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					Toronto Prosperity Initiative
Establishing the Path to Growth




Advisory Committee Report | June 2011




Prepared for City of Toronto Economic Development Committee and Toronto City Council
The contribution of all Advisory Committee members is gratefully
acknowledged. The recommendations and comments presented in this
report reflect the discussion and consensus of the Committee members.
The members are unanimous that the 12 key recommendations should
be supported, and that together with the proposals for further study, the
report contains ideas that will promote Toronto’s prosperity. All Committee
members participated in their personal capacities, their affiliations are
provided for identification only.
Toronto Prosperity Initiative
Establishing the Path to Growth
TAblE of ConTEnTs
Message from Councillor Michael Thompson . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Chair, Economic Development Committee
Message from blake Goldring, M.s.M., CfA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Chair, Toronto Prosperity Initiative
Toronto Prosperity Initiative Advisory Committee Members . . . . . . . . . . . . . . . 4-5
Executive summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
        Context . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
        Advisory Committee Mandate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
        Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
        Action Areas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Why the business climate and economic growth in Toronto is important
and urgent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Immediate Action                    ...........................................................                                                     14
        Getting Toronto Right . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
        Management by Performance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
        Re-engineer the Business / Government Interface . . . . . . . . . . . . . . . . . . . . . . . . 20
        City-owned Property, Creating Value and Reducing Costs . . . . . . . . . . . . . . . . . 22
        Outreach and Collaboration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
future Initiatives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
        Labour Force Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
        Strategic Industry Sectors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
        Non-land City Assets                     ......................................................                                             30
        Positioning            .................................................................                                                    30
Conclusions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
summary of Recommendations for Immediate Action . . . . . . . . . . . . . . . . . . . . . . . 36
summary of suggested future Initiatives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38




                                                                                                                                                            Establishing a Path to Growth 1
                                    MEssAGE fRoM CounCIlloR MIChAEl
                                    ThoMPson
                                    As Chair of the City of Toronto’s Economic Development Committee, I invited
                                    Blake Goldring, M.S.M., CFA, Chairman and Chief Executive Officer, AGF, to
                                    assemble and Chair an Advisory Committee tasked with helping Toronto to
                                    realize its economic potential.
                                    Blake brought together an impressive team of prominent business and labour
                                    leaders to identify impediments to economic development in Toronto, and
      Councillor Michael Thompson
      Chair, Economic Development   to propose improvements to the City’s relationship with business. Each and
      Committe                      every member of the Advisory Committee demonstrated an extraordinary
                                    commitment to this mission, and I thank them all for their exceptional
                                    insights and wise counsel.
                                    Toronto is Canada’s economic capital and we have the ingredients for global
                                    success. However, we have lagged behind in our efforts to transform our
                                    potential into tangible success. The Advisory Committee, with its exceptional
                                    pool of experience and insight, is a key first step toward seizing our economic
                                    potential. It is an important step because the Committee has brought
                                    forward ideas that are economically feasible and can deliver immediate results
                                    for the City.
                                    Through purposeful discussion and frank exchanges, Committee members
                                    identified areas of responsibility that have become obstacles to the City’s
                                    economic success. While many of their ideas are not new, what is new is our
                                    determination to address and remedy them. The Committee’s work is both
                                    commendable and essential as a motivator of civic improvement.
                                    I am pleased to accept this report from the Toronto Prosperity Initiative
                                    Advisory Committee and submit it to the Economic Development Committee
                                    and City Council for consideration and action. It is my hope that Council will
                                    endorse these recommendations expeditiously, so that we may move forward
                                    quickly to advance the City’s economic development agenda.




                                    Councillor Michael Thompson
                                    Ward 37, Scarborough Centre
                                    Chair, Economic Development Committee




2 Toronto Prosperity Initiative
MEssAGE fRoM blAkE GolDRInG
It is my pleasure as Chair of the Advisory Committee for the Toronto
Prosperity Initiative to submit this report, Toronto Prosperity Initiative:
Establishing a Path to Growth to the City of Toronto’s Economic Development
Committee and Council for their consideration.
The Advisory Committee was convened at the request of Councillor
Thompson, Chair of the Economic Development Committee. Its membership
brings together a broad array of interests and wealth of experience and
                                                                                     Blake Goldring
knowledge. I thank all members of the Advisory Committee for giving so               Chair, Toronto Prosperity Initiative
willingly and generously of their time, ideas, and thoughtful comments over
our many meetings and drafting sessions.
Although the City delivers a vast array of services and programs, the Advisory
Committee was asked to identify priority issues of immediate concern
requiring the attention of City Council and staff. Specifically, we were
challenged with identifying a short list of pragmatic action areas that should
be addressed quickly and would stimulate economic growth and job creation
in the short term.
I am confident we have met that challenge. Moreover, in addition to the
short-term benefits, I believe the recommendations contained in this report if
implemented will lay the foundation for a cultural shift within the City that will
lead to long-term economic prosperity, job growth and an even better city.
I also want to thank all of the City staff who facilitated the Advisory
Committee meetings and the preparation of this report. City staff, like
Advisory Committee members, understand there is more work to do. The
recommendations in this report identify the priority areas for action. Subject
to approval by City Council, we ask that detailed implementation plans be
developed and acted upon with a sense of urgency.
I greatly appreciate the opportunity to chair this committee and contribute
to the building of our great city. In accepting the invitation to participate
on the Advisory Committee, I like other members, asked only that our
recommendations be seriously considered and addressed.
I look forward to the City’s comments.




blake C. Goldring
M.S.M., CFA
Chairman and Chief Executive Officer
AGF Management Limited
Chair, Toronto Prosperity Initiative




                                                                                             Establishing a Path to Growth 3
          ToRonTo PRosPERITy InITIATIvE
          Advisory Committee




         Blake C. Goldring                      Joe Halstead                              D. Allen Loney
         Chairman and Chief Executive Officer   Chair, Ontario Place Development Corp     President and Chief Executive Officer
         AGF Management Limited                 Board Member, Metrolinx                   Great-West Lifeco Inc.
         Chair, Toronto Prosperity Initiative                                             The Great-West Life Assurance Company
                                                                                          London Life Insurance Company
                                                                                          The Canada Life Assurance Company




          Paul Boucher                          Michael Thompson                          William Morneau
          Senior Investment Director            Chair, Economic Development Committee     Executive Chairman
          Meridiam Infrastructure               Councillor, Scarborough Centre, Ward 37   Morneau Shepell




          Darrell Bricker                       Pamela Jeffery                            Hari Panday
          Chief Executive Officer               President, The Jeffery Group Limited      President and Chief Executive Officer
          Ipsos Reid                            Founder, Women’s Executive Network        PanVest Capital Corporation
                                                (WXN)                                     Senior Advisor, ICICI Bank Canada

4 Toronto Prosperity Initiative
William B.P. Robson                     Larry Tanenbaum, O.C.                   Dr. Joseph Wong
President and Chief Executive Officer   Chairman and Co-Owner                   Founder and Chair Emeritus
C.D. Howe Institute                     Maple Leaf Sports and Entertainment     Yee Hong Centre and Foundation




Wayne Squibb                            Jennifer Tory                           Michael Yorke
President and Chief Executive Officer   Regional President, Greater Toronto     President
Realstar Group                          Region                                  Carpenters Local 27
                                        RBC Royal Bank




Catherine Swift                         Carol Wilding
President and Chief Executive Officer   President and Chief Executive Officer
Canadian Federation of Independent      Toronto Board of Trade
Business

