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YORKDALE SHOPPING CENTRE – ECONOMIC IMPACT ANALYSIS, TORONTO, ONTARIO

PREPARED FOR OXFORD PROPERTIES GROUP

August 22, 2017

Yorkdale Shopping Centre – Economic Impact Analysis, Toronto, Ontario

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August 22, 2017

Leah Cooke

Planner, Urban Strategies

c/o

Farrah D’Souza

Manager, Development

Oxford Properties Group

200 Bay Street, Suite 900

Toronto, ON

M5J 2J2

Dear Ms. D’Souza:

RE: Yorkdale Shopping Centre – Economic Impact Analysis, Toronto, Ontario

urbanMetrics inc. (‘urbanMetrics’) is pleased to submit the Yorkdale Shopping Centre Future Expansion –

Economic Impact Analysis.

The purpose of this study is to provide an independent analysis of the economic impacts generated by

one of Canada’s signature retail properties, Yorkdale Shopping Centre (‘Yorkdale’). This study has been

prepared in advance of a forthcoming planning application being prepared by Urban Strategies, on behalf

of the owners of Yorkdale.

urbanMetrics has been asked to prepare an assessment and quantification of Yorkdale’s economic role

and position in the Toronto market expressed in terms of total employment, sales performance, property

tax revenue and other economic impacts.

The findings and conclusions contained herein represent our best professional estimates of current and

future conditions. Accordingly, the findings, conclusions and recommendations should be reviewed and

interpreted as such (i.e. best estimates). We appreciate the opportunity to conduct this work on your

behalf. We look forward to discussing the results of our report with you.

Yours truly,

urbanMetrics inc.

Peter Thoma, MCIP, RPP, PLE

Partner


TABLE OF CONTENTS

Introduction ......................................................................................................................................................... 2

1.1 Objectives ....................................................................................................................................... 2

1.2 Assumptions ................................................................................................................................... 3

Yorkdale Trade Area ........................................................................................................................................... 4

2.1 Trade Area Population .................................................................................................................... 5

2.2 Trade Area Income ......................................................................................................................... 7

Market Trends ...................................................................................................................................................... 8

3.1 Influx of International Retailers ....................................................................................................... 8

3.2 E-commerce & Omni-Channel Retailing......................................................................................... 9

3.3 Emphasis on Experiential Retailing .............................................................................................. 10

3.3.1 Individual Retailers .................................................................................................................. 10

3.3.2 Shopping Centres.................................................................................................................... 10

3.4 Intensification & Mixed-Use Development .................................................................................... 11

3.5 Conclusion .................................................................................................................................... 11

Yorkdale Existing Operations .......................................................................................................................... 13

4.1 Current & Historical Retail Sales .................................................................................................. 14

4.2 Existing Property Tax Revenue .................................................................................................... 14

4.3 Existing Employment Generation ................................................................................................. 15

4.3.1 Economic Driver for Surrounding Area ................................................................................... 16

4.4 Comparison to Other Canadian Shopping Centres ...................................................................... 18

Yorkdale Future Expansion (Full Build-Out) ................................................................................................... 20

5.1 One-Time Economic Impacts ....................................................................................................... 21

5.2 City of Toronto Charges and Fees ............................................................................................... 23

5.3 Recurring Economic Benefits from New Operations .................................................................... 24

5.3.1 Additional Employment Generation......................................................................................... 25

5.3.2 Personal Income Tax Revenue ............................................................................................... 26

5.3.3 Corporate Income Tax Revenue ............................................................................................. 26

5.3.4 Additional Property Tax Revenue ........................................................................................... 27

5.4 Additional Retail Sales .................................................................................................................. 27

Overall Employment Comparison .................................................................................................................... 28

Summary ............................................................................................................................................................ 30

Appendix A – Customer Distribution ....................................................................................................................... 31

Appendix B – Overview of Inputs & Assumptions .................................................................................................. 33

Appendix C – Detailed Economic Impact Model ..................................................................................................... 40

Appendix D – One-Time Impacts Background Calculations .................................................................................. 46


LIST OF FIGURES

Figure 2-1: Yorkdale Shopping Centre Trade Area ........................................................................................................ 5 Figure 2-2: Yorkdale Trade Area Historical & Projected Population 2001 – 2026 .......................................................... 6 Figure 2-3: Yorkdale Trade Area Income Compared to Province.................................................................................. 7 Figure 4-1: Existing Retail Space at Yorkdale .............................................................................................................. 13 Figure 4-2: Yorkdale Historical Sales Per Square Foot ................................................................................................ 14 Figure 4-3: Annual Property Tax Revenue Generated by Existing Operations at Yorkdale ......................................... 15 Figure 4-4: Number of Establishments & Employment at Yorkdale.............................................................................. 15 Figure 4-5: Employment & Establishments at Yorkdale as a Percentage of Dufferin Street Secondary Plan Area ..... 17 Figure 4-6: Sales Per Square Foot at Top 10 Most Productive Canadian Shopping Centres ...................................... 18 Figure 4-7: Annual Visitors at Major Tourist Attractions in Toronto & Surrounding Area .............................................. 18 Figure 4-8: Annual Visitors at Top 10 Most Productive Canadian Shopping Centres .................................................. 19 Figure 4-9: Estimated Employment at Top 10 Most Productive Canadian Shopping Centres ..................................... 19 Figure 5-1: Option 2 – Proposed Yorkdale Development Concept at Full Build-Out .................................................... 20 Figure 5-2: Initial Capital Investment & Assessment Value .......................................................................................... 21 Figure 5-3: One-Time Economic Impacts – Construction ............................................................................................. 22 Figure 5-4: Summary of City of Toronto One-Time Charges & Fees ........................................................................... 23 Figure 5-5: Recurring Economic Impacts ..................................................................................................................... 24 Figure 5-6: Employment Generated by Future Expansion at Yorkdale ........................................................................ 25 Figure 5-7 Personal Income Tax Revenue Generated by Future Expansion at Yorkdale ............................................ 26 Figure 5-8: Corporate Income Tax Revenue Generated by Future Expansion at Yorkdale ......................................... 26 Figure 5-9: Annual Property Tax Revenue Generated by Future Expansion at Yorkdale ............................................ 27 Figure 5-10: Estimated Sales Generated by Additional Future CRU Tenants .............................................................. 27 Figure 6-1: Yorkdale Employment Compared to City of Toronto Employment Areas & Urban Growth Centres .......... 28 Figure 6-2: Yorkdale Employment Compared to City of Toronto Secondary Plan Areas ............................................. 29


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Introduction

urbanMetrics has been retained by Oxford Properties Group (‘Oxford’) to evaluate the economic impact

related to the future build-out of Yorkdale Shopping Centre, an incremental process which is expected to

occur over a 25+ year horizon. This study has been undertaken in support of a forthcoming planning

application to the City of Toronto. The purpose of this study is to provide input for the Dufferin Street

Secondary Plan, which examines the potential built form and mixed land use structure along Dufferin

Street between Highway 401 and Lawrence Avenue West, an area that includes Yorkdale Shopping

Centre.

Our economic impact analysis for the existing and future operations at Yorkdale has evaluated the

following:

EXISTING OPERATIONS

Current & Historic Retail Sales

Existing Property Tax Revenue

Existing Employment Generation

Current Function as an Economic Driver

Comparison to Other Canadian Shopping

Centres

FUTURE EXPANSION

One-Time Economic Benefits from New

Construction

Recurring Economic Benefits from New

Construction

Our evaluation of Yorkdale’s economic impact has also considered the population and income levels of

residents within the Trade Area served by Yorkdale, as well as market trends influencing Yorkdale and

the Canadian shopping centre industry in general.

1.1 OBJECTIVES

The primary objectives of this study are as follows:

To provide an informed, independent market assessment of the economic impacts of Yorkdale

today, and following the planned future expansion;

To identify the size and composition of the Trade Area from which Yorkdale derives the majority

of its sales volume and customer support;

To quantify the full-range of employment generated by Yorkdale, including retail and non-retail

jobs, as well as a variety of part-time and full-time positions;

To measure and evaluate Yorkdale’s role as an economic engine for the entire Dufferin Street

Secondary Plan Area; and

To validate the economic impacts of Yorkdale based on data from Statistics Canada, the City of

Toronto, Oxford Properties and other official sources.


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1.2 ASSUMPTIONS

There are a number of basic and underlying assumptions on which the validity of the findings presented

in this report depend. Based on our considerable and long-term experience in the retail development

planning process, we recognize and appreciate the problems associated with making broad and

generalized assumptions about future conditions. Undoubtedly, deviations from historic and current

trends will take place in the future. However, basic assumptions are required regarding the possible

extent of such deviations.

These basic assumptions are as follows:

During the forecast period discussed in this report, we have assumed that a reasonable degree of

economic stability will prevail in the Province of Ontario, and specifically in the City of Toronto and

Greater Toronto Area markets.

The analysis presented in this report relates exclusively to the new development planned for the

subject site and does not consider whether a similar amount of development could ultimately

occur elsewhere in Toronto. Unless specifically indicated otherwise, all references to the

Canadian dollar in this report – dealing with present and future periods – reflect its current value.

We have not considered any specific project phasing in our analysis, nor the effects of inflation,

tax rates, etc., among other factors that may prevail over the longer-term planning horizon. This

is a relatively conservative assumption in our opinion, as these rates are generally likely to

increase over time, if anything.

The official statistics and figures referenced in this report (based primarily on Statistics Canada,

Environics Analytics, MPAC, RealNet, City of Toronto and other data sources which have been

footnoted where utilized) are considered sufficiently accurate for the purposes of this analysis.

We have also relied on detailed development concept and project financial information obtained

directly from Oxford Properties Group, which are assumed to be sufficiently accurate/detailed, as

well as representative of the actual type and scale of development that will ultimately occur on the

site.

Unless specifically indicated otherwise, all employment figures referenced throughout this

document represent the total full-time, full-year jobs generated by Yorkdale (i.e. FTE/full-time

equivalents). These employment figures represent total years of full-time employment (e.g. one

job identified represents the equivalent to one person working full-time for the duration of one

year).

If, for any reason, major changes occur that could influence the basic assumptions and other information

stated above, the findings contained in this report should be reviewed in light of such changed conditions

and revised, if necessary.


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Yorkdale Trade Area

As a super-regional shopping centre, Yorkdale draws customers from across the entire Greater

Toronto Area. The ICSC defines a super-regional Canadian shopping centres as comparison-based

centres with a gross leasable area over 800,000 square feet, which features an extensive assortment of

retailers, including a variety of anchors and/or destination retailers and a more comprehensive mix of

entertainment and dining facilities1. Super-regional malls are commonly located along highways and/or

public transit routes, and serve trade areas that extend between 10 and 30 kilometres2.

