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Boxed Out: OMB Dismisses Big Box Development in Leslieville

Posted by Brady Yauch / March 5, 2009

leslieville big box rejectedThe Ontario Municipal Board has backed the City Council and rejected plans for a massive retail complex in Leslieville. The decision wraps a near five-year fight between the developer Smart!Centres and the city and community developers. A 56-page report from the OMB sided with the city, saying the proposed development didn't provide a positive use for the vacant lands and would likely 'destabilize' the area's employment.

SmartCentres planned to build 700,000 square foot retail complex - rumoured to be anchored by a Wal-Mart - on the piece of land occupied by the Toronto Film Studios on Eastern Avenue between Carlaw Avenue and Leslie Street. Part of the plan would incorporate around 1,800 parking spaces.

The community had other ideas. Locals groups criticized the proposal, saying it would increase traffic in the area, tear apart small business, and create low-wage jobs. In its report, the OMB focused on this last point.

The area in question is designated as an "Employment District". Part of Toronto's official plan calls for maintaining these 'employment districts'. One of the city's policies is to ensure that these districts, "create and sustain well-paid, stable, safe and fulfilling employment opportunities for all Torontonians." Wal-Mart fails on almost every one of these requirements.

But I think the face-off between the community and the developer highlights a major problem facing cities across North America. Mainly, how do city leaders handle the migration of major, 'suburban' retail chains into urban centres? As the housing market continues to cool, and retail operators have largely reached a tipping point in suburban or retail expansion, the next obvious move is to look towards city centres.

Local officials and community activists fear that as major retailers move into our cities, they'll rip apart small businesses, turning our cities into 'suburbities'. They also think the low-page, benefit-less jobs offered by retail giants aren't a viable or healthy alternative to traditional working class employment.

But I think both sides are being a bit short-sighted. On the one hand, the well-off residents in Leslieville can simply get in their cars are drive to the suburbs when they want to bargain hunt at places like Wal-Mart. The poorer residents may not have this option. So, they're stuck in the neighbourhood they may have been living in for more than 10 or 20 years, lacking the consumer opportunities offered to their wealthier neighbours.

It's great that middle and upper class residents don't want to return home from shopping in the suburbs, only to drive by a replica retail complex. But actively taking this opportunity from other, less fortunate residents, doesn't seem like a positive way to build a community. Plus, if a Wal-Mart did open up, how many unemployed workers would be lining up to hand in their CV?

But those in favour of the complex have to concede that the jobs being offered by places like Wal-Mart and Home Depot are low-quality. Filling your cities with massive retail complexes while watching corporate headquarters relocate to the suburbs is hardly considered good planning. Small businesses also employ thousands of residents in the city. Allowing corporate behemoths to come in and price out local shopkeepers will destroy the vibrancy of a city.

City officials and community activists may have won this case, but they would be silly to think the war is over. Like it or not, corporate retailers are going to continue with their quest to expand their operations in cities across the country. Finding a way to incorporate them into the fabric of city life is going to be a major challenge for both city officials and developers. But it's one they're going to have to face.

Photo by of blogTO Flickr Pool member archoneus

Discussion

39 Comments

jack / March 5, 2009 at 11:48 am
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this is really a canadian thing..great, enjoy the recession!
Tim / March 5, 2009 at 11:52 am
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THANK GOD.
Beth / March 5, 2009 at 11:55 am
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> this is really a canadian thing..great, enjoy the recession!

The recession is gonna happen whether or not Wal-Mart comes in and destroys my neighbourhood.

> So, they're stuck in the neighbourhood they may have been living in for more than 10 or 20 years, lacking the consumer opportunities offered to their wealthier neighbours.

There's a Zellers and a great dollar store in Gerrard Square Mall.
Jorge / March 5, 2009 at 11:59 am
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And there is already a Walmart up at Warden and Eglinton. So if you really need your cheap crappy merchandise fix go there instead.