                                                                                     Establishing a Path to Growth 5
6 Toronto Prosperity Initiative
ExECuTIvE suMMARy
Cities around the world are facing an array of economic, fiscal and operational
challenges. Toronto, like many other cities, has in the past sought to address
these issues with a series of temporary solutions and property tax increases.
While the recession of 2008/2009 exacerbated the prevailing situation, Toronto
emerged from the economic downturn better positioned for success than most
other major cities around the world. Capitalizing on this success, however, will
require thoughtful, focused and deliberate actions.
As Chair of the City’s Economic Development Committee, Councillor Michael
Thompson (Scarborough Centre, Ward 37), convened an Advisory Committee
of prominent business and labour leaders to recommend ways to stimulate and
accelerate economic growth and job creation and achieve a sustainable solution
to the challenges Toronto is facing. In undertaking this task, the Advisory
Committee members reviewed past reports and proposals, consulted with
colleagues and associates, and exchanged ideas with its Chair and each other
through telephone calls and e-mails, and through full committee meetings.
The Committee members noted that effecting the fundamental change necessary
for sustained success would require a cultural shift in how the City does business.
The Committee also recognized that there is no quick fix; however, it is essential
that the City take quick action to initiate the change process. Consequently, it
focused its attention on identifying actions that could be implemented and show
results in the short-term, while also contributing to the cultural shift necessary
for long-term sustainability. The Committee deliberated on actions that would
increase transparency and accountability, improve efficiencies, make better use
of existing assets, and establish mechanisms for ongoing collaboration.
In addition to the 12 recommendations, the Advisory Committee also identified
10 future initiatives for consideration. These additional actions which will
support labour force development, strategic industry sectors, non-property City
assets, and positioning are also very important initiatives for the City to pursue
as soon as practical but will take longer to implement and produce results.
The Advisory Committee recommendations align with the strategic framework
presented to the Economic Development Committee by its Chair at its meeting
in January 2011. That is, to improve Toronto’s business climate and accelerate
sustainable jobs and investment growth by expanding external and internal
collaboration, focusing on quality jobs, re-engineering the business/government
interface, and emphasizing measurement.
If fully endorsed and implemented, these recommendations will engage the
ideas and energy of business, labour, residents and City staff, help them provide
informed and meaningful input, reduce the friction too often encountered in
day-to-day interactions with the City, reduce costs and generate additional
revenue for the City, contribute to building a more entrepreneurial and
innovation-driven city and increase accountability for results.
This report is presented as part of a larger integrated cultural change process. To
establish a process of continual improvement the City should prepare an annual
report documenting progress on each of the following recommendations.



                                                                                      Establishing a Path to Growth 7
8 Toronto Prosperity Initiative
1.0 IntroduCtIon
1.1. Context
The work of the Toronto Prosperity Initiative Advisory Committee is in keeping
with a new approach to economic development presented by Councillor
Thompson to the Economic Development Committee on January 28, 2011.
Councillor Thompson’s proposed strategic framework establishes a clear goal
and action areas for the Economic Development Committee that are in keeping
with the Mayor’s stated priorities as well as the principles of good governance.
    Goal
    ·   To improve Toronto’s business and cultural climate, and accelerate
        sustainable jobs and investment growth

    strategic Action Areas
    ·   Expand external & internal collaboration
    ·   Focus on quality jobs
    ·   Re-engineer the business/government interface
    ·   Emphasize measurement

1.2. Advisory Committee Mandate
The Toronto Prosperity Initiative Advisory Committee was convened at the
outset of his Chairmanship by Councillor Michael Thompson to provide a set
of objective, informed and constructively critical advice to the Chair to assist
the Economic Development Committee in addressing its goal and strategic
action areas. The Advisory Committee members were asked to develop a short
list of actionable recommendations to stimulate job creation and economic
growth by improving the efficiency of City policies, programs and operations
and establishing a positive, customer-focused service delivery culture.

1.3. Process
At Councillor Thompson’s invitation, Blake Goldring, Chairman & CEO, AGF
Management Ltd., agreed to serve as Chair of an Advisory Committee to
develop recommendations for consideration by the Economic Development
Committee, Mayor Rob Ford and City Council. The Advisory Committee,
including Mr. Goldring and Councillor Thompson, was comprised of 17
senior business and labour leaders. The members brought a broad base of
knowledge, expertise and both strategic and practical experience to the table
as they discussed city governance and how it affects the economy. Staff from
Mayor Ford’s office and Councillor Thompson’s office as well as Michael
Williams, General Manager, Economic Development & Culture (EDC)
Division and Randy McLean, Director (Acting), Strategic Growth & Sector
Development, EDC, also participated in the discussions.
The Advisory Committee was challenged to review previous reports and
proposals and prepare concrete, actionable recommendations that would
produce tangible results in the short term and establish a clear pathway for
long-term success.

                                                                                   An Action Plan for Toronto 9
                                   In undertaking this task, the Advisory Committee reviewed the Agenda for
                                   Prosperity, the City’s current economic competitiveness strategy adopted by
                                   City Council in 2008, and the Blueprint for Fiscal Stability and Economic Prosperity
                                   – A Call to Action, also adopted by Council in 2008. The Agenda for Prosperity
                                   is a long-term aspirational vision for the city. The Blueprint for Fiscal Stability
                                   and Economic Prosperity focused primarily on financial matters. Both were
                                   prepared prior to the economic downturn and recession that began in the
                                   Fall of 2008. The Toronto Prosperity Initiative: Establishing a Path to Growth report
                                   borrows from and builds on these previous plans where appropriate taking
                                   into consideration the new economic reality.
                                   The Advisory Committee also benefited from presentations and comments
                                   by Councillor Michael Thompson, Councillor Doug Ford and City staff
                                   who participated in the deliberations, as well as their own wide and diverse
                                   network of colleagues, associates, friends and others who all share a common
                                   interest in the success of the City.
                                   Five meetings of the Advisory Committee were convened by the Chair to
                                   discuss issues and opportunities, generate a long list of potential action areas,
                                   develop assessment criteria, identify priorities and make recommendations.
                                   Advisory Committee members also provided input to the Chair via e-mail,
                                   telephone and individual meetings. Councillor Thompson requested that the
                                   Advisory Committee present its recommendations to the City’s Economic
                                   Development Committee at its meeting scheduled for June 2, 2011.

                                   1.4. Action Areas
                                   The Advisory Committee was asked to identify potential action areas
                                   to improve the business and cultural climate in Toronto and accelerate
                                   sustainable economic activity. The Committee was also specifically requested
                                   to provide its recommendations in regard to the highest priority action areas.
                                   The Committee was not asked to develop detailed costing or implementation
                                   plans. Subject to City Council endorsement of the Advisory Committee’s
                                   recommendations costing and implementation plans should be prepared by
                                   appropriate City staff.
                                   A total of 22 potential action areas were identified by the Advisory
                                   Committee. All of these action areas can be categorized as efficiency
                                   improvements related to City operations and/or job creation initiatives. All 22
                                   potential action areas were assessed and rated by the Advisory Committee
                                   based on four criteria:
                                       ·   Impact (high, medium, low)
                                       ·   Cost (high, medium, low)
                                       ·   Ease of implementation (easy, moderate, difficult)
                                       ·   Timing (immediate, 1 – 2 years, 2 – 5 years, 5+ years)
                                   The Advisory Committee recognizes that the required changes, including
                                   re-engineering the business/government interface are not easy tasks and
                                   cannot happen in a day, or even a year. However, it is important to begin the
                                   change process as soon as possible and to demonstrate and communicate
                                   progress quickly. The recommendations of this report therefore do not
                                   attempt to overreach or address all of the city’s issues at once. There is no

10 Toronto Prosperity Initiative
silver bullet, magic wand or pot of gold. The recommendations focus on
achievable, short-term initiatives intended in large part to bring about visible
improvement in critical services and reduce the friction in businesses’ and
labour’s day-to-day dealings with the City, thereby sending a strong signal to
residents, businesses and potential investors that change is under way.
The Advisory Committee recommends 12 action areas for priority
implementation by City Council and staff. These 12 priority action areas
have a strong emphasis on achieving results quickly but affecting change
that will have long lasting impacts. Ten additional action areas that would
take longer to implement and generate results are also included in this
report as future initiatives. All 22 action areas are considered by the Advisory
Committee as important for the City to address. Implementing as many of
the recommended priority action areas as quickly as possible will create some
much needed positive momentum and make it easier to gain the public and
stakeholder support necessary to advance longer term objectives.
The recommendations are not about marketing, they are about reality. The
best marketing will be the business owner who passes on to a contact that
Toronto is a better administration to work and invest with than it was a
year ago. This change will be effected one transaction at a time. It is a retail
campaign driven by deeds, not a wholesale campaign driven by slogans and
ads. The recommendations are practical in nature and have been deliberately
developed to ensure that the benefits will accrue to the entire city when
properly implemented.