The area from which a retail facility, or a group of retail facilities, draws the majority (i.e. 70 – 80 %) of its

customer support is defined as its trade area. The geographic extent of a trade area is influenced by a

number of factors, including:

Tenant composition and size of the proposed development;

Market influence of competitive retail facilities;

Distance, travel times and commuting patterns;

Accessibility and visibility from the local and regional road network; and,

Natural and man-made barriers, such as major highways, railway lines, lakes and rivers, which

may inhibit or restrict the ease of movement for potential customers.

In addition to the factors noted above, previous customer intercept research undertaken by Oxford in

2009, 2011 and 2013 has helped guide and define the geographic delineation of the Yorkdale Trade

Area. Historical customer intercept data from Oxford confirms that Yorkdale routinely draws customers

from across the entire Greater Toronto Area, as illustrated in Appendix A. Notably, Yorkdale also draws

a significant number of customers from outside of the defined Trade Area, including tourists, day-trippers

and motorists passing through the Greater Toronto Area. The Trade Area from which Yorkdale attracts

the majority of its customers has been illustrated in Figure 2-1.

1 International Council of Shopping Centres. (2010). Canadian Real Estate Standard: A Framework for Shopping Centre and Other Retail Format Definitions. Retrieved from http://www.icsc.org/uploads/research/general/Canadian-Shopping-Centre-Definitions.pdf. 2 Ibid.

http://www.icsc.org/uploads/research/general/Canadian-Shopping-Centre-Definitions.pdf


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Figure 2-1: Yorkdale Shopping Centre Trade Area

SOURCE: urbanMetrics inc.

2.1 TRADE AREA POPULATION

The historical Trade Area population has been calculated based on Statistics Canada Census data,

adjusted for net undercoverage and the future population has been estimated based on Environics

CensusPlus forecasts.

Figure 2-2 details the historical, current and projected population for the Yorkdale Trade Area. The total

Trade Area population for Yorkdale was estimated at 2.8 million as of 2016. During the next 10 years

alone, the total Trade Area population for Yorkdale is expected to increase by over 250,000

residents; increasing to approximately 3.1 million. To put this growth in context, 250,000 new

residents would be equivalent to adding more than the entire population of the City of Kitchener. The

level of population growth forecast in the Trade Area will undoubtedly warrant additional retail and service

commercial space in order to ensure that local residents have access to an adequate supply of

commercial space.

About 35% of the population growth in the Yorkdale Trade Area is expected to occur within the Primary

Trade Area. This population growth is expected to occur largely through intensification. Within the

Secondary Trade Area, 22% of the total Yorkdale Trade Area population growth is forecast to occur in the

STA North, 12% in the STA East, 25% in the STA South, and 7% in the STA West.


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Figure 2-2: Yorkdale Trade Area Historical & Projected Population 2001 – 2026

SOURCE: urbanMetrics inc. 1) The years 2001,2006 and 2011 have been based on Statistics Canada, Census of Canada, adjusted for net undercoverage. Forecast years are based on Environics data. All figures have been rounded to the nearest thousand.

2001 2006 2011 2016 2021 2026

PRIMARY TRADE AREA

Population 1,206,000 1,163,000 1,194,000 1,246,000 1,292,000 1,342,000

Average Annual Growth -8,600 6,200 10,400 9,200 10,000

Average Annual Growth -0.7% 0.5% 0.9% 0.7% 0.8%

Secondary Trade Area - North (York Region)

Population 295,000 368,000 421,000 457,000 490,000 518,000

Average Annual Growth 14,600 10,600 7,200 6,600 5,600

Average Annual Growth 4.9% 2.9% 1.7% 1.4% 1.1%

Secondary Trade Area - East

Population 491,000 460,000 467,000 483,000 498,000 515,000



Secondary Trade Area - South

Population 337,000 334,000 372,000 414,000 450,000 483,000

Average Annual Growth -600 7,600 8,400 7,200 6,600


Secondary Trade Area - West

Population 188,000 181,000 189,000 201,000 211,000 221,000

Periodic Growth -1,400 1,600 2,400 2,000 2,000


SECONDARY TRADE AREA

Population 1,311,000 1,343,000 1,449,000 1,555,000 1,649,000 1,737,000

Average Annual Growth 6,400 21,200 21,200 18,800 17,600

Average Annual Growth 0.5% 1.6% 1.5% 1.2% 1.1%

TOTAL TRADE AREA

Population 2,517,000 2,506,000 2,643,000 2,801,000 2,941,000 3,079,000




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2.2 TRADE AREA INCOME

Based on Environics CensusPlus data, Figure 2-3 summarizes the household and corresponding per

capita income levels for the Yorkdale Trade Area in relation to Ontario. The average per capita income

level for the Yorkdale Primary Trade Area is 10% above the Provincial average. With the exception

of the STA North the average per capita income level for the entire Secondary Trade Area exceeds the

average for Ontario. The high per capita income levels within the Trade Area mean that there is greater

opportunity for the development of retail and service commercial space.

Figure 2-3: Yorkdale Trade Area Income Compared to Province

SOURCE: urbanMetrics inc. 1) Household income and persons per unit factors for 2016 are based on Environics data.

2016 Average

Per Capita

Income Index to Province

2016 Average

Household

Income

Index to

Province

2016 Average

Household Size

PTA $43,191 109.8 $109,272 108.5 2.53

STA North $38,860 98.8 $122,021 121.2 3.14

STA East $40,536 103.1 $98,098 97.4 2.42

STA South $61,809 157.2 $113,110 112.3 1.83

STA West $50,027 127.2 $113,562 112.8 2.27

PROVINCE OF ONTARIO $39,330 100.0 $100,686 100.0 2.56


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Market Trends

Since opening in 1964, Yorkdale has occupied a special place at the very forefront of the Canadian

shopping centre industry. For a period of time Yorkdale was actually the largest enclosed shopping

centre in the world3. While it is no longer the largest enclosed shopping centre in terms of square

footage, Yorkdale is currently the most productive Canadian shopping centre with respect to average

sales performance levels.

Historically, most Canadian shopping centres have trailed behind their U.S. counterparts in terms of

average sales per square foot4. However, Yorkdale is not a typical Canadian shopping centre. At $1,679

per square foot, Yorkdale has the highest average sales performance of any shopping centre in

Canada, and ranks among the top five most productive shopping centres in North America5.

Nevertheless, given the dynamic nature of the retail industry in Canada, new trends are constantly driving

change and renewal. As a result, shopping centres like Yorkdale have been forced to implement

innovative strategies to respond to changing consumer preferences and expectations. Yorkdale has

maintained its position as a leader in the industry by continually evolving, adapting and identifying new

ways to attract and engage consumers. Some of the most prevalent trends currently influencing Yorkdale

and the Canadian retail industry in general, include:

Influx of International Retailers;

E-commerce and Omni-Channel Retailing;

Emphasis on Experiential Retailing; and

Intensification and Mixed-Use Development.

3.1 INFLUX OF INTERNATIONAL RETAILERS

Canada is often viewed as both a growth opportunity and an ideal test market for retailers that are to

looking to expand their presence in North America6. The high average per capita retail expenditure levels

and generally strong familiarity with American and international brands amongst Canadian consumers

has been motivating many retailers to expand into Canada. During the past 5 – 10 years, there has been

an influx of American and international retailers entering the Canadian market. Prominent examples

include J. Crew, Muji, Nordstrom, Saks Fifth Avenue, Top Shop, Uniqlo, Victoria’s Secret and Zara/Zara

Home, amongst others.

Not only does Yorkdale provide an unmatched retail experience, but it has also served as a

launching pad for many retailers with international ambitions. Yorkdale has developed a reputation

for bringing first-to-market retailers to Canada. For example, the first Apple retail store in Canada was

opened at Yorkdale. Similarly, Canada’s first Tesla retail store concept also opened at Yorkdale. Some

other recent examples of global retail concepts that launched at Yorkdale include Arcteryx, Canada

3 Plummer, Kevin. (2012). Historicist: Yorkdale Mall and the Aesthetics of Commerce. The Torontoist. Retrieved from http://torontoist.com/2012/02/historicist-instant-downtown-uptown/. 4 Industry Canada. (2013). Consumer Trends Update: Canada’s Changing Retail Market. The Office of Consumer Affairs. Retrieved from https://www.ic.gc.ca/eic/site/oca-bc.nsf/vwapj/CTU-2013_Q2_Canadas_Changing_Retail_Market-eng.pdf/$file/CTU-2013_Q2_Canadas_Changing_Retail_Market-eng.pdf 5 Retail Council of Canada. (2016). Canadian Shopping Centre Study. Retrieved from http://www.retailcouncil.org/sites/default/files/RCCCanadianShoppingCenterStudyFINAL.pdf. 6 Deloitte. (2015). Consumer experience: The new brand imperative. Retrieved from https://www2.deloitte.com/content/dam/Deloitte/ca/Documents/consumer-business/ca-en-consumer-exprience.pdf.

http://torontoist.com/2012/02/historicist-instant-downtown-uptown/

https://www.ic.gc.ca/eic/site/oca-bc.nsf/vwapj/CTU-2013_Q2_Canadas_Changing_Retail_Market-eng.pdf/$file/CTU-2013_Q2_Canadas_Changing_Retail_Market-eng.pdf

https://www.ic.gc.ca/eic/site/oca-bc.nsf/vwapj/CTU-2013_Q2_Canadas_Changing_Retail_Market-eng.pdf/$file/CTU-2013_Q2_Canadas_Changing_Retail_Market-eng.pdf

http://www.retailcouncil.org/sites/default/files/RCCCanadianShoppingCenterStudyFINAL.pdf

https://www2.deloitte.com/content/dam/Deloitte/ca/Documents/consumer-business/ca-en-consumer-exprience.pdf


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Goose, John Varvatos, Microsoft, and Zara Home, amongst others. One of the most notable trends with

respect to new retailers entering the Canadian market has been the influx of retailers geared towards the

high-end/luxury market. This trend has been particularly evident within the Greater Toronto Area, where

several super-regional shopping centres, including Yorkdale, have been adding new luxury tenants.

Many of the new retailers introduced at Yorkdale as part of the 2012 and 2015 expansions cater towards

the high-end/luxury market (e.g. Bulgari; Cartier; Ferragamo; Hugo Boss; Jimmy Choo; Reiss; Sandro;

Strellson; Versace). Going forward, the luxury segment of the Canadian retail market is expected to

continue growing, at least over the short term7.

