FOR DISCUSSION PURPOSES ONLY. Employment Lands Needs

Transcription

1 APPENDIX 1 PD DRAFT FOR DISCUSSION PURPOSES ONLY TOWN OF MILTON Employment Lands Needs ASSESSMENT PHASE 1 REPORT File No B Date: January 2016 Prepared by: MacNaughton Hermsen Britton Clarkson Planning Limited (MHBC) 901 Guelph Line Burlington, ON L7R 3N8 T: F: with Watson & Associates Economists Ltd Argentia Rd #101, Mississauga, ON L5N 1V9 T: KITCHNER WOODBRIDGE LONDON KINGSTON BARRIE BURLINGTON

2 TABLE OF CONTENTS 1.0. INTRODUCTION STUDY PURPOSE STUDY PROCESS EXPERT PANEL DISCUSSION STAKEHOLDER INTERVIEWS PUBLIC OPEN HOUSES SURVEY WHAT ARE EMPLOYMENT LANDS? STUDY PRINCIPLES CONTEXT MACRO-ECONOMIC TRENDS PROVINCIAL ECONOMIC OUTLOOK HALTON REGION EMPLOYMENT TRENDS ON EMPLOYMENT LANDS HISTORICAL EMPLOYMENT TRENDS DEVELOPMENT TRENDS ON EMPLOYMENT LANDS IN HALTON REGION TRENDS IN EMPLOYMENT DENSITY EMERGING TRENDS IN THE DEVELOPMENT OF EMPLOYMENT AREAS INNOVATION DISTRICTS INTENSIFICATION OF EMPLOYMENT AREAS NEW GREENFIELD EMPLOYMENT AREAS EXPERT PANEL DISCUSSION STAKEHOLDER INTERVIEWS LOCAL ECONOMIC TRENDS AND EXISTING CONDITIONS MILTON COMMUNITY PROFILE EMPLOYMENT TRENDS INDUSTRY CLUSTERS IN MILTON LABOUR FORCE TRENDS COMMUTING TRENDS 39 ii

3 3.2 EMPLOYMENT LANDS PROFILE EMPLOYMENT LANDS OVERVIEW DESIGNATED EMPLOYMENT LANDS PLANNED EMPLOYMENT AREAS FUTURE EMPLOYMENT AREAS TRENDS IN DEVELOPMENT ACTIVITY TRENDS IN EMPLOYMENT LANDS ABSORPTION TRENDS IN EMPLOYMENT DENSITY EMPLOYMENT LANDS SUPPLY REGIONAL COMPETITIVENESS ANALYSIS PHYSICAL ATTRIBUTES INFLUENCING THE COMPETITIVE POSITION OF MILTON S EMPLOYMENT LANDS OBSERVATIONS POLICY CONTEXT POLICY REVIEW PROVINCIAL POLICY STATEMENT, THE GROWTH PLAN FOR THE GREATER GOLDEN HORSESHOE HALTON REGIONAL OFFICIAL PLAN TOWN OF MILTON OFFICIAL PLAN MILTON MUNICIPAL COMPREHENSIVE REVIEW RELATED PROVINCIAL PLANNING CHANGES TO THE PLANNING ACT - BILL CO-ORDINATED LAND USE PLANNING REVIEW OTHER DOCUMENTS HALTON REGION LAND USE COMPATIBILITY GUIDELINE HALTON REGION ECONOMIC DEVELOPMENT STRATEGY HALTON REGION INVESTMENT IN EMPLOYMENT AREAS ON-GOING DEVELOPMENT CHARGES BACKGROUND STUDY OTHER FACTORS NATURAL ENVIRONMENT TRANSPORTATION WASTEWATER AND WATER SERVICING 88 JANUARY 2016 DRAFT PHASE 1 REPORT MILTON EMPLOYMENT LAND NEEDS ASSESSMENT iii

4 5.0 PLANNING POLICY MUNICIPAL PRACTICES EMPLOYMENT DESIGNATIONS AND USES TOWN OF AJAX CITY OF HAMILTON TOWN OF OAKVILLE CITY OF TORONTO CITY OF VAUGHAN SUMMARY OF PLANNING POLICY PRACTICES POLICIES ON LOW DENSITY EMPLOYMENT USES EMPLOYMENT LAND EVALUATION CRITERIA EMPLOYMENT INTENSIFICATION CRITERIA EMPLOYMENT LAND CONVERSION CRITERIA PHASE 1 REPORT SUMMARY 113 iv

5 PHASE 1 REPORT EXECUTIVE SUMMARY JANUARY 2016 DRAFT PHASE 1 REPORT MILTON EMPLOYMENT LAND NEEDS ASSESSMENT v

6 STUDY PURPOSE AND PROCESS 1. The Milton Employment Land Needs Assessment Study (the Study ) aims to assist the Town of Milton to best plan for its employment lands. 2. Milton has experienced one of the highest growth rates of any municipality in Canada over the last decade. With growth comes the challenge of managing that growth and change, and planning for the long-term stability and sustainability of the Town. Critical to the Town s long-term sustainability is the direction from Council through the Town s Official Plan as to how and where growth is to occur and specifically for employment growth, where jobs should be maintained and created. 3. There is a need to develop a comprehensive strategy for guiding development to 2041 to achieve the best employment land distribution and sustainable densities to meet the Town s long-term objectives. 4. The purpose of the Employment Land Needs Assessment Study is to confirm Milton s employment land needs, provide information on trends and what they mean for Milton s employment supply and demand, and recommend supporting policies and direction. 5. Phase 1 of the study focuses on: a. the current market context and trends at the provincial, regional and local levels; b. exploring Milton s employment land profile including recent non-residential development trends, vacant land supply and regional competitiveness; and, c. providing an overview of the current policy framework and municipal practices regarding employment land planning. Report Report PHASE 1 PHASE 2 RECOMMENDATIONS background analysis Expert Panel Open House Open House Stakeholder Interviews Survey vi

7 6. Employment lands form a vital component of Milton s land-use structure and are an integral part of the local economic development and employment growth potential. They are home to many of Milton s largest private-sector employers, including Karmax Heaving Stamping, Gordon Food Service, Sobeys, Northstar Aerospace and Johnson Controls. 7. A healthy balance between residential and non-residential development is considered highly important to maintaining the economic and fiscal sustainability of Milton. STUDY PRINCIPLES 8. A set of principles have been developed to guide the Milton Employment Land Needs Assessment Study. a. The Study will respect employment land policies in Provincial and Regional Plans thereby providing policy predictability related to the supply of serviced employment lands and the uses that are permitted on them. b. The Study will determine the supply of serviced, designated and future planned employment lands to facilitate short-term, medium-term and long-term economic growth. c. The Study will provide specific direction to maximize the competitiveness of the Town s employment lands and promote the growth, retention and expansion of existing businesses to achieve a diverse mix of jobs by employment sector. d. The Study will encourage a balanced residential/non-residential tax ratio and employment activity rate (ratio of jobs to population) over the longterm planning horizon. e. The Study will encourage innovative businesses and employers to be located in strategic employment areas. f. The Study will support high quality and environmentally responsible development of employment lands. g. The Study will promote vibrant employment areas and corridors that provide a diverse range of employment uses as well as an appropriate range of employment supportive uses that enhance the attractiveness and functionality of the Town s employment areas. JANUARY 2016 DRAFT PHASE 1 REPORT MILTON EMPLOYMENT LAND NEEDS ASSESSMENT vii

8 h. The Study recognizes the need to maximize land utilization/density on employment lands, including promoting intensification, while accommodating the needs for land expansive employment uses where appropriate. i. The Study will provide direction with respect to the protection of strategic employment lands beyond a 20-year planning horizon. PROVINCIAL AND G.T.H.A. CONTEXT 9. In examining Milton s employment lands it is essential to understand the broader influences and factors that affect the regional economy as a whole. Some of the key findings related to the Provincial and The Greater Toronto and Hamilton Area (G.T.H.A.) economic context include. a. The expected continued shift in the provincial economy to an increasingly serviced-based economy driven by strong growth in knowledge-based sectors. b. The diverse and highly competitive G.T.H.A. economy has fueled a steady level of employment growth over the past decade. Despite the global economic slowdown, G.T.H.A. employment levels have increased in almost all major sectors of the service sector economy since c. The G.T.H.A. has experienced significant employment growth in the goods movement sector over the past decade comprised of transportation/ warehousing and wholesale trade. d. Since bottoming out in 2010, industrial development activity has been steadily rebounding with 2014 activity totalling 5.3 million sq.ft. Over the 2006 to 2014 period, Halton Region accounted for 21%, of the G.T.H.A. s new industrial development. e. Over the past five years, industrial development in the G.T.H.A. has been oriented to large-scale stand-alone industrial buildings housing wholesale trade, transportation/ warehousing as well as multi-tenant industrial condominiums, accommodating a range of industrial and non-industrial uses. f. With respect to the office market, the G.T.H.A. contains 198 million sq.ft. of office space. Of this total, Halton Region s office space inventory of 9.8 million sq.ft. represents approximately 5% of the G.T.H.A. total. Demand for office space within employment areas is increasingly single tenant viii

9 and integrated with multi-purpose facilities (e.g. R&D, training centres, wholesale trade) often in campus-type settings and there are growing opportunities for office development within innovation districts located on employment lands which have direct synergies with knowledge-based clusters. HALTON REGION AND LOCAL CONTEXT 10. Halton Region continues to experience significant growth in population and employment. The amount, type and location of recent employment growth has strongly influenced the built form of development on employment lands and future employment needs by local municipalities within Halton. Recent employment trends in Halton Region include the following. a. Developed employment lands in Halton Region total 3,377 net ha, approximately 11% of the G.T.H.A. total. The majority of the Region s developed employment lands (72% of developed land area) are located in South Halton, primarily along the Q.E.W. corridor within the City of Burlington and the Town of Oakville. b. Over the past decade, employment lands have been shifting from more mature municipalities such as Mississauga, Richmond Hill, Markham, and Burlington to outer edges of the G.T.H.A., such as Milton and Caledon, as well as the Greater Golden Horseshoe (G.G.H.) Outer-Ring. Employment land absorption levels in Halton Region have averaged approximately 48 net ha per year over the past decade representing approximately 19% of total employment lands absorption within the G.T.H.A. over this time period. c. Key sub-sectors which have been accommodated on recently absorbed employment lands include professional, scientific and technical services, manufacturing, transportation and warehousing, management of companies and enterprises and wholesale trade. d. Average employment density levels on employment lands across many G.T.H.A. municipalities have fallen in recent years. The average employment density on employment lands in Halton Region is 30 jobs per net ha which is lower than in Peel or York Region. In Milton, overall employment density on employment lands averages 17 jobs per net ha and is driven primarily by the significant development activity in large-scale warehousing and distribution/logistics to serve the goods movement sector. JANUARY 2016 DRAFT PHASE 1 REPORT MILTON EMPLOYMENT LAND NEEDS ASSESSMENT ix

10 EMERGING TRENDS IN EMPLOYMENT LAND DEVELOPMENT 11. While many existing greenfield employment developments continue to be planned for expansive industrial uses, there is a trend towards planning for employment areas in a way that maximizes the use of land and infrastructure while providing for economic clustering at a more dense scale than traditional suburban business parks or industrial areas which includes the emergence of employment communities and innovation districts. 12. Innovation districts have emerged as a new way to promote knowledge-based economic development and offer a unique potential to spur productive, inclusive and sustainable economic development. They are planned to optimize their economic, physical and networking assets. 13. Intensifying existing employment areas is also an efficient way to increase the density of existing employment areas. Successful intensification of existing employment areas reinforces the existing clusters by facilitating the growth and evolution of existing businesses. Promoting the introduction of complementary accessory uses can allow existing employment areas to operate as a more complete and connected employment community. The urbanization of existing suburban business parks and the refurbishing and redevelopment of older industrial areas is an example of this shift. 14. While there is still a need to ensure land use compatibility and to provide adequate separation for heavier industrial uses, the economy has shifted away from these employment sectors so too has the planning thinking. WHAT THE EXPERTS TOLD US 15. An expert panel event entitled Milton Employment Lands: Trends, Factors and Influences was held on Thursday November 26, The panel agreed that Milton has a great foundation for jobs and a strong base of warehouse and logistics employment. 16. The panel provided insights related to employment planning and job creation. a. Human capital is a critical factor contributing to the attractiveness of Milton as a place of employment. b. A vision for the future should include a balance of social and business goals. c. The people and the policy-makers of Milton must consider what are the Town s core values and how would these values relate to the economic realities of Milton s future. x

