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May 1, 2009
City responds to the development industry during economic recession
  
The City of Toronto is responding to the difficulties developers are facing in the current economic recession. In order to support significant development projects and encourage new ones, the City is reducing or eliminating certain Letters of Credit to ease credit pressures.

“Developers told us they needed the City’s help in moving forward with major projects across the city and we have listened and taken action,” said Mayor David Miller. “Reducing the up front financing required for developments can easily be managed by the City and is a key step in stimulating the economy and supporting job creation in Toronto.”

A letter of credit is a document issued by a financial institution that guarantees a development will be built to the City’s requirements. The City is now prepared to reduce or eliminate letters of credit on an interim basis in three key areas:

- For on-site landscaping projects, the letter of credit will be will be reduced from 120 per cent to 75 per cent
- For construction of municipal infrastructure in a subdivision, the letter of credit will be reduced from 100 per cent to 65 per cent, and
- For conditional building permits, the letter of credit has been eliminated.

“The City works closely with developers to facilitate project approvals, and reducing the levels of credit they require is another means of addressing their cash flow concerns,” said Chief Planner and Executive Director of Planning Gary Wright.

"Eliminating the need for financial security when a conditional permit is being issued allows construction to begin earlier and removes barriers to development proceeding," said Chief Building Official Ann Borooah.

Toronto is Canada's largest city and sixth largest government, and home to a diverse population of about 2.6 million people. It is the economic engine of Canada and one of the greenest and most creative cities in North America. Toronto has won numerous awards for quality, innovation and efficiency in delivering public services. 2009 marks the 175th anniversary of Toronto's incorporation as a city. Toronto's government is dedicated to prosperity, opportunity and liveability for all its residents.

Media contacts:
Gary Wright, Chief Planner, 416-392-8772, gwright@toronto.ca
Bill Crowther, Executive Director, Technical Services, 416-392-8256, wcrowth@toronto.ca
Ann Borooah, Chief Building Official, 416-397-4446, aborooa@toronto.ca





 

 

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