Despite the abundance of new retailers that have been entering the Canadian marketplace, optimism

regarding the Canadian retail market has waned to some extent. This can be attributed (at least in part)

to the dramatic failure of Target, which provided a lesson for other retailers about the challenges that can

be encountered when entering the Canadian market.

In future years, there will be increasing competition between shopping centres to attract new American

and international tenants, and adapt to constantly changing market conditions. The continued, although

tempered, arrival of foreign retailers will continue to result in more choices for Canadian consumers and

shopping centre owners. Shopping centres like Yorkdale, which have established themselves as unique

and engaging destinations, with a diverse concentration of destination retailers, will be well-positioned to

attract new entrants to the Canadian retail landscape.

3.2 E-COMMERCE & OMNI-CHANNEL RETAILING

Numerous retailers that traditionally have exclusively operated physical store locations are now using e-

commerce, and/or other distribution channels to provide consumers with greater choice and convenience

than ever before. E-commerce in particular has been gaining traction as the Internet and mobile

technology have become more pervasive in the daily lives of most Canadians. Products are now

available to consumers 24 hours a day, 7 days a week, from virtually any location. Omni-channel retailing

– combining sales physical store locations and e-commerce – has now become commonplace in the retail

industry.

Despite its growing footprint, e-commerce has not replaced shopping at physical store locations. In

reality, e-commerce functions as a supplement to traditional retailing more than a substitute for many

Canadians8. Many consumers view shopping as an enjoyable social/leisure activity that can’t be

replicated online, which is just one reason why many shopping centres (including Yorkdale) continue to

thrive. In fact, there are a number of retailers, which once operated exclusively online that have begun

opening retail stores in order to supplement their e-commerce business and establish a physical

presence to enhance brand experience and sales (e.g. Amazon; Frank + Oak; Indochino; Well).

It is expected that online shopping will become increasingly popular as younger, more internet-savvy

consumers age and internet-usage in general becomes even more widespread. Although e-commerce

has been accounting for a growing proportion of Canadian retail expenditures, physical store locations

still account for more than 95% of all retail sales in Canada (excluding automotive sales)9. Going

forward, there will likely be greater integration between physical store locations and e-commerce as

7 Nguyen, Linda (2016). Canadian retailers must disrupt – or be disrupted. Retrieved from https://www.thestar.com/business/2016/12/14/canadian-retailers-must-disrupt-or-be-disrupted.html. 8 Brocca, Josie and McKeown, Lawrence. (2009). Internet shopping in Canada: An examination of data, trends and patterns. Statistics Canada. No. 5. Statistics Canada Catalogue no. 88F0006X, no. 5. 9 Shaw, Hollie. (2016). When it comes to shopping, Canadians just aren’t clicking as only 2% of sale are made online. Financial Post. Retrieved from http://business.financialpost.com/news/retail-marketing/when-it-comes-to-shopping-canadians-just-arent-clicking-as-only-2-of-sales-are-made-online.

https://www.thestar.com/business/2016/12/14/canadian-retailers-must-disrupt-or-be-disrupted.html

http://business.financialpost.com/news/retail-marketing/when-it-comes-to-shopping-canadians-just-arent-clicking-as-only-2-of-sales-are-made-online

http://business.financialpost.com/news/retail-marketing/when-it-comes-to-shopping-canadians-just-arent-clicking-as-only-2-of-sales-are-made-online


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retailers further embrace omni-channel retailing. Nevertheless, physical store locations will continue to be

the primary location where Canadian consumers interact with brands and merchandise they want to buy.

3.3 EMPHASIS ON EXPERIENTIAL RETAILING

In response to the increasingly competitive nature of the global retail market, both shopping centres and

individual retailers have been focusing on delivering experiences that leave consumers with a lasting

impression. Consumers are looking for retail experiences that they have never encountered before –

authentic and immersive retail experiences that create “buzz”10.

Experiential retailing is about transforming a retail location a destination unto itself, rather than just a point

of purchase11. Experiential retailing has become an essential component of delivering a memorable

brand experience, and at least some aspects of experiential retailing are now used by almost all retailers

operating in North America, including existing tenants at Yorkdale. Some common examples of

experiential retailing include:

In-store samples/demonstrations;

Interactive displays;

Social media integration;

In-store instruction/classes;

Personal services; and

Food services.

3.3.1 Individual Retailers

Food services have emerged as a central part of creating a unique and compelling retail experience. As

a result, food services have now been positioned as a means to complement conventional store

merchandise. For example, the new Nordstrom and Saks Fifth Avenue stores in Toronto provide an array

of food service options (i.e. restaurants; bars; specialty food stores) to achieve an enhanced brand

experience. Similarly, many of the individual retailers at Yorkdale have been implementing elements of

experiential retail into their stores.

Another crucial element of experiential marketing that can’t be overlooked are in-store retail employees.

For many retailers, in-store employees are equally critical to success as product offerings, or any other

factor.

3.3.2 Shopping Centres

Individual retailers are not alone in making investments to promote experiential retailing. Optimizing the

consumer experience has become a point of emphasis for shopping centre owners, recognizing that the

overall atmosphere of the centre influences spending and visitation patterns. Subsequently, shopping

centres, have been investing heavily in the common areas and food halls to reflect the evolution of urban

life and changing dynamics of the Canadian retail market. Experiential retailing strategies have also been

10 Deloitte. (2015). Consumer experience: The new brand imperative. Retrieved from https://www2.deloitte.com/content/dam/Deloitte/ca/Documents/consumer-business/ca-en-consumer-exprience.pdf. 11 Nguyen, Linda (2016). Canadian retailers must disrupt – or be disrupted. Toronto Star. Retrieved from https://www.thestar.com/business/2016/12/14/canadian-retailers-must-disrupt-or-be-disrupted.html.

https://www2.deloitte.com/content/dam/Deloitte/ca/Documents/consumer-business/ca-en-consumer-exprience.pdf

https://www.thestar.com/business/2016/12/14/canadian-retailers-must-disrupt-or-be-disrupted.html


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implemented by shopping centres, to create a more engaging and fulfilling experience, particularly for

millennials.

Yorkdale has fully embraced this trend. Through a series of major investments, the owners of Yorkdale

have transformed the property into an iconic destination which offers visitors a dynamic retail

experience that simply can’t be replicated elsewhere in Canada. For example, a new 45,000 square

foot upgraded food services space referred to as Dine on 5 was introduced as part of the 2012 renovation

and expansion. This new food services facility embodies experiential marketing with innovative features

including a smart phone reservation system, translation services, perfume butler, etc. There was also

strong emphasis on experiential marketing as part of the 2015 renovation and expansion. Design

features were implemented throughout the shopping centre to help create a dynamic atmosphere and

reinvigorate the shopping centre by adding individuality, character and animation to storefronts12.

Recent expansions and renovations at Yorkdale have helped to enhance the sense of place and overall

visitor experience at the centre, while also encouraging other shopping centres to follow suit. Sherway

Gardens, Eaton Centre, and Square One provide examples of three other super-regional shopping

centres in the Greater Toronto Area, which have followed Yorkdale’s lead and invested in major

renovation projects during the past few years. A number of other shopping centres throughout the

Greater Toronto Area have also been investing in facility upgrades (e.g. Bayview Village; Markville;

Scarborough Town Centre; Oshawa Centre; Pickering Town Centre; Erin Mills Town Centre; Bramalea

City Centre).

3.4 INTENSIFICATION & MIXED-USE DEVELOPMENT

The shortage of residential land, together with renewed investments and commitments to public transit as

well as Provincial and municipal intensification policies, has resulted in many mixed-use development

projects throughout the Greater Toronto Area.

The proposed future build-out of Yorkdale reflects a prevailing trend towards increased mixed-use

development, emphasizing residential intensification supported by ground floor commercial space. The

future build-out of Yorkdale will also assist the City of Toronto in achieving intensification targets

established by the Province.

In addition to the future mixed-use development on-site, Yorkdale has also been functioning as a catalyst

for residential development in the surrounding area in recent years. Access to public transit and the

strong concentration of retail, restaurants, etc. at Yorkdale, have made the surrounding area (i.e. in the

vicinity of Highway 401 and Allen Road) a popular location condominium development. As of February

2017, there were thirteen active high-rise residential projects underway within a three kilometre radius of

Yorkdale, in addition to a number that were recently completed according to data from RealNet.

3.5 CONCLUSION

The dynamic nature of the Canadian retail industry means that new trends are constantly emerging in

response to changing consumer preferences and market conditions. The growing number of international

retailers, increasing prevalence of experiential retailing, greater use of omni-channel retailing and

intensification provide examples of prevailing trends that are currently impacting shopping centres like

Yorkdale.

12 Warren, Michelle. (2016). Big Things In Store For Toronto’s Yorkdale Mall. MarketingMag. Retrieved from http://www.marketingmag.ca/brands/big-things-in-store-for-torontos-yorkdale-mall-178560.

http://www.marketingmag.ca/brands/big-things-in-store-for-torontos-yorkdale-mall-178560


12

Going forward it will be important for Yorkdale to continually evolve and adapt to changing preferences

and trends. Constant innovation is essential for shopping centres like Yorkdale to remain at the forefront

on the Canadian retail industry and realize increasing customer attraction and overall productivity. In

order to remain competitive, it will be essential to reserve flexibility to respond to new trends as they

emerge in future years.


13

Yorkdale Existing Operations

In estimating the existing and future economic impacts related to operation of Yorkdale Shopping Centre

(‘Yorkdale’), we have first considered the existing commercial space on the subject site. As summarized

in Figure 4-1, following two major expansions in 2012 and 2016, the total gross floor area (‘GFA’) of the

shopping centre is currently 2,591,213 square feet with a gross leasable area (‘GLA’) of 1,927,235

square feet13. The total existing commercial retail unit (‘CRU’) space at Yorkdale is 567,068 square

feet14.

Figure 4-1: Existing Retail Space at Yorkdale

SOURCE: urbanMetrics inc. Oxford Properties Group & MMC Architects.

13 The existing GLA and GFA does not include the ongoing western expansion, which will be anchored by Restoration Hardware and will open in 2017. The additional retail space related to the western expansion is included as part of the additional retail space shown in the proposed development concept in Figure 5-1. 14 Excluding any vacancies and tenants over 15,000 square feet.


14

Yorkdale is also home to a six-storey, 103,000 square foot office building referred to as Yorkdale Place

that is connected to both the shopping centre and the adjacent Yorkdale Subway Station.