11 d. Milton is well-positioned to retain local residents to work in the municipality instead of taking the 400-series highway to commute to jobs elsewhere in the GTA. e. The development timeline of employment areas is longer than all other uses. As such, build-out and intensification of employment lands typically takes many years longer than other uses. Be patient. Given the longer timeframe of employment development, it is important for policy-makers to evaluate short-term economic conditions with a strong understanding of the long-term goals of the Town. f. There are an increasing number of small and medium-sized firms engaged in innovation and development in the Town of Milton, who have a specific set of workplace needs that should be accommodated. g. New and existing employment areas should be planned as employment communities that have a variety of employment and employmentsupportive uses. 17. Key industry stakeholders also provided information through a series of interviews. The stakeholders echoed many of the comments heard at the panel session and reinforced the need to provide more flexibility within the employment policies, the ability to provide for more focused employment communities with a range of supportive uses, and the need to shift the focus of employment planning from the protection of lands to the creation of jobs. Photo of expert panel event from November JANUARY 2016 DRAFT PHASE 1 REPORT MILTON EMPLOYMENT LAND NEEDS ASSESSMENT xi

12 MILTON S ECONOMIC PROFILE 18. A number of local economic, socio-economic and financial trends are influencing growth trends and competitiveness on employment lands in the Town of Milton. a. Milton s total employment base has more than doubled over the period, increasing from approximately 19,500 to an estimated 38,200. b. Milton has a strong presence in wholesale trade, transportation and warehousing, retail trade and construction, which are also growing sectors in the Town. c. The manufacturing sector has a strong presence in the Town, but has experienced a steady decline in employment over the past decade, consistent with trends in the broader economy. d. In contrast, knowledge-based sectors, including professional, scientific and technical services, finance and insurance as well as real estate, and rental and leasing which are generally under-represented in the Town, have been experiencing moderate to steady employment growth over the past 10 years. e. Milton s labour force has grown at a significantly faster rate than its employment base. Over the period, the Town s labour force expanded from 19,000 to 48,000, an increase of 252%, compared to a 47% increase in the employment base. f. The Town s live-work ratio has declined significantly, from 46% in 2001 to 26% in g. Of the total employment base in Milton, 40% of jobs are held by Milton residents, while the majority of the remainder commute from other municipalities in the western G.T.H.A. xii

13 MILTON S EMPLOYMENT LAND SUPPLY 19. Milton s employment land supply includes existing designated and built out lands, planned employment areas (greenfield areas) and future strategic employment areas, intended to accommodate growth over the longer term. 20. A total of 688 net ha (1,700 net acres) of employment lands were identified as developed within the Town of Milton as of November, The Town s employment lands contain approximately 17.2 million sq.ft. of building space. 21. Milton s designated employment lands include the 401 Industrial/Business Park and Derry Green Corporate Business Park. The planned employment areas include the Milton Education Village, the CN lands, the Trafalgar/Derry lands and the 401 Industrial Business Park Extension lands. 22. The Town also has approximately 1,400 gross Ha (3,400 gross acres) of Future Strategic Employment Area land. Town of Milton employment lands absorbed by parcel size, ha 31% 10 ha or greater 11% <1 ha 14% 2-5 ha 25% 1-2 ha 19% Source: Watson & Associates Economists Ltd data includes lands absorbed January through November. MILTON S ECONOMIC DEVELOPMENT ACTIVITY AND COMPETITIVE ADVANTAGE 23. Milton has experienced strong development activity on its employment lands over the past decade. Over the period, the Town has averaged 82,000 sq.m. (882,600 sq.ft.) of building activity (new and expansions) on employment lands annually. 24. While development activity on employment lands in 2013 and 2014 was relatively modest, activity in the first three quarters of 2015 totalled 128,000 sq.m. (1.4 million sq.ft.), well above the 10-year historical average. New building construction has accounted for 85% of total development activity on employment lands over the period, compared to 15% for expansions. 25. Over the period, 89% of development on employment lands has been in the industrial sector, with 2% in office commercial and 9% in other commercial and institutional development. A significant share of industrial development has been in logistics/distribution. 26. Milton s share of Halton Region s total new industrial development has increased significantly over the past decade. From 2010 through 2014, Milton accounted for 70% of the Region s industrial development on employment lands. This is compared to 46% over the period. JANUARY 2016 DRAFT PHASE 1 REPORT MILTON EMPLOYMENT LAND NEEDS ASSESSMENT xiii

14 27. Employment land absorption levels have averaged approximately 20 net ha (49 net acres) per year. Employment lands absorption in 2015 based on data through November totalled 30 net ha, significantly higher than the 10-year historical average. 28. Employment densities on employment lands absorbed over the past decade have been slightly lower than the existing 2015 employment lands base (16 jobs per net ha vs. 17 jobs per net ha). 29. Milton maintains a healthy and competitive role in the Regional and G.T.H.A. economic market. Its competitive advantage is related to its location and access to Highway 401, a highly skilled labour force, high quality of life, competitive cost of development in relation to market demand and potential return on investment, and available land supply. PLANNING POLICY CONTEXT 30. How Milton can plan for its future employment lands is bound by current Provincial and Regional policy. The current Milton Official Plan also provides for approved Council direction for employment land that is the subject of this review. 31. The 2014 Provincial Policy Statement (PPS) and the Growth Plan for the Greater Golden Horseshoe (the Growth Plan) set out legislated policies that require municipalities to accommodate employment growth targets and the provision of policies to provide for employment areas. 32. The Growth Plan also provides policies related to the conversion of employment lands including specific criteria which must be addressed. 33. Employment land planning is also directed through policies in Halton Region s Official Plan. ROPA 38 includes population and employment forecasts to the year 2031, on which the current land budget is based and through which development opportunities are planned: Population Employment Halton Region, , ,000 Town of Milton, , , The in-effect Town of Milton Official Plan (OP 1997) was most recently consolidated in August To respond to changes in both provincial planning legislation and regional planning policy related to growth management and intensification, Official Plan Amendment 31 (OPA 31) was adopted by Council in It is currently xiv

15 awaiting Regional approval. OPA 31 includes policies related to employment intensification, employment conversion, mixed use areas, employment areas and institutional areas. 35. In 2014, the Town of Milton conducted an initial study to inform its municipal comprehensive review process with respect to planning for employment and commercial lands. The report looked at the employment, commercial and retail land needs for the Town. The study included recommended policies, a detailed analysis of employment land supply and an evaluation of retail lands. 36. In addition to the existing policy framework and recent relevant studies, Milton s transportation, environmental and servicing context is critical to planning for employment lands and will be further assessed as part of Phase A number of additional studies evaluated provide information which assists in evaluating Milton s employment policies. 38. In examining possible approaches and options for employment planning, an understanding of other municipal practices is important. The Official Plans of five municipalities, Ajax, Hamilton, Oakville, Toronto and Vaughan, were evaluated to consider what employment land use designations were applied, what were the permitted uses and policies under these designations, what types of specific policies, if any, addressed employment supportive and related uses, intensification of employment uses, conversion of uses and how were older employment areas protected. 39. In order to support general employment land redevelopment and intensification of existing employment areas in Milton a number of criteria have also been developed to examine the potential for employment intensification. 40. The analysis regarding the potential for employment land conversion in Phase 2 of the Employment Land Needs Assessment will need to meet policy requirements of the PPS and the Growth Plan. A number of additional criteria have also been developed to assist in the assessment of potential conversion sites. These include criteria related to policy requirements, economic vitality, land use compatibility and community vitality. 41. The Phase 2 report will provide an analysis of the Phase 1 findings, an assessment of the current employment land supply and demand, projections for employment growth, consideration of employment intensification areas and potential conversion sites, and provide draft policies, directions and recommendations related to future employment lands in Milton. JANUARY 2016 DRAFT PHASE 1 REPORT MILTON EMPLOYMENT LAND NEEDS ASSESSMENT xv

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17 1.0. INTRODUCTION The Milton Employment Land Needs Assessment Study aims to assist the Town of Milton to best plan for its employment lands. Milton has experienced one of the highest growth rates of any municipality in Canada over the last decade. With growth comes the challenge of managing that growth and change, and planning for the long-term stability and sustainability of the Town. Critical to the Town s long-term sustainability is the direction from Council through the Town s Official Plan as to how and where growth is to occur and specifically for employment growth, where jobs should be maintained and created. There is a need to develop a comprehensive strategy for guiding development to 2031 to achieve the best employment land distribution and sustainable densities to meet the Town s long-term objectives. JANUARY 2016 DRAFT PHASE 1 REPORT MILTON EMPLOYMENT LAND NEEDS ASSESSMENT 1

18 1.1. STUDY PURPOSE The purpose of the study is to confirm Milton s employment land needs, provide information on trends and what they mean for Milton s employment land supply and demand, and recommend supporting policies and direction. The recommended policies will ensure the future planning goals of the Town are implemented, recognize market forces and reinforce the physical and urban context of the Town, while respecting the overarching regional and provincial policy framework. Phase 1 of the study focuses on the current market context and trends at the provincial, regional and local levels. Further, it explores how current economic and socioeconomic trends and changes have affected employment lands in Halton Region and the Town of Milton. The Phase 1 report also explores Milton s employment land profile including recent non-residential development trends, vacant land supply and regional competitiveness. Finally, this report provides an overview of the current policy framework and municipal practices regarding employment land planning STUDY PROCESS The Study is comprised of two phases. Phase 1 includes background research and a discussion of the research findings. This phase is also informed by an expert panel discussion and a series of stakeholder interviews. The Phase 1 report sets out principles for the study which are intended to guide the initial work and be upheld in the final recommended policies and directions. This report considers the existing provincial, regional and municipal policy context for employment planning and the 2014 Municipal Comprehensive Review work completed by the Town. Figure Study progress flow Report Report PHASE 1 PHASE 2 RECOMMENDATIONS background analysis Expert Panel Open House Open House Stakeholder Interviews Survey 2

19 The Phase 2 report will provide an analysis of the Phase 1 findings, an assessment of the current employment land supply and demand, projections for employment growth, consideration of employment intensification areas and potential conversion sites, and draft policies, directions and recommendations related to future employment lands in Milton Expert Panel Discussion As part of the research for the Milton Employment Land Needs Assessment Study, an expert panel was brought together to explore a number of questions related to employment land planning and development in general and in a Milton specific context. These experts represented a range of perspectives related to employment land planning and the development process, and included urban planners, land economists, employment land investors, academic researchers, innovation and technology experts, as well as ICI development experts. The purpose of the panel event was to provide a forum for an open discussion of the issues identified as part of the Study. The panelists were provided with a series of questions related to employment land planning in Milton, the GTA and beyond. The findings of the panel discussion are summarized in Section 2.4 of this Phase 1 report. Figure Photo of expert panel event from November 2015 JANUARY 2016 DRAFT PHASE 1 REPORT MILTON EMPLOYMENT LAND NEEDS ASSESSMENT 3

20 1.2.2 Stakeholder Interviews A series of interviews were held with key stakeholders associated with the development of employment lands to obtain information and insight on the key issues facing Milton s employment areas and planning. Industry representatives, landowners, developers and real estate professionals were interviewed. Questions discussed during the interviews included what are the challenges faced in the development of employment lands today? What challenges do you perceive will be faced in the future? What opportunities exist in Milton for employment lands and what changes should be considered? The findings of the panel discussion are summarized in Section 2.5 of this Phase 1 report Public Open Houses Members of the public will have an opportunity to become involved in the Study through public open houses at which information and findings from the different stages of the Study will be presented. The open house format will allow for the discussion of issues and ideas, and the collection of input and feedback prior to the commencement of the Phase 2 report and following its completion Survey A short survey has been prepared and is available on the Town s project website. The intent of the survey is to collect additional information from the pubic and stakeholders on their thoughts about employment land planning and current trends. 4

21 1.3. WHAT ARE EMPLOYMENT LANDS? Provincial Policy Statement 2014 Employment lands are defined in many ways. Both the Provincial Policy Statement, 2014, and the Growth Plan for the Greater Golden Horseshoe, 2006, provide a definition of employment that guides the planning framework in Ontario. Both define Employment Areas as areas designated in an official plan for clusters of business and economic activities including, but not limited to, manufacturing, warehousing, offices, and associated retail and ancillary facilities (PPS 2014). These areas are protected under provincial policies from being converted to non-employment areas. Under the Planning Act Ontario.ca/PPS BLEED From a land use planning perspective, employment lands are typically defined in an Official Plan to include a broad range of uses classified based on a hierarchy of designations and activities. These are usually reflective of categories of employment based on sectors. Typical designations include industrial designations which range from heavy industrial, generally defined as lands upon which industrial operations and facilities are located that require distance separation from other uses due to impacts, to light industrial, defined by operations or facilities with lesser impacts. Uses in these designations include manufacturing, processing, fabrication, warehousing, distribution/ logistics, and transportation services. Employment land use designations also include general employment or business employment, which provide lands for a broad range of business operations, functions and activities. Office land use designations are used to define areas with office uses and administrative and service functions. Employment lands also include designations for lands or areas that support employment uses (such as service commercial uses) which may be located in separate designations or permitted in other employment designations with specific policies to control their size and location. In the planning typology of employment lands, designations may also be location based and dependent on economic requirements. An example of this is the reference to Business Corridor Area or Airport Industrial Area that are associated with lands linked to a location or associated with a larger facility or centre. In addition to defined employment areas, however, there are land uses that generate jobs that are not considered employment lands for land use planning purposes. Commercial and institutional land uses generate jobs that are generally classified as population-based employment. While these lands are not the focus of the employment land needs assessment, they play an important role in job generation and a supporting role to employment areas and need to be considered in that context. Employment land designations include business employment and industrial employment. Growth Plan for the Greater Golden Horseshoe, 2006 OFFICE CONSOLIDATION, JUNE 2013 Ministry of Infrastructure Commercial and institutional lands generate jobs but are not classified as employment lands JANUARY 2016 DRAFT PHASE 1 REPORT MILTON EMPLOYMENT LAND NEEDS ASSESSMENT 5

