The City of Toronto is aiming to streamline the process of opening small businesses in residential neighborhoods through proposed zoning bylaw changes. These changes seek to address the decline of retail and service establishments in neighborhoods over the past few decades.
Approximately 35% of Toronto’s land is designated as neighborhoods, and the proposed changes would allow businesses up to 1600 square feet on major streets zoned as residential, and up to 1200 square feet within neighborhoods. Additionally, individuals could run specific businesses from their homes, apartments, garages, or sheds, with the possibility of hiring up to two employees.
Michael Noble, manager of strategic initiatives in city planning, highlighted the importance of providing essential services within walking distance as the city experiences growth and new residential developments. These changes are also intended to support the evolving needs of neighborhoods where more people are working or operating businesses from home.
Local residents’ associations have expressed varying views on the proposed changes. The Vaughan Road Tenants Association supports the idea, seeing it as an opportunity to enhance neighborhoods with diverse businesses. However, the Northcliffe Village Residents Association has raised concerns about safety, potential traffic congestion, and the impact on housing availability.
In response to concerns about potentially problematic businesses like those serving alcohol, the city is considering restrictions such as allowing only takeout for certain establishments.
Public consultations are ongoing through virtual meetings, an online survey, and in-person events across the city to gather feedback from residents. The city aims to finalize the zoning changes by early 2026, pending the necessary approval processes.