The following subsections provide a baseline assessment of the existing operations at Yorkdale Shopping

Centre. The inputs and assumptions used in this section of the analysis have been summarized in

greater detail in Appendix B. Our evaluation of the economic impact of the existing operations at

Yorkdale has considered the following:

Current & Historic Retail Sales

Existing Property Tax Revenue

Existing Employment Generation

Comparison to Other Canadian Shopping Centres

4.1 CURRENT & HISTORICAL RETAIL SALES

Figure 4-2 illustrates the historical performance level of Yorkdale based on average sales per square foot.

It is important to emphasize that the sales per square foot levels in Figure 4-2 refer to average CRU sales

performance levels.

As noted in Section 4.1, Oxford has invested in two major expansions to Yorkdale in recent years (i.e.

2012 and 2016). These investments to expand Yorkdale have triggered a notable increase in the overall

sales productivity. As of 2016, the average sales performance level for Yorkdale was $1,679 per

square foot. Total annual sales at Yorkdale were in excess of $1.2 billion in 2016.

Figure 4-2: Yorkdale Historical Sales Per Square Foot

SOURCE: urbanMetrics inc. based on information from Oxford Properties Group.

4.2 EXISTING PROPERTY TAX REVENUE

Based on the 2016 Taxation Year Phased-In Assessment for Yorkdale (i.e. existing retail and office

components) and the 2016 City of Toronto Property Tax Rates, the subject site generates over $50

million in annual property tax revenue for the City of Toronto, as illustrated in Figure 4-3.


15

Figure 4-3: Annual Property Tax Revenue Generated by Existing Operations at Yorkdale


4.3 EXISTING EMPLOYMENT GENERATION

As illustrated in Figure 4-4, the 245 individual business establishments which comprise the existing

operations at Yorkdale generate a total of 6,679 part-time and full-time jobs – which is equivalent to

approximately 4,580 direct full-time jobs. Information from Statistics Canada has been used to

determine the full-time to part-time employment ratio according to information from the 2016 Labour Force

Survey. Direct full-time employment has been calculated in Figure 4-4 according to 2016 Toronto

Employment Survey data and the ratio of full-time to part-time jobs.

Figure 4-4: Number of Establishments & Employment at Yorkdale


1) Based on 2016 Toronto Employment Survey data. 2) One full-time job is equivalent to 2.16 part-time jobs based on Statistics Canada data.

LAND USE Municipal Taxes Educational Taxes Transit TaxesANNUAL

PROPERTY TAX

Commercial $655,278 $530,708 $1,298 $1,187,283

Shopping Centre $27,169,889 $22,004,830 $53,819 $49,228,537

Office $292,119 $236,586 $579 $529,284

TOTAL $28,117,285 $22,772,124 $55,695 $50,945,104

Number Percentage

Retail 165 2,766 1665 4,431 2,945 64%

Service 43 866 534 1,400 935 20%

Office 36 148 566 714 634 14%

Other 1 127 7 134 66 1%

TOTAL 245 3,907 2,772 6,679 4,580 100%

Part Time

Employment 1Full Time

Employment 1TOTAL

EMPLOYMENT 1DIRECT FULL-TIME EMPLOYMENT

2

SectorNumber of

Establishments 1


16

It is also important to recognize that Yorkdale provides an ongoing source of employment related to

the construction industry, which is not reflected in Figure 4-4. Each year an estimated 10% of the retail

and/or office tenants at Yorkdale turnover and are replaced by new tenants. Yorkdale generates

substantial ongoing construction-related (i.e. trades) employment attributed to the turnover of space each

and every time one tenant gives way to another.

Figure 4-4 demonstrates that the existing operations at Yorkdale generate a diverse range of

employment, beyond only retail jobs. While the majority of the employment at Yorkdale is attributed to

retail businesses, there are a variety of others, particularly service and office businesses, which also

provide a considerable amount of employment.

Yorkdale not only provides a broad cross-section of employment opportunities, but it also supports many

unique and highly specialized occupations and professions. There are numerous businesses at

Yorkdale, particularly high-end/luxury retailers, which consider in-store employees as a critical element of

brand experience, and as such, compensate these employees accordingly. For example, many retail

jobs at Yorkdale offer higher wages, generous benefit packages, more consistent hours, enhanced job

security, etc. compared to the average retail job in Ontario.

4.3.1 Economic Driver for Surrounding Area

Yorkdale is a critically important employment node in Toronto. It functions as an economic driver for

the entire Dufferin Street Secondary Plan.

Yorkdale’s existing operations accounts for 78% of the total retail establishments, 42% of the total service

establishments, 40% of the total office establishments and 8% of all other types business establishments

in the Dufferin Street Secondary Plan Area.

Relative to the number of establishments the employment generated by the existing operations at

Yorkdale accounts for an even higher percentage of the total for the entire Dufferin Street Secondary Plan

Area. The employment related to Yorkdale’s existing operations accounts for 91% of the total retail

employment, 65% of the total service employment, 57% of the total office employment and 22% of all

other types employment in the Dufferin Street Secondary Plan Area.

As discussed in Section 3, Yorkdale also functions as a catalyst for residential development in the

surrounding area.


17

Figure 4-5: Employment & Establishments at Yorkdale as a Percentage of Dufferin Street Secondary Plan Area


1) Based on 2016 Toronto Employment Survey data and the Dufferin Street Secondary Plan Area Map.


18

4.4 COMPARISON TO OTHER CANADIAN SHOPPING CENTRES

Yorkdale has the highest average sales per square foot of any shopping centre in Canada.

For comparison purposes, Figure 4-6 illustrates the average sales per square foot performance level at

Yorkdale relative to the ten most productive shopping centres in Canada as of 2015 (on a sales per

square foot basis).

Figure 4-6: Sales Per Square Foot at Top 10 Most Productive Canadian Shopping Centres

SOURCE: urbanMetrics inc. based on information from Avison Young Canada's Retail Landscape & Mall Performance and Retail Insider. Refers

to 2015 CRU sales.

Yorkdale attracts approximately 18 million visitors each year.

As illustrated in Figure 4-7, Yorkdale attracts more visitors that many of Toronto’s largest and most

prominent tourism attractions, such as Harbourfront Centre (12 million), CN Tower (2 Million), Royal

Ontario Museum (1 million).

Figure 4-7: Annual Visitors at Major Tourist Attractions in Toronto & Surrounding Area



19

For comparison purposes, Figure 4-8 illustrates the annual customer visitation at Yorkdale relative to the

ten most productive shopping centres in Canada.

Figure 4-8: Annual Visitors at Top 10 Most Productive Canadian Shopping Centres

SOURCE: urbanMetrics inc. based on information from the Canadian Directory of Shopping Centres and/or information from shopping centre

websites (Oxford Properties, Cadillac Fairview and Ivanhoe Cambridge).

In terms of employment, Yorkdale ranks 1st amongst the shopping centres with the highest average sales

per square foot in Canada. Yorkdale and its tenants provides nearly 5,000 jobs within the City of Toronto.

For comparison purposes, Figure 4-9 illustrates the existing employment at Yorkdale relative to the ten

most productive shopping centres in Canada.

Figure 4-9: Estimated Employment at Top 10 Most Productive Canadian Shopping Centres

SOURCE: urbanMetrics inc. based on information regarding gross leasable areas from the Canadian Directory of Shopping Centre and/or

information from shopping centre websites (Oxford Properties, Cadillac Fairview and Ivanhoe Cambridge). Assumes 400 square feet per retail

employee and calculations exclude the office portion(s) of these shopping centres (e.g. Yorkdale, Eaton Centre, Royal Bank Plaza, etc.).


20

Yorkdale Future Expansion (Full Build-Out)

For the purposes of this study we have considered a future expansion concept that would involve the full

build-out of the Yorkdale property, as per Option 2. The proposed development concept includes a total

of 4,483,000 square feet of retail, office, residential and hotel space, as summarized in Figure 5-1. The

full build-out of Yorkdale is expected to occur over the next 25+ years.

Figure 5-1: Option 2 – Proposed Yorkdale Development Concept at Full Build-Out

SOURCE: Callison RTKL.

Two other development options were also considered, which varied to some extent from Option 2. Option

1 included the same anchors as Option 2, however it included less other retail space. Option 1 also

included much less office space compared to Option 2. Option 3 included much less office space than

Option 2 and significantly more residential space.

Option 2 was selected because it provides the greatest flexibility to accommodate different types of space

(i.e. retail, office, residential), recognizing the long-term planning horizon and potential for change as the

build-out of Yorkdale proceeds in future years.


21

Our evaluation of the economic impact of the additional future space proposed at Yorkdale has

considered the following:

One-Time Economic Benefits from New Construction

One-Time Economic Impacts

City of Toronto Charges & Fees Recurring Economic Benefits from New Construction

Recurring Economic Benefits from New Construction

Additional Retail Sales

Additional Property Tax Revenue

Personal Income Tax Revenue

Corporate Income Tax Revenue

Additional Employment Generation

5.1 ONE-TIME ECONOMIC IMPACTS

The planning, design and construction phases on the future build-out of Yorkdale will generate significant

one-time economic benefits at the Federal, Provincial and Municipal levels. In estimating the economic

impacts of Yorkdale, we have considered a development concept that includes the following type and

scale of new construction by land use, as included in Option 2 (see Figure 5-1).

Figure 5-2 summarizes the initial construction costs and assessed value of the future build-out of

Yorkdale in current (2016) dollar terms. As illustrated in Figure 5-2, the future build-out of Yorkdale could:

Require an initial capital investment of ± $1.6 billion15; and

Result in a total (additional) assessment value estimated at ± $2.1 billion.

Figure 5-2: Initial Capital Investment & Assessment Value

SOURCE: urbanMetrics inc. based on assumptions detailed in Appendix B (Appendix B-3 and

Appendix B-4). The analysis does not account for project phasing, nor the effects of inflation,

changes to property values, construction and financing costs, amongst other factors that may

emerge over a 25+ year planning horizon.

15 Includes: hard construction costs, soft construction costs and allocation of shared common space. Excludes: financing costs, development charges, planning fees and building permit fees.

Construction Cost Assessed Value

Office $848,240,000 $424,120,000

Retail $244,750,000 $1,076,900,000

Hotel & Residential $135,918,000 $120,435,000

Residential $330,309,000 $471,870,000

Total New Development $1,559,217,000 $2,093,325,000


22

The planning, design and construction phases of the future build-out of Yorkdale will generate significant

one-time economic benefits at the federal, provincial, and municipal levels, as illustrated in Figure 5-3.

This includes direct, indirect and induced economic impacts as detailed in Appendix C.

