $10,000.00 previously recommended under the Community Service Grants Program and the $10,000.00 recommended from the Homeless Initiatives Fund; and

(2)authority be granted to hire a consultant 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., in consultation with staff of the Urban Planning and Development Services, Community and Neighbourhood Services, Economic Development, Culture and Tourism, and the Finance Departments. Current funders and representatives from the Provincial Government will be asked to participate. That a grant in the amount of $10,000.00 be provided from the Grants Contingency account for this purpose. As a matter of first priority, City staff should be directed to report to the Municipal Grants Review Committee on the outcome of this review by September 1998;

(3)the foregoing grant be deemed to be in the interest of the Municipality; and

(4)appropriate City officials be authorized and directed to do what is necessary to give effect thereto.

Council Reference/Background/History:

The development of 761 Queen Street West (owned by the Toronto United Church Council) as a Community Action Centre dedicated to the development of business and employment related programs and activities for persons marginalised in the job market (e.g., homeless persons, psychiatric survivors etc.) was a result of a Church based task force examining the future role of the building in relation to the Church's mission.

The 761 C.D.C. is an organization developed with the assistance of the former City of Toronto which 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.

The 761 C.D.C. programming is funded primarily by Federal and foundation dollars. They are seeking a longer term relationship with the City for administrative support as well as programming.

The involvement of the former City of Toronto has its basis in the Report of the Mayor's Committee on Homelessness (1992). Renovations were approved in 1994 by the Council of the former City of Toronto as a Canada Ontario Infrastructure Works project (Clause No. 26 of Executive Committee Report No. 21, September 26 and 27, 1994).

At the end of the construction phase a grant agreement was executed between the Church and the former City committing the Church to maintaining the building for use as a Community Action Centre for a period of ten years.

On this basis, for the past three years, a staff person from Urban Development Services in the former City of Toronto has been assigned full time to assist in the development of the 761 Community Development Corporation as an innovative vehicle through which to work on economic approaches to the issue of long term poverty. This staff assignment was also to shape the relationship and provide the link between the 761 C.D.C. and the City.

In August of 1997, the former Toronto Council discussed the issue of terminating the assignment and replacing it with a grant for a full time Executive Director. Council unanimously adopted the following motions:

(1)That the City at least maintain its current level of support of $100,000.00 over the next year to the 761 Community Development Corporation:

(a)by continuing to provide staff secondment at an approximate value of $65,000.00; and

(b)by endorsing in principle, the provision of the additional $35,000.00.

(2)That the Budget Review Group report to the Executive Committee on September 15, 1997, on the source of funds and details of how the funds would be expended.

(3)That the grant be deemed to be in the interest of the Municipality.

(4)That the City renew its commitment to partnership with the 761 Community Development Corporation as a long term relationship.

(5)That the City incorporate into the Economic Development Strategy a grants program and other support for seed funding that can assist development of new community business initiatives that involve people outside the social-economic mainstream.

Subsequently, the Budget Review Group recommended the following, which was adopted by the former Toronto Council on September 22, 1997:

"That funds in the amount of $35,000.00 be included in the 1998 operating budget as a miscellaneous grant administered by the Grant Review Board to provide an equivalent funding level to the 761 Community Development Corporation."

At that same Council meeting, the following recommendation of the Commissioner of Urban Development Services was also adopted:

"That the Commissioner of Urban Development Services in consultation with appropriate policy and grant staff, report back to the new City Council prior to the completion of the staff assignment to review options for stabilizing support, particularly support for the position of Executive Director for the community economic development initiatives being undertaken through the 761 Community Development Corporation to support marginalised communities."

This report is intended to fulfil the recommendation with respect to the $35,000.00 miscellaneous grant and to meet the requirement for a staff report with respect to stabilizing support for the organization prior to completion of the staff assignment.

Comments:

Although originally intended to include housing, the project has been developed exclusively as a Community Economic Development (C.E.D.) initiative since the Province cancelled the allocation for the residential component in 1995. The project currently houses the 761 Community Development Corporation as well as the Ontario Council on Alternative Businesses (O.C.A.B.). As well, there are four community businesses originally developed co-operatively by O.C.A.B. and the 761 C.D.C. and now operated separately. Freshstart Cleaning and Maintenance, the Metro Youth Council and other C.E.D. related groups are also located on site.

The prime object of incorporation for the 761 Community Development Corporation is:

"to work for and with persons who experience long term poverty to create opportunities for improving their quality of life through providing assistance in community economic development and employment activities, community development and self-help initiatives, skills training, support for building organizational capacity and operating resources; and through advocacy efforts relating to needs that have been identified by the community."

The 761 C.D.C. staff and Board are to be congratulated on their ability to leverage substantial contributions over the years towards efforts to employ and develop businesses among the large community of people in Toronto who are unable for a variety of reasons to participate in the mainstream economy. It is critical that this capacity be maintained since, as in most large cities, the core of the municipality has historically been home to, or a destination point for, the economically disenfranchised. Failure to address this reality contributes to the economic and social decline so evident in many large cities. Structural changes with respect to downloading of many social costs to the new municipality add a new and compelling reason to support this type of activity.

Over the past years, the 761 C.D.C. received an average of $35,000.00 in grants to support this work from various programs of the former City of Toronto. Both of the previously described minutes of that Council express its intent to see that relationship continue during 1998. Recommendation No. (1) of this report is designed to meet that intent.

During the development and construction phase, the functions of Executive Director have been carried out by staff of Urban Planning and Development Services. The services of that staff person were committed until the end of September of this year. The imminent end of the staff secondment creates a significant budget shortfall in the administration of the organization. This has been valued at $65,000.00 annually, which when added to the $35,000.00 in programming grants, reflects the former Council's $100,000.00 commitment.

At this time there are no available sources of funding outside of the City for the Executive Director salary. The organization receives substantial Federal and foundation contributions, however, they must, under terms of agreement, be used in program delivery with only a small allowance for overhead and administration. This reflects current funding patterns where senior levels of Government purchase delivery services from agencies that are assumed to be able to cover administration costs from other sources.

Although City staff will continue to offer assistance where possible, it is important that the 761 C.D.C. be provided with a budget to enable them to recruit a full time and independent Executive Director as soon as possible. However, an organizational review resulting in recommendations regarding long term relations with the City is needed to provide a context for this transition and to identify an appropriate source for the required funds.

It would be invaluable to have this review conducted by a consultant who is familiar with the field as well as funding patterns and the requirements and structures for such an organization. This consultant would have an ability to expedite the work and to examine the various issues with fresh lenses and an independent perspective.

The review would examine matters such as mission and mandate, available resources and long term viability strategies as well as partnership opportunities. For this reason, the proposed review should involve all funders as well as City grants staff in order to arrive at balanced recommendations regarding the City's role in the future. This would be an effective way of meeting the intent of the reporting requirement. When completed, the report will be forwarded to the appropriate committee.

Appropriate staff should be authorized to assist the 761 C.D.C. in this process and other funders should be encouraged to participate.

The additional grant requirements for the 761 C.D.C. include the $15,000.00 in additional program support and $10,000.00 to retain a consultant, for a total of $25,000.00. Funds are recommended to be provided through the grants contingency budget.

Conclusions:

The 761 Community Development Corporation is engaged in the development of employment and business opportunities among persons and communities outside the mainstream economy (including homeless persons and psychiatric survivors). These activities have their basis in policy initiatives of the former City of Toronto and are organized and run primarily from a building renovated under authority of that Council with Municipal funds in part. An agreement exists between the United Church and the former City of Toronto dedicating the building for this purpose for a ten-year period.

In recognition of the fact that the former City of Toronto has supported the 761 Community Development Corporation in past years by way of an average grant contribution of $35,000.00, this report recommends the making of a further grant of $15,000.00 beyond the $10,000.00 recommended from the Toronto General Grant funds, and the $10,000.00 recommended from the Homeless Initiatives Fund.

The report also seeks authority to retain a consultant to conduct a review of various matters regarding the 761 C.D.C. with participation by appropriate City staff and representatives from other funding agencies and particularly to prepare recommendations to Council on an appropriate relationship between the 761 C.D.C. and the City in the future.

Contact Name:

Larry King

Toronto City Hall Office

Tel: 392-0622

 

   
Please note that council and committee documents are provided electronically for information only and do not retain the exact structure of the original versions. For example, charts, images and tables may be difficult to read. As such, readers should verify information before acting on it. All council documents are available from the City Clerk's office. Please e-mail clerk@city.toronto.on.ca.

 

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