Good news to hear about this.
Lauren K / March 5, 2009 at 12:23 pm
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Have been following this story closely since it first started getting press. all I can say to this is A-MEN.
Stan replying to a comment from Jorge / March 5, 2009 at 12:38 pm
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Yes and if you need your highend crap go to yorkville or yorkdale mall. There's nothing in Leslieville don't go its not worth the TTC token
Reality Check / March 5, 2009 at 12:46 pm
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Another pyrrhic victory for City Hall. They drive out jobs with high business taxes and then prevent redevelopment.

I love the juxtaposition of the tired slams on "corporate retailers" while bemoaning the flight of corporate headquarters to the suburbs. What a load of leftist twaddle. Ignoring the fact that no retailer is operating as a sole proprietorship, so they are all "corporate" no matter how small, and that stores will hire residents whether or not they're mom & pop stores, I'd like some actual numbers demonstrating higher salaries at smaller stores and that they provide a net benefit to the city as a whole.

Small retailers are generally worse since they have no economies of scale and must charge much higher prices to customers, reducing the city's overall utility. They are also worse places to work, since they offer minimal opportunities for advancement as the owners are the managers. I celebrate every time an independent retailer goes broke, because it's one less badly run, stocked, serviced and priced store.

It's funny people arguing that we don't need "corporate stores" since anyone who wants to can just drive to their existing locations. What happened to the green public transit advocates? Or are you all only capable of spouting reflexive leftism instead of being able to stick to a coherent plan?
Michelle / March 5, 2009 at 12:57 pm
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I get the threat to local businesses. I get that it wouldn't be a green use of the land. What I don't get is why is creating jobs for under-employed people a problem? There are thousands of "unskilled" people in Toronto in need of jobs. Or is the problem really the calibre of people who might work there, and therefor be seen in the neighbourhood?

I was looking forward to that WalMart as a shopping option. I guess I'll have to continue making semi-quarterly trips to Dufferin Mall.
Brad J. / March 5, 2009 at 12:59 pm
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Love or hate Walmart, a big part of the problem with the proposed development was its design--very suburban, car-oriented and pedestrian-hostile. North of Eastern Avenue is a dense and gentrifying neighbourhood and the suburban SmartCenter model is really out of place, no matter what the retail tennants would have been shilling.

The now cancelled Home Depot foray on Queen West sounds just as bad, but the HD fronted well on the street rather than turning its back on the neighbourhood like SC's proposal.

Also, Leslieville is awesome. QE is the new QW.
o_O / March 5, 2009 at 01:03 pm
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Reality Check, politics aside, retail is not comparable to film/IT/creative industry jobs. I'm not concerned about retail because retail will always find a way to serve a community that can afford to buy. It's the good (skilled, middle class+) jobs that we need to be most concerned about. If the good jobs leave, retail is screwed.
Dan / March 5, 2009 at 01:18 pm
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Film jobs? Can we drop the Hollywood north already? Just becasue they built the studios now we have to find work to fill them?
jack / March 5, 2009 at 01:47 pm
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i sure hope those people in that area are paying more property taxes to maintain their lifestyle..Canadians just love paying more taxes and keep businesses away.. the city needs money to build a better subway system, but they don't want businesses to pay tax.. canadians love space.. but they can't afford the infrastruture to support it..it's just crazy..
whalemart replying to a comment from o_O / March 5, 2009 at 01:51 pm
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Film is the most subsidized industry in Ontario, maybe even in Canada (yes, more than auto or aerospace). Tax credits galore on the production side and lower marginal rates on profits (even lower than the already-discounted small business rate). So what you have is the City, which has systematically driven jobs and investment to the 905, opting to reject a proven investment in an employment district for the promise of a "better" jobs. Even if those jobs materialize (it is going to be fun to watch how long the smartcentre site stays vacant, and I hope the local councillor who lined-up with the anti-Walmart crowd has answers when seeking re-election), the spread between the Wal-Mart wages and the creative-industry type jobs will not be paid by the City's desired employer, but by the tax base.

Leaving aside the wisdom in that choice, if the government wants to subsidize low-income earners, there are a lot more ways to do it than to pick and choose which investments are acceptable in zoned-employment districts.

That Guy replying to a comment from whalemart / March 5, 2009 at 02:35 pm
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I'll call bull on the subsidy. Yes there is a lot of tax breaks for productions. That because it's worth while.
The ammount of money a production spends with local business is mind boggling. It's one of the most profitable, clean industries in ontario. Labour, rentals supplies, it's almost all local.
whalemart replying to a comment from That Guy / March 5, 2009 at 03:03 pm
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"Yes there is a lot of tax breaks for productions. That because it's worth while."

You may think the subsidies are worth it, but that doesn't contradict my point.

And whether they spend locally (and you assume a different enterprise does not) is beside the point. If the goal is to stimulate the local economy, the same effect could be achieved by handing the money directly to them. In any event, its an empirical point that hasn't been measured, so your conjecture isn't very helpful.
Jamie replying to a comment from That Guy / March 5, 2009 at 03:11 pm
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Thats because it WAS worth while its not anymore.

They rape and pillage the area and then thier gone. Its too volitile of an industry, thier pockets aren't nearly deep enough to withstand covergency with the nasdaq.

just south of bloor / March 5, 2009 at 03:20 pm
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I wish there would be a walmart downtown toronto just to have an extra choice ... have you seen the Bay's prices lately? a stupid dish rack/drain board is $80 rediculous
Brad J. replying to a comment from Jamie / March 5, 2009 at 03:41 pm
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"...thier pockets aren't nearly deep enough to withstand covergency with the nasdaq."

I have an MBA and I have no idea what you just tried to say there, Jamie.
jack / March 5, 2009 at 03:45 pm
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it is part of canadian culture to drive over an hour to the suburbs to shop(or use our broken public transit).. so whatever they can save can pay for gas.. plus, we love long line up and spend a long time to do small tasks.. that makes our lives more fulfilling.. having a mega store dt is just too convenient, that just wouldn't be canadian..besides, on monday, we can all tell people in the office that we spent the weekend shopping at mega stores in the suburbs and how exciting that was..paying a premium on things is also a virtue, it keeps the economy going
graham replying to a comment from just south of bloor / March 5, 2009 at 03:54 pm
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If you don't want to pay $80 for a dish-rack, go to Honest Ed's, he's been there all along.

Nobody needs another Wal-mart.
Ryan L. replying to a comment from Reality Check / March 5, 2009 at 04:00 pm
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In the shadow of the looming recession Zellers, another discount department store has laid off thousands of people. News articles made it sound like they were letting people go in their head offices, but what they don't mention is the restructuring happening at store level.

-Hours slashed to barely nothing. Students and other part time workers are now getting as low as a single four hour shift every two weeks.
-<b>Full Time jobs are being phased out</b>. There will be <b>no</b> advancement for people working there. Of a staff of formally 200 (not including the restaurant) where I used to work they've reduced the senior jobs to manager, assistant manager, 4 supervisors (fashion, hardlines, cash, nightshift) and human resources (who technically is the same level as regular workers). Any other senior employees have lost their title and when gone will not be replaced.

Regardless of the wage, nobody can survive when they only get 16 hours a week. How is this better than jobs offered by local businesses? Who cares if you'll never be manager because the current manager is the owner? You'll probably still get paid better as a sales clerk in one of these stores than you'll get as a supervisor at a Zellers or Walmart (Assistant managers at Zellers start at around 28,000 a year)

If you haven't worked retail, then don't make such ridiculous claims that Walmart is a better opportunity than local businesses. If you had, you'd know that is most definitely not the case.
keven replying to a comment from Ryan L. / March 5, 2009 at 04:42 pm
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But how many of those locally run indy shops actually HIRE people? I frequent about a dozen or so in the area in question (Leslieville) and I've yet to see any of them employ anyone outside of the owners/managers.

So in your scenario, 4 hours a week over two weeks is still better than the indy alternative.

This whole issue is mind blowing to me, as far as I'm concerned, these anti-big box peeps have no real argument other then NIMBY. They don't want the existing residents to be a PART of this change or have any stake in it. From a socio-economic standpoint, this is so sad, really. A horrible blow to the lower class of the area, the traditional resident.
Joe / March 5, 2009 at 04:53 pm
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I can see the NIMBYism for smartcentres. it would definately create a traffic nightmare. But WTF was smartcentre thinking? just build their mall south of lakeshore. There's tons of crap land just rotting out there and there's already a CanTire there to set a precedent.

new jobs are better than no jobs.
W. K. Lis / March 5, 2009 at 05:26 pm
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Smar!Centre and their pseudo-second floor, single-use, automobile oriented development is not wanted. A mixed-use (commercial, office, residential), multi-level transit oriented development would have been better, but they keep falling back to serve the automobile.
Ryan L. replying to a comment from keven / March 5, 2009 at 05:36 pm
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The Walmart and Parking Lot on Eglinton and Warden takes up 28 acres. The equivilant acreage applied to Queen West gives you a strip from Spadina to Gladstone. Both sides.

I assure you that the number of stores in that strip employ far more people than a Walmart Supercentre does.

Secondly, the actual retail employment isn't even the biggest issue. With the economy going down the shitter and people losing manufacturing jobs left and right, you think it's a good idea to support a company that is single handedly responsible for about half of that?

"The manufacturing sector and its workers were hardest hit by the growth of Wal-Mart's imports. Wal-Mart's increased trade deficit with China eliminated 133,000 manufacturing jobs, 68% of all jobs lost. Overall, the Wal-Mart trade deficit displaced and 308,100 jobs in 2006. On average, 77 U.S. jobs were eliminated for each one of Wal-Mart's 4,022 U.S. stores in 2006."

You're worried about losing your job in uncertain times, I get it, but probably the dumbest thing you can do at a time like this is spend your money at a place like Walmart just so you can save a couple cents. There is even a term used for the job loses in manufacturing and retail everytime Walmart expands. "The Walmart Effect"
Jamie replying to a comment from Brad J. / March 5, 2009 at 06:10 pm
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My point exactly. Blah Blah Blah. This is one of them there topics, there are two sides everyone has thier points, no ones changing anyones minds so keep talking... OMG an MBA? Does that mean you know it all?
Jamie / March 5, 2009 at 06:36 pm
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No offense to the MBA's just don't know what one is.
Nancy / March 5, 2009 at 09:59 pm
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The lands in question are located a few hundred feet south of the elementary school my children attend. Hundreds of cars per day (or more) would have driven by in very close proximity to the east and west schoolyards on their way to shop. I protested the development on behalf of my kids and their schoolmates.
jack / March 5, 2009 at 10:44 pm
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well, let's see how many mom and pop stores they are going to open now.. I am sure a lot a lot of people will get a job there.. happy now?
Tim / March 6, 2009 at 12:48 am
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I think this decision will become a cornerstone for how the city oversees itself in years to come. That said, there are threats like this right now to the Kodak employment lands in Weston. A Power Centre
developer is proposing a large development there, and it undermines the potential for sustaining employment in a pretty depressed area of the GTA.

I thinks the folks who live in Riverdale, Cabbagetown, the Beach as well as Leslieville should be happy and hopeful.

Shit, we won.

Jack S. replying to a comment from whalemart / March 6, 2009 at 02:47 am
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"Even if those jobs materialize"

Check out the National Post from March 4th - the filmport has already filled up as a result of government help, leading to new jobs. Pesky facts...always getting in the way.
Mark replying to a comment from Tim / March 6, 2009 at 07:20 am
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Tim, just thought I'd let you know that the owner has applied to the city to permit a retail development, but the TTC is also considering putting in an offer to purchase a portion of the site to use as a maintenance facility for the new LRT vehicles that will come with the Transit City plan. The site is close to the proposed Jane and Eglinton LRT lines so it'd be convenient. Not saying it's going to happen, but the TTC is looking into it. It would preserve some industrial jobs on the site, making up for those lost when the Kodak plant closed, but it wouldn't be the entire site.
Sean C / March 6, 2009 at 08:15 am
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"I wish there would be a walmart downtown toronto just to have an extra choice ... have you seen the Bay's prices lately? a stupid dish rack/drain board is $80 rediculous"

I know exactly what you're talking about - there wasn't a Honda dealership in my neighborhood, so I ended up having to buy a Ferrari! How inconvenient!
Jer / March 6, 2009 at 11:08 am
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Hard call. Both sides of this spectrum are probably unsustainable and unliveable environments.
I am not convinced that small retailers that exist in storefronts and little mom&pop shops are great jobs and support this city's tax base on a square footage basis, when compared with other types of development, but they do contribute a certain character and life-affirming benefit in small doses. On the other hand, huge car-dependent developments tend to disintegrate noble less-profit-viable, but truly stimulating environments - like Queen West is currently -- and don't contribute a wealth of great jobs anyway (but in this recession, a job is a job). These Queen West-type areas are financially unsustainable and below-average prop.tax contributing neighborhoods that are practically charity zones where storefronts and apts above are paying way less than the actual value of the property (likely because there is no mortgage and therefore just utilities and prop.taxes are being paid by charitable owners). But they are essential to small-money, big-value enterprises like studios, galleries, int'l dining, low-mid-class boutiquery.
So where is a viable model and how should people live? I propose core-mississauga - around square one., for example. A good selection of high density living and working enviros that support high-education/experience paying jobs. Easy car and ok-but-not-great-and-maybe-improving transit access. Roadways don't get as congested. Walkable? not so much - but walking is 4 months a year only, really. Eventually a bit of street scene at the base of some of the buildings, maybe. The ideal lifestyle: own a car and drive it only when necessary, maybe once a week or less, take transit, and own a property. To do this, you need a good job. Now show some interest in the street, night, and art life of mississauga and the artsy fun communities will come. Mississauga in 15 years will be the ideal mix of a dynamic city and a model urban environment. We just need a bit of 'fill-in' character. Make it and they will come.
DowntownNew / March 6, 2009 at 11:24 am
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I have only been living in the city a few months and have not found it to be this utopia of friendly store-front owners, happy mom&pop clerks, joyous cafe attendants, and other such neighborhood-love-everyone that is so legend. All I see is cliquely little pubs, cafes, and galleries where the orange-haired punk won't even give you the time of day when they are serving lattes/selling clothes/making your dentist appt. Is this better than the smiley 14-year-old at McDonald's or the greeter at Walmart. Downtown friendly vernacular? The stores seem to open at 11 and close at 6 - what is this nonsense? Are the downtown store people only friendly to the regulars, locals, and visible-members-of-their-own-clique.? Are their urban lives such a misery that they can only summon the warmth for a few customers a day? I suppose if you are part of a customer group that keeps to itself, doesn't talk to the locals, and simply 'frequents' the interesting joints, things will be ok? Is this the reason we want to keep these neighborhoods intact - charity and pity? I would say the average suburbanite is an emotionally healthier and personable creature than almost all downtown people - to me a measure of success of a person. I think that these downtown neighborhoods are a breeding ground of cliques, malcontents, and complainers (a canadian passtime to be sure - i'm certainly a member now and again). I just wish that I knew what all the fuss was about. Walking distance to a starbucks and some night event and some understaffed book store - is that a lifestyle worth aspiring to?) Some people say that these downtowns are more sustainable - how? these old houses and stores leak heat and a/c like a sieve. Infrastructure is a disaster. People always complain about utility bills. Suburbia may be destroying the planet - but downtown is destroying the human psyche.
s of bloor replying to a comment from graham / March 6, 2009 at 02:17 pm
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honest eds is just a dollar store
he started the concept ... all the stuff there is crap
you can shop there if you like go ahead
whalemart replying to a comment from Jack S. / March 6, 2009 at 03:12 pm
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I guess your reading comprehension is poor, as that was exactly what I said. A choice between private sector job creation and jobs bought with tax dollars. You are free to disagree, but I can't fathom a justification why the film industry is essentially run as an arm's length crown corp.
eagle3 / March 7, 2009 at 10:00 pm
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Wow, thats a surprise! The OMB finally made an intelligent decision, their history sides with developers most of the time.
wha? / March 8, 2009 at 01:52 pm
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The OMB got something right!!!

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