Figure 5-3: One-Time Economic Impacts – Construction

SOURCE: urbanMetrics inc. Detailed tables for Toronto, Ontario and Canada have been provided in Appendix C.

TORONTO ONTARIO CANADA

Initial Expenditure $1,559,217,000 $1,559,217,000 $1,559,217,000

Impact: Gross Output

Direct $1,522,240,209 $1,522,240,201 $1,522,240,201

Indirect $545,423,377 $744,660,653 $922,407,746

Induced $433,814,164 $502,830,589 $633,853,915

Total $2,501,477,750 $2,769,731,443 $3,078,501,862

Multiplier 1.64 1.82 2.02

Impact: Value Added

Direct $707,148,058 $707,148,058 $707,148,058

Indirect $303,450,763 $387,614,271 $471,445,921

Induced $267,454,316 $298,328,547 $367,380,887

Total $1,278,053,137 $1,393,090,875 $1,545,974,866


Impact: Employment (Full-Time, Full-Year Employment)

Direct 8,398 8,398 8,398

Indirect 2,968 3,814 4,567

Induced 2,106 2,488 3,103

Total 13,471 14,700 16,068


Impact: Labour Income

Direct $577,151,171 $577,151,171 $577,151,171

Indirect $199,866,967 $257,559,924 $306,160,713

Induced $120,671,968 $143,099,912 $177,297,125

Total $897,690,106 $977,811,008 $1,060,609,010

Impact: Total Taxes

Federal $189,238,730 $211,607,680 $232,986,719

Provincial $171,694,192 $198,532,621 $217,576,998

Local $61,118,135 $73,893,205 $77,810,960

Total $422,051,057 $484,033,506 $528,374,677


23

5.2 CITY OF TORONTO CHARGES AND FEES

The future build-out of Yorkdale as proposed will generate significant one-time charges and fees payable

to the City of Toronto.

These fees represent only a portion of the total government revenues that would be generated at the

municipal level for communities across Canada, as shown in Figure 5-3. In total, the one-time charges

and fees related to the future build-out of Yorkdale as proposed would produce approximately $41

million in revenue for the City of Toronto.

The one-time charges and fees payable to the City of Toronto related to the future build-out of Yorkdale have been summarized in Figure 5-4.

Figure 5-4: Summary of City of Toronto One-Time Charges & Fees

SOURCE: urbanMetrics inc. Non-residential development charges are calculated based on

net new ground floor area. All figures have been rounded to the nearest 1,000.

Background calculations have been summarized in Appendix D.

It is important to recognize that the one-time charges and fees calculated in Figure 5-4 are based on the total space proposed in Figure 5-1. Accordingly, if the future concept plan(s) differ from the total space proposed in Figure 5-1, the one-time charges and fees would be subject to change.

TOTAL

PLANNING APPLICATION FEES $5,550,000

Combined Official Plan & Zoning Bylaw Amendment $2,962,000

Legal Service fee for S. 37 Agreement $15,000

Plan of Condominium Approval $28,000

Site Plan Application $2,545,000

BUILDING PERMIT FEES $6,515,000

DEVELOPMENT CHARGES $29,263,000

TOTAL $41,328,000


24

5.3 RECURRING ECONOMIC BENEFITS FROM NEW OPERATIONS

In addition to the one-time benefits of construction, the future build-out of Yorkdale will also contribute

substantial recurring economic benefits related to the ongoing operation of the new uses constructed on-

site, as summarized in Figure 5-5. These uses will result in incremental economic benefits above and

beyond those already attributed to the existing facilities.

It is important to note that these incremental benefits represent the net increase in economic impact that

could be generated by various new uses at Yorkdale relative to its current operations. They do not

necessarily represent the net addition or expansion to the broader economy at the Municipal, Provincial

or Federal level.

Figure 5-5: Recurring Economic Impacts

SOURCE: urbanMetrics inc. Background calculations have been detailed in Section 5.3.1 through Section 5.3.4.

1) Employment generated by new space constructed at Yorkdale in the future has been calculated in Figure 5-6.

2) Personal income tax revenue generated by new space constructed at Yorkdale in the future has been calculated in

Figure 5-7.

3) Employment generated by new space constructed at Yorkdale in the future has been calculated in Figure 5-8.

4) Personal income tax revenue generated by new space constructed at Yorkdale in the future has been calculated in

Figure 5-9.

TYPE FEDERAL PROVINCIAL MUNICIPAL

Jobs1

15,189

Office 13,430

Retail 1,470

Hotel & Residential 139

Residential (Work at Home) 90

Building Operations 60

Personal Income Taxes2$205,116,000 $127,674,000 $2,093,000

Office $194,789,000 $121,246,000 $1,988,000

Retail $8,062,000 $5,018,000 $82,000

Hotel & Residential $790,000 $492,000 $8,000

Residential (Work at Home) $998,000 $621,000 $10,000

Building Operations $477,000 $297,000 $5,000

Corporate Income Taxes3$157,281,322 $120,581,013

Office $149,073,000 $114,289,000

Retail $6,170,000 $4,730,000

Hotel & Residential $837,000 $641,000

Residential (Work at Home) $836,522 $641,333

Building Operations $364,800 $279,680

Property Taxes4

$44,058,000

Office $11,196,000

Retail $28,429,000

Hotel & Residential $1,187,000

Residential $3,246,000

Building Operations n/a

TOTAL BENEFITS $362,397,322 $248,255,013 $46,151,000


25

5.3.1 Additional Employment Generation

Similar to the existing employment generated by Yorkdale (as calculated in Section 4.4) direct full-time

employment related to the proposed expansion/future build-out has been calculated in Figure 5-6 based

on typical employment density factors, as applied to the proposed development concept for Yorkdale at

full build-out. We estimated that Option 2 as proposed would attract and support an additional 15,200

jobs on the Yorkdale property.

Figure 5-6: Employment Generated by Future Expansion at Yorkdale


1) Based on urbanMetrics professional experience and assumptions as detailed in Appendix B.

GLA (ft2) Units

Residential (Work at Home) 514 6.40% per population 63

Office 2,014,570 150 sq. ft. per FTE 13,430

Retail 734,250 500 sq. ft. per FTE 1,469

Hotel/Residential - Hotel 208 1 job per 1.5 rooms 139

Hotel/Residential - Residential (Work at Home) 224 6.40% per population 28

Operations 1,927,325 30,000 sq. ft. per FTE 64

TOTAL 15,193

ProposedEmployment Density Factor

1

DIRECT FULL

TIME

EMPLOYMENT


26

5.3.2 Personal Income Tax Revenue

Based on estimates of the jobs created by the proposed expansion/future build-out of Yorkdale and

average wage data from Statistics Canada, the subject site could generate over $1.05 billion in taxable

wages and benefits on an annual basis, as illustrated in Figure 5-7. These additional wages will

generate a significant amount of personal income tax revenue for the federal, provincial and municipal

government on an annual basis.

Figure 5-7 Personal Income Tax Revenue Generated by Future Expansion at Yorkdale


1) Based on Statistics Canada Survey of Employment, Payrolls and Hours (SEPH), May 2016.

2) Calculated by multiplying the number of employees by the average wages & benefits.

3) Based on Statistics Canada research in EIM, Waterfront Toronto.

5.3.3 Corporate Income Tax Revenue

Based on estimates of the taxable wages and benefits attributed to the proposed expansion/future build-

out of Yorkdale and average wage data from Statistics Canada, the subject site could generate

approximately $156 million in corporate tax revenue for the Federal government, and $120 million

in corporate tax revenue for the Provincial government on an annual basis, as illustrated in Figure

5-8.

Figure 5-8: Corporate Income Tax Revenue Generated by Future Expansion at Yorkdale

SOURCE: urbanMetrics inc. Based on Figure 5-6 and Figure 5-7.

Federal Provincial Municipal Federal Provincial Municipal

Residential (Work at Home) $56,000 $3,547,089 19.60% 12.20% 0.20% $695,229 $432,745 $7,094

Office $74,000 $993,820,000 $194,788,720 $121,246,040 $1,987,640

Retail $28,000 $41,132,000 $8,061,872 $5,018,104 $82,264

Hotel/Residential - Hotel $29,000 $4,031,000 $790,076 $491,782 $8,062

Hotel/Residential - Residential (Work at Home) $56,000 $1,545,813 $302,979 $188,589 $3,092

Operations $38,000 $2,432,000 $476,672 $296,704 $4,864

TOTAL $1,046,507,901 $205,115,549 $127,673,964 $2,093,016

Income Tax Rates 3 Income Tax RevenueAverage

Wages &

Benefits 1

Annual Taxable

Wages &

Benefits 2

Federal Provincial

Residential (Work at Home) $56,000 63 $3,547,089 $532,063 $407,915

Office $74,000 13,430 $993,820,000 $149,073,000 $114,289,300

Retail $28,000 1,469 $41,132,000 $6,169,800 $4,730,180

Hotel/Residential $33,474 167 $5,576,813 $836,522 $641,333

Operations $38,000 64 $2,432,000 $364,800 $279,680

TOTAL 15,193 $1,044,075,901 $156,611,385 $120,068,729

Average

Income

Full Time Jobs

Generated

Total Taxable

Income

Corporate Tax Revenue


27

5.3.4 Additional Property Tax Revenue

Based on estimates of the total assessed value16 of the proposed expansion/future build-out of Yorkdale

and the 2016 City of Toronto Property Tax Rates, the subject site could generate over $50 million in

additional property tax revenue for the City of Toronto on an annual basis, as illustrated in Figure

5-9. This municipal tax revenue would be in addition to the estimated $50 million already generated by

the existing facilities at Yorkdale.

Figure 5-9: Annual Property Tax Revenue Generated by Future Expansion at Yorkdale


5.4 ADDITIONAL RETAIL SALES

The projected sales performance for the additional retail space included in Option 2 has been forecast

based on the 2016 average sales performance level for Yorkdale (i.e. $1,679 per square foot). In order to

estimate sales performance levels for the additional retail space included in Option 2 we have focused on

the gross leasable area of the CRU space included in the proposed development concept at full build-out.

The projected sales generated by the additional CRU space have been summarized in Figure 5-10.

Figure 5-10: Estimated Sales Generated by Additional Future CRU Tenants


1) The proposed concept plan includes 638,000 ft2 of retail space, however retail units in

excess of 15,000 ft2 are not included in calculations of CRU space. CRU gross floor area

includes 125,000 ft2 of indoor retail and 206,000 ft2 of street retail.

2) The efficiency ratio of 75% based on the existing operations at Yorkdale includes an

estimate to account for common area space.

