Policy Recommendation

Improving the
Efficiency of BIA
Capabilities

Photo by Ultima Gainia

 A Framework for Better Business Outcomes

Executive Summary

The construction of the Ontario Line, a critical infrastructure development in

downtown Toronto, is significantly impacting local businesses and communities within

Business Improvement Areas (BIAs). These impacts include altered visual landscapes,

decreased accessibility to businesses, and reduced comfort for both customers and

renters in the region, directly undermining business operations and community well-being.

Despite existing legislative measures enabling BIAs to oversee area maintenance and

improvement, the intensified scale of disruption caused by the Ontario Line construction

demands enhanced support from the City of Toronto.

Proposed Policy Amendments

To address these challenges, we propose targeted amendments to Toronto’s Municipal

Code Chapter 19, specifically focusing on enhancing support for BIAs during city-led

construction projects. These amendments include:

1. Changing defining roles of the city and BIAs during construction.

2. Introducing flexible repayment terms for funds borrowed by BIAs.

Objectives and Expected Outcomes

The proposed policy amendments aim to provides BIAs with the necessary financial

flexibility to navigate the impacts of construction projects. By doing so, the City of Toronto

can ensure that BIAs remain vibrant, contributing positively to the local business

ecosystem and community well-being during and after the construction of the Ontario line.
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Description of the Problem

The ongoing infrastructure changes in downtown Toronto (specifically the

construction of the Ontario Line) have significantly impacted local businesses and

communities – altering the visual landscape and causing challenges such as restricted

accessibility and comfortability within these areas. These issues directly affect business

opportunities and community well-being – with construction activities deterring customers

and hindering economic viability. The existing maintenance resources make the problem

worse – creating unsanitary environments and diminishing quality of life. While legislation

exists for BIA boards to oversee improvement and maintenance of these areas – current

circumstances demand additional support from the city – especially with the intensified

challenges brought by the construction of the new Ontario Line. It is imperative for the city

to implement policies and allocate resources to address these immediate needs –

assisting in the maintenance and beautification of Business Improvement Areas to mitigate

the negative impacts and ensure the resilience and vitality of downtown Toronto.

Overview of Research

The research emphasizes the vital role of Business Improvement Areas (BIAs) in

urban vitality (Meadows & Low, 2017) – as is known with the City of Toronto. Studies

highlight the importance of financial resilience strategies (Field & Pande, 2008; NASDAQ

OMX, 2021) – such as extended loan repayment terms. These strategies could be utilized by

the city to rethink loan terms BIAs rather than specific businesses. Along with many
 A Framework for Better Business Outcomes

beneficial functions that BIAs carry-out, the ability to give these innovative urban centers

tools to thrive amidst urban transformation is vital. Budget review for general knowledge in

this policy has been taken from the Uptown Yonge BIA. Collectively, these support the need

for targeted municipal policy adjustments to bolster BIA resilience and business

sustainability.

Current Legislation

Current legislation – similar to our recommendations – addresses the impacts of

construction on businesses; the typical focus being on individual entities, with each city

employing a system of grants, advisory services, and additional financial services. In

Toronto, existing infrastructure is in place to aid this type of process. Similarly, various

cities in Ontario with many infrastructure projects – like Vaughan – implement specialized

government supports and grants. The intended purpose of these grants and services are to

empower businesses to make massive changes without having the massive added risk of

construction projects that are ongoing around them. They can flexibly make changes to

their storefront, create innovative new methods of drawing in customers, or just maintain

business long enough for the massive shock of construction to fade away. These are meant

to be similar ideas to the recommendations but for BIAs – providing a holistic approach to

the problem that can have larger overall benefits.

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Recommendation

The proposed recommendations center on enhancing Toronto Municipal Code

Chapter 19 to better support Business Improvement Areas (BIAs) in mitigating the adverse

impacts of city-led construction projects by recognizing and defining further the role of the

city when these organizations undergo significant stress. These amendments aim to

bolster the City of Toronto’s commitment to fostering community improvements through a

holistic approach of the BIAs, acknowledging the broader impact of BIAs on regional

beautification and community well-being beyond individual business motives.

Proposed Amendment to Municipal Code: ARTICLE 2

§ 19-2.1. Purpose of a business improvement area board (Amend):

1. Shifting Complete Responsibility of Beautification Funding from BIAs to the City

It is advised that the city assumes greater financial responsibility for funding

beautification projects within Business Improvement Areas. Such projects, while

representing a smaller portion of Business Improvement Area budgets, are crucial

for streetscape enhancements – leading to overall foot traffic to businesses by

individuals. By eliminating city loan payments and assuming associated risks, the

city can facilitate smoother implementation of streetscape enhancements without

placing undue financial stress on local businesses.

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Proposed Amendment to Municipal Code: ARTICLE 5 & 6

§ 19-5.6 Debts to city (Amend) & § 19-6.1 Borrowings (Amend):

1. Borrowing Changes Regarding Construction Impacts

It is advised to revise the repayment schedule for funds borrowed for construction

projects affecting BIAs, extending the support period to accommodate prolonged

construction impacts. This adjustment aims to provide BIAs with resources and

flexibility to manage challenges effectively without compromising their basic functions

during construction-related decreases in foot traffic and budget funds. Flexible

repayment terms benefit fiscally responsible entities like BIAs, particularly during times

of significant stress. This amendment seeks to alleviate financial pressures on BIAs,

allowing funds to be redirected.

These simple amendments aim to provide BIAs with the necessary financial resources

and flexibility to effectively navigate and mitigate the visual and functional impacts of

construction projects. By implementing flexible repayment terms, incorporating graces

periods during high-intensity construction, and taking on greater beautification

responsibility, the City of Toronto seeks to ensure that BIAs can maintain their operations

and contribute to the local business ecosystem while managing the challenges posed by

construction activities. Ultimately, these measures are designed to benefit both the BIAs

and broader community of businesses by promoting resilience and sustainability in the

face of urban development.

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Appendices and Sources

Andres, L., & Zhang, A. Y. (2020). Activated Alleyways: Mobilising Clean and Safe Dwelling

in Business Improvement Areas. In Transforming Cities Through Temporary

Urbanism (pp. 155–169). Springer International Publishing AG.

https://doi.org/10.1007/978-3-030-61753-0_11

City of Toronto. (2024, February 14). Construction mitigation strategies retailer guide.

https://www.toronto.ca/business-economy/business-operation-growth/construction-

mitigation/construction-mitigation-strategies-retailer-guide/

Construction support for small businesses. Vaughan Economic Development. (n.d.).

https://vaughanbusiness.ca/constructionsupport/

Field, E., & Pande, R. (2008). REPAYMENT FREQUENCY AND DEFAULT IN MICROFINANCE:

EVIDENCE FROM INDIA. Journal of the European Economic Association, 6(2–3), 501–509.

https://doi.org/10.1162/JEEA.2008.6.2-3.501

Insights on the Financial Wellness Benefits US Market to 2026 - COVID-19 has Driven Wellness

Benefits Such as Futuristic Planning, Flexible Pay, and Loan Repayment Schemes.

(2021). In NASDAQ OMX’s News Release Distribution Channel. NASDAQ OMX Corporate

Solutions, Inc.
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Leal Filho, Walter., Azul, A. Marisa., Brandli, Luciana., Özuyar, P. Gökcin., & Wall, Tony. (Eds.).

(2020). Sustainable Cities and Communities (1st ed. 2020.). Springer International

Publishing. https://doi.org/10.1007/978-3-319-95717-3

Meadows, P., & Low, D. (2017). Everyone’s Business - How a Business Improvement Area

Contributes to the Public Realm ( breakout presentation ). Journal of Transport &

Health, 7, S39–S40. https://doi.org/10.1016/j.jth.2017.11.065

Member information. UPtown Yonge BIA. (n.d.). https://www.uptownyonge.com/about-

us/member-information/