Wood Bull has extensive experience in assisting our clients in negotiating services and agreements in accordance with Section 37. We have an extensive database of section 37 agreements. While many urban planners and city councillors defend it as a valuable tool, several criticisms have been made inside and outside the town hall. The purpose of the section of the act is to compensate for the problems posed by changes in a neighbourhood when several types of developments are added, for example. B in order to compensate for the increase in traffic, the population or changes in the image of the road that lead to new developments. The weakest point in the case of Article 37 as a planning instrument is affordable housing, one of the city`s most pressing problems. As luxury condominiums grow downtown, people in Toronto are being pushed to the inner suburbs. Second, there is already a city-wide pool of money in which developers deposit. They are called development royalties and are one of the limited ways Ontario municipalities raise funds.1 Creating a system that is almost, but not entirely different from, development royalties could be seen as an attempt to circumvent the law. This is one of the reasons why the achievements of section 37 must be specific to the station.2 The main criticism is that its effectiveness depends heavily on the competence and creativity of the city council. At regular intervals, some suggest pooling all the money and spreading it across the city, which is a terrible idea. The fact is that in relation to Toronto`s larger budgetary needs, the Division 37 agreements simply do not make as much money.
According to this 2014 report [PDF], Division 37 has brought in $309 million in cash benefits since the merger. There are also important "benefits in kind", such as heritage preservation, that are difficult to assess with a dollar value, but this report [PDF] has them for about half the value of cash contributions. This would mean that, last year only [PDF], the municipal tax on land transfers brought in about as much as Article 37 in 18 years. Not quite the "mayor`s legacy" of money. Maybe just money from the Council. Section 37 of the Planning Act allows the city to allow height and/or density increases permitted by the area by-law in exchange for community benefits, provided that appropriate guidelines are in place for the official plan (section 5.1.1 of the official plan as well as certain territory-specific guidelines). . .