3) CRU sales per square foot based on information from Oxford.

4) Estimated sales generated by additional future CRU tenants is calculated based on CRU

sales per square foot and the CRU gross leasable area.

It is important to emphasize that the projected sales performance level for the future build-out of Yorkdale

reflects the 2016 value of the Canadian dollar (i.e. no adjustments for real growth in expenditures and/or

inflation). Based on Figure 5-2, we can conservatively estimate that the proposed future retail space at

Yorkdale (including anchor and CRU tenants) would generate in excess of $800 million in annual

sales.

16 Appendix B provides background information regarding assessment value estimates.

Municipal Taxes Educational Taxes Transit TaxesANNUAL

PROPERTY TAX

Residential $2,345,332 $887,116 $13,891 $3,246,339

Office $6,179,319 $5,004,616 $12,240 $11,196,175

Retail $15,690,155 $12,707,420 $31,079 $28,428,654

Hotel & Residential $774,987 $408,698 $3,535 $1,187,220

TOTAL $24,989,793 $19,007,849 $60,746 $44,058,388

CRU Gross Floor Area 1 668,400

Efficiency Ratio 2 75%

CRU Gross Leasable Area 501,300

CRU Sales Per Square Foot 3 $1,679

Estimated Sales Generated by Additional Future CRU Tenants 4$841,682,700


28

Overall Employment Comparison

For illustrative purposes, Figure 6-1 summarizes the total estimated employment related to Yorkdale

compared to the employment levels in a number of employment areas throughout the City of Toronto.

The table below highlights the importance of Yorkdale as a major employment node in the City of

Toronto.

When you consider the existing employment at Yorkdale and the employment generated by the future

build-out of the property as per Option 2, Yorkdale accounts for more jobs than many of the City’s

employment areas and urban growth centres, which are intended to function as primary locations for

business and economic activity. Yorkdale at full build-out would produce more jobs than the existing

employment in many of Toronto’s key employment nodes. For example, the existing and future jobs

projected at Yorkdale would be greater than the level of employment currently supported by Liberty

Village and the Yonge/Eglinton Urban Growth Centre, amongst others.

Figure 6-1: Yorkdale Employment Compared to City of Toronto Employment Areas & Urban Growth Centres

SOURCE: urbanMetrics inc. based on 2016 Toronto Employment Survey data. Figures refer to total employment, including full-time and part-time jobs. See section 4.3 for existing employment figures for Yorkdale.


29

Similarly, Figure 6-2 summarizes the total employment generated by Yorkdale compared to the total

employment levels in other secondary plan areas throughout the City of Toronto. Yorkdale already

generates more employment than many of the City’s secondary plan areas and this figure is expected to

increase as Yorkdale continues to build-out in future years.

Figure 6-2: Yorkdale Employment Compared to City of Toronto Secondary Plan Areas

SOURCE: urbanMetrics inc. based on 2016 Toronto Employment Survey data. Figures refer to total employment, including full-time and part-time jobs. See section 4.3 for existing employment figures for Yorkdale.


30

Summary

Yorkdale Shopping Centre is one of Canada’s most iconic shopping destinations.

As a global industry, retailers and merchandisers require best-in-class properties that enable effective

brand positioning and customer engagement. The success and ongoing growth of the retail sector in

Canada is heavily dependent on a network and hierarchy of globally-scaled shopping destinations. In our

professional opinion, Yorkdale occupies a unique place in the upper-echelon of shopping centres in North

America, and is undoubtedly Canada’s most important concentration of retail activity.

Yorkdale holds a unique position in the Canadian retail market for a number of reasons, including:

Yorkdale is a critically important entry-point to the Canadian and/or North American retail market.

Retail interests from around the world rely on properties such as Yorkdale to deliver a compelling

platform that enables the introduction of new stores, new brands, new services and new business

innovations into the Canadian retail landscape.

Yorkdale (and its tenants) provides direct employment for thousands of residents of the Greater

Toronto Area. This includes retail jobs that would typically be associated with Yorkdale, but also

a significant concentration of office and other employment related to the existing operations.

These jobs are effectively serviced by both TTC and GO Transit bus service, and are centrally

located within a large labour pool.

Yorkdale also provides thousands of indirect jobs related to companies in the fields of fashion,

interior design, technology and construction.

According to the Ministry of Tourism, shopping is one of the primary motivations for tourists

visiting Toronto. Signature shopping centres, particularly high-caliber locations like Yorkdale, are

essential to ensure that Toronto remains firmly positioned as an attractive destination for travel

and tourism.

Yorkdale is a super-regional shopping centre, which has the market capacity to attract customers

from all corners of the Greater Toronto Area and the broader Greater Golden Horseshoe by virtue

of its size, store composition and product depth. The concentration of retailers at Yorkdale

provides customers with an unmatched shopping experience anywhere in the Canadian market.

Recognizing its important role as a leader in the Canadian shopping centre industry, Yorkdale serves as a

measuring stick for other Canadian shopping centres. The future expansion of Yorkdale will invariably

function as a catalyst for other shopping centres in Toronto and elsewhere to make similar investments in

order to attract tenants and remain competitive going forward.


31

Appendix A – Customer Distribution

Figure A-1 illustrates the results of 2011 and 2013 customer intercept surveys undertaken by Oxford.

This customer intercept data has been used by urbanMetrics in delineating the Trade Area for Yorkdale

Shopping Centre for previous market analyses.


32

Appendix A-1: Yorkdale 2011 & 2013 Customer Intercept Survey Results


33

Appendix B – Overview of Inputs & Assumptions Figure B-1 provides a summary of the inputs and developments statistics for the proposed future

expansion of Yorkdale. Figure B-2 illustrates the unit mix assumptions for the proposed residential and

hotel/residential components of the proposed future development. Figure B-3 summarizes our

assumptions with respect to construction costs. Figure B-4 summarizes our assumptions with respect to

assessment values. Figure B-5 and B-6 provide background information on how assessment value

assumptions were derived. Figure B-7 illustrates the full-time employment yield assumptions.


34

Appendix B-1: Summary of Inputs & Development Statistics

Residential Amount (Units) Amount (Units)

1,048,600 (square feet) 97,417 (square metres)

Residential Podium GFA 179,200 (square feet) 16,648 (square metres)

Residential Uses GFA 869,400 (square feet) 80,769 (square metres)

Building Efficiency: 85% (percentage)

891,310 (square feet) 82,805 (square metres)

Residential Podium GLA 152,320 (square feet) 14,151 (square metres)

Residential GLA 738,990 (square feet) 68,654 (square metres)

Total Number of Units: 514 (units)

Less than 2 Bd 275 (units)

Population: Less than 2 Bd 440 (persons)

2 Bd or more 239 (units)

Population: 2 Bd or more 550 (persons)

Office Amount (Units) Amount (Units)


Ground Level Gross Floor Area (GFA): 22,000 (square feet) 2,044 (square metres)

AND/OR

Total Number of Floors Above Grade: Variable (floors)


Total Gross Leasable Area (GLA): 2,014,570 (square feet) 187,158 (square metres)

Retail Amount (Units) Amount (Units)


Department Store 100,000 (square feet)

Executive Cinema 35,000 (square feet)

Food Hall 50,000 (square feet)

Restoration Hardware 65,600 (square feet)

Cinema 60,000 (square feet)

Retail 668,400 (square feet)

Ground Level Gross Floor Area (GFA): 645,700 (square feet) 59,987 (square metres)

AND/OR

Total Number of Floors Above Grade: 1 - 4 (floors)


Total Gross Leasable Area (GLA): 734,250 (square feet) 68,213 (square metres)

Information by Use

Total Gross Floor Area (GFA):



Total Gross Leasable Area (GLA):


35

Appendix B-1: Summary of Inputs & Development Statistics


1) Based on information from Oxford Properties, Urban Strategies and Callison RTKL.

Hotel/Residential Amount (Units) Amount (Units)


Hotel GFA 108,800 (square feet) 10,108 (square metres)

Residential GFA 226,800 (square feet) 21,070 (square metres)



Hotel GLA 92,480 (square feet) 8,592 (square metres)

Residential GLA 192,780 (square feet) 17,910 (square metres)

Total Number of Rooms - Hotel 208 (rooms)

Total Number of Units - Residential 224 (units)

Less than 2 Bd 120 (units)

Population: Less than 2 Bd 192 (persons)

2 Bd or more 104 (units)

Population: 2 Bd or more 240 (persons)

Yorkdale Shopping Centre (existing) Amount (Units) Amount (Units)


Building Efficiency (existing shopping centre): 74.0% (percentage) 0 (square metres)

Yorkdale Shopping Centre Total Gross Leasable Area (GLA): 1,927,325 (square feet)

Yorkdale Place - Office (existing) Amount (Units) Amount (Units)


Building Efficiency (existing office): 96% (percentage)

105,720 (square feet) 9,822 (square metres)Yorkdale Place - Office Total Gross Leasable Area (GLA):

Yorkdale Place - Office Gross Floor Area (GFA):

Yorkdale Shopping Centre Gross Floor Area (GFA):


Total Gross Leasable Area (GLA):


36

Appendix B-2: Unit Mix Assumptions


1) Based on comparable residential projects.

Appendix B-3: Construction Cost Assumptions


1) Based on 2017 Altus Construction Cost Guide and information from Oxford Properties Group.

Appendix B-4: Assessment Value Assumptions


1) Based on comparable properties in the vicinity of Yorkdale Shopping Centre. See Appendix B-1.

2) Based on 2016 assessed value for Yorkdale Place - Office ($20,049,690) / square footage of office building (100,000 ft2). See MPAC Yorkdale

& Hotel Comps.

3) Based on 2016 assessed value for Yorkdale Shopping Centre ($1,909,791,310) / square footage of existing shopping centre (1,900,000 ft2).

See MPAC Yorkdale & Hotel Comps.

4) Refers to assessed value per room. Based on recently constructed hotels in the City of Toronto. See MPAC Yorkdale & Hotel Comps.

Land Use Type Less than 2 Bd 1

2 Bd or more 1

Residential 54% 46%

Units

Value

Land Use Type Construction $PSF1

Residential $315

Office $400

Retail $250

Hotel/Residential - Hotel $405

Hotel/Residential - Residential $405

Land Use Type Assessed Value ($/ft2)

Residential $450 1

Office $200 2

Retail $1,100 3

Hotel/Residential - Hotel $175,000 4

Hotel/Residential - Residential $450 1

Value


37

Appendix B-4: Residential Assessment Values in the Immediate Vicinity of Yorkdale Shopping Centre

SOURCE: urbanMetrics inc. based on data as of December 2016. Distributed under special license. © RealNet Canada Inc. All rights reserved.

