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F O R B U I L D I N G O W N E R S , A S S E T A N D P R O P E R T Y M A N AG E R S

VOL. 26 NO. 3 • AUGUST 2019

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TABLE OF CONTENTS

CONTENTS 06

COVER STORY

VAGUE ON ACCESSIBILITY Proposed land use planning instructions remove specific trigger words

12 IN THIS ISSUE

RETROFIT FUND RECEIVING APPLICATIONS

HOME ADVANTAGE HELPS WIN VISITORS

Grants of up to $250,000 available for energy efficiency upgrades

Six questions for gauging tourism readiness

BRING 'EM ON

DE-ESCALATION STRATEGY

Canadian survey respondents more upbeat than negative about tourism impacts

Ontario's construction adjudication system will come into force in October

“THE VALUE OF INCLUDING LANGUAGE SUCH AS 'IDENTIFYING' AND 'PREVENTING' AND 'REMOVING' IS THAT EACH WORD IS A TRIGGER FOR A SPECIFIC ACTION WITHIN THE DEVELOPMENT PROCESS.” GLENN MILLER, SENIOR ASSOCIATE, CANADIAN URBAN INSTITUTE

PLANNING & DEVELOPMENT

VAGUE ON

ACCESSIBILITY

Proposed land use planning instructions remove specific trigger words BY BARBARA CARSS

GTA & BEYOND ■ AUGUST 2019

PLANNING & DEVELOPMENT

roposed new instructions for land use planning in Ontario would downgrade the required scrutiny of accessibility. Where municipal Official Plans have been expected to give directions for “identifying, preventing and removing land use barriers” that could keep people with disabilities and seniors from fully participating in society, the modified policy would call for the less specific step of “addressing land use barriers”. “The value of including language such as ‘identifying’ and ‘preventing’ and ‘removing’ is that each word is a trigger for a specific action within the development process,” observes Glenn Miller, a planner, Senior Associate with the Canadian Urban Institute and an advocate of community design that supports an aging population. “Changing the active word to ‘addressing’ is vague to say the least.” The revision is one of dozens the Ontario government has put forward in an updated version of the Provincial Policy Statement (PPS), which sets out underpinning principles and outcomes to be pursued in planning, development and the interface of the built, social and natural environments. Proposed changes are meant to complement the recently adopted More Homes, More Choice Act, and were posted on the Ontario government’s website earlier this summer to launch a public consultation period lasting to October 21. “We are proposing changes to provincial policies that would spur and speed up the construction of more and different types of housing that can meet the needs of people in different stages of life,” says Steve Clark, Ontario’s Minister of Municipal Affairs and Housing. The government’s accompanying backgrounder outlines five overarching intentions of the proposed changes. These are to: increase the housing supply and mix; protect the environment and public safety; support certainty and economic growth; reduce barriers and costs; and support rural, northern

and Indigenous communities. In this context, the targeted barriers are those that development proponents face. “Currently, it can take years of paperwork before a shovel ever breaks ground on a new housing or business project,” the backgrounder states. “Red tape and delays make it hard to get housing to market quickly and to build the right mix of housing in the right locations.” Conrad Spezowka, a spokesperson for the Ministry of Municipal Affairs and Housing, says the underlying principle of improving accessibility for persons with disabilities and older persons — as they are referred to in the text of the PPS — will be maintained. He connects the PPS revisions to the government’s commitment to cut red tape that is slowing down the production of new housing. “The slight wording change from the 2014 PPS is intended to simplify the language and improve readability to ensure the overall document is easy to understand,” Spezowka advises. “Further, the PPS is intended to be read in its entirety, and there are a number of other improvements that are intended to recognize the changing demographic needs of Ontarians.” LANGUAGE SIGNALS EXPECTATIONS Jacqueline Wilson, counsel with the Canadian Environmental Law Association, points to section 6.6 of the Accessibility for Ontarians with Disabilities Act (AODA), which stipulates that accessibility standards shall set out criteria for the “identification and removal of barriers” and “prevention of the erection of such barriers”. This then takes form in the Integrated Accessibility Standards — regulations under the Act containing the compliance details for the built environment, employment, transportation and information and communications. “The current language of the PPS appears to mirror the language in the Integrated Accessibility Standards to identify and