22 Employment Lands in Milton Employment lands form a vital component of Milton s land-use structure and are an integral part of local economic development and employment growth potential. They are home to many of Milton s largest private-sector employers, including Karmax Heaving Stamping, Gordon Food Service, Sobeys, Northstar Aerospace and Johnson Controls to name a few. Through development of the employment land base, the Town is better positioned to build a more balanced and complete community. Development typically accommodated on employment lands generates relatively strong economic multipliers (i.e. economic spin-off effects) that benefit Milton directly and indirectly. In addition, employment land development typically generates high-quality employment opportunities which can improve socio-economic conditions within the community (i.e. live/work opportunities). Furthermore, achieving non-residential growth adds to a community s assessment base, which can help support lower residential taxes and municipal service levels. Employment land development also tends to produce more positive net fiscal benefits for the community than other types of development (e.g. residential and retail). Thus, a healthy balance between residential and non-residential development is considered highly important to maintaining the economic and fiscal sustainability of Milton. 6

23 1.4. STUDY PRINCIPLES A set of principles was developed with the initial launch of the study. These principles are derived from the key messages conveyed in the initial Municipal Comprehensive Review work as well as from the list of issues and questions to be addressed through the study. The principles should be considered throughout the study and upheld with the recommended strategy to respond to the employment land needs in Milton. 1. The Study will respect employment land policies in Provincial and Regional Plans thereby providing policy predictability related to the supply of serviced employment lands and the uses that are permitted on them. 2. The Study will determine the supply of serviced, designated and future planned employment lands to facilitate short-term, medium-term and long-term economic growth. 3. The Study will provide specific direction to maximize the competitiveness of the Town s employment lands and promote the growth, retention and expansion of existing businesses to achieve a diverse mix of jobs by employment sector. 4. The Study will encourage a balanced residential/non-residential tax ratio and employment activity rate (ratio of jobs to population) over the long-term planning horizon. 5. The Study will encourage innovative businesses and employers to be located in strategic employment areas. 6. The Study will support high quality and environmentally responsible development of employment lands. 7. The Study will promote vibrant employment areas and corridors that provide a diverse range of employment uses as well as an appropriate range of employment supportive uses that enhance the attractiveness and functionality of the Town s employment areas. 8. The Study recognizes the need to maximize land utilization/density on employment lands, including promoting intensification, while accommodating the needs for land expansive employment uses where appropriate. 9. The Study will provide direction with respect to the protection of strategic employment lands beyond a 20-year planning horizon. JANUARY 2016 DRAFT PHASE 1 REPORT MILTON EMPLOYMENT LAND NEEDS ASSESSMENT 7

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25 2.0. CONTEXT JANUARY 2016 DRAFT PHASE 1 REPORT MILTON EMPLOYMENT LAND NEEDS ASSESSMENT 9

26 2.1. MACRO-ECONOMIC TRENDS In examining Milton s employment lands it is essential to understand the broader influences and factors that affect the regional economy as a whole. This section examines recent macroeconomic trends at the provincial, G.T.H.A. and Halton Region level Provincial Economic Outlook 10 Larger economic trends such as globalization have led to the outsourcing of production processes to overseas manufacturers. While there will continue to be a manufacturing focus in Ontario, industrial processes have become more capital/ technology intensive and automated. The Ontario economy is facing significant structural changes. Over the past several decades, the provincial economic base, as measured by G.D.P. output, has shifted from goods-producing sectors (i.e. manufacturing and primary resources) to serviceproducing sectors. Much of this shift has occurred in the past five years, driven by G.D.P. declines in the manufacturing sector which were most significant immediately following the 2008/2009 global economic downturn. In contrast, service-based sectors, such as financial and business services, have seen significant increases over the period. Growth in the service-based sectors has been driven by strong growth in domestic demand, particularly in consumer spending. The economic recession hit Ontario relatively hard with significant declines in manufacturing output, particularly in the auto sector, and in construction. While the Ontario economy has experienced a rebound in economic activity since the 2008/2009 global economic downturn, the rate of growth has been marginally lower than the national growth rate. That said, provincial G.D.P. levels between 2014 and 2016 are forecast to gradually rise and out-perform the national average. Stronger provincial economic growth is attributed, in part, to an improvement in the economic outlook in the United States (U.S.) and an improving export market, due in part to a lower valued Canadian dollar. 1 Looking forward, the provincial economy is expected to continue to shift to an increasingly serviced-based economy driven by strong growth in knowledge-based sectors. While manufacturing remains vitally important to the provincial economy with respect to jobs and economic output, this sector is not anticipated to generate significant labour-force growth across the Province. Larger economic trends such as globalization have led to the outsourcing of production processes to overseas manufacturers. While there will continue to be a manufacturing focus in Ontario, industrial processes have become more capital/technology intensive and automated. The highly competitive nature of the manufacturing sector will require production to be increasingly cost effective and value-added oriented, which bodes well for firms that are specialized and capital/ technology intensive. 1 Over the last two years, the Canadian dollar has steadily depreciated against the U.S. dollar (valued at approximately $0.76 U.S.D. as of October, 2015) and is now trading below its 25-year historical average value.

27 2.1.2 G.T.H.A. Economic and Non-Residential Trends G.T.H.A. Economic Trends The Greater Toronto and Hamilton Area ( G.T.H.A.) represents the economic powerhouse of Ontario and the centre of a large portion of the economic activity in Canada. The G.T.H.A. is also economically diverse with most of the top 20 traded industry clusters throughout North America having a strong presence in this region. With a robust economy and diverse mix of export-based employment sectors, the G.T.H.A. is highly attractive on an international level to new businesses and investors. The G.T.H.A. also has a strong appeal given the area s regional infrastructure (i.e. Toronto Pearson International Airport (T.P.I.A.), other regional airports, provincial highways, inter-modal facilities), access to labour force, post-secondary institutions and proximity to the U.S. border. In turn, this continues to support steady population and housing growth within the City of Toronto and the G.T.H.A. 905 municipalities, largely driven by international and inter-provincial net migration to this region. The diverse and highly competitive G.T.H.A. economy has fueled a steady level of employment growth over the past decade. Despite the global economic slowdown, G.T.H.A. employment levels have increased in almost all major sectors of the service sector economy since Many of these sectors, including professional, scientific and technical services, financial services, information and cultural industries, education services, health care and social services, as well as real estate, represent the knowledgebased and creative-class economy. 2 Within the service sector, economic growth has been particularly strong for small to medium-scale knowledge-based businesses which are focused on innovation and entrepreneurship. The G.T.H.A. has also experienced significant employment growth in the goods movement sector over the past decade comprised of transportation/warehousing and wholesale trade. This sector is highly concentrated within the Regions of Peel, York and Halton which are located within proximity to the T.P.I.A. Other regional infrastructure attributes, including access to 400-series highways as well as existing and planned intermodal facilities in Brampton, Vaughan and Milton, have and will continue to play a key role in driving demand within this sector across the G.T.H.A. Increased outsourcing of manufacturing production to emerging global markets continues to drive the need for new consolidated, land extensive warehousing facilities to store and manage the distribution of goods produced both locally and imported from abroad. This continues to drive demand for increasingly larger, more land-extensive warehousing facilities, generally in greenfield employment areas. The diverse and highly competitive G.T.H.A. economy has fueled a steady level of employment growth over the past decade. Despite the global economic slowdown, G.T.H.A. employment levels have increased in almost all major sectors of the service sector economy since The G.T.H.A. has also experienced significant employment growth in the goods movement sector over the past decade comprised of transportation/ warehousing and wholesale trade. 2 Richard Florida, The Rise of the Creative Class JANUARY 2016 DRAFT PHASE 1 REPORT MILTON EMPLOYMENT LAND NEEDS ASSESSMENT 11

28 Trends in Industrial/Office Development Activity The G.T.H.A. s industrial and office commercial development market is significant, with the third and fifth largest inventory, respectively, in North America. 3 The industrial market in the G.T.H.A. is comprised of 871 million sq.ft. of industrial space, as expressed in gross floor area (G.F.A.), with more than half located in Peel Region and the City of Toronto. 4 York Region also has a significant industrial base, while Durham Region s is relatively small. Comparatively, Halton Region has an existing industrial base of 75 million sq.ft. (G.F.A.), which comprises 9% of the G.T.H.A. total. 5 Over the past five years, industrial development in the G.T.H.A. has been oriented to largescale stand-alone industrial buildings housing wholesale trade, transportation/ warehousing as well as multi-tenant industrial condominiums, accommodating a range of industrial and nonindustrial uses. With respect to industrial building development (including manufacturing and distribution uses), the G.T.H.A. has averaged 4.7 million sq.ft. of gross floor area (G.F.A.) annually over the period. 6 The G.T.H.A. experienced significant growth in industrial development between 2006 and 2008, however, with the onset of the recent global economic recession, development activity dropped sharply in 2009 and Since bottoming out in 2010, industrial development activity has been steadily rebounding with 2014 activity totalling 5.3 million sq.ft. Recent industrial development activity (2011 to 2014), however, remains below pre-recession levels. Coinciding with the increase in industrial development activity since 2010, vacancy rates have gradually declined and net market rents have risen, albeit at a marginal rate. Over the 2006 to 2014 period, Peel Region accommodated nearly half (48%) of the G.T.H.A. s new industrial development. In comparison, Halton Region accounted for 21%, York Region 16%, City of Toronto 6%, Durham Region 4% and the City of Hamilton 5%. The majority of recent industrial development in the G.T.H.A. has been focused largely along the Highway 401 corridor in Mississauga, Brampton and Milton, and in the Highway 400/407 area of Vaughan. Over the past five years, industrial development in the G.T.H.A. has been oriented to large-scale stand-alone industrial buildings housing wholesale trade, transportation/ warehousing as well as multi-tenant industrial condominiums, accommodating a range of industrial and non-industrial uses. With respect to the office market, the G.T.H.A. contains 198 million sq.ft. of office space. 7 Of this total, 70% is located within the City of Toronto with the majority located in the downtown core. Outside the City of Toronto, major office clusters are located in the 905 area, including York Region (Highways 404/407 in Markham and Richmond Hill and the Highway 400 Corridor in Vaughan), Peel Region (Mississauga Airport Corporate Centre, City Centre and Meadowvale), and Halton Region (Q.E.W. Corridor in Burlington and Oakville). Halton Region s office space inventory of 9.8 million sq.ft. represents approximately 5% of the G.T.H.A. total Collier International 2015 data. 4 DTZ Canada Q G.T.A. Industrial Market Report, except data for City of Hamilton derived from Colliers Industrial Stats Q DTZ Canada Q G.T.A. Industrial Market Report. 6 Based on market data from DTZ Barnicke and Colliers International. 7 Colliers International, Q Excludes City of Hamilton. 8 Colliers International, Q Excludes City of Hamilton.