CONDO ADDRESS UNIT UNIT TAXES ASSESSED VALUE LIST PRICE SIZE (ft2)

West Village Lofts 550 Hopewell Avenue 305 2 bed, 2 bath $2,257.00 $328,065.15 $475,000.00 900

$364.52 $527.78

Treviso Condos 36 Via Bagnato Street 435 2 bed, 2 bath $3,082.00 $447,982.63 $515,000.00 940

$476.58 $547.87

Treviso Condos 800 Lawrence Avenue 1014 2 bed, 2 bath $3,459.00 $502,781.29 $479,000.00 755

$665.94 $634.44


$469.70 $578.31


$508.39 $580.13

The Amesbury 1415 Lawrence Avenue 202 2 bed, 2 bath $1,458.00 $211,926.89 $299,000.00 714

$296.82 $418.77

Grammercy Park 525 Wilson Avenue 227 1 bed, 1 bath $1,741.00 $253,062.22 $308,800.00 632

$400.41 $488.61


$420.77 $530.64


$427.14 $523.88

Grammercy Park 525 Wilson Avenue 1203 2+1 bed, 2 bath $3,641.00 $529,235.81 $749,900.00 1,230

$430.27 $609.67

TOTAL $3,669,039 8,236

Per Square Foot $445.49


38

Appendix B-5: Commercial Assessment Values (Hotel/Retail) in the Immediate Vicinity of Yorkdale Shopping Centre

SOURCE: urbanMetrics inc. based on data from the Municipal Property Tax Assessment Corporation.

Building

Total

Assessment Office Building Commercial Shopping Centre Exempt

Scarborough Town Centre 588,386,000$ 11,099,090$ 577,286,910$ -$

Sherway Gardens 846,152,000$ 22,325,820$ 823,826,180$ -$

Yorkdale Mall 1,929,841,000$ 20,049,690$ 44,901,030$ 1,861,739,130$ -$

Eaton Centre 1,572,392,000$ 211,112,140$ 63,197,060$ 1,289,984,750$ 8,098,050$

Marriott Downtown 59,271,000$ 59,271,000$

Sheraton Centre 202,961,000$ 202,961,000$

Delta Hotel / Bremner Tower Southcore 450,274,000$ 337,861,721$ 112,412,279$

MTCC + MTCC Office Tower + Intercontinental Hotel 293,647,000$ 82,850,000$ 104,784,000$ 106,013,000$

Building

Square

Footage

(Shopping

Centre)

Value Per

Square Foot

(Shopping

Centre)

Scarborough Town Centre 1,329,096 434.35$

Sherway Gardens 946,799 870.12$

Yorkdale Mall 1,700,000 1,095.14$

Eaton Centre 1,664,446 775.02$

Building

Hotel

Rooms

Value Per

Hotel Room

Marriott Downtown 459 129,131$

Sheraton Centre 1,372 147,931$

Delta Hotel / Bremner Tower Southcore 566 198,608$

MTCC + MTCC Office Tower + Intercontinental Hotel 586 178,812$


39

Appendix B-6: Full-Time Employment Assumptions

SOURCE: urbanMetrics inc. 1) Based on urbanMetrics experience.

2) Based on 2016 Toronto Employment Survey data for Yorkdale - Yorkdale Office GLA (90,000 ft2) / Office jobs at Yorkdale (634) = 141

ft2/employee.

3) Based on 2016 Toronto Employment Survey data for Yorkdale - Yorkdale GLA (1,927,325 ft2) / Retail and service jobs at Yorkdale (3,880) =

497 ft2/employee.

4) Based on Hotel Association of Canada. There were 447,586 hotel rooms in Canada as of October 2016 and 304,000 employees.

5) Based on 2016 Toronto Employment Survey data for Yorkdale - Yorkdale GLA (1,927,325 ft2) / Retail and service jobs at Yorkdale (66) =

29,202 ft2/employee.

6) Based on Statistics Canada CANSIM Table 281-0027.

Land Use Type Density (FTE) Average Wages & Benefits 6

Residential 6.40% 1 $56,000

Office 150 2 $74,000

Retail 500 3 $28,000

Hotel/Residential - Hotel 1.5 4 $29,000

Hotel/Residential - Residential 6.40% 1 $56,000

Yorkdale Operations & Maintenance 30,000 5 $38,000

Employment


40

Appendix C – Detailed Economic Impact Model Figure C-1 through Figure C-5 provide a detailed breakdown of the direct, indirect and induced economic

impacts (one-time) related to the construction of the proposed new space at Yorkdale as part of the future

build-out.


41

Appendix C-1: Summary of One-Time Economic Impacts

SOURCE: urbanMetrics inc. It is important to note that the economic impacts shown in Figure 5-3 are cumulative (i.e. the impacts generated at

the municipal level are also included as part of the provincial impacts) and therefore should not be summed. It is also important to recognize

that the municipal revenues represent the combined revenues of all municipalities across Canada and do not necessarily relate exclusively to

the City of Toronto.

FEDERAL Office RetailHotel &

ResidentialResidential

Full-Time Years of Employment 8,996 2,596 1,442 3,035 16,068

Labour Income ($mill) $594.4 $171.5 $95.2 $199.5 $1,060.6

Total Economic Output ($mill) $1,693.1 $488.5 $271.3 $625.6 $3,078.5

Total Economic Value Added ($mill) $861.2 $248.5 $138.0 $298.3 $1,546.0

Total Government Revenues ($mill) $283.4 $81.8 $45.4 $117.9 $528.4

Federal $124.1 $35.8 $19.9 $53.2 $233.0

Provincial $117.3 $33.8 $18.8 $47.6 $217.6

Municipal $41.9 $12.1 $6.7 $17.1 $77.8

SUBTOTAL

PROVINCIAL Office RetailHotel &



Labour Income ($mill) $550.3 $158.8 $88.2 $180.5 $977.8




Federal $112.7 $32.5 $18.1 $48.3 $211.6

Provincial $107.1 $30.9 $17.2 $43.3 $198.5

Municipal $39.9 $11.5 $6.4 $16.2 $73.9

SUBTOTAL

MUNICIPAL Office RetailHotel &



Labour Income ($mill) $508.5 $146.7 $81.5 $160.9 $897.7




Federal $102.3 $29.5 $16.4 $41.1 $189.2

Provincial $93.8 $27.1 $15.0 $35.8 $171.7

Municipal $33.3 $9.6 $5.3 $12.9 $61.1

SUBTOTAL


42

Appendix C-2: Summary of One-Time Economic Impacts – CANADA


Office Retail Hotel & Residential Residential TOTAL

Initial Expenditure $848,240,000 $244,750,000 $135,918,000 $330,309,000 $1,559,217,000