remove barriers, and prevent the erection of barriers in the first place,” Wilson says. The proposed revision would strip that out. Municipalities could still undertake rigorous oversight of accessibility since the definition of “addressing land use barriers” would be open to their interpretation, but that would also provide leeway to pull back on efforts. Miller suggests the looser language erases policy signals and shifts the onus of prioritizing planning tasks to local officials and private practitioners who typically must balance many competing pressures. “Municipal planners and the consulting planners who advise their clients have scarce resources in terms of time and scope for taking specific actions,” he notes. “The argument that many other policies cover some of the same ground is valid, but insufficient.” In contrast, language to support “agefriendly” development remained enshrined in the Growth Plan for the Greater Golden Horseshoe when the provincial government amended it earlier this year. Since those references were first added in 2017, municipalities where the growth plan applies are prompted to consider how to fulfil the mandate for “an age-friendly approach to community design that will meet the needs of people of all ages” during their cyclical Official Plan review processes. For example, the City of Toronto, is completing that exercise currently. “Specific language in the introduction to the Growth Plan and the principles section in effect gives permission to expend the time and effort to specifically tackle the challenges of age-friendly development and design,” Miller explains. “Most of the large Ontario municipalities have signed on to becoming age-friendly. It is therefore important that this language be reflected in Official Plans.” SLOW PROGRESS ON AODA The most recent AODA progress report is the third consecutive one to conclude Ontario is falling short of its envisioned commitment. www.REMInetwork.com

PLANNING & DEVELOPMENT

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GTA & BEYOND ■ AUGUST 2019

Building Envelope Repairs

The government’s appointed investigator, David Onley, who served as Lieutenant Governor of Ontario from 2007 to 2014, released his findings in January 2019, which particularly called out failings in the built environment. “The consultations for the Review have sent a powerful message that the top issue for Ontarians with disabilities is the accessibility of buildings. It is also apparent that the current barrier-free design requirements are inadequate,” he submitted. The review process, which is mandated in the Act, has now been completed three times since the AODA was adopted in 2005. Tellingly, Onley quoted from the previous 2014 review to highlight an issue of concern that remains unchanged. “Unlike the Building Code, the DoPS (Design of Public Spaces) standards have no provision for pre-construction approval of projects. Hence, non-compliance will probably only come to light when people start using the public space. By then, it will be very difficult, if not impossible to correct the error,” lead reviewer Mayo Moran, Provost and Vice Chancellor of University of Toronto’s Trinity College, asserted five years ago. However, the Ontario government is encouraging building owners and managers to be proactive. The 2019 provincial budget earmarked $1.3 million over two years to underwrite Rick Hansen Foundation Accessibility Certification (RHFAC) in 250 facilities — a similar, albeit smaller, gesture to the $9 million British Columbia made available to sponsor 1,100 RHFAC assessments in 2017-19 along with accessibility improvement grants of up to $20,000. “Removing barriers in buildings will help to make communities and businesses more accessible and open for jobs,” Raymond Cho, Ontario Minister for Seniors and Accessibility, announced at the official launch of the program in late May. “We are working to ensure people with disabilities have the support and resources they need to participate more fully in their communities.” Onley’s report urges all ministries to set those priorities. “The key is to inject accessibility into the mandate of every ministry and to direct all of them to foster accessibility both within their internal operations and across the sectors they oversee. Accessibility is not just the responsibility of the Ministry for Seniors and Accessibility,” he reiterated. ■

ENERGY MANAGEMENT

RETROFIT FUND RECEIVING

APPLICATIONS

he application process for Canada’s Climate Action Incentive Fund (CAIF) is now open, making grants of up to $250,000 available to business operators in Ontario, New Brunswick, Manitoba and Saskatchewan for energy-saving and emission-reducing projects. More than $106 million will be disbursed in this first round of a promised program to allocate the carbon pricing revenue the federal government is banking in the four provinces. To qualify, project proponents must employ no more than 500 people, be based in one of the designated provinces and have an identified site or sites where the funds will be invested. Eligible recipients can receive grants of $20,000 to $250,000 in each of the provinces where they hold a site to cover up to 25% of the project costs for: building retrofits and/or fuel switching; cogeneration or renewable energy systems for their own use; hook-up to district energy; industrial or agricultural process improvements; heavyduty or marine vehicle retrofits; and energy efficiency in waste management. “In communities across Canada, small and medium-sized businesses are proving that taking action on climate change is good for business,” asserts Catherine McKenna, Minister of Environment and Climate Change (ECCC). The largest chunk of funding — $72.4 million — is slated for Ontario-based businesses, with $21.3 million to be distributed in Saskatchewan, $9.3 million in Manitoba and $3.7 million in New Brunswick. That’s prorated to each province’s input, largely collected from the $0.0442 per litre charge now applied to gasoline and a levy of $0.0391 per cubic metre on natural gas purchases, and also highlights the vastly different carbon intensity of Saskatchewan and Manitoba’s electricity supplies. Accompanying ECCC information indicates this is “approximately half” of funds to be channelled through this initiative in 2019-20. Two other streams of CAIF

programs will make funds available for retrofits in municipal, education and health care facilities, and for rebates on energyefficient equipment purchased for small and medium sized businesses or not-for-profit organizations. Applications for the first round will be open until mid-October or until the available funding is depleted. A range of building retrofit measures qualify, including upgrades to the building envelope, lighting, HVAC and water heating systems,

motors, controls and building automation systems. This must occur in an existing commercial or industrial facility. Once selected, proponents will have 45 days to sign an agreement with the federal government, and must complete the project no later than March 31, 2021. They will be required to provide energy consumption data for before and after the implementation of the project and may also be subject to site visits or audits. ■

CARBON PRICING REAPPEARS ON NATURAL GAS BILLS Carbon pricing has been reinstated on Ontario’s natural gas bills 10 months after utilities were instructed to remove the levy that the provincial government has been seeking to quash. Since then, the federal government invoked the Greenhouse Gas Pollution Pricing Act (GGPP) as a replacement for Ontario’s dismantled cap-and-trade system and natural gas distributors have been remitting 3.91 cents per cubic metre (m3) since April 1. As of August, the charge will reappear as a line item on customers’ bills at a rate of 3.91 cents/m3 of consumption. In addition, the more nominal flow-through of the utility’s own carbon pricing costs for its buildings, equipment and fleet — known as the facility carbon charge — will be bundled into the delivery and transportation charge on each bill. In a filing to the Ontario Energy Board (OEB) earlier this spring, Enbridge Gas projected that would amount to $2.3 million province-wide in 2019, or about 0.2% of carbon pricing collected from consumers. As accredited intervenors at the OEB hearing, both the Building Owners and Managers Association (BOMA) of Toronto and the Federation of Rental-housing Providers of Ontario (FRPO) urged that the facility carbon charge also be visible as part of the carbon pricing line item. However, the OEB decision concurs with a countering argument from Enbridge that it could diminish transparency. “Having the federal carbon charge (customer-related) set out as a separate line on the bill will allow a customer to reconcile the amount of their bill to the legislated charge for carbon more easily than if it was combined with the facility carbon charge,” it states. In total, it’s projected average residential customers will have to pay an extra $86 to $94 on their natural gas bills over the coming year. That has been factored into rebates of $154, for single individuals, to $307, for families, that Ontarians will receive after filing their 2019 income tax. For businesses, the first round of the Climate Action Incentive Fund, providing grants of up to $250,000 for upgrades to energy efficiency, is now open for applications. A similar program for municipal, education and health care facilities has been promised.

www.REMInetwork.com

ECONOMIC DEVELOPMENT

BRING 'EM ON

Canadian survey respondents more upbeat than negative about tourism impacts

sizable minority of Canadian survey respondents believe tourism drives up housing costs and exacerbates crowding in public spaces. However, a definite majority credits tourism for generating income, creating jobs and spurring social, cultural and recreational opportunities that benefit everyone. While half these respondents perceive they live in a city with a high number of tourists, more than half agree tourism has positive attributes and fewer than half complain of negative fallout. The 1,000 Canadians participating in a recent 15-country survey sponsored by the United Nations World Tourism Organization (UNWTO) hold a more favourable view of tourism and are less likely

GTA & BEYOND ■ AUGUST 2019

IN SOME CASES, THE PERCEIVED NEGATIVE ASPECTS OF TOURISM SEEM TO BE A CONSEQUENCE OF ITS BENEFITS. to fault its drawbacks than the average across the entire 12,000-response database. More than 58% of those surveyed live in nine European countries — Belgium, France, Germany, Hungary, Italy, Poland, Spain, Sweden or the United Kingdom — while 2,000 respondents from Canada and the United States provided North American

insight. Residents of Argentina, Australia, Japan and South Korea also participated, contributing another 3,000 responses. Across the entire database, 48% of respondents agree tourism stimulates job creation, while 53% of Canadians see a tourism-to-jobs connection. Fifty-two per cent of the total database says tourism

ECONOMIC DEVELOPMENT

generates wealth and income, compared to 56% of Canadians respondents. Forty-five per cent of all respondents agree tourism increases housing costs, versus 41% of Canadians. Forty-six per cent of total respondents link tourism to overcrowding in public venues like streets, shops and transportation networks, versus 43% of Canadians. Canadian respondents also endorse investments that benefit tourism and the wider community. Sixty-eight per cent support improvements to public facilities and infrastructure, while 82% favour creation of attractions and events that can draw both tourists and local residents. Tourism’s perceived impact on housing costs varies from country to country, but in most cases a sizable minority — 41 to 47% — suggests it pushes prices upward. That surges to the majority viewpoint among Korean, Spanish and Argentine respondents. In some cases, the perceived negative aspects of tourism seem to be a consequence of its benefits. Higher than average numbers of Argentine, Australian, Korean and Spanish respondents see tourism as positive for economic development, including job creation and prompting new leisure and cultural pursuits within the city, and for enabling intercultural exchanges. However, they also report a higher degree of cost and crowding impacts. Elsewhere, nearly three quarters of Swedish respondents believe tourism stimulates investment in new amenities and activities, but 55% also think it increases crowding on the streets, public transportation and retail outlets. Across the entire database, 46% of respondents suggest tourism contributes to overcrowding, 45% say it boosts the cost of housing, goods and services, and 36% say it increases the cost of transport. Forty seven per cent think their city draws a high number tourists, ranging from a high of 68% cent among Australian respondents to just 33% of French and Japanese respondents. Japanese respondents are the least enthusiastic about tourism benefits — with only 25% linking it to the generation of wealth and income, and only 28% seeing a connection to job creation — yet, they also voice the lowest level of complaints. Fewer than 30% tie tourism to rising housing costs, significantly diverging from the sentiment in other countries. Respondents in the United States also consistently express below-average faith that tourism benefits culture or the economy, with 48% agreeing it generates income, 44% agreeing it stimulates job growth and 42% suggesting it creates intercultural exchange and inspires new leisure activities and events. ■ _______________________________________________________ THE COMPLETE TEXT OF THE UN WORLD TOURISM ORGANIZATION REPORT, GLOBAL SURVEY ON THE PERCEPTION OF RESIDENTS TOWARDS CITY TOURISM: IMPACT AND MEASURES, CAN BE FOUND AT HTTP:// PUBLICATIONS.UNWTO.ORG/

TORONTO ENJOYS MOMENTUM TINGED WITH STRESS Researchers conclude that Toronto and Vancouver share traits with popular tourist destinations like Paris, Rome, Amsterdam and Barcelona. Regrettably, the similarities show up in urban constraints as well as enticements. A new index of tourism-related economic development potential in 49 international cities plots the two Canadian contenders among nine cities that are experiencing pressure from a growing influx of leisure attraction seekers. Analysts from the World Travel & Tourism Council (WTTC) and JLL cite inadequate resources to accommodate visitors, particularly when attractions are crowded into a scoped area, as a potential brake on tourism momentum. That's a scenario that's also causing concern in San Francisco, Prague and Stockholm. "City government and policy makers alike are increasingly realizing the need to shift from just destination marketing to take a more proactive and holistic destination management approach," the accompanying report advises. "They also need to plan their growth, defining where they want to grow, and assign priority to tourism planning at the highest levels." (See story, page 12) The report assesses 10 North American cities, 13 in Europe, 18 in Asia/ Pacific, four in South America and four in the Middle East/Africa based on 75 indicators of their capacity to attract, engage and sustain tourism activity. This includes attributes directly tied to tourism such as attractions, accommodations, convention space, government policies and special levies or subsidies, along with broader economic, social and environmental conditions. For example, both Toronto and Vancouver rank in the top quartile for "urban readiness", which includes indicators such air quality, accessibility, political stability, quality of health care, cost of living, traffic congestion and the risk of a natural disaster. Less flatteringly, they also make the top quartile for stressors, which includes hotel capacity, concentration of tourist activity, receptiveness to home sharing and the tally of negative reviews of attractions. Toronto additionally sits in the top quartile for its business strengths, based on metrics for the size of its labour force, its share of business travel spending, GDP per capita, corporate status, office space inventory, and convention facilities. It slips to the lowest quartile for leisure indicators, pertaining to its share of leisure travel spending, number of Airbnb listings, visitor attraction ratings, seasonal airport arrivals, cruise passenger arrivals and heritage status. Toronto and Vancouver are set apart from North American counterparts that are characterized as mature tourism markets — which include New York, Los Angeles, Las Vegas and Miami — and from Chicago and Washington D.C., which are viewed as more conventionally a destination for business travellers. Farther south, Mexico City is classified as an emerging tourism market. The complete text of Destination 2030: Global Cities' Readiness for Tourism Growth can be found at www.wttc.org/publications/2019/ destination-2030.

www.REMInetwork.com

REVENUE

HOME ADVANTAGE HELPS

WIN VISITORS Six questions for gauging tourism readiness

nalysts with the World Travel & Tourism Council (WTTC) and JLL define "tourism readiness" as a combination of attractions, supporting services and local receptiveness that eases the way for visitors to arrive and gives them reason to stay. A new report, Destination 2030: Global Cities' Readiness for Tourism Growth, breaks down some of the specific aspects of tourism-ready status and outlines some steps urban strategists can take to progress from destination marketing to destination management. The following are some of the key components – Editor.

Citizen Engagement: Does the city have a process for measuring local residents’ perception and views related to tourism impact? While a city’s strategy for tourism growth may appear perfect on paper, in the medium to long term it will only work if key stakeholders feel engaged in the process. It is important to invite residents to take part and contribute to any consultations. City councils and tourism authorities should include neighbourhood representatives on committees to discuss problems and help devise solutions, as well as offering online forums for citizens to give suggestions and provide feedback. Communicate to the community the value and contribution of travel and tourism to the city and they are far more likely to support it.

GTA & BEYOND ■ AUGUST 2019

Economic Development Plan: Does the city’s economic development plan reference tourism? Travel and tourism directly contributes, on average, 7% of a city’s total GDP. Given the continued growth in the number of travellers to cities, city-level authorities should consider the potential impacts of this growth when designing economic master plans. Incorporating strategy objectives that specifically support managed tourism growth should also lead to success in other areas of the development plan. Investing in infrastructure improvements will support growth, but it's important to have interdepartmental collaboration and feedback from the private sector and local communities.

ECONOMIC DEVELOPMENT Sustainable Tourism Growth Plan: Does the city government or tourism body have a policy on fostering sustainable growth levels? Rapid urban growth, including residents and visitors, exacerbates traffic congestion, strains infrastructure and services in many cities, and generates carbon emissions, waste and other social or environmental degradation. Forwardthinking city authorities have initiated sustainable growth plans with an enduring, balanced approach, considering not only the needs of the city’s economy but of its ecology, its residents and of the people who visit, now and in the future. Tourists help to protect the city’s assets in destinations when they are included in the plans and kept informed. Tourism Flows Management Policy: Does the city have a policy to manage visitor flows in response to increased strains on the city? Without proper management, tourist destinations and their host cities could be increasingly threatened by their own popularity in environmental, social or aesthetic terms. While there is no easy fix to overcrowding, authorities and destination marketing offices should identify hotspots and consider implementing strategies to mitigate bottlenecks, such as offering incentives to come at ‘off-peak’ days, weeks or months, online advance bookings, promoting stays in or visits to outer districts, and other product developments and new experiences in keeping with the DNA of the city. Sharing Economy Policies: Has the city government passed legislation to regulate home sharing? In addition to providing residents with increased income and maximizing underused resources, home sharing can be beneficial if there is a shortage of hotel rooms and can encourage more visitors to stay in residential areas, in turn reducing pressure on numbers in the city centre. The challenges for residents lie when rooms or entire properties are taken off the market to cater mainly for tourists, resulting in less choice and/or increased rental rates for residents. Hoteliers also label it unfair competition, noting that they have to operate under stricter regulations, particularly around health and safety. Fair and proactive regulation, based on data and an understanding of the issues in the market, can help travel and tourism grow in a balanced way. Each destination needs its own solution, whether that means a more relaxed or restrictive policy on rentals, but it is important that authorities consult with neighbourhood residents, homesharing platforms and other stakeholders before determining the most appropriate measures.

Tourism Development Tax Legislation and Promotion: Has the city passed legislation for a tourism development tax or similar type of levy? Taxes should be used to stimulate and promote, not hinder, economic growth and job creation. As a labour-intensive sector, travel and tourism has a large, indirect impact on the wider economy. Revenues should be reinvested in tourism promotion and development linked to the goals and essence of the destination. Relevant infrastructure projects could also be given funding from travel and tourism revenue. ■ ______________________________________________________________________________________ THE COMPLETE TEXT OF DESTINATION 2030: GLOBAL CITIES' READINESS FOR TOURISM GROWTH CAN BE FOUND AT WWW.WTTC.ORG/PUBLICATIONS/2019/DESTINATION-2030.

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PROJECT MANAGEMENT

DE-ESCALATION

STRATEGY

Ontario's construction adjudication system will come into force in October BY AMIE SILVERWOOD

ntario's new adjudication regime to deal with construction disputes will come into force in October. Industry insiders are hopeful that it will relieve two longstanding stress points: the prolonged payment cycle; and the inability of the traditional court system to correct it in a timely manner. However, they're also uncertain how the legislation under the Construction Lien Act will work in practice since it provides broad scope for a range of disputes, beyond payment, to go to adjudication. The Royal Institution of Chartered Surveyors (RICS) Ontario Chapter and the Chartered Institute of Arbitrators (CIArb) jointly sponsored a symposium in late May to tackle some of the questions. Looking to the experience in the United Kingdom, statutory adjudication was introduced in an effort to change the adversarial culture of that country's construction industry. Perhaps more importantly, it's intended to serve the synonymous function of keeping projects on track and on schedule. In place of potentially lengthy court cases or arbitration proceedings designed to probe disputes in depth, statutory adjudication is meant to arrive at an interim binding decision quickly. The adjudicator has broad powers and a unique inquisitorial role quite different

GTA & BEYOND ■ AUGUST 2019

from mediations and other forms of dispute resolution. Adjudicators can request additional reports, ask questions and draw inferences based on the conduct of the parties. They can hire experts, do inspections and make determinations. The system was designed to be expedient rather than exhaustive. Parties who are organized and provide access to complete reports and details will typically fare better in an adjudication. Adjudications are meant to bring closure. Once the decision is made, it is binding and the terms for judicial review are very narrow, although the parties can still refer the matter to resolution by arbitration or reference to a court. Adjudication is meant to reduce the cost and time spent on conflicts — a cultural change that's foreseen when all parties are willing to collaborate. “What I’m hearing is: How do we get around paying you?” reported Clive Thurston, President of the Ontario General Contractors Association (CGCA). “Why are we looking for ways to get around a law that is brought in to fix things? We, as general contractors, have a lot to learn and we want to learn, but it has to be a two-way street.”

Adjudication is a strategy to reframe the reflexive notion that payment should be withheld. Instead, people are urged to ask themselves: Do I have a reason not to pay? Nevertheless, implementers are expecting some growing pains as the Ontario industry becomes familiar with the new approach. Among the challenges is finding suitable and sufficient candidates to fill the adjudicator role. In the United Kingdom, many adjudicators are quantity surveyors with specialized knowledge of construction costs and contracts, but Ontario may lack the numbers of quantity surveyors required to fill the new need. If lawyers are relied on instead, they won't have the same technical experience to inform their decision making. Thus, the system may be very different here than it is in the United Kingdom. ■

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