1.5. Why the business climate and economic growth in Toronto
     is important and urgent
By virtually any measure, Toronto is Ontario and Canada’s economic,
education, corporate and cultural capital.
With a population of 2.7 million people, Toronto is the core city of a large
urban area of about 6.1 million people known as the Greater Toronto Area
& Hamilton, and the Greater Golden Horseshoe which extends to Niagara
Region and includes 8.5 million residents. City of Toronto residents are well
educated, highly skilled, and creative. They have come from around the world
to make Toronto their home.
Toronto is also Canada’s corporate headquarters, leading business address,
and largest employment centre. About 1.4 million jobs, or about 10 per cent of
total national employment, are located in Toronto in a diverse array of 83,000
businesses. An estimated $144 billion of goods and services are generated
annually (GDP 2010) within the city. On a percentage of national GDP basis
Toronto is equivalent to the economic activity generated in the United States by
New York City, Chicago, Boston and San Francisco combined.
The economy of the Toronto region is diverse as well as large. This is a
key strength that gives it resiliency and therefore makes it better able than
many other city regions to weather economic downturns. Toronto is a
leading North American and global centre for financial services, information
technology, culture, education, biotechnology, health care, design, food and
beverage, green/renewable energy, professional services and tourism.

                                                                                   Establishing a Path to Growth 11
12 Toronto Prosperity Initiative
Canada is currently recognized as having one of, if not the best, financial
services system in the world, and Toronto is at the heart of that system
with 14 major financial headquarters located here - one of the highest
concentrations anywhere. The Financial Services sector alone employs
221,000 people in Toronto. Canada’s five largest banks, three of the world’s
top 50 pension funds with combined assets of $300 billion, three of the
world’s top insurance companies headquartered or with many significant
operations, 61 mutual funds companies responsible for managing 90% of
assets in Canada as well as 50 foreign bank subsidiaries, nine Global Fortune
500 companies, and North America’s third-largest stock exchange are
clustered in Toronto. Toronto is also Canada’s technology hub and one of
North America’s largest information and communications technology (ICT)
clusters by employment with almost 12,000 ICT firms and over 160,000
employees. This number of employees does not include the many thousands
of ICT staff working in other technology-intensive industries, such as financial
services, business services, and health care.
GDP by Province and CMA
             500


             450


             400


             350


             300
 $Billions




             250
                                                      Toronto CMA
             200


             150
                                                      City of Toronto

             100


              50




Culturally, Toronto is recognized as the third-largest theatre centre in the
English-speaking world, after New York and London. It is also the third largest
centre in North America for film and television production. The cultural
sector employs about 130,000 highly entrepreneurial people in for-profit and
not-for-profit organizations of all sizes.
Toronto’s geographic location also provides it with a competitive advantage.
Toronto is a gateway to a $15 trillion NAFTA market with more than 180
million consumers living within a 90-minute flight or one-day drive.
In short, despite changing global conditions, Toronto continues to be a key
driver of the Ontario and Canadian economies. Getting Toronto’s economy
right is a matter of importance and urgency.



                                                                                   Establishing a Path to Growth 13
                                       The Scorecard on Prosperity 2011, produced by the Toronto Board of Trade,
                                       benchmarked 24 global metropolitan areas using 33 indicators to assess
                                       competitiveness in two domains – Labour Attractiveness and Economic
                                       Performance. Overall, the Scorecard ranked the Toronto region 8th behind
                                       Paris, San Francisco, Calgary, Boston, London, Dallas and Seattle and
 The City maintains over $62           ahead of New York (10), Vancouver (14), Chicago (15), Hong Kong (16),
 billion in municipal infrastructure
                                       Los Angeles (18) and Montreal (20). Toronto’s 8th place overall ranking is
 and facilities including:
  · 5,400 properties, 1,000
    buildings, 26.5 million square
                                       the result of a strong 4th place rank in terms of Labour Attractiveness and a
                                       middle of the pack 11th place rank in terms of economic performance.
     feet of building space, and       Given its many competitive advantages, the Toronto region, led by the City of
     approximately 15 million square   Toronto, should and can improve these results.
     feet of public space
  · 5,600 kmstreets, expressways,
    different
              of road (10,033          2.0 ImmedIAte ACtIon
     ramps and laneways)               2.1 Getting Toronto Right
  · 10,002 km of storm) (sanitary,
    combined and
                    sewers             The City of Toronto is a large, complex organization.
                                       Toronto is the 6th largest government in Canada, governed by a Council of 45
  · 8,000 km of sidewalks              elected officials, Mayor Rob Ford and 44 councillors, responsible for a gross
  · Over 180 km of bike lanes          annual operating, capital and rate support budget of $13.3 billion (2011).

  · 970 bridges and culverts           As illustrated in Figure 1, Council’s decision-making structure is composed of
                                       seven Standing Committees which consider city-wide issues; four Community
  · 2,159 traffic control signals      Councils, one for each geographic area of the city; and an Executive Committee
  · 158,890 streetlights               responsible for policies, priorities and financial matters including, budget,

  · 140 bus routes (7,206 km)          employee and labour relations, and affordable housing as well as international
                                       and intergovernmental relations. Separate Audit, Board of Health, Civic
  · 11 streetcar routes (305 km)       Appointment and Striking Committees also report to City Council.

  · 3 subwaykm) (62 km); 1 SRT
    line (6.4
              lines                    As shown in Figure 2, the City’s governance structure also includes five
                                       city-owned corporations, two partially City-owned corporations, numerous
  · 1,500 parks (ravines, valleys,
    of parklands
                  and 8,000 hectares   local, service, program and community boards as well as quasi-judicial/
                                       administrative functions and a variety of special purpose bodies.
     woodlots, waterfront natural      Figure 3, shows the City’s management structure which consists of 48
     areas, parks and farmland)        divisions. Eight divisions report directly to the City Manager and 40 divisions
  · 62 community centres               are divided among three clusters each managed by a Deputy City Manager.
  · 99 libraries                       Through all of these entities, collectively referred to as ABCCDs - agencies,

  · 9 museums                          boards, commissions, corporations and divisions - the City employs
                                       approximately 45,000 people, including 7,800 police and 12,400 TTC staff.
  · 43 ambulance stations              The City also owns and is responsible for maintaining over $62 billion
  · 10 long term care homes            (replacement value, 2009) of municipal infrastructure, facilities and other
                                       assets including municipal buildings, roads, sewers, watermains, transit
                                       facilities, community facilities and emergency response services.
                                       Getting it right requires attention to detail.

                                       2.2 Management by Performance
                                       Meaningful attention to detail starts with reliable, high-quality metrics. In any
                                       organization, particularly an organization as large and complex as the City of
                                       Toronto, establishing, monitoring and regularly reporting on key performance
                                       indicators is essential.