Direct $839,229,977 $242,150,260 $134,474,276 $306,385,687 $1,522,240,201

Indirect $492,895,819 $142,219,480 $78,979,315 $208,313,133 $922,407,746

Induced $360,943,717 $104,146,202 $57,835,929 $110,928,067 $633,853,915

Total $1,693,069,513 $488,515,943 $271,289,520 $625,626,887 $3,078,501,862

Multiplier 2.02 2.02 2.02 2.04 2.02

Impact: Value Added

Direct $396,508,786 $114,408,098 $63,534,709 $132,696,465 $707,148,058

Indirect $255,480,331 $73,715,943 $40,936,970 $101,312,677 $471,445,921

Induced $209,192,138 $60,360,011 $33,519,967 $64,308,771 $367,380,887

Total $861,181,255 $248,484,052 $137,991,646 $298,317,913 $1,545,974,866

Multiplier 2.17 2.17 2.17 2.25 2.19


Direct 4,798 1,384 769 1,447 8,398

Indirect 2,432 702 390 1,043 4,567

Induced 1,766 510 283 544 3,103

Total 8,996 2,596 1,442 3,035 16,068

Multiplier 1.88 1.88 1.88 2.10 1.91


Direct $328,241,487 $94,710,346 $52,595,877 $101,603,462 $577,151,171

Indirect $165,155,608 $47,653,771 $26,463,760 $66,887,574 $306,160,713

Induced $100,967,382 $29,132,989 $16,178,540 $31,018,214 $177,297,125

Total $594,364,477 $171,497,107 $95,238,177 $199,509,249 $1,060,609,010

Impact: Total Taxes

Federal $124,123,469 $35,814,415 $19,888,963 $53,159,872 $232,986,719

Provincial $117,293,455 $33,843,692 $18,794,553 $47,645,298 $217,576,998

Local $41,936,914 $12,100,419 $6,719,774 $17,053,852 $77,810,960

Total $283,353,839 $81,758,526 $45,403,290 $117,859,022 $528,374,677


43

Appendix C-3: Summary of One-Time Economic Impacts – ONTARIO





Direct $839,229,977 $242,150,260 $134,474,276 $306,385,687 $1,522,240,201

Indirect $402,345,562 $116,092,234 $64,469,966 $161,752,891 $744,660,653

Induced $287,823,803 $83,048,283 $46,119,537 $85,838,966 $502,830,589

Total $1,529,399,343 $441,290,778 $245,063,779 $553,977,544 $2,769,731,443

Multiplier 1.82 1.82 1.82 1.81 1.82

Impact: Value Added

Direct $396,508,786 $114,408,098 $63,534,709 $132,696,465 $707,148,058

Indirect $212,229,974 $61,236,544 $34,006,736 $80,141,016 $387,614,271

Induced $170,799,556 $49,282,268 $27,368,120 $50,878,602 $298,328,547

Total $779,538,317 $224,926,911 $124,909,564 $263,716,083 $1,393,090,875

Multiplier 1.97 1.97 1.97 1.99 1.97


Direct 4,798 1,384 769 1,447 8,398

Indirect 2,047 591 328 848 3,814

Induced 1,424 411 228 425 2,488

Total 8,269 2,386 1,325 2,720 14,700

Multiplier 1.72 1.72 1.72 1.88 1.75


Direct $328,241,487 $94,710,346 $52,595,877 $101,603,462 $577,151,171

Indirect $140,165,283 $40,443,098 $22,459,428 $54,492,115 $257,559,924

Induced $81,909,631 $23,634,092 $13,124,815 $24,431,374 $143,099,912

Total $550,316,401 $158,787,536 $88,180,120 $180,526,951 $977,811,008

Impact: Total Taxes

Federal $112,708,359 $32,520,715 $18,059,859 $48,318,748 $211,607,680

Provincial $107,142,461 $30,914,738 $17,168,006 $43,307,416 $198,532,621

Local $39,853,786 $11,499,357 $6,385,984 $16,154,078 $73,893,205

Total $259,704,607 $74,934,809 $41,613,848 $107,780,242 $484,033,506


44

Appendix C-4: Summary of One-Time Economic Impacts – TORONTO





Direct $839,229,977 $242,150,260 $134,474,276 $306,385,695 $1,522,240,209

Indirect $299,153,308 $86,317,283 $47,934,923 $112,017,864 $545,423,377

Induced $248,334,380 $71,654,060 $39,791,937 $74,033,788 $433,814,164

Total $1,386,717,665 $400,121,603 $222,201,136 $492,437,346 $2,501,477,750

Multiplier 1.65 1.65 1.65 1.61 1.64

Impact: Value Added

Direct $396,508,786 $114,408,098 $63,534,709 $132,696,465 $707,148,058

Indirect $168,670,885 $48,668,065 $27,027,032 $59,084,782 $303,450,763

Induced $153,129,402 $44,183,747 $24,536,737 $45,604,430 $267,454,316

Total $718,309,074 $207,259,910 $115,098,478 $237,385,676 $1,278,053,137

Multiplier 1.81 1.81 1.81 1.79 1.81


Direct 4,798 1,384 769 1,447 8,398

Indirect 1,631 471 261 604 2,968

Induced 1,205 348 193 359 2,106

Total 7,635 2,203 1,223 2,411 13,471

Multiplier 1.59 1.59 1.59 1.67 1.60


Direct $328,241,487 $94,710,346 $52,595,877 $101,603,462 $577,151,171

Indirect $111,193,740 $32,083,688 $17,817,164 $38,772,375 $199,866,967

Induced $69,096,419 $19,936,986 $11,071,686 $20,566,877 $120,671,968

Total $508,531,646 $146,731,020 $81,484,726 $160,942,713 $897,690,106

Impact: Total Taxes

Federal $102,274,233 $29,510,066 $16,387,944 $41,066,487 $189,238,730

Provincial $93,800,305 $27,065,011 $15,030,121 $35,798,755 $171,694,192

Local $33,301,079 $9,608,647 $5,336,009 $12,872,400 $61,118,135

Total $229,375,617 $66,183,724 $36,754,073 $89,737,642 $422,051,057


45

Appendix C-5: Summary of One-Time Economic Impacts – TOTAL TAXES BY STREAM

SOURCE: urbanMetrics inc. 1) Federal Trading Profits, Federal Gas Tax, Federal Excise Tax, Federal Duty Tax, Federal Environment Tax, Federal Air Transportation Tax, Federal Sales Tax, Import Duties

and Federal Taxes on Production.

2) Provincial Environment Tax, Provincial Gallon Tax, Provincial Trading Profits, Provincial Gas Tax, Provincial Amusement Tax, Other Provincial Consumption Taxes,

Provincial Sales Tax, Provincial Harmonized Sales Tax and Provincial Taxes on Production.

3) Municipal Amusement Tax, Municipal Sales Tax and Municipal Taxes on Production.


CANADA $283,353,839 $81,758,526 $45,403,290 $117,859,022 $528,374,677

Personal Tax $142,013,985 $40,976,519 $22,755,655 $43,614,704 $249,360,863

Corporate Tax $32,020,644 $9,239,192 $5,130,838 $11,559,507 $57,950,181

Other Tax 1 $109,319,210 $31,542,814 $17,516,798 $62,684,811 $221,063,633

ONTARIO $259,704,607 $74,934,809 $41,613,848 $107,780,242 $484,033,506

Personal Tax $130,411,208 $37,628,670 $20,896,480 $38,661,310 $227,597,669

Corporate Tax $26,827,659 $7,740,816 $4,298,738 $9,410,136 $48,277,348

Other Tax 2 $102,465,740 $29,565,323 $16,418,630 $59,708,796 $208,158,489

TORONTO $229,375,617 $66,183,724 $36,754,073 $89,737,642 $422,051,057

Personal Tax $120,400,961 $34,740,327 $19,292,485 $34,270,791 $208,704,566

Corporate Tax $22,376,881 $6,456,594 $3,585,567 $7,488,090 $39,907,132

Other Tax 3 $86,597,775 $24,986,802 $13,876,021 $47,978,761 $173,439,359


46

Appendix D – One-Time Impacts Background

Calculations

Figure D-1 through Figure D-4 provide background calculations used to determine City of Toronto

development charges and permit/application fees.


47

Appendix D-1: City of Toronto Planning Application Fees – Future Expansion


1) City of Toronto Planning Application Fees effective January 1, 2017.

2) For the Hotel & Residential space: RESIDENTIAL component (considered the primary use) residential fees have been applied; HOTEL component non-residential fees have been

applied.

Planning Application Application Fee 1

Unit

Amount

Applicable Office Retail

Hotel &

Residential 2

Residential

Legal Service fee for S. 37 Agreement $15,334.77 one time $15,335

*Combined Official Plan and Zoning Bylaw

Base fee: $38,874.00 $38,874.00 one time $38,874

Additional fee if building GFA is over 500 m2

Residential Use: $7.64/m2 $7.64 per m2 $897,605 $157,157 $740,448

Non-Residential Use: $6.82/m2 $6.82 per m2 $2,026,001 $1,340,188 $616,878 $68,935

*Plan of Condominium Approval

Common Elements/Vacant Land $12,957.32 one time

Standard, Phased, Leasehold $9,207.00 one time $9,207

Base fee: $9,207.00 + $25.47 per unit $25.47 per unit $18,797 $5,705 $13,092

Site Plan Control

Base fee: $20,877.38 $20,877.38 one time $20,877

Additional fee if building GFA is over 500/m2

Residential use:

for first 200 m2 over 500 m2: $11.99/m2 $14.71 per m2 $5,884 $2,942 $2,942

for next 700 m2: $9.26/m2 $11.37 per m2 $15,918 $7,959 $7,959

for next 3000 m2: $6.02/m2 $7.39 per m2 $44,340 $22,170 $22,170

over 4400 m2: $2.99/m2 $3.67 per m2 $402,553 $61,180 $341,374

Non Residential Use

$6.92/m2 $6.92 per m2 $2,055,708 $1,359,839 $625,923 $69,946

$5,551,099TOTAL PLANNING FEES


48

Appendix D-2: City of Toronto Building Permit Fees – Future Expansion


1) City of Toronto Building Permit Fees effective January 1, 2017.

2) For the Hotel & Residential space: RESIDENTIAL component (considered the primary use) residential fees have been applied; HOTEL component non-residential fees have been

applied.

Group C [Residential Occupancies]

Amount

Applicable Office Retail

Hotel &

Residential 2 ResidentialResidential Unit Fee $52.08 per unit

Each new residential unit included in an application $38,435 $11,666 $26,769

Single Family Dwellings, Semis, Townhouses, Duplexes, Live/Work Units $17.16 per m2

Motels above two storeys and hotels $27.16 per m2 $274,527 $274,527

(i) For Certification of Plans $8.59 per m2

(ii) Permits for Certified Plans $14.56 per m2

All other multiple unit buildings and any other residential occupancies $17.16 per m2

Group D [Business and Personal Service Occupancies]Office Buildings (Shell), all other Group D Buildings (shell) $17.99 per m2

Office Buildings (finished), Banks, Medical Clinics, Fire Halls, and all other Group D

Buildings (finished)$22.62 per m2 $4,456,333 $4,456,333

Group E [Mercantile Occupancies]Mercantile Occupancies, Retail Stores (shell) $14.57 per m2

Retail Stores (finished), Department Stores, Supermarkets and all other Group E

Buildings (finished)$19.20 per m2 $1,746,265 $1,746,265

TOTAL BUILDING PERMIT FEES $6,515,561 $4,456,333 $1,746,265 $286,193 $26,769

Certified Plans - Housing

Building Permit

Fees Effective

January 1, 2017 1


49

Appendix D-3: City of Toronto Residential Development Charges – Future Expansion


1) City of Toronto Development Charges Rates effective February 1, 2017.

2+ Bedrooms < 2 Bedrooms

Residential Proposed as part of Yorkdale's Future Expansion 343 395

Service Estimated Charge

Spadina Subway Extension 1,811 1,260 $1,118,960

Transit (balance) 7,878 5,479 $4,866,738

Parks and Recreation 3,673 2,555 $2,269,240

Library 1031 717 $636,898

Subsidized Housing 830 578 $513,040

Police 481 335 $297,331

Fire 225 156 $138,806

Emergency Medical Services 127 88 $78,327

Development-related Studies 173 120 $106,747

Civic Improvements 140 97 $86,342

Child Care 246 171 $151,935

Health 39 27 $24,044

Pedestrian Infrastructure 45 32 $28,077

Subtotal General Services 16,699 11,615 $10,316,484

Roads and Related 3,061 2,129 $1,891,025

Water 2,496 1,736 $1,541,968

Sanitary Sewer 1,881 1,309 $1,162,328

Storm Water Management 502 349 $310,065

Subtotal Engineered Services 7,940 5,523 $4,905,386

TOTAL CHARGE PER UNIT 24,639 17,138 $15,221,871

ADDITIONAL: Education Development Charges

*Rate as of July 1, 2015 1,493 1,493 $1,101,834

TOTAL 26,132 18,631 $16,323,705

Apartments Units

$/unit


50

Appendix D-4: City of Toronto Non-Residential Development Charges – Future Expansion


1) City of Toronto Development Charges Rates effective February 1, 2017.

Non-Residential Proposed @ Yorkdale 62,031

Service $/m2

Estimated Charge

Spadina Subway Extension 18.74 $1,162,458

Transit (balance) 81.71 $5,068,540

Parks and Recreation 4.08 $253,086

Library 1.14 $70,715

Subsidized Housing 0.00 $0

Police 5.06 $313,876

Fire 2.38 $147,633

Emergency Medical Services 1.35 $83,742

Development-related Studies 1.83 $113,516

Civic Improvements 1.47 $91,185

Child Care 2.58 $160,040

Health 0.42 $26,053

Pedestrian Infrastructure 3.83 $237,578

Subtotal General Services 124.59 $7,728,423

Roads and Related 32.00 $1,984,987

Water 26.05 $1,615,903

Sanitary Sewer 19.64 $1,218,286

Storm Water Management 5.24 $325,042

Subtotal Engineered Services 82.93 $5,144,218

TOTAL CHARGE PER SM 207.52 $12,872,641

ADDITIONAL: Education Development Charges

*Rate as of July 1, 2015 1.07 $66,373

TOTAL 208.59 $12,939,014

NEW Ground Floor GFA