The Importance of Collaborative Investment in Downtown Toronto

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Our Situation in 2025

Downtown Toronto faces shifting global dynamics. The DTBIAA is working to ensure urgent issues are addressed, competitiveness is protected, and opportunities for renewal are realized through coordinated leadership and strategic investment.

DOWNTOWN TORONTO’S COMPETITIVENESS IS CRITICAL TO THE ECONOMY

A recent economic analysis of downtown Toronto by researchers at York University and Toronto Metropolitan University1 illustrates the importance of downtown Toronto as a key economic contributor for Toronto, Ontario and Canada.

However, Toronto’s Global Financial Centres Rank has dropped from #7 to #23 since 2019.

As Canada confronts geopolitical challenges and the risk of a potential recession, there is no area more important to our long-term success and economic competitiveness.

CRITICAL ISSUES NEED URGENT SOLUTIONS

Collaboration and cooperation between governments, BIAs, and the business community are required to maintain the vibrancy of downtown Toronto. Post-pandemic, several challenges continue to beset downtown including:

  • Hybrid work

  • High office vacancy rates

  • Continuing challenges to small businesses

  • Lack of efficient, safe and reliable public transit

  • Congestion

  • Declining tourism

  • Housing inventory and cost

  • Homelessness

  • Mental health and addiction issues

  • A deteriorating public realm

UNCERTAINTY CREATES OPPORTUNITIES

Economic uncertainty creates an opportunity for all levels of government to reinvest in the future of Canada’s economy. As the country, province and city face these new challenges, governments must protect and invest in our future.

Downtown Toronto requires support for renewed investment and growth from municipal, provincial and federal government.

Downtown Toronto: Economic Importance, Challenges and Actions to Revitalize by Jim Clayton, York University, and Frank Clayton, Toronto Metropolitan University, 2025.

Key Metrics

Employees working in the office.

Convention centre activity, hotel occupancy, and international visitors.

Transit ridership.

Perception of safety on TTC.

Offences on TTC against customers.

Actively homeless persons.

Office vacancy.

Principles for Downtown Growth

Through coordinated advocacy, the DTBIAA champions these shared principles—driving investment, improving access, enhancing public spaces, and strengthening the city’s visitor economy.

  • REQUESTS FOR MUNICIPAL GOVERNMENT:

    • Utilize data to anticipate and enforce improved downtown cleanliness and safety standards.

    • Continued and expanded support around homelessness programs (e.g., encampment response, HART Hubs, mental health support, etc.).

    • Increase public realm, maintenance, events, and placemaking investments, including expansion of 50/50 cost-share program with City and other grant collaborations.

    REQUESTS FOR PROVINCIAL GOVERNMENT:

    • Increase support for Homelessness and Addiction Recovery Treatment (HART) Hubs.

    • Increase support to build more supportive and affordable housing.

    • Increase provincial investment to address Toronto’s homelessness crisis.

    REQUESTS FOR FEDERAL GOVERNMENT:

    • Increase funding and support for homelessness, refugee, mental health and addiction programs.

    • Address the need for bail reform through the Criminal Code of Canada.

  • REQUESTS FOR MUNICIPAL GOVERNMENT:

    • Review opportunities to reduce tax, regulatory and policy burdens to spur additional investments in commercial real estate; housing; professional, financial and technology businesses; and small businesses.

    • Continue reductions to the commercial to residential tax ratio to achieve provincial target of 1.98:1.

    REQUESTS FOR PROVINCIAL GOVERNMENT:

    • Support future New Deal options to permanently stabilize Toronto’s financial situation.

    • Increase infrastructure, public realm, and placemaking investments.

    • Complete MPAC reassessments.

    REQUESTS FOR FEDERAL GOVERNMENT:

    • Allocate a portion of GST and/or federal gas tax collected in Toronto to the City of Toronto.

    • Increase investment in federal housing programs.

    • Continue investment in infrastructure funding grants.

  • REQUESTS FOR MUNICIPAL GOVERNMENT:

    • Increase TTC ridership by investing in addressing safety, cleanliness, and reliability concerns, and expanding service to accommodate need.

    • Continue infrastructure investments to expand public and marine transit.

    • Increase investment in congestion mitigation measures, such as smart technologies.

    REQUESTS FOR PROVINCIAL GOVERNMENT:

    • Continue OneFare program to reduce commuting costs and encourage regional visitors to come downtown.

    • Expand investment in critical Toronto transit infrastructure priorities, including the Waterfront East LRT and marine transit.

    REQUESTS FOR FEDERAL GOVERNMENT:

    • Increase Permanent Transit Fund and allocate funding to critical transit infrastructure investment in Toronto, including the Waterfront LRT and marine transit.

    • Invest in municipal programs that implement technology to reduce congestion and improve access.

  • REQUESTS FOR MUNICIPAL GOVERNMENT:

    • Increase the police budget to support events, demonstrations, and a concentration of regional residents working downtown, including physical presence of officers on sidewalks, public spaces, events.

    • Invest in the expansion of the Metro Toronto Convention Centre to ensure Toronto is equipped to attract significant international convention business.

    • Ensure additional FIFA MAT tax sunsets on July 31, 2026 as planned.

    REQUESTS FOR PROVINCIAL GOVERNMENT:

    • Support expansion of the Toronto Police Services budget for extraordinary interventions.

    • Implement provincial vacation tax breaks for downtown Toronto.

    REQUESTS FOR FEDERAL GOVERNMENT:

    • Create visitor economy and destination experience grant program to attract visitors and drive economic activity.

    • Support expanded safety and policing budgets for extraordinary interventions like FIFA.