14 Toronto Prosperity Initiative
figure 1 City Council structure


                                            CITY COUNCIL

                                                                  Civic
                                  Audit
                                                              Appointments


                                 Board
                                                                Striking
                                of Health



   Executive                                Standing Policy                                        Community
                                             Committees                                             Councils


   Executive        Community Development                            Parks &
   Committee            & Recreation                               Environment                     Etobicoke -
                                                                                                      York

        Budget           Economic                                  Planning &
       Committee        Development                            Growth Management                   North York

       Employee         Public Works &
       & Labour                                                    Licensing &
                         Infrastructure                             Standards                     Scarborough
       Relations

       Affordable       Government
        Housing         Management                                                                 Toronto &
                                                                                                    East York




                                                                                 Establishing a Path to Growth 15
figure 2 Agencies, boards, Commissions and Corporations
                    AGENCIES, BOARDS, COMMISSIONS AND CORPORATIONS (ABCCS)


       OBCA*                            Local Boards                      Service & Program                Quasi-Judicial          Financial/
    Corporations                    (restricted City Authority)            Operating Boards                 & Positions          Administrative

 • Build Toronto Corp.               • Board of Health                      • Exhibition Place            • Committee of        • Sinking Fund
 • Invest Toronto Corp.              • Toronto Police                       • Heritage Toronto              Adjustment            Committee
 • Toronto Community                   Services Board                                                     • Committe of         • Toronto
                                                                            • Sony Centre for the
   Housing Corp.                     • Public Library Board                   Performing Arts               Revision              Atmospheric Fund
 • Toronto Hydro Corp.                                                                                    • Property
                                                                            • St. Lawrence Centre
 • Toronto Economic                                                           for the Arts                  Standards
   Development Corporation                                                                                  Committee/ Fence
   (TEDCO) c.o.b. Toronto Port                                              • Toronto Centre for            Viewers
                                                                              the Arts
    Lands Company (TPLC)                                                                                  • Rooming House
                                                                            • Toronto Parking               Licensing
                                                                              Authority                     Commission
                                                                            • Toronto Transit             • Sign Variance
                                                                              Commission                    Committee
  OBCA* Partnered
                                                                            • Toronto Zoo                 • Toronto Licensing
   Corporations
                                                                            • Yonge-Dundas Square           Tribunal
 • Enwave Energy Corp.
 • Waterfront Toronto                                                       • Community-based
                                                                              Arena Boards
                                                                            • Association of Community
                                                                              Centres (AOCCs)
                                                                            • Business Improvement
*Ontario Business Corporation Act                                             Areas (BIAs)


                                                                   SPECIAL PURPOSE BODIES



                                                    Program Advisory                          Political Advisory
                                                         Bodies                                     Bodies

                                                  • Metro Toronto Pension                     • Museum Boards
                                                    Plan, Board of Trustees                   • Toronto Preservation
                                                  • Metro Toronto Police                        Board
                                                    Benefit Fund, Board of                    • Other advisory
                                                    Trustees                                    bodies established
                                                  • Toronto Civic Employees’                    from time-to-time
                                                    Pension and Benefit Fund
                                                    Committee
                                                  • Toronto Fire Department
                                                    Superannuation and
                                                    Benefit Fund Committee
                                                  • York Employees’
                                                    Pension and Benefit
                                                    Fund Committee


Note: The City also makes nominations for board appointments to a number of external bodies
Updated: June 1, 2010




16 Toronto Prosperity Initiative
figure 3 City Management structure

                                                                                                                                                                 Note: The City
        Note: The Auditor                     Auditor General                            CITY COUNCIL                               City Clerk’s Of ce           Clerk and Solicitor
        General, Integrity                                                                                                              City Clerk               report to City
        Commissioner,                                                                                                                                            Council for statutory
        Lobbyist Registrar                Integrity Commissioner                                                                                                 purposes and to the
        and Ombudsman                                                                                                                   Legal Services           City Manager for
        report directly to                                                                                                               City Solicitor          administrative
        City Council.                                                                    City Manager
                                             Lobbyist Registrar                                                                                                  purposes.


                                                Ombudsman



                                                                Executive Management                     Strategic & Corporate Policy



                                                                   Human Resources                       Strategic Communications


                                                                                                           Equity, Diversity and
                                                                     Internal Audit
                                                                                                           Human Rights Of ce



                                                                                                                                                      Deputy City Manager &
                  Deputy City Manager                                               Deputy City Manager
                                                                                                                                                      Chief Financial Of cer


                                                                        Major Capital
                                                                       Infrastructure                          Toronto                                                    Information &
                                       Public Health*                                                    Environment Of ce                Corporate Finance
                                                                    Coordination Of ce**                                                                                   Technology



   Affordable Housing                 Toronto Of ce of              Of ce of Emergency                                                        Finance &
         Of ce**                       Partnerships**                                               Waterfront Secretariat**                Administration               Special Projects
                                                                      Management**



       311 Toronto                    Employment &                       City Planning                   Technical Services               Financial Planning
                                      Social Services



                                     Long-Term Care                      Fire Services
  Children’s Services                                                                                     Toronto Building                                           Chief Corporate Of cer
                                    Homes & Services                                                                                          Treasurer


                                       Parks, Forestry               Municipal Licensing                   Toronto Water
     Court Services                     & Recreation                    & Standards                                                      Accounting Services         Facilities Management


Economic Development                 Shelter, Support &             Policy, Planning, Finance
     & Culture                     Housing Administration               & Administration            Transportation Services               Pension, Payroll &              Fleet Services
                                                                                                                                          Employee Bene ts


  Emergency Medical                 Social Development,                 Solid Waste
      Services                    Finance & Administration          Management Services                                                 Purchasing & Materials
                                                                                                                                            Management                Real Estate Services



                                                                                                                                          Revenue Services
 * The Medical Of cer of Health reports to the Board of Health and coordinates with the
   Deputy City Manager on administrative matters affecting City employees within Toronto Public Health
** Within the Deputy City Manager’s of ce indicated




                                                                                                                                                   Establishing a Path to Growth 17
                                         The City should adopt a set of key performance indicators (KPIs) that reflect
                                         critical success factors and will define and measure how well it is performing
                                         in relation to its strategic goals and objectives. The role of KPIs in defining
                                         success cannot be overstated. For the City to achieve success, everyone
                                         involved – Mayor, Council, senior management, front line staff and external
                                         partners and stakeholders – must be working toward the same goals and
                                         objectives. KPIs serve to align actions by removing ambiguity and clearly
                                         defining the direction of success and expected results.
                                         Measuring results on a regular basis tells us whether or not our policies,
                                         programs and other initiatives are taking us in the right direction and are
                                         having the intended impact. Results are not just about looking back: they
                                         provide information to guide future improvements.
                                         The City does maintain a number of different performance indicator
 Ideally we may want an indicator
                                         databases; however, with the exception of the Ontario Municipal
 that aggregates travel times across     Benchmarking Indicators (OMBI) series the City’s performance measures are
 many routes and different periods       not made public in any comprehensive or regular manner. KPIs should also be
 of the day, week, and year. This type   established to measure the impact of the City’s actions on the local economy.
 of indicator, however, is difficult     These indices show how effectively tax dollars are being used and should be
 to verify and not easily understood     presented to the public.
 by the public. A more narrow            Regular reporting ensures accountability. Positive results are recognized and
 indicator, such as travel times on      inspire confidence; poor results identified early allow corrective actions to be
 specific routes is less comprehensive   taken and improvement made sooner.
 but more meaningful. Similarly,         KPIs are also one of the most effective ways for the City to communicate
 while comparisons to other similar      externally to what at this time is a sceptical public. Regular reporting of results
 sized cities would be helpful as we     indicates not only the City’s performance, but also the serious attitude it takes
 should be striving to be the best,      to ensure good performance. Internally, KPI results are effective in getting
                                         buy-in from constructively oriented employees and motivating cross divisional
 comparative data are not always
                                         learning. Effective KPIs motivate and recognize excellence.
 readily available. Using 2010 data
                                         Well-chosen KPIs will provide the Mayor, Council, management and staff with
 as a starting point and working to
                                         the information they need to make improvements. Keeping the indicators
 improve from there would facilitate a   few and concrete, at least at the outset, would be the best approach. To the
 quick start to this initiative.         greatest extent possible, the indicators should be about results City staff can
                                         affect wholly or mainly by themselves (i.e. progress should not be dependent
                                         upon the actions and/or agreement of others).
                                         Indicators cannot capture everything of importance, but they can highlight
                                         key elements. For example, transportation is one of the most important
                                         issues the City must tackle. It is also one of the most costly and difficult to
                                         address. Congestion on the highways, roads and transit systems within the
                                         city of Toronto is costing businesses and residents billions of dollars annually.
                                         This issue directly impacts businesses of all types and all sizes. Congestion
                                         makes it more difficult for existing businesses to operate and more difficult to
                                         attract new businesses and skilled workers to the city. As Toronto continues
                                         to develop, travel demand will continue to increase. The City needs a
                                         comprehensive plan to manage and accommodate the increasing demand
                                         with the goal of regularly measuring and reducing congestion and travel time.




18 Toronto Prosperity Initiative
Establishing a Path to Growth 19
                                   Possible KPI categories and measures include:
                                       ·   Travel and transportation (travel time, TTC on-time rates, congestion
                                           at key intersections)
                                       ·   Outside services (timeliness of garbage collection, snow removal, EMS
                                           services, street cleanliness)
                                       ·   Inside services (wait times for various services/permits, telephone
                                           return times)
                                       ·   Cost reporting (cost of building permit and inspection services, road
                                           maintenance, transit operating costs, wastewater treatment)
                                   As noted above some of these data are already recorded and reported.
                                   Staff at all levels of the organization should be empowered to share ideas
                                   for improvements and sustainability. Some of the best and most easily
                                   implemented ideas for increasing efficiency and removing unnecessary barriers
                                   come from front-line staff. Good ideas may also come from staff working in
                                   other ABCCDs with relevant experience or knowledge.
                                   Implementation of KPIs should extend to the City’s ABCCDs. The
                                   performance of City corporations, such as Toronto Hydro, should be
                                   benchmarked against best-in-class providers of similar products and/or
                                   services worldwide with a focus on increasing profitability, reducing costs and
                                   having the best metrics in their class.

                                   RECoMMEnDATIons:
                                       A.1. Establish key success / performance indicators and targets to
                                            define and measure operational improvements and performance
                                            relative to base periods, other comparator cities and best in class.
                                            KPIs should focus on internal performance metrics and external
                                            impact metrics. Extend the use of KPIs to benchmark and report
                                            on the performance of City corporations with a focus on increasing
                                            profitability and reducing costs. Implement mechanisms to monitor
                                            and report results on a regular basis.
                                       A.2. Empower all City staff to share ideas. Establish easy-to-use, easy-
                                            to-access, systems for all staff to submit suggestions. Celebrate and
                                            reward good ideas.

                                   2.3 Re-engineer the business / Government Interface
                                   In terms of re-engineering the business / government interface to stimulate job
                                   creation and investment attraction, three priority areas for the City to address
                                   are: (i) reducing the time and cost for the review and approval of development
                                   and building applications, particularly industrial, commercial and institutional
                                   development, including expansions, relocations and new facilities; (ii) removing
                                   unnecessary regulatory and process barriers; and (iii) implementing best
                                   practices for procurement procedures. These initiatives will strengthen the City’s
                                   role as an enabler of economic growth and prosperity.
                                   Industrial, commercial and institutional developments create quality jobs for

20 Toronto Prosperity Initiative
Toronto residents. These types of development also pay more in municipal
property taxes than they consume in city services and thus make a net positive
contribution to the City’s finances. The City’s GoldStar (concierge service)
program to better coordinate and accelerate the development review process,
and the Imagination, Manufacturing, Innovation and Technology (IMIT) Grant
programs to accelerate and attract developments that create permanent jobs
are initiatives that have been helpful, but these activities need to be significantly
enhanced. The City will be undertaking an Official Plan review this year and
revisiting its comprehensive zoning by-law. These initiatives should be expanded
to re-engineer the planning and building approval process to substantially reduce
the time and cost of development.
Sometimes the best thing a government can do is get out of the way. In today’s
globally competitive, high speed economy, successful businesses have shifted
from routine assembly of standardized goods and services to continually
evolving, made-to-order, value-added production. To facilitate economic
success, the City of Toronto must also shift from a rules and regulations based
approach designed to control investment, to a flexible, adaptable approach
designed to invite, welcome and accelerate investment. Although the recently
initiated and ongoing e-Service initiatives are noticeable improvements, the City
should systematically review its regulations, procedures and permits to eliminate
unnecessary requirements. For example, the City should review its construction
standards and work with the surrounding municipalities to adopt common
product specifications for materials to the greatest extent possible.
The City of Toronto is one of the largest public sector purchasers in Canada
with an estimated annual total procurement of about $1.5 billion of third party
goods and services. At this scale, even small improvements can produce large
cost savings. Other major cities and governments that are also large purchasers
have developed sophisticated procurement, risk sharing, value engineering and
contract management procedures that may benefit the City. In addition, as the
economic and corporate capital of Canada, there are many large corporations
located in Toronto with a vast amount of private sector procurement experience
that the administration should tap into. The ongoing financial constraints
in both the public and private sector make this an opportune time to engage
in public-private partnerships to share risks, reduce costs, and accelerate
implementation of major capital projects.
The City should also explore the expanded use of property tax incentives.
Taxation is one of the most effective policy implementation levers available to the
City. Strategic use of incentives will accelerate achievement of the City’s goals.
                                                                                        Photo courtesy: Toronto Transit Committee
RECoMMEnDATIons:
    A.3. Re-engineer the planning and building review and approval process
         with the goal of cutting the time by one-third to one-half. Focus
         on city-building with an emphasis on accelerating and reducing
         the cost of industrial, commercial and institutional development,
         including expansions, relocations and new facilities.




                                                                                              Establishing a Path to Growth 21
                                       A.4. Evaluate the strategic use of tax incentives to stimulate
                                            development.
                                       A.5. Systematically review regulations, procedures and permits to
                                            remove barriers to job creation and investment.
                                       A.6. Implement best practices for procurement procedures. Identify
                                            industry-leading best practices, including use of public-private
                                            partnerships for large capital assets, and implement to reduce costs
                                            and/or improve value.

                                   2.4 City-owned Property, Creating value and Reducing Costs
                                   The City has been said to be land rich and cash poor. The City owns about
                                   $18 billion of real estate, substantial amounts of which are dormant or
                                   underutilized. In 2009, the City established Build Toronto as an arm’s length
                                   corporation to generate revenue by maximizing the value and economic
                                   development potential of properties under its management. Sale, joint
                                   venture and lease options should be considered. Build Toronto’s efforts
                                   should be enhanced to accelerate the monetization of the City’s land assets.
                                   This process may require investing in certain lands to maximize their value
                                   by making them development ready before sale or lease. Some of the City-
                                   owned properties are former industrial sites. Although these sites are in
                                   good locations well serviced by road, transit and utilities the property values
                                   are significantly reduced by soil contamination issues. Cleaning up these
                                   properties would both increase the value and accelerate redevelopment and
                                   job creation.
                                   The process should also take advantage of opportunities to leverage
                                   investments by others. The City of Toronto is for example a major land
                                   owner in the waterfront area which includes the West Don Lands community
                                   that will accommodate the Toronto 2015 Pan/Parapan American Games
                                   Athletes’ Village. The section of the West Don Lands that will be used during
                                   the Games is being developed by Waterfront Toronto in partnership with
                                   Infrastructure Ontario. The upcoming 1812 Bi-Centennial celebrations
                                   (2012) and Pan Am Games (2015) are catalysts that should be used to kick
                                   start and accelerate development in order to create jobs, attract tourists and
                                   increase assessment sooner rather than later.
                                   Residents and businesses within the City of Toronto frequently cite the fact
                                   that city roads and sidewalks are constructed, repaved or repaired for one
                                   purpose only to be dug up soon thereafter for another purpose. In addition
                                   to the inconvenience and delays these multiple construction activities
                                   cause, they leave cracks in the road and sidewalk surface that make these
                                   public assets more susceptible to damage by water, frost and salt, thereby
                                   necessitating further repairs. The result is a patchwork of repairs that is
                                   inconvenient, unsightly and costly to city taxpayers. The City should pursue
                                   all possible avenues to coordinate construction activities so that all necessary
                                   work, including work by private utilities (e.g. cable, gas, hydro, telephone) is
                                   completed as part of a single project. In the event it becomes necessary for
                                   any agency to dig up the road, sidewalk or other City asset within a defined
                                   time period, such as five years, that agency should bear the full cost to

22 Toronto Prosperity Initiative
Establishing a Path to Growth 23
                                   restore the asset to the pre-existing condition and pay a significant penalty.
                                   It is not appropriate that City of Toronto taxpayers bear the costs or have to
                                   accept the unsightly appearance resulting from the work of other utilities and
                                   agencies. Correcting the current situation may require a change in provincial
                                   and/or federal regulations that grant broad permission to other utilities to
                                   access municipal rights-of-way. The City has established the Major Capital
                                   Infrastructure Coordination Office. The City’s upcoming core service review
                                   should examine whether this office should be strengthened and promoted.
                                   Beyond construction activity, there is wide spread public concern that
                                   the appearance, and in particular the cleanliness, of City’s streets, transit
                                   shelters, parkettes and other areas used by residents, businesses and visitors
                                   has seriously declined over time. This reflects badly on the city as a place
                                   to live, work and invest, and on the City government. Conversely, a high-
                                   quality, clean, public realm projects a sense of confidence, safety, security
                                   and pride that enhances the city’s image and attracts social and economic
                                   activity. Residents, businesses and visitors all benefit from improving our
                                   public spaces. A substantive and sustained effort is required to improve and
                                   maintain the appearance of the public realm.

                                   RECoMMEnDATIons:
                                       A.7. Enhance and accelerate monetization of the City’s land assets.
                                            Make surplus City-owned land useable and development ready.
                                       A.8. Expedite approval process and funding to accelerate development
                                            and densification of the Waterfront using 1812 Bicentennial
                                            Celebrations and 2015 Pan/Para pan American Games as catalysts
                                            to create jobs, attract tourists and increase assessment.
                                       A.9. Strengthen and promote the existing Major Capital Infrastructure
                                            Coordination Office. Pursue all possible avenues, including changes
                                            to federal and provincial regulations and penalties for violations,
                                            to ensure that construction activities are coordinated and that all
                                            necessary work, including work by private utilities (e.g. cable, gas,
                                            hydro, telephone) is completed as part of a single project.
                                       A.10. Address health, safety and cleanliness issues to improve Toronto’s
                                             public spaces and image. A substantive and sustained effort is
                                             required to improve and maintain the appearance of the public realm.
                                             Explore ways to engage the private and philanthropic communities.

                                   2.5 outreach and Collaboration
                                   Successful businesses develop strong relationships with their customers,
                                   suppliers and support services and agencies. It is essential for the City to
                                   establish similar relationships with the business community to develop
                                   a deeper understanding of the opportunities and challenges business
                                   and labour face, and conversely for business and labour to develop an
                                   appreciation of municipal governance and management. Delivering on a
                                   promise of customer service excellence requires a proactive approach to
                                   identifying and resolving concerns before they become problems. A frank
                                   exchange of information, for example, in regard to why companies chose

24 Toronto Prosperity Initiative
to locate in Toronto, why they chose to expand within the city or elsewhere,
why they might consider leaving, would provide invaluable insights about
how policies, programs and services can best be adapted to achieve win-win
outcomes for business, labour and city building.
Getting it right requires addressing the cost of doing business. Municipal
property taxes on industrial and commercial properties within the City of
Toronto continue to be higher than in the surrounding regions. Reducing
this tax differential is vital for sustained economic growth. Successfully
implementing the recommendations of this report will help accelerate
the City’s long-term plan to become more tax competitive by reducing
operational costs and improving services.
Getting it right also requires a collaborative and coordinated approach not
only within the City’s administration, but also with external partners and
stakeholders as well.
One of the greatest strengths of the Toronto region is its diversity. Diversity
in its broadest context – economic diversity which creates resiliency,
cultural diversity which brings creativity and innovation, aboriginal peoples,
immigrants and native born Canadians, densely populated urban areas as
well as suburban and rural areas, advantaged areas and neighbourhoods in
need, diversity of thought and life experience, and socio-economic diversity
including age, education, income, religion, sexual orientation and more.
While diversity of people and activities is an asset, fragmentation of public
organizations can be an obstacle. We can only realize the potential of
our diversity advantage if we are able to coalesce these diverse realities
and form a united whole. At the present time, there are a large number of
organizations within the Toronto region doing work both at a community
scale and city-wide scale that have similar mandates. Consequently some
appear to be duplicating efforts, if not directly competing with others, rather
than collaborating. For example, the Greater Toronto Marketing Alliance
(GTMA), Invest Toronto and Toronto Region Research Alliance (TRRA) all
have mandates to attract foreign direct investment. A more collaborative
and coordinated regional approach would benefit all. It is essential that the
City of Toronto strive to forge an alignment of interests and actions among
the many different groups and organizations with the goal of reducing costs
and improving effectiveness. A collaborative approach will also help ensure
that the interests of all groups are considered and the benefits of economic
prosperity equitably distributed.
The City should take a lead role in convening representatives from
surrounding municipalities, business, labour and academia, as well as
provincial and federal government officials to begin development of a regional
economic competitiveness strategy and implementation plan.
Recognizing that the municipal governments, business and labour
organizations and academic institutions within the Toronto region are part
of a single, interdependent economic region, the City of Toronto should strive
to develop and implement a regional approach to attracting investment and
stimulating economic growth. A collaborative regional approach is imperative
if we are to effectively compete with other major world city regions.

                                                                                  Establishing a Path to Growth 25
                                   RECoMMEnDATIons:
                                       A.11. Mayor Ford and Councillor Michael Thompson, Chair, Economic
                                             Development Committee, should continue and possibly expand
                                             an ongoing outreach program to engage the CEOs of Toronto-
                                             based companies and other civic leaders. An ongoing Open for
                                             Business Advisory Committee should also be established to monitor
                                             implementation of the recommendations of this report and provide
                                             advice to the Chair of the Economic Development Committee
                                             throughout this term of City Council.
                                       A.12. The Chair of the Economic Development Committee should
                                             take a lead role in convening representatives from surrounding
                                             municipalities, business, labour and academia, as well as provincial
                                             and federal government officials to begin development of a regional
                                             economic competitiveness strategy and implementation plan.

                                   3.0 Future Initiatives
                                   The Advisory Committee also identified 10 additional action areas for serious
                                   consideration. These action areas are also very important initiatives for the
                                   City to pursue as soon as practical but will take longer to implement and
                                   produce results. Any of the 10 future initiatives described below could be
                                   advanced if opportunity and budget presented themselves. In almost all of
                                   these future initiative areas, considerable awareness of the need for action
                                   exists and many initiatives are already underway. By listing them here, the
                                   Committee wishes to draw attention to the need for even greater action.

                                   3.1 labour force Development
                                   The unemployment rate for youth (aged 15 – 24 years) living in Toronto is
                                   consistently and significantly higher than the rate for the overall labour force.
                                   Given the approaching flood of retirements of the baby boom generation
                                   greater efforts need to be applied to encouraging and facilitating youth
                                   employment.
                                   There should also be a specific focus on aboriginal peoples and aboriginal
                                   youth. The aboriginal peoples population in Toronto is about five years younger
                                   than the non-aboriginal peoples population (median age 32 years, compared
                                   to 37 years), has higher unemployment and lower annual income levels.
                                   The City should expand partnerships and enhance existing programs such as:
                                       ·   Partnership to Advance Youth Employment (PAYE)
                                       ·   Youth Employment Partnership (YEP)
                                       ·   More skills programs at colleges and universities
                                       ·   Partnerships with Toronto Community Housing Corporation (TCHC)
                                       ·   Using procurement processes to encourage apprenticeships (e.g.
                                           construction)
                                       ·   Urban Aboriginal Peoples Strategy


26 Toronto Prosperity Initiative
The City should also look to expanding partnerships to engage youth in sports
and arts. Sports and arts are effective and positive ways to strengthen a sense
of belonging, develop team building and leadership skills, and encourage
creativity. All of these attributes are also important employment skills.
With an aging population and less than replacement birthrate, immigration
is essential to ensuring Toronto has the labour force required to support
economic growth. At present the knowledge and skills of many well educated
and highly trained immigrants are significantly underutilized to the detriment
of the individuals, their families, communities and businesses. We need to
attract and retain skilled immigrants in Toronto and more fully utilize their
abilities. The federal and provincial governments must be encouraged to
develop programs to assist immigrants to transition to life in Canada, ideally
before they leave their country of origin. All orders of government should work
collaboratively to ensure programs are as seamless as possible.
International students also benefit the City in a number of different ways.
International students are an important part of the business model for most
post-secondary education institutions in Canada. As students, they bring a
diverse range of knowledge and experience to the classroom that benefits
all students. As visitors to Toronto, they explore our neighbourhoods and
contribute to the local economy. As graduates, if they choose to remain in
Toronto they provide essential skills for economic growth. If they choose to
return home or relocate elsewhere in the world, they may become business,
political and social leaders in their new home and provide a positive
connection back to Toronto for future interactions.
Education and training should focus on all types of jobs. Toronto’s
construction industry, for example, is recognized as one of the best in the
world. The industry has also developed outstanding training centres that
assist youth to find good paying jobs and develop the labour force of the
future for the industry. This is an opportune time to enhance and expand
existing labour force development programs and to firmly establish Toronto
as a Centre of Excellence in this field.
Innovation is now a critical success factor for all businesses. Successful
companies are continually developing new products and services and/or re-
engineering the way they conduct their business and deliver their current suite
of offerings. Creating forums, events, venues and other opportunities to bring
different perspectives together is a proactive way to accelerate innovation.
MaRS, for example, is a hub for breakthrough thinking in life sciences,
technology and social entrepreneurship. The Canadian Film Centre and
Ontario College of Art & Design University’s Digital Futures Initiative offering
new cross-disciplinary programs in practice, research and innovation related
to digital media, and Ryerson’s Digital Media Zone are other examples of
partnership to accelerate innovation and commercialization.

InITIATIvEs:
    B.1. Expand partnerships and enhance programs to stimulate youth
         employment, apprenticeships and internships. Consider the
         selective use of tax incentives to support business and development
         in priority areas.

                                                                                   Establishing a Path to Growth 27
28 Toronto Prosperity Initiative
    B.2. Work with other orders of government and support organizations
         such as the Toronto Region Immigration Employment Council
         and Internationally Educated Professionals Conference to expedite
         recognition of international credentials and experience, and ensure
         immigrants are employed based on their accreditation, knowledge
         and skills.
    B.3. Work with colleges, universities and other educators to make
         Toronto a magnet for young, ambitious international students.
    B.4. Enhance and promote Toronto as a Centre of Excellence for
         professional and skilled trades.
    B.5. Work with industry to create thought incubators.

3.2 strategic Industry sectors
The City should build on existing efforts to identify the industry sectors most
critical to economic growth in Toronto and direct resources to anchor, incent,
and “own” these key sectors, in order to establish Toronto as the centre of       Photographer: Jerry Abramowicz
gravity. There should also be a focus on developing sector-based economic
growth strategies and policies for attracting capital and creating a business
environment that is conducive to private sector development. A good start
would be to prepare a white paper that assesses Toronto’s strengths and
weaknesses, examines how the city’s strengths tie together and identifies
future policy directions.
Canada’s financial services industry is now recognized as a global leader
and Toronto is the focal point of the industry. The City should work with
organizations such as the Toronto Financial Services Alliance (TFSA) to
determine how best to lever this well-earned reputation to develop a global
investment management centre rivalling London, New York, Singapore and
Dublin. One approach would be to target foreign investment management
firms, including private equity and hedge fund managers, administrative
services, trading platforms and global research teams to establish
operations in Toronto. Incentives should be developed, including tax breaks.
Consideration should be given to the applicability of the tactics successfully
used by Singapore and Hong Kong to attract quality firms, including possible
investment allocations into newly established firms by certain public pension
plans subject to fiduciary and hurdle rates of return being met.

InITIATIvEs:
    B.6. Encourage and support further development of strategic industry
         sectors with goal of establishing world class clusters.
    B.7. Reinforce and expand Toronto’s presence as a global investment
         management centre.




                                                                                        Establishing a Path to Growth 29
 Examples of leveraging City
 assets and initiatives adopted
 elsewhere.
                                         3.3 non-land City Assets
 Governments across Canada and
                                         The City is the sole shareholder of Toronto Hydro, Toronto Community
 around the world have invested
                                         Housing Corporation, Toronto Parking Authority and a minority shareholder
 in casinos as a means to generate       of Enwave. Monetization of all or part of certain of these assets (as is being
 revenue without raising taxes,          studied by the City) could be used to reduce the City’s deficit and invest in
 increase tourism and create well-       strategic initiatives.
 paid jobs. There are many areas
 within Toronto where a casino           InITIATIvEs:
 would also be a major catalyst for          B.8. The City should investigate a wide range of opportunities to
 redevelopment of the surrounding                 monetize non-land City assets.
 lands in addition to providing a new
 revenue source. Given the size and      3.4 Positioning
 catchment area of the city, Toronto     To those of us who live or work in Toronto, and most visitors, our city has
 can support several world-class,        many unique, interesting and attractive attributes. However, there is a low
                                         level of awareness and considerable misinformation about Toronto around
 year-round casinos. The revenue
                                         the world. Toronto has a generally good reputation, but its global brand
 streams from casino operations          is weak and its outstanding features are not top-of-mind for most non-
 could be invested in debt reduction,    residents. People recognize the name, but know very little about our city. As
 strategic infrastructure and improved   a first step in establishing and creating a greater awareness of the Toronto
 social services.                        brand, the value of the current brand in the global context should be assessed
                                         including the cost and benefits of a proactive set of initiatives in this area.
 Other potential revenue sources         The global brand should be developed in a regional context and reflect the
 include converting organic matter       integrated strengths of the Toronto area.
 to pellets to be reused as fuel which
                                         Over a long period of time fiscal imbalances have developed between the
 is cleaner than coal but less so        three orders of government that need to be properly addressed. Toronto and
 than natural gas. The technology        Canadian municipalities in general suffer this imbalance. Transfer payments
 is now mature and there are many        from other orders of government are usually conditional and focus on the
 installations in the US and Europe.     priorities of the funding provider and tend to be unstable and unpredictable
 Toronto is an ideal candidate city      sources of revenue. A more permanent solution based on the roles and
                                         responsibilities of all orders of government is required.
 with a very good sorting discipline.
 This project would reduce waste         InITIATIvEs:
 disposal hauling costs, generate
                                             B.9. Assess the value of the Toronto brand.
 renewable energy and CO2 credits,
 and create about 100 jobs. Capital          B.10. Pursue stronger fiscal federalism and greater intergovernmental
 costs, in the order of $500 - $750                cooperation.
 million can be funded through a
 public-private partnership.




30 Toronto Prosperity Initiative
Establishing a Path to Growth 31
32 Toronto Prosperity Initiative
4.0 ConClusIons
The City of Toronto has all the ingredients for success and enormous
potential for sustained economic growth and prosperity. At the same
time, it faces a number of significant challenges. All of the members of
the Advisory Committee, convened by Councillor Michael Thompson
(Chair, Economic Development Committee) and Chaired by Blake
Goldring, M.S.M., CFA (Chairman and Chief Executive Officer, AGF)
were pleased to assist the City in addressing these challenges.
The Advisory Committee approached its task in a thoughtful and
considered manner, reviewing past reports and proposals, seeking out
additional research and information from others, and engaging in frank
discussions and debates about priorities and the merits of potential
solutions. It is clear that achieving success will require greater financial
discipline and an action plan clearly focused on increasing efficiency,
making better use of existing assets and leveraging the capacity of the
private sector.
The City is at a turning point. There needs to be a fundamental change
from past practices of applying temporary fixes to fully embracing
best practices of implementing sustainable solutions. This change
will require a cultural shift in how the City does business and its
relationship with its publics. The 12 recommendations and 10 future
initiatives contained in this report focus on getting the basics right and
establishing the internal infrastructure for continual improvement.
First and foremost the Advisory Committee recommends that key
performance indicators (KPIs) and targets be established to clearly
define the City’s goals and expected results. By clearly setting out
common expectations, KPIs are an effective way of aligning the
activities of different units within large organizations. They will also
enable the City to communicate its progress to the public and other
stakeholders.
As part of this transformative change process, the Committee also
recommends that the City re-engineer the planning and building review
and approval process. These are critical city building functions. The
City has implemented a number of improvements to streamline the
existing processes; now is the time to develop a new process with the
goal of cutting the time by one-third to one-half. Similarly, the City
should make fundamental changes to its procurement processes,
including the expanded use of public-private partnerships, particularly
for major capital projects to accelerate investment and job creation.
The City should pursue ways to make better use of its existing assets
as quickly as possible. Enhancing and accelerating the monetization of
the City’s land assets, strengthening and promoting the existing Major
Capital Infrastructure Coordination Office and addressing the health,


                                                                               Establishing a Path to Growth 33
                                   safety and cleanliness of the public realm would serve to generate new
                                   revenues, reduce costs and help retain and attract investment.
                                   To deliver on its commitment of customer service excellence, the City
                                   should take a proactive approach to strengthening its relationships
                                   with business, education, labour and the surrounding municipalities.
                                   The Mayor and Chair of the Economic Development Committee
                                   should expand their ongoing outreach program as much as is practical
                                   to engage the CEOs of Toronto-based companies to identify issues
                                   and opportunities. The City should also take a lead role in convening
                                   representatives from other municipalities in the Toronto region,
                                   together with business and labour, as well as provincial and federal
                                   government officials to begin development of a regional economic
                                   competitiveness strategy.
                                   Finally, and critically, we recommend a mechanism to provide for
                                   overall accountability. An ongoing Open for Business Advisory
                                   Committee should be established to monitor implementations of the
                                   recommendations of this report and provide advice to the Chair of the
                                   Economic Development Committee throughout this term of Council.
                                   An annual report indicating progress to date and describing proposed
                                   new initiatives should be prepared and submitted to the Advisory
                                   Committee.
                                   All of the recommendations of this report have been prepared to help
                                   a great city realize its true potential. We appreciate the opportunity to
                                   contribute to Toronto’s future success.




34 Toronto Prosperity Initiative
Establishing a Path to Growth 35
                                   5.0 summary of recommendations for Immediate
                                       Action
                                   5.1 Management by Performance
                                      A.1. Establish key success / performance indicators to define and
                                           measure improvement and performance relative to base
                                           periods, other comparator cities and best in class. Implement
                                           mechanisms to monitor and report results on a regular basis.
                                           Extend the use of KPIs to benchmark and report on the
                                           performance of City corporations with a focus on increasing
                                           profitability and reducing costs.
                                      A.2. Empower all City staff to share ideas. Establish easy to use,
                                           easy to access, systems for all staff to submit suggestions.
                                           Celebrate and reward good ideas.

                                   5.2 Re-engineer the business / Government Interface
                                      A.3. Re-engineer the planning and building review and approval
                                           process with the goal of cutting the time by one-third to one-
                                           half. Focus on city-building with an emphasis on accelerating
                                           and reducing the cost of industrial, commercial and
                                           institutional development, including expansions, relocations
                                           and new facilities.
                                      A.4. Evaluate the strategic use of tax incentives to stimulate
                                           development.
                                      A.5. Systematically review regulations, procedures and permits to
                                           remove barriers to job creation and investment.
                                      A.6. Implement best practices for procurement procedures.
                                           Identify industry-leading best practices, including use of
                                           public-private partnerships for large capital assets, and
                                           implement to reduce costs and /or improve value.

                                   5.3 City-owned Property, Creating value and Reducing Costs
                                      A.7. Enhance and accelerate monetization of the City’s land assets.
                                           Make surplus City-owned land useable and development
                                           ready.
                                      A.8. Expedite approval process and funding to accelerate
                                           development and densification of the Waterfront using 1812
                                           Bicentennial Celebration and 2015 Pan/Para pan American
                                           Games as catalysts to create jobs, attract tourists and increase
                                           assessment.




36 Toronto Prosperity Initiative
   A.9. Strengthen and promote the existing Major Capital
        Infrastructure Coordination Office. Pursue all possible
        avenues, including changes to federal and provincial
        regulations and penalties for violations, to ensure that
        construction activities are coordinated and that all necessary
        work, including work by private utilities (e.g. cable, gas,
        hydro, telephone) is completed as part of a single project.
   A.10. Address health, safety and cleanliness issues to improve
         Toronto’s public spaces and image. A substantive and
         sustained effort is required to improve and maintain the
         appearance of the public realm.

5.4 outreach and Collaboration
   A.11. Mayor Ford and Councillor Michael Thompson, Chair,
         Economic Development Committee, should establish an
         ongoing outreach program to engage the CEOs of Toronto-
         based companies and other civic leaders. Establish an
         ongoing Economic Competitiveness Advisory Committee
         to monitor implementation of the recommendations of
         this report and provide advice to the Chair of the Economic
         Development Committee throughout this term of City
         Council.
   A.12. The Chair of the Economic Development Committee should
         take a lead role in convening representatives from
         surrounding municipalities, business, labour and academia,
         as well as provincial and federal government officials to begin
         development of a regional economic competitiveness strategy
         and implementation plan.




                                                                           Establishing a Path to Growth 37
                                   6.0 summary of suggested Future Initiatives
                                   6.1 labour force Development
                                      B.1. Expand partnerships and enhance programs to stimulate
                                           youth employment, apprenticeships and internships. Consider
                                           the selective use of tax incentives to support business and
                                           development in priority areas.
                                      B.2. Work with other orders of government to expedite recognition
                                           of international credentials and experience, and ensure
                                           immigrants are employed based on their accreditation,
                                           knowledge and skills.
                                      B.3. Work with colleges, universities and other educators to
                                           make Toronto a magnet for young, ambitious international
                                           students.
                                      B.4. Enhance and promote Toronto as a Centre of Excellence for
                                           professional and skilled trades.
                                      B.5. Work with industry to create thought incubators.

                                   6.2 strategic Industry sectors
                                      B.6. Encourage and support development of strategic industry sectors
                                           with goal of establishing world class clusters.
                                      B.7. Reinforce and expand Toronto’s presence as a global investment
                                           management centre.

                                   6.3 non-land City Assets
                                      B.8. Monetize non-property City assets.

                                   6.4 Positioning
                                      B.9. Assess the value of the Toronto brand.
                                      B.10. Pursue stronger fiscal federalism and greater intergovernmental
                                            cooperation.




38 Toronto Prosperity Initiative

				
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