29 Over the period, office development activity in the G.T.H.A. has averaged 1.8 million sq.ft. per year. 9 Office development has exhibited strong growth since 2006, despite the 2008/2009 economic downturn. In 2014, office development activity totalled 2.3 million sq.ft., moderately higher than the historical annual average over the period. Office development over the past decade has been concentrated within the Toronto downtown core and in employment areas and corridors in the larger municipalities of York Region, 10 the City of Mississauga along the Highway 401 corridor, and the Q.E.W. corridor in the Town of Oakville. Halton Region has accounted for approximately 12% of recent development activity. 11 Over this period, office development activity in the G.T.H.A. has shifted increasingly to downtown Toronto at the expense of suburban locations. Historically, the vast majority of suburban office development has been accommodated within employment areas, however; market prospects for conventional stand-alone suburban office development within employment areas is gradually diminishing, as demand shifts to more urban environments. Demand for office space within employment areas is increasingly single tenant and integrated with multi-purpose facilities (e.g. R&D, training centres, wholesale trade) often in campus-type settings. Further, there are growing opportunities for office development within innovation districts located on employment lands which have direct synergies with knowledgebased clusters. G.T.H.A. Population and Employment Growth Outlook Over the next 30 years, considerable new residential and non-residential growth is anticipated across the G.T.H.A. In accordance with the Provincial Growth Plan (Places to Grow), 12 the population of the G.T.H.A. is forecast to increase from 6.84 million in 2011 to million in 2041, an increase of 3.3 million persons. The area is also forecast to add approximately 1.4 million jobs over the same time period. This represents a substantial increase in population and employment relative to other North American metropolitan regions of comparable population. The strong growth potential anticipated for the G.T.H.A. is largely tied to the strength and diversity of the area s industry clusters. Demand for office space within employment areas is increasingly single tenant and integrated with multipurpose facilities (e.g. R&D, training centres, wholesale trade) often in campus-type settings. The strong growth potential anticipated for the G.T.H.A. is largely tied to the strength and diversity of the area s industry clusters. As the more mature areas of the G.T.H.A. gradually build out, increasing outward growth pressure will be placed on the remaining vacant greenfield employment areas of the G.T.H.A. This is particularly important for North Halton, which is anticipated to accommodate significant new employment lands development on greenfield lands over the coming decades, combined with modest non-residential intensification. 9 Based on building completions market data from DTZ Barnicke and Colliers International. Excludes City of Hamilton for which data was unavailable. 10 Markham, Vaughan and Richmond Hill. 11 Based on DTZ Canada market data for the period. 12 Growth Plan for the Greater Golden Horseshoe, Office Consolidation, June Ontario Ministry of Infrastructure. JANUARY 2016 DRAFT PHASE 1 REPORT MILTON EMPLOYMENT LAND NEEDS ASSESSMENT 13

30 2.2 HALTON REGION EMPLOYMENT TRENDS ON EMPLOYMENT LANDS Halton Region continues to experience significant growth in population and employment. The amount, type and location of recent employment growth has strongly influenced the built form of development on employment lands and future employment needs by local municipality within Halton. This section of the report looks specifically at recent employment trends in Halton Region by local municipality and the impact on employment land density. Figure Halton Region change in employment, Sector Accommodation and food services Professional, scientific and technical services Health care and social assistance Construction Real estate and rental and leasing Educational services Finance and insurance Admin. and support, waste mgt and remediation services Public administration Retail trade Information and cultural industries Utilities Arts, entertainment and recreation Other services (except public administration) Transportation and warehousing Wholesale trade 37% 36% 34% 33% 31% 30% 27% 26% 23% 21% 20% 16% 14% 13% 9% 5% Management of companies and enterprises -2% Manufacturing Agriculture, forestry, fishing and hunting -20% -10% Mining, quarrying, and oil and gas extraction -51% Source: Derived from EMSI dataset Q by Watson & Associates Economists Ltd. -65% -45% -25% -5% 15% 35% 55% Change in Employment,

31 2.2.1 Historical Employment Trends In many respects, Halton s economic growth potential is largely tied to the success of the G.T.H.A. as a whole. Many of the largest and fastest growing employment sectors across the G.T.H.A. have also experienced strong growth and expansion over the past several decades in Halton Region, as outlined in Figure Similar to the G.T.H.A. as a whole, the Region has also experienced strong employment growth in a number of knowledge-based sectors and a decline in the manufacturing sector. Strong population growth across Halton Region has also fueled steady growth in populationrelated employment sectors, including retail and accommodation and food services. In addition, a steady rebound in non-residential development activity has supported strong employment growth in the construction sector Development Trends on Employment Lands in Halton Region Developed employment lands in Halton Region total 3,377 net ha (8,344 net acres), approximately 11% of the G.T.H.A. total. The majority of the Region s developed employment lands (72% of developed land area) are located in South Halton, primarily along the Q.E.W. corridor within the City of Burlington and the Town of Oakville. The Region s remaining developed employment areas in North Halton are located along the Highway 401 corridor (Milton 401 Industrial/Business Park and Derry Green Corporate Business Park) and in Halton Hills (Premier Gateway Business Park). Existing developed and designated employment lands in Halton Region accommodate approximately 107,600 jobs, representing 49% of the Region s employment base. 13 Approximately 77% (82,500) of employment on employment lands in Halton Region is located in South Halton. The employment lands within Oakville and Burlington, which are largely along the Q.E.W. corridor, accommodate a diverse range of uses in the industrial and office markets, while the employment lands within Milton and Halton Hills are largely along the Highway 401 corridor and predominantly accommodate industrial uses. Historically, the vast majority of suburban office development has been accommodated within employment areas, however; market prospects for conventional stand-alone suburban office development within employment areas is gradually diminishing, as demand shifts to more urban environments. Over the past decade, employment lands have been shifting from more mature municipalities such as Mississauga, Richmond Hill, Markham, and Burlington to outer edges of the G.T.H.A., such as Milton and Caledon, as well as the Greater Golden Horseshoe (G.G.H.) Outer-Ring. Employment land absorption levels in Halton Region have averaged approximately 48 net ha per year over the past decade, as illustrated in Figure This represents approximately 19% of total employment lands absorption within the G.T.H.A. over this time period. 13 Derived from 2014 Halton Region Employment Survey data by Watson & Associates Economists Ltd. JANUARY 2016 DRAFT PHASE 1 REPORT MILTON EMPLOYMENT LAND NEEDS ASSESSMENT 15

32 Annual employment lands absorption has fluctuated widely, characterized by strong absorption levels over the period, a significant slowdown over the period during the global economic downturn, followed by a strong rebound in 2012 and relatively low absorption levels in 2013 and Over this past decade, the share of employment absorption has increased in Milton (38%) and Oakville (24%), and decreased in Burlington (24%) and Halton Hills (15%). Employment growth on absorbed employment lands has become more diversified than the existing employment base on employment lands with a greater share of non-industrial employment (notably office employment). Figure Halton Region employment lands absorption, Land Absorption (Net Ha) net Ha Burlington Oakville Milton Halton Hills 10-year average Source: Watson & Associates Economists Ltd. 16

33 Figure summarizes employment growth on employment lands absorbed over the period by sub-sector in Halton Region. Key sub-sectors which have been accommodated on recently absorbed employment lands include professional, scientific and technical services, manufacturing, transportation and warehousing, management of companies and enterprises and wholesale trade. Figure Halton Region employment lands absorption, Key sub-sectors which have been accommodated on recently absorbed employment lands include professional, scientific and technical services, manufacturing, transportation and warehousing, management of companies and enterprises and wholesale trade. Accommodation and Food Services 4% Information and cultural industries 4% Retail Trade 4% Health care and social assistance 4% Administrative and support, waste management and remediation services 4% Wholesale trade 7% Management of companies and enterprises 9% Other 11% Professional, scientific and technical services 19% Transportation and warehousing 16% Manuf acturing 18% Source: Watson & Associates Economists Ltd. Derived from 2014 Halton Region Employment Survey based on businesses located on absorbed employment lands. JANUARY 2016 DRAFT PHASE 1 REPORT MILTON EMPLOYMENT LAND NEEDS ASSESSMENT 17

34 Average employment density levels on employment lands across many G.T.H.A. municipalities have fallen in recent years. This has been driven primarily by the significant development activity in large-scale warehousing and distribution/logistics to serve the goods movement sector, which exhibit relatively low employment density Trends in Employment Density The average employment density on employment lands in Halton Region is 30 jobs per net ha which is lower than in Peel or York Region. 14 Average employment density on employment lands within Halton Region varies widely by area municipality, as illustrated in Figure In general, the average on-site employment density on employment lands is relatively high in Oakville and Burlington (32 and 30 jobs per net ha, respectively), largely due to the influence of office and major office employment. Average on-site employment densities on employment lands in North Halton are notably lower. In Milton, overall employment density on employment lands averages 17 jobs per net ha, while in Halton Hills it averages 20 jobs per net ha. Average employment density levels on employment lands across many G.T.H.A. municipalities have fallen in recent years. This has been driven primarily by the significant development activity in large-scale warehousing and distribution/logistics to serve the goods movement sector, which exhibit relatively low employment density. Further, increased automation in the manufacturing sector has led to declining employment densities in the sector, both within existing facilities and new developments. Helping offset the decline in average employment densities on employment lands, is the increasing share of non-industrial employment uses being accommodated on employment lands. In particular, the office sector is accommodated within multi-tenant and standalone Figure Halton Region employment density on employment lands 70 Employment Density (jobs per net ha) Burlington Halton Hills Milton Oakville Halton Region Existing Employment Lands Base Employment Lands Absorbed Source: Watson & Associates Economists Ltd. Note: Includes on-site employment only 14 Halton employment density, based on total employment, is 32 jobs per net ha. This is compared to 44 and 59 jobs per net ha on employment lands within Peel Region and York Region, respectively. 18

35 office uses, which have employment densities that are typically high. Office employment growth on employment lands also generates demands for on and off-site employment amenities which also tend to have an upward influence on employment density levels on employment lands. These factors have influenced, and will continue to influence average density on employment lands in the G.T.H.A. and Halton Region. Overall, employment density trends in Halton Region as a whole have been relatively stable. The average density on employment lands absorbed in Halton Region over the past 10 years is slightly higher than the existing base (30 jobs per net ha vs. 28 jobs per net ha), as illustrated in Figure 4. In general, employment density levels have been increasing in South Halton and declining in North Halton over the past 10 years. The increase in South Halton is attributed to a growing share of non-industrial uses being accommodated on employment lands while the decrease in North Halton is attributed to an increasing share of land expansive, low-density uses being accommodated on employment lands comprised of distribution/logistics uses. Figure summarizes the average floor space per worker (F.S.W.) by major sector for all lands absorbed on employment lands in Halton Region and the average F.S.W. by major sector for lands absorbed on employment lands in Halton Region over the past 10 years. The results of this analysis indicate that the average F.S.W. related to recent Figure Halton Region existing floor space per worker on employment lands by major sector Floor Space per Worker (sq.m.) Industrial Office Other Commercial/ Institutional Existing Employment Lands Base Employment Lands Absorbed Source: Watson & Associates Economists Ltd. Derived from 2014 Halton Region Employment Survey based on total employment and business floor space. JANUARY 2016 DRAFT PHASE 1 REPORT MILTON EMPLOYMENT LAND NEEDS ASSESSMENT 19

36 industrial development has increased significantly. This trend is largely attributed to the influence of the transportation and warehousing sector in North Halton, particularly the Town of Milton. In contrast, average F.S.W. levels are steadily declining in the office and other commercial/institutional sectors on employment lands, which is largely attributed to increasingly denser office and retail development occurring on employment lands in South Halton. Building F.S.I. on absorbed employment lands over the past decade has averaged 33%, significantly higher than the existing overall average of 24%. The increase in average F.S.I. has been experienced across all local municipalities, but has been most pronounced in the Town of Milton. 20

37 2.3. EMERGING TRENDS IN THE DEVELOPMENT OF EMPLOYMENT AREAS While many existing greenfield employment developments continue to be planned for expansive industrial uses, there is a trend towards planning for employment areas in a way that maximizes the use of land and infrastructure while providing for economic clustering at a more dense scale than traditional suburban business parks or industrial areas. This section reviews some of the new trends in the development of employment areas, which includes the emergence of employment communities and innovation districts, Innovation districts have emerged as a new way to promote knowledgebased economic development Innovation Districts Innovation districts have emerged as a new way to promote knowledge-based economic development. Innovation districts are areas that offer a unique potential to spur productive, inclusive and sustainable economic development. 15 Entrepreneurial, training, research and investment opportunities can be fostered in these areas. Furthermore, innovation districts promote efficient land use patterns and can leverage a key geographic location to maximize urban density, utilize and enhance public transit and active transportation. While the form and function of an innovation district may vary due to a differing local context, all districts are planned to optimize their economic, physical and networking assets. In planning for innovation districts, it is important to ensure the required assets are in place and that there is available investment and commitment for the long term success potential for the project. Economic Assets Successful innovation districts contain firms, institutions and organizations that drive, cultivate and support the innovation. 16 These key occupants form the economic base of the district. They often serve as anchors that drive the demand for specialized industries and jobs and support the growth of individuals, creativity and innovation. Incubator and accelerator facilities that share spaces with research labs or academic institutions often play a significant cultivation role within the district. 17 Most importantly, supportive neighbourhood-building amenities, such as housing, recreation and retail, bind the district functionally and support the employees daily living needs. 15 Katz, Bruce, and Julie Wagner. The Rise of Innovation Districts: A New Geography of Innovation in America. The Rise of the Innovation District. Brookings Institution, 1 May ibid. 17 ibid. JANUARY 2016 DRAFT PHASE 1 REPORT MILTON EMPLOYMENT LAND NEEDS ASSESSMENT 21

38 Physical Assets The physical spaces of innovation districts are designed and organized to stimulate high levels of collaboration, connection and innovation. 18 This is achieved through shared work spaces and flexible meeting spaces to encourage social interaction. Welldesigned physical assets include buildings, open space, streets and infrastructure. Innovation districts are designed to be compact, connected and organized to maximize the relationship between buildings and connected space. Networking Assets The relationships between the firms, institutions, and people in innovation districts fuel collaboration within and across companies, and help build strong ties. Networks within the district provide opportunities for individuals, firms and institutions to connect and advance ideas, to generate innovation, and to strengthen connections among clusters. 19 The majority of large-scale innovation districts that have been developed are found in the United States. There are also some examples within Canada that are located in larger cities (Montreal). The University of Waterloo Technology Park is also a recent example of a successful innovation park. While these examples are of a significant scale they all share common elements and have evolved over time to their current state. The following are examples of recent innovation centre developments. North Carolina s Research Triangle Park Figure Rendering of North Carolina Research Triangle Park. Image from Grimshaw Architects. The most recent Master Plan for North Carolina s Research Triangle Park laid out one of the largest districts of its kind in the United States with a new central core area that will provide an additional 1,400 housing units, retail, and light rail transit connections. 20 North Carolina s Research Triangle Park is an urbanized science park, which is essentially the urbanization of traditional suburban office parks and campuses. With intensification 18 ibid. 19 ibid. 20 Bracken, David ( ). New RTP master plan promises more density, amenities. News and Observer. 22

39 and the addition of new facilities and services, these areas become mixed use centres that attract like-minded industries and provide for a greater concentration of buildings and amenities. Montreal s Quartier de L Innovation (QI) Figure Rendering of Montreal s Quartier de L Innovation. Image from Quartier de L Innovation de Montreal. Quartier de L Innovation (QI) in Montreal is an anchor-plus development. It is anchored around McGill University and École de Technologie Supérieure (ETS), where a living laboratory is created for organizations, researchers, citizens, students, and companies to work together to enhance Montreal s potential for creativity and innovation. 21 Approximately 20,000 people are employed by 350 businesses in this area, which is the largest concentration of information technology and multimedia workers in Canada. University of Waterloo David Johnston Research and Technology Park The University of Waterloo Research and Technology Park is the result of a private-public partnership between various levels of government and business. Open in 2004, the Park is designed to accommodate 1.2 million square feet of office space on 120-acres (49 hectares) of lands adjacent to the University. 22 The Park has programs to support technology start-ups and attract talents from the University. There are also several planned innovation districts in Southern Ontario, including the proposed new Health Science and Technology District in Oakville, Hamilton s McMaster Innovation Park and Guelph s Innovation District. 21 Quartier de l innovation de Montréal, 22 David Johnston Research + Technology Park, 2012, JANUARY 2016 DRAFT PHASE 1 REPORT MILTON EMPLOYMENT LAND NEEDS ASSESSMENT 23

40 Oakville Green Health Sciences and Technology District Figure Master plan of Oakville Green Health Sciences and Technology District. Image from Gensler. The lands immediately east of the new Oakville hospital are proposed to be developed with a mix of office, health care, retail and residential uses, and a network of public open spaces. The six development blocks within the District have been designed as a mixed use urban environment with a strong focus on accommodating health science and technological industries that will generate significant knowledge-based employment opportunities. 23 The district will integrate a range of innovation, incubator, research and technology firms, providing a desirable live-work community. Hamilton McMaster Innovation Park Announced in 2005, the McMaster Innovation Park (MIP) in Hamilton is an example of a historical industrial area that has been redeveloped into an innovation park for the commercialization of research. A master plan has been developed for the MIP, which is comprised of ten buildings providing over 1.7 million square feet of office, research, and amenity space. 24 Associated with McMaster University, the district incorporates state-ofthe-art LEED certified buildings, sustainable landscapes and infrastructure, and open spaces. The area is planned to be a bicycle-friendly, trafficcalmed, and around-the-clock community. 23 MHBC, Oakville Green Planning Justification Report, September 18, McMaster Innovation Park, 24

41 Figure Master plan of McMaster Innovation Park. Image from Diamond Schmitt Architects. Guelph Innovation District In 2008, the City of Guelph began the process to establish an innovative cluster through the creation of sustainable employment with a mix of diverse land uses and densities. In support of the City s 2031 density targets and growth management strategy, the Guelph Innovation District (GID) plans to create close to 9,000 jobs and house 7,000 people. 25 The vision of the district is to create an urban village where residents are connected to compatible employment uses. The principals of the new community aim to develop diverse land uses to attract a variety of individuals and businesses, while respecting the natural and built environment. Along with creating diverse land uses, the City s goal is to create a sustainable district through efficient infrastructure, renewable energy sources and a balanced transportation system. 26 Furthermore, the Guelph Innovation District will create an attractive and vibrant public realm through built form and land use policies. The creation of this human-scaled district will offer a meaningful place to live, work, and plan for the residences and help achieve Guelph s city-building vision. 25 City of Guelph, Guelph Innovation District (York District Lands), 26 ibid. JANUARY 2016 DRAFT PHASE 1 REPORT MILTON EMPLOYMENT LAND NEEDS ASSESSMENT 25

42 Complementary accessory uses that support business and office uses can be added to provide amenities for employees. Promoting the introduction of complementary accessory uses allows the existing employment area to operate as a more complete and connected employment community Intensification of Employment Areas Intensifying existing employment areas is an efficient way to increase the density of existing employment areas. However, this approach relies on a strong base of existing businesses looking to grow in place. Firms often benefit as they are able to expand their operations and retain employees without relocating. Intensification of existing employment areas provides opportunities to accommodate increased economic and employment activity on a limited land base and use infrastructure more efficiently. Successful intensification of existing employment areas reinforces the existing clusters by facilitating the growth and evolution of existing businesses. These businesses are encouraged to develop on vacant and under-utilized sites and achieve full occupancy of buildings. Allowing for growth and intensification within existing areas can stimulate effective and efficient developments while ensuring open spaces are retained and/ or streetscapes are improved. Most importantly, complementary accessory uses that support business and office uses can be added to provide amenities for employees. Promoting the introduction of complementary accessory uses allows the existing employment area to operate as a more complete and connected employment community. Some of the strategies used to urbanize, intensify, and diversify existing employment areas include the following: Locate or add office activities on-site to be land-efficient (e.g. shared office); Efficiencies gained from synergy among complementary uses; Permit new accessory uses, including office, retail and supportive residential uses where appropriate; Permit non-traditional employment and employment-supportive uses at employment areas along transportation corridors; Manage parking requirements through work schedule adjustments, provision of public transportation, and ride-sharing; Construct underground or above ground parking; Increase building footprints through adjusted lot frontage, coverage provisions, building setbacks, and landscape area requirements; and, Increase building capacity with higher Floor Space Index and building heights. 26

43 Suburban Business Park Intensification These strategies have been used to intensify Mississauga s Sheridan Park Corporate Centre. The Park was established in 1966 as a campus-style research park, being one of the first of its kind in North America. The Sheridan Park Research Community, as it was originally known, was developed as a hub of industrial research and development on 138 hectares (340 acres) in southwest Mississauga, along the Queen Elizabeth Way. The park was anchored by the Ontario Research Foundation and Xerox s iconic research centre. Between 2011 and 2014, the City of Mississauga, with financial support from a landowner in Sheridan Park, completed a study to prepare a new Land Use Master Plan for the Park.27 The Plan recommended updates to Official Plan policies and zoning provisions that increased density limits within Sheridan Park, as well as other revitalization strategies to encourage new development. 27 City of Mississauga, Sheridan Park Master Plan, JANUARY 2016 DRAFT PHASE 1 REPORT MILTON EMPLOYMENT LAND NEEDS ASSESSMENT 27

44 Intensification and Refurbishing of Industrial Areas The following intensification strategies are appropriate specifically for industrial sectors, such as manufacturing, warehousing, and logistics: Increased operation density and land efficiency through equipment upgrade; and, Higher bay ceilings for warehouse to increase storage capacity. A study conducted for the London Thames Gateway Industrial Land evaluated the suitability and potential for intensification of different industrial uses. 28 The study provides information on appropriate industrial uses that can co-locate and expand compatibly. The following is a summary table of compatible industrial use and the potential for intensification: Sector Location Requirements Building Design Traffic Volumes Spillover on Neighbours Compatibility with Other Uses Potential For Intensification and Form Printing transport accessibility Partially generic (more tertiary activities) part highly specific (printing plants) moderate process innovation fairly limited very high due to limited spillover high - multi-level buildings dependence on moderate Metals, Machinery & Equipment raw material and components, proximity to trunk varying range of building specialisation, importance of ceiling heights medium to high truck movements environmental spillover, often localized: odour, limited due to spillover high- higher ceilings, other uses above roads noise, pollution high levels due to moderate - all Construction proximity to market generic sheds often open yards high truck movements noise, dust, mud and aesthetic limited due to perceived impact forms that can maintain ground issues floor access Motor Vehicle Maintenance & Repair depending on rent and car access generic low grade repair workshops, often need for open yards moderate to high car movements aesthetic issues moderate high - vehicle service on lower floor with other uses above Wholesale proximity to market sometimes dependent on ceiling height and large floor plates high truck and car movements limited spillovers high very high - higher ceilings, other uses above Distribution & Warehousing access to major trunk roads crucial high-bay modern warehouse dependent on large floor plates very high high; transport, noise, aesthetic issues moderate for large-scale, high for small-scale very high - higher ceilings, other uses above In general, relatively little research has highlighted examples of industrial intensification efforts given the low-profile of these projects relative to new office parks. 28 London Thames Gateway Industrial Land Study - Phase 2, URS,

45 2.3.3 New Greenfield Employment Areas In recent years, employment planning has moved away from the planning paradigm of the separation of all uses into homogenous areas. While there is still a need to ensure land use compatibility and to provide adequate separation for heavier industrial uses, as the economy has shifted away from these employment sectors so too has the planning thinking. Employment areas in the G.T.A have begun to better integrate non-traditional employment uses and employment supportive uses. These planning changes are responding to the needs of employees and contribute to creating economically diverse communities. Employment supportive uses including institutional, professional services, research and development, entertainment, restaurant and small-scale retail uses are often found within the same blocks as office and business employment uses and in centralized nodes to the employment district. The diversification of employment contributing uses can also assist municipalities to achieve the required greenfield density targets as implemented from the Growth Plan. These targets are difficult to achieve in new traditional employment areas with large expansive uses that generally employ few people. While adding and diversifying uses to employment areas, municipalities must be careful in ensuring non-traditional employment uses do not compromise the core functions of employment areas. The inclusion of employment supportive uses has been provided in new greenfield business parks in the Greater Toronto Area, including Hamilton s Airport Employment Growth District. The Airport Employment Growth District (AEGD) represents a great example of a new greenfield employment area with non-traditional employment and employment supportive uses. The City of Hamilton led the planning of the Hamilton AEGD as a major business park in order to meet provincial employment targets for the City and improve the amount of live-work places in Hamilton. Encompassing about 1,340 hectares of land, the AEGD will integrate and complement the residential areas to the north as well as the John C. Munro Hamilton International Airport. 29 In an effort to increase employment opportunities in Hamilton, the planned district will include prestige and light industrial, airport-related business, and supportive employment uses at key nodal locations. The District s sustainable development will be guided by urban design and eco-industrial design guidelines in order to create high quality space that transition well into the neighbouring residential area. 30 The eco-industrial and urban design guidelines will assist in creating a seamless shift from employment lands to residential and agricultural, in an effort to enhance the public and natural environment. 29 City of Hamilton, Airport Employment Growth District (AEGD), Portal/Templates/Generic5ec11.html 30 ibid. JANUARY 2016 DRAFT PHASE 1 REPORT MILTON EMPLOYMENT LAND NEEDS ASSESSMENT 29

46 2.4. EXPERT PANEL DISCUSSION An expert panel titled Milton Employment Lands: Trends, Factors and Influences was held on November 26, A group of interested stakeholders in real estate development, logistics, academia, economics and local employers engaged in discussions around current and future employment land to inform the development of long-term employment policies. Figure Photo and poster of expert panel event from November 2015 MILTON EMPLOYMENT LANDS: TRENDS, FACTORS INFLUENCES and THURSDAY NOVEMBER 26, :30 AM - 1:00 PM MEV INNOVATION CENTRE 555 INDUSTRIAL DRIVE, MILTON, ON L9T 5E1 Milton has experienced one of the highest growth rates of any municipality in Canada over the last decade. With any growth comes Bob Lehman Jonathan Leary LEHMAN & ASSOCIATES CBRE LIMITED CANADA placeholder pic the challenge of managing that growth and change. Critical to Milton s long-term viability is understanding how and where growth is to occur and where jobs should be maintained and created. As part of the Milton Employment Land Needs Assessment Study, an expert panel is brought together to explore a number of questions related to employment land planning and development. The experts represent a range of perspectives, including urban planning, land economists, Christopher Bratty Michael Haughton THE REMINGTON GROUP WILFRID LAURIER UNIVERSITY innovation and technology hubs, logistics, and ICI development. The panel, moderated by Bob Lehman, aims to provide an open discussion and an opportunity for participants to engage through a Q and A session. The event will offer beverages and a light lunch after the session. Clarence Woudsma Peter Norman UNIVERSITY OF WATERLOO ALTUS GROUP For more information, visit Guests from the business and development community gathered at the Milton Education Village Innovation Centre to hear panel members discuss such topics as local, regional and national employment trends, factors leading to development and intensification, policies governing employment land use, and the attractiveness of the Milton community to new employers and various types of employment. A question and answer period allowed for open dialogue between guests and panel members. Human capital was highlighted as a critical factor contributing to the attractiveness of Milton as a place of employment. 30 Generally, panelists agreed that Milton has a great foundation of jobs now, especially with a strong base of warehouse and logistics employment. The panel provided insights related to the factors of job growth. Specifically, human capital was highlighted as a critical factor contributing to the attractiveness of Milton as a place of employment. Panelists pointed to the importance of vision for the future and a balance of social and business goals. A number of questions were posed to the panel for consideration. Some of the most important questions were what types of jobs would Milton want? and what kind of community would Milton want to be in 20 years? Panelists asked the people and the policy-makers of Milton to consider the Town s core values and how these values would relate to the economic realities of Milton s future.

47 Human Capital in Milton Milton s geographic advantage provided by the 400-series highways was highlighted by the panel. Access to this infrastructure contributes to Milton s popularity as a place to live. Milton has a young and highly-educated population with knowledge-based jobs. These workers are the human capital in Milton. The employees of knowledge-based sectors, which will be the areas of growth and innovation for the years to come, enjoy working close to places they live. They are attracted to a specific set of community assets related to lifestyle in Milton. Therefore, Milton is well-positioned to retain local residents to work in the municipality instead of taking the 400-series highway to commute to jobs elsewhere in the GTA. It is important to highlight the talents in Milton to employers when attracting knowledge-based jobs to Milton. At the same time, the Town should continue to improve Milton s important elements, such as public transit, social, and community amenities, to maintain Milton as a great place to live and work. Employment Development Timing The panel highlighted the development timeline of employment areas is longer than all other uses, including residential and retail. For example, the development of business parks along the Q.E.W. took upwards of 50 years to implement from inception to buildout. As such, build-out and intensification of employment lands are typically many years longer than those for other uses. The development timeline of employment areas is longer than all other uses, including residential and retail. The panel suggested that the Town of Milton should have a clear vision for its communities. Given the longer timeframe of employment development, it is important for policymakers to evaluate short-term economic conditions with a strong understanding of the long-term goals of the Town. Municipalities need to ensure that they are not reactive to short-term conditions that may compromise long-term objectives. Employment Communities Some key employment trends were also noted by the panel. The panel highlighted the changing nature of employment toward more flexible work arrangements. This trend relates to the increasing number of small and medium-sized firms engaged in innovation and development in the Town of Milton, who have a specific set of workplace needs. Entrepreneurial firms require flexible workspaces with the ability to accommodate their growth. Currently, the office spaces on the market are often too large to meet the needs of these firms or in locations without proximity to other services and amenities. Based on the panel s extensive experience in planning and development, the panel suggests new and existing employment areas should be planned as employment communities that have a variety of employment and employment-supportive uses, such as minor retail, restaurants, and professional services. The introduction of employmentsupportive uses should be considerate and context-sensitive to ensure uses are compatible with each other and will not hinder the operations of existing businesses. JANUARY 2016 DRAFT PHASE 1 REPORT MILTON EMPLOYMENT LAND NEEDS ASSESSMENT 31

48 2.5 STAKEHOLDER INTERVIEWS As part of the Employment Land Needs Assessment Study, a series of interviews were conducted with key stakeholders to obtain information and insight on the issues facing Milton s employment areas and planning for the future. Interviews were conducted with individuals involved in employment land development in the Town. Through the interviews with industry stakeholders there were several perspectives, thoughts and comments provided. The following is a summary of some of the key comments provided based on the general questions asked. 1. What are the current challenges faced in developing employment lands? In general and in Milton? lack of certainty of developable areas within employment lands following approval in the Regional and Local plans due to additional requirements and studies related to environmental and servicing matters lack of certainty of past approvals and process due to imposition of massive area now constrained due to CN intermodal project to build smaller clusters of buildings with supportive services environmental regulations often fragment land parcels and there needs to be more flexibility to accommodate development once these areas are protected it is often too easy to allow for quick return type uses or to allow uses to convert since there is no turning back to employment once redesignated in many cases, lands are controlled by larger investment companies looking for fast returns their goal is to buy land, build and sell quickly to maximize return for investors and they do not have the fortitude to wait for a ten year return on investment large, space extensive buildings for warehousing are built in areas that lack amenities as there are fewer workers and lower employment densities to justify supportive uses or amenities the current land market focus in Milton is along the Highway 401 corridor in the next 50 years, these lands will evolve and change in a similar way as Mississauga Milton must be patient as it took over 30 years to build out Mississauga s employment lands and they are only now getting the LRT older industrial buildings in built up areas are also slowly being repurposed and retrofitted due to land values driving up the costs and with DC credits it is easier to tear down and rebuild this will happen in Milton when the land economics makes sense in the future 32

49 2. What are some of the trends that are influencing employment and employment lands in the area and how do you feel they have or are influencing Milton s future employment land planning and development? employment communities should be located based on urban structures, such geographic nodes and central places Milton s GO Station area and downtown and mainstreet areas should be the focus of future employment centres and intensification for employment uses the Highway 407 and 401 interchange areas should be given consideration as key employment nodes focus in planning policy needs to switch from protecting lands to creating jobs logistics will sustain a strong component of Milton s employment sector but should not drive it area along the Highway 401 corridor will evolve and redevelop similar to the QEW in the future it will be important to leverage the Milton Education Village (MEV) as a central employment community which should contain a range of innovative uses to support the centre the MEV can achieve success by providing flexibility for workers an urban version of MEV is the next step for Milton to evolve Focus in planning policy needs to switch from protecting lands to creating jobs. JANUARY 2016 DRAFT PHASE 1 REPORT MILTON EMPLOYMENT LAND NEEDS ASSESSMENT 33

50 3. What considerations should be made for new greenfield employment areas in Milton? existing employment areas should be protected its important to maintain essential industrial operations and uses, especially those that serve a centralized supply function pushing them out of existing employment areas will decentralize access for such services and functions once employment sites are converted to non-employment uses they are gone forever and cannot be replaced in a greenfield environment due to market conditions today, no one is building smaller block industrial subdivisions which smaller business operators depend on older employment areas are just as important as older established residential areas separating land uses into isolated pockets in new greenfield areas is not sustainable more emphasis should be placed on providing a mix of uses and adjacency of uses for better communities this will assist with having more people who live in the community actually work in the community tax assessment base vs. employment base needs to balance too much focus on assessment acres of assessment does not equal 500 jobs in Milton it is difficult to prescribe employment density, i.e. requiring a certain number job per square feet employment lands cannot accommodate predefined number of jobs the way residential units can accommodate predefined number of residents employment areas with a mix of uses can encourage a range of densities based on known densities for different employment uses any consideration of innovation districts needs to ensure it is supported by population, infrastructure, and the right mix of uses to make it work innovation district can thrive of there is an anchor like an university or hospital the costs of developing in greenfields is a challenge there is a need for stormwater management, new infrastructure investment, front ending, and parking considerations, whereas redeveloping in older built up areas does not have the same challenges Milton s existing built up areas have to promote these factors need to move away from the business park typology, which are lifeless need to make them more interesting, more efficient, mix up the land uses, add variety single use lands and buildings should be banned it makes no sense to invest in new infrastructure to use land for only 8 hours a day 5 days a week new areas must be planned with more vision and mixed uses. 34

51 3.0. LOCAL ECONOMIC TRENDS AND EXISTING CONDITIONS JANUARY 2016 DRAFT PHASE 1 REPORT MILTON EMPLOYMENT LAND NEEDS ASSESSMENT 35

52 3.1 MILTON COMMUNITY PROFILE This section provides a detailed review of recent non-residential development activity on the Town s designated employment lands. Specific consideration is given to local economic, socio-economic and financial trends which are influencing growth trends and competitiveness on employment lands in the Town of Milton. For example, who is moving to Milton, who is working in Milton and who is leaving to work outside of the Town? What does Milton s employment sector profile look like? How cost competitive is the Town s employment land supply relative to other municipalities within the surrounding market area? The following sections also provide an assessment of the Town s current inventory of designated, planned and future strategic employment areas Employment Trends Milton s total employment base has more than doubled over the period, increasing from approximately 19,500 to an estimated 38,200, as illustrated in Figure Since 2001, employment growth has averaged 4.0% annually in Milton, more than twice the rate of growth in Halton Region. 1 Over the period, the Town s employment activity rate 2 has declined significantly, decreasing from 68% in 2001 to 38% 2015, indicating that the local population base is increasing at a faster rate than the local employment base. As of 2011, the Town s employment activity rate was well below that of the Halton Region average. 3 Figure Town of Milton employment base, ,000 40,000 38,200 80% 70% Total Employment 35,000 30,000 25,000 20,000 15,000 61% 19,510 68% 22,190 27,590 49% 32,630 37% 38% 60% 50% 40% 30% Activity Rate 10,000 20% 5,000 10% Year Activity Rate 0% Source: derived from Statistics Canada by Watson & Assoicates Economists Ltd is an estimate by Watson & Associates Economists Ltd. 1 Based on Watson & Associates estimate, employment growth in Halton Region has averaged 1.8% annually. 2 An employment activity rate is defined as the number of local jobs in a municipality divided by the resident population. 3 In accordance with the Greater Golden Horseshoe Growth Forecasts to 2041 Technical Report (November 2012), Addendum, June 2013, Halton Region s employment activity rate was 48% in

53 3.1.2 Industry Clusters in Milton Figure below illustrates the strength of employment sectors in Milton relative to the Province using Location Quotients 4 (L.Q.), size (based on employment) and recent growth trends. As shown, Milton has a strong presence in wholesale trade, transportation and warehousing, retail trade and construction, which are also growing sectors in the Town. The manufacturing sector has a strong presence in the Town, but has experienced a steady decline in employment over the past decade, consistent with trends in the broader economy. In contrast, knowledgebased sectors, including professional, scientific and technical services, finance and insurance as well as real estate, and rental and leasing which are generally underrepresented in the Town, have been experiencing moderate to steady employment growth over the past 10 years. Milton has a strong presence in wholesale trade, transportation and warehousing, retail trade and construction, which are also growing sectors in the Town. Figure Town of Milton industry cluster size and growth matrix, Wholesale Trade Location Quotient Agriculture, Forestry, Fishing and Hunting Manufacturing Arts, Entertainment and Recreation Public Administration Transportation and Warehousing Construction Retail Trade Real Estate and Rental and Leasing Educational Services Accommodation and Food Services Professional, Scientific and Technical Services Health Care and Social Assistance Finance and Insurance % -3.0% -1.0% 1.0% 3.0% 5.0% 7.0% 9.0% Average Annual Employment Growth ( ) Note: Mining, Quarrying, and Oil and Gas Extraction is not included which has an LQ of 0.10 based on comparison with the province. Source: Watson & Associates Economists Ltd. Data source: Location quotients based on comparison to Ontario derived from EMSI OMARFA Analyst, An L.Q. of 1.0 identifies that the concentration of employment by sector is consistent with the broader employment base average. An L.Q. of greater than 1.0 identifies that the concentration of employment in a given employment sector is higher than the broader base average, which suggests a relatively high concentration of a particular employment sector or cluster. JANUARY 2016 DRAFT PHASE 1 REPORT MILTON EMPLOYMENT LAND NEEDS ASSESSMENT 37

54 Local employment opportunities have not kept up with labour force growth, causing an increasing proportion of Milton residents to pursue employment opportunities outside the community. The Town has a relatively low live-work ratio relative to other employment markets in the G.T.H.A Labour Force Trends Milton s labour force has grown at a significantly faster rate than its employment base. Over the period, the Town s labour force expanded from 19,000 to 48,000, an increase of 252%, compared to a 47% increase in the employment base. 5 In summary, local employment opportunities have not kept up with labour force growth, causing an increasing proportion of Milton residents to pursue employment opportunities outside the community. This is illustrated in Figure which identifies recent trends in the Town s live-work ratio, the share of employed Milton residents who work in the municipality. As shown, the Town s live-work ratio has declined significantly, from 46% in 2001 to 26% in Comparatively, the Town has a relatively low live-work ratio relative to other employment markets in the G.T.H.A. From an economic perspective, a high live-work ratio is desirable as it ensures that the local labour force (i.e. residents of Milton) is well served by the opportunities available in the local employment market (i.e. jobs in Milton). The Town s live/work ratio is highest in agriculture, accommodation and food services, arts entertainment and recreation and retail trade. 6 The live/work ratio is relatively low in a number of knowledge-based sectors, including finance and insurance, management of companies and enterprises, information and cultural industries, education and professional, scientific and technical services. 50% 46% 40% Live-Work Ratio 30% 20% 32% 26% 10% 0% Year Source: Statistics Canada, Commuting Flow Data, Figure Town of Milton live-work ratio, The labour force represents the number of Milton residents who are employed regardless of where they work. Labour force data based on 2001 and 2011 Statistics Canada Census data. 6 Based on Statistics Canada 2006 Census. Comparable 2011 Census data is unavailable. 38

55 3.1.4 Commuting Trends Figure summarizes where Milton residents commute to for employment, whereas Figure illustrates where those employed in Milton commute from. As shown, residents in the Town of Milton primarily work in the City of Mississauga (29%), the Town of Milton (26%) and the City of Toronto (16%). Of the total employment base in Milton, 40% of jobs are held by Milton residents, while the majority of the remainder commute from other municipalities in the western G.T.H.A., including Mississauga, Burlington, Hamilton, Halton Hills, Brampton and Oakville. 0% City of Burlington 4% City of Brampton 7% Figure Where Town of Milton residents go to work, 2011 City of Mississauga 29% Town of Oakville 7% Other Municipalities 11% Town of Milton 26% City of Toronto 16% Source; Statistics Canada, Census 2011, Place of Work, excludes Work at Home and No Fixed Place of Work Employees. City of Brampton 6% Town of Oakville 5% Town of Halton Hills 6% Figure Where Town of Milton employees commute from, 2011 Town of Milton 40% City of Hamilton 7% City of Burlington 7% Other Municipalities 19% City of Mississauga 10% Source; Statistics Canada, Census 2011, Place of Work, excludes Work at Home and No Fixed Place of Work Employees. JANUARY 2016 DRAFT PHASE 1 REPORT MILTON EMPLOYMENT LAND NEEDS ASSESSMENT 39

56 3.2 EMPLOYMENT LANDS PROFILE Understanding the current geographic distribution of employment land in Milton as well as the status of development activity is critical to planning for future employment lands. This section provides an assessment of the Town s current developed and vacant employment land supply Employment Lands Overview Milton s employment lands, as illustrated in Figure 3.2.1, are an integral part of the Town s economic development potential and accommodate a significant share of the Town s businesses and employment. Employment lands which are designated in the Official Plan in Milton are concentrated in the 401 Industrial/Business Park and Derry Green Corporate Business Park. However, only the 401 Industrial/Business Park contains a developed employment lands base with developable, serviced, vacant employment lands. Derry Green Corporate Business Park remains unbuilt and is expected to be serviced by December 2016 and become developable in Milton s other current designated employment lands are largely concentrated along Bronte Street South and are built out. Planned employment lands are located within Employment Growth Areas designated in the Region of Halton Official Plan and the updated Town Official Plan but are under appeal. This includes lands within the Milton Education Village, Trafalgar/ Derry lands, CN lands and the 401 Industrial/Business Park Expansion Area. The Town also has large contiguous blocks of Future Strategic Employment Areas, intended to accommodate growth over the longer term, located along the Highway 407 corridor. However, while these lands are designated in the Region of Halton Official Plan as amended by Regional Official Plan Amendment No. 38 (ROPA 38) and the Town s Official Plan Amendment No. 31. In particular, the Future Strategic Employment Areas were removed from ROPA 38 through the Minister s modifications. The Region and the Town, among others, have appealed that element of the Minister s decision. Further, the Milton Urban Growth Centre (U.G.C.), located in downtown Milton along Main Street and Ontario Street, has the potential to accommodate office commercial development through infill and redevelopment opportunities. The area, however, does not contain employment lands and is not reflected in the employment land needs analysis component accordingly. 40

57 Figure Town of Milton Employment Lands A total of 688 net ha (1,700 net acres) of employment lands were identified as developed within the Town of Milton as of November, The Town s employment lands contain approximately 17.2 million sq.ft. of building space.7 While the vast majority of building space is in the industrial sector, the Town s employment lands include some commercial/ institutional space including 0.4 million sq.ft. of major office. The industrial vacancy rate within Milton has steadily declined since 2006 and the Town s industrial vacancy rate is currently 4.8%, which is close to the G.T.A. average of 4.3%.8 Industrial net market rents in Milton are currently $6.85 per sq.ft., moderately higher than the G.T.A. average and have been gradually increasing.9 This suggests that the industrial market in Milton is relatively strong Watson & Associates Economists Ltd. estimate. DTZ, Greater Toronto Area Industrial Q market report. Ibid. JANUARY 2016 DRAFT PHASE 1 REPORT MILTON EMPLOYMENT LAND NEEDS ASSESSMENT 41

58 Milton s existing developed and designated employment lands accommodate approximately 12,400 jobs, representing approximately one-third of the Town s employment base. 10 As illustrated in Figure 3.2.2, 40% of Milton s employment on employment lands is in the goods movement sector, reflecting wholesale trade and transportation/warehousing. In contrast, approximately one-fourth of employment on employment lands is in the manufacturing sector. The presence of other sectors on employment lands, in particular non-industrial sectors, is relatively limited. The Town s employment base on employment lands is not as diverse as Halton Region s, with a limited presence of commercial and institutional uses and a higher share of industrial uses than the Regional average. Figure Town of Milton employment on Employment Lands by sector Retail trade 3% Professional, scientific and technical services 3% Health care and social assistance 4% Construction 4% Administrative and support, waste management and remediation services 5% Other 16% Transportation/ Warehousing 16% Manufacturing 25% Wholesale Trade 24% Source: Derived from 2014 Halton Region Employment Survey by Watson & Associates Economists Ltd. 10 Based on employment data derived from the 2014 Halton Region Employment Survey and a Townwide employment estimate of 37,600 by Watson & Associates Economists Ltd. 42

59 3.2.2 Designated Employment Lands 401 Industrial/Business Park The 401 Industrial/Business Park includes designated employment lands accommodating a broad range of industrial and office uses and, to a limited extent, commercial and institutional uses. The 401 Industrial/Business Park abuts the north and south sides of Highway 401 and has the largest concentration of employment lands in North Halton. The employment area has a strong base in distribution/logistics, manufacturing and transportation uses which vary between general industrial and moderately prestige in character. The older part of the park, located south of Highway 401, has a more general industrial character. The area is home to the majority of the Town s manufacturing businesses. The area north of Highway 401 is characterized by more recent development and is more prestige in character, and is dominated by wholesale trade, distribution/logistics and multi-tenant industrial buildings. The area is comprised of a number of internal parks such as the Escarpment Business Community and High Point Business Park. The majority of development on employment lands over the past five years has been located in the northwest part of the employment area. The park is approaching build out and a decreasing variety of site options remain (largely located in the northwest corner of the park) which are held by a small number of developers. Much of the park offers excellent exposure and access to Highway 401 via Regional Road 25 and James Snow Parkway. The park has seen significant roadway improvements, including the extension of James Snow Parkway to Regional Road 25. A future interchange at Highway 401 and Tremaine Road will improve access to the west side of the park. Derry Green Corporate Business Park The Derry Green Corporate Business Park, encompasses unbuilt employment lands located south of Highway 401 between James Snow Parkway and Sixth Line and extending south towards Britannia Road. Within the park, 423 net ha (1,045 net acres) are designated primarily as Business Park with a pocket of Industrial. The park offers excellent access/exposure to Highway 401, a large contiguous land area with potential to create a critical mass to accommodate a wide range of prestige and general employment uses. Servicing of the park is underway and is planned to be completed by the end of Designated employment lands are anticipated to be shovel-ready and available for development in The park is expected to accommodate the majority of the Town s employment lands development over the medium term. JANUARY 2016 DRAFT PHASE 1 REPORT MILTON EMPLOYMENT LAND NEEDS ASSESSMENT 43

60 3.2.3 Planned Employment Areas The planned Employment Areas are designated in the Region of Halton Official Plan as amended by ROPA 38 as Employment Area. As previously stated, ROPA 38 is under appeal to the O.M.B. These areas are designated in the Town s Official Plan, as amended by Official Plan Amendment (O.P.A.) No. 31 which is adopted but not yet approved, as Sustainable Halton Plan (S.H.P.) Growth Area Employment. Milton Education Village The Milton Education Village (M.E.V.) employment lands are currently the subject of a secondary planning exercise which is expected to refine the proposed employment area designations. The M.E.V. is the proposed site of a university satellite campus and has the potential to create a culture of innovation and build synergies between employment uses and the proposed post-secondary institution. Further, it offers the potential to provide high-quality employment opportunities in southwest Milton, an area which traditionally has had limited employment opportunities. CN Lands The CN lands, immediately to the south of the M.E.V. offer comparable longer-term development opportunities. Given its locational attributes, the area is well suited for prestige employment uses including office development to accommodate research and development, professional and technical services and advanced manufacturing. CN, which owns the majority of the lands within the area, is proposing the development of a large intermodal facility on a 177 gross ha site, comprised largely of future employment land, bounded by Britannia Road to the north, First Line to the east, Tremaine Road to the west, and 2nd Sideroad to the south. The CN intermodal project is the subject of a federal environmental assessment process. The approval of the intermodal project will have an impact on the nature and intensity of uses within the intermodal site and on the employment lands within the broader geographic area. 44

61 Trafalgar/Derry Lands The Trafalgar/Derry lands have strong potential to accommodate a broad range of sectors including prestige office, warehousing/distribution and advanced manufacturing. The Trafalgar/Derry lands offer excellent access to Highways 401 and 407. They also provide direct rail access and include a planned GO train station. 401 Industrial Business Park Extension Lands The 401 Industrial Business Park Extension lands are most marketable for distribution/ logistics, transportation, multi-tenant industrial buildings and advanced manufacturing. The lands are part of a larger contiguous Employment Area the 401 Industrial/ Business Park which has a critical mass, has been highly successful and can build on the development activity and success of the existing park. The lands have excellent access to Highway 401 via James Snow Parkway Future Employment Areas The Town also has approximately 1,400 gross ha (3,400 gross acres) of Future Strategic Employment Area land which could potentially accommodate employment uses over the longer term. The lands are largely located along the Highway 407 corridor and are well positioned to accommodate employment growth. JANUARY 2016 DRAFT PHASE 1 REPORT MILTON EMPLOYMENT LAND NEEDS ASSESSMENT 45

62 Milton has experienced strong development activity on its employment lands over the past decade. Over the period, the Town has averaged 82,000 sq.m. (882,600 sq.ft.) of building activity (new and expansions) on employment lands annually Trends in Development Activity Milton has experienced strong development activity on its employment lands over the past decade. Over the period, the Town has averaged 82,000 sq.m. (882,600 sq.ft.) of building activity (new and expansions) on employment lands annually, as illustrated in Figure The Town experienced considerably strong development on its employment lands from 2006 through 2008, followed by relatively weak development growth over the period, largely attributed to the global economic recession. Development rebounded strongly in 2012, largely attributed to the Target and Lowe s distribution centres. While development activity on employment lands in 2013 and 2014 was relatively modest, activity in the first three quarters of 2015 totalled 128,000 sq.m. (1.4 million sq.ft.), well above the 10-year historical average. 11 New building construction has accounted for 85% of total development activity on employment lands over the period, compared to 15% for expansions. Figure Town of Milton annual development activity (new and expansions) on employment lands, Development on Employment Lands (sq. m.) - New and Expansions 250, , , ,000 50, , , , ,500 44,500 49,900 26,400 33,600 12,700 3, Year Industrial Office Other 10-year Average Source: Derived from Halton Region non-residential building permit data by Watson & Associates Economists Ltd. 11 Based on 2015 Q1-Q3 building permit data provided by the Town of Milton. 46

63 Over the period, 89% of development on employment lands has been in the industrial sector, with 2% in office commercial and 9% in other commercial and institutional development. A significant share of industrial development has been in logistics/distribution. This includes major developments such as distribution centres for Lowe s and 3M. The Town has also seen some multi-tenant industrial buildings (accommodating various industrial and non-industrial sectors) and manufacturing development. While industrial development is the primary use on employment lands, the Town s employment lands are gradually accommodating a greater share of commercial (including office) and institutional development. Milton s share of Halton Region s total new industrial development has increased significantly over the past decade. From 2010 through 2014, Milton accounted for 70% of the Region s industrial development on employment lands. Milton s share of Halton Region s total new industrial development has increased significantly over the past decade. From 2010 through 2014, Milton accounted for 70% of the Region s industrial development on employment lands. This is compared to 46% over the period Derived from Halton Region s D.C. building permit database by Watson & Associates Economists Ltd. JANUARY 2016 DRAFT PHASE 1 REPORT MILTON EMPLOYMENT LAND NEEDS ASSESSMENT 47

64 3.2.6 Trends in Employment Lands Absorption Figure summarizes annual absorption of employment lands within the Town of Milton over the past decade ( ).13 As illustrated, over the period, employment land absorption levels have averaged approximately 20 net ha (49 net acres) per year. Annual employment lands absorption was relatively strong over the period, followed by relatively weak absorption over the period. Employment land absorption in 2012 (51 net ha) was significantly higher than the 10-year historical average and comparable to pre-recession levels but more moderate in 2013 and Employment lands absorption in 2015 based on data through November totalled 30 net ha, significantly higher than the 10-year historical average. Employment lands absorption over the period occurred on a broad range of parcel sizes, as illustrated in Figure Approximately 42% of the land parcels absorbed over the period consisted of larger parcels greater than 5 net ha (12.5 net acres) in size. Meanwhile, parcels 1 to 2 net ha (2.5 to 5 net acres) and 2 to 5 net ha (5 to 12.5 net acres) accounted for 19% and 25% of the total, respectively. Small parcels (less than 1 net ha) account for 14% of absorbed parcels data includes lands absorbed through November 2015.

65 Figure Town of Milton annual employment lands absorption, Net Ha Year 10-year average Source: Watson & Associates Economists Ltd includes lands absorbed January through November. Figure Town of Milton employment lands absorbed by parcel size, ha or greater 11% <1 ha 14% 5-10 ha 31% 1-2 ha 19% 2-5 ha 25% Source: Watson & Associates Economists Ltd data includes lands absorbed January through November. JANUARY 2016 DRAFT PHASE 1 REPORT MILTON EMPLOYMENT LAND NEEDS ASSESSMENT 49

66 3.2.7 Trends in Employment Density Employment densities on employment lands absorbed over the past decade have been slightly lower than the existing 2015 employment lands base (16 jobs per net ha vs. 17 jobs per net ha), as summarized in Figure While the average F.S.W. for recently absorbed employment lands has been significantly higher than the existing base (179 sq.m. per worker vs. 118 sq.m., or 1,927 sq.ft. per worker vs. 1,270 sq.ft.), this has been largely offset by an increase in average F.S.I. (38% vs. 25%). Figure Town of Milton employment density trends on Employment Lands Existing Employment Lands Base Employment Lands Absorbed Employment Density (jobs per net ha) Floor Space per Worker (FSW) Sq.M Floor Space Index (FSI) 25% 38% Source: Watson & Associates Economists Ltd. Employment density based on-site employment Employment Lands Supply A major factor which impacts the competitiveness of Milton s economic base is the supply and quality of its vacant employment lands. Figure illustrates the geographic location of the Town s remaining vacant designated employment lands. 15 Figure summarizes the total gross and net vacant employment land supply for the Town of Milton (as of November 2015) by employment area. As illustrated, the Town has a total of 675 gross ha (1,668 gross acres) of vacant designated employment land. Milton has an additional 689 gross ha (1,702 gross acres) of planned employment lands (i.e. Employment Growth Areas) and 1,383 gross ha (3,418 gross acres) of possible future employment lands (i.e. Future Strategic Employment Areas). The gross land area reflects takeouts for environmental features (based on the Town s Natural Heritage System overlay), corridor right-of-ways (i.e. hydro, major transportation) and hydrological features. 14 Based on employment lands absorbed over the period. 15 To generate the vacant employment lands inventory, the Consultant Team reviewed all parcels designated as employment lands as defined herein within the Town. The analysis was completed primarily through a desktop review using G.I.S. mapping software. Spatial overlays utilized included parcel fabric, official plan and zoning overlays, hydrology, environmental constraints and 2015 orthophotos. Further, windshield surveys of the employment areas were completed to refine the analysis. 50

67 In determining the net vacant land inventory, larger vacant parcels (i.e. 4 ha or greater) which were not considered shovel-ready16 were also subject to an additional downward adjustment to reflect internal infrastructure (i.e. roads, stormwater ponds, easements, etc.) with a net to gross adjustment of 80%. In accordance with the aforementioned adjustments for internal infrastructure, the Town s net vacant designated employment land supply is estimated at 555 net ha (1,371 net acres). The Town has a further 553 net ha (1,365 net acres) of vacant employment lands within planned employment areas and 1,107 net ha (2,735 net acres) within possible future employment areas. The limited supply of shovel-ready employment lands will be an issue in the near term until employment lands in the Derry Green Corporate Business Park are serviced and become developable. Based on further review of the net vacant employment land supply, it was determined that the Town has 62 net ha (152 net acres) of shovel-ready net vacant employment lands. In relation to historical employment land absorption trends, the Town s inventory of shovel-ready employment lands is limited, particularly for larger sites (greater than 5 net ha in size). The limited supply of shovel-ready employment lands will be an issue in the near term until employment lands in the Derry Green Corporate Business Park are serviced and become developable. Figure Town of Milton designated Employment Lands Shovel-ready is defined as lands which are zoned for employment uses, that are serviced with municipal water/sewer and have road access. JANUARY 2016 DRAFT PHASE 1 REPORT MILTON EMPLOYMENT LAND NEEDS ASSESSMENT 51

68 Figure 3.2.8: Town of Milton vacant Employment Lands inventory Employment Area Net Acres Net Ha Net Acres Net Ha Net Acres Net Ha Designated Employment Lands 401 Industrial Business Park Derry Green Corporate Business Park 1, , Total Designated Employment Lands 1, , Growth Areas - Employment Milton Education Village Trafalgar/Derry Lands CN Lands Industrial Business Park Extension Total Growth Areas - Employment 1, , Strategic Employment Areas 3,418 1, ,735 1,107 Total 6,789 2,747 1, ,471 2,214 Source: Watson & Associates Economists Ltd. 3. Based on Milton Education Village Secondary Plan Land Use Concept 1. Total Gross Vacant (A) Adjustment for Roads and other Internal Infrastructure (B) 2 Net Vacant Employment Land Supply (C = A-B) 1. Reflects environmental takeouts and corridor right-of-w ay takeouts 2. A dow nw ard adjustment of 20% of the gross area has been applied to account for internal infrastructure on unsubdivided parcels typically greater than 10 acres (4 ha) in size. 52

69 3.3 REGIONAL COMPETITIVENESS ANALYSIS Within the Greater Golden Horseshoe (G.G.H.) there are a number of comparable municipalities with which Milton competes for export-based business attraction and retention. Milton s most immediate competitors within the industrial sector are located in the west G.T.H.A. including Peel Region (i.e. Mississauga, Brampton, Caledon). Milton s industrial sector also competes with Vaughan in York Region, the City of Hamilton and larger urban centres in the G.G.H. Outer Ring, including Guelph and Cambridge. With respect to the office market, Milton competes most directly with municipalities within the west G.T.H.A. This includes municipalities in Peel Region (Mississauga and Brampton) and South Halton (Oakville and Burlington). Market competitiveness is typically driven by the following broad criteria: Hard factors development costs (e.g. land costs, construction costs) and operating costs (e.g. property taxes, utilities costs); Regional/local level soft factors proximity and access to major infrastructure; labour force; access to post-secondary institutions; availability of developable employment land, quality of life; and, Regulatory environment. In accordance with the above-listed hard and soft criteria, Milton s competitiveness is explored within a local and regional context, below, against a number of key markets in the west G.T.H.A./G.G.H., including Burlington, Halton Hills, Oakville, Mississauga, Brampton, Caledon, Hamilton, Cambridge, Guelph and Vaughan. JANUARY 2016 DRAFT PHASE 1 REPORT MILTON EMPLOYMENT LAND NEEDS ASSESSMENT 53

70 3.3.1 Physical Attributes Influencing the Competitive Position of Milton s Employment Lands Location Location plays a key role in the geographic distribution of the dominant industry clusters visible across Ontario today. For both international and locally-based industries, Milton has a strong appeal given its location along the Highway 401 corridor in the west G.T.H.A. with proximity to major regional infrastructure, including the T.P.I.A., 400-series highways and access to 24 post-secondary institutions within an approximate onehour radius. Furthermore, Milton offers good proximity to major Canadian markets and the U.S. border. These strong locational attributes are generally shared across all west G.T.H.A. municipalities. Labour Force Milton boasts a highly skilled labour force which is attractive for both international and locally based industries. Within the surveyed municipalities, Milton has the second highest share of residents with a post-secondary education, after Oakville, as illustrated in Figure Milton also boasts the youngest median population within the markets in the west G.T.H.A./G.G.H. surveyed. Figure Share of population with Post-Secondary Education 100% Share of Population with Post Secondary Degree 80% 60% 40% 20% 0% 79% 73% 72% 71% 69% 66% 66% 64% 62% 60% 55% Source: Derived from Statistics Canada 2011 Census National Household Survey by Watson & Associates Economists Ltd. Analysis is based on population aged w ith Apprenticeship or trades certificate or diploma, College, CEGEP or other non-university certificate or diploma, and University certificate or diploma - bachelor level or above. 54

71 Quality of Life Milton s urban and rural character offers a high quality of life with a broad range of recreational opportunities and amenities. Quality of life is becoming an increasingly important attribute, particularly within the knowledge-based sectors, with workers increasingly determining their place of residency based on quality of life attributes. In turn, employers are attracted to locate to these communities based on the growth potential of the local labour force pool. Cost of Development A significant factor influencing business decisions on where to locate is the cost competitiveness (both capital investment and operating costs) of development in relation to market demand and potential return on investment. This is particularly relevant for industrial sectors such as manufacturing. From a competitiveness perspective, land prices can provide a key advantage, especially for land-expansive uses such as transportation, wholesale trade/logistics, warehousing and large-scale manufacturing. Employment land prices in Milton average $510,000 per acre, close to the average of the surveyed west G.T.H.A./G.G.H. markets. Comparatively, employment land prices are significantly lower in Milton than in more mature west G.T.H.A. markets such as Mississauga, Brampton, Oakville, Vaughan and Burlington where land prices range between $700,000 and $1,000,000 per acre. In comparison, employment land prices in Caledon, Halton Hills, Cambridge, Guelph and Hamilton are somewhat lower than in Milton, ranging between $300,000 and $480,000 per acre. Development charges (D.C.s) also represent a component of total development costs. D.C.s for greenfield industrial and commercial development in Milton are close to the survey average. D.C.s in the Town are moderately lower than in Oakville, Vaughan, Mississauga, Brampton and Caledon, but are moderately higher than in Halton Hills, Cambridge and Guelph. Overall development costs on employment lands in Milton are generally competitive with the broader market. Comparatively, these costs are similar to Caledon, but moderately lower than in Oakville, Burlington, Mississauga, Brampton and Vaughan. On the other hand, development costs are moderately higher than Hamilton, Cambridge and Guelph. Property tax rates also represent a consideration for business location decisions, since taxes impact operating profit annually. With respect to industrial development, average property tax costs in Milton are close to the survey average, while for office development, property tax costs are the second lowest next to Halton Hills Based on BMA Municipal Study, 2014 which assessed average property tax costs for standard industrial buildings and standard office buildings in the survey municipalities. JANUARY 2016 DRAFT PHASE 1 REPORT MILTON EMPLOYMENT LAND NEEDS ASSESSMENT 55

72 Land Supply Milton s supply of vacant designated employment lands ranks close to the survey average, comparable in size to Cambridge, as summarized in Figure A number of G.T.H.A. municipalities including Brampton, Vaughan, Hamilton, Mississauga and Oakville have significantly larger inventories of designated employment lands than Milton. Brampton, Vaughan, Hamilton and Oakville have significant greenfield employment land supply opportunities remaining, to accommodate long-term growth. In contrast, Mississauga is approaching build out but continues to offer some market choice for employment lands development in the medium term. To varying degrees, Milton s supply of vacant designated employment lands is larger than that in Cambridge, Guelph, Burlington, Caledon and Halton Hills. Relative to recent absorption trends on employment lands, the Town s supply of designated employment lands is somewhat limited. As the supply of vacant designated employment lands steadily declines in many of the mature municipalities across the G.T.H.A., municipalities such as Milton which offