Ontario’s housing minister is contemplating intervening to halt a proposed rental development at the northern outskirts of Toronto due to objections raised by a pharmaceutical company. Sanofi Pasteur has expressed concerns about a planned three-building highrise project near its extensive complex, citing potential “national security” implications related to residents overlooking its vaccine research and development facilities.
Vic Fedeli, Ontario’s minister of economic development, job creation, and trades, has urged the housing minister to issue a minister’s zoning order (MZO) to restrict building heights on the property to 33 meters (approximately 10 stories). MZOs are discretionary measures used by the housing minister to control land use and supersede municipal regulations. Typically employed to expedite development processes, MZOs are now being considered to curb the construction of hundreds of rental units.
The developer, Tenblock, has raised concerns that the imposed height limit would jeopardize the viability of the project, emphasizing the necessity of market housing density to ensure project feasibility. Tenblock’s vice-president, Stephen Job, emphasized the pivotal role of market housing in supporting the overall project’s financial sustainability, highlighting the potential setback posed by the reduced height limitation.
While the motivation behind the province’s consideration remains somewhat unclear, Fedeli’s press secretary mentioned that the order aims to prevent unnecessary delays in future expansions without elaborating further. Tenblock, supported by a security expert, contests the validity of the security concerns raised and warns against the negative precedent that an MZO could establish.
Notably, the proposed development aims to replace an aging four-story rental building at 1875 Steeles Ave. W. with three interconnected towers, including a 39-story structure. The new development intends to offer replacement units for current tenants and introduce over 800 new rental units, with a portion designated as affordable housing. Despite facing opposition from Sanofi Pasteur and city council, Tenblock is pursuing appeal proceedings with the province’s land tribunal.
The ongoing dispute, which originated several years ago, revolves around security apprehensions raised by the pharmaceutical company, emphasizing the need to maintain confidentiality and mitigate potential risks. However, city planning staff supported the project, underscoring the divergent perspectives on the development’s impact and feasibility.
The Ministry of Municipal Affairs and Housing is currently soliciting feedback on the MZO proposal, drawing responses from various stakeholders, including housing advocacy groups and concerned developers. The potential implications of the MZO on future developments and the broader housing landscape have sparked apprehensions and debates among industry players, echoing the broader challenges faced in meeting housing targets and balancing diverse interests in Ontario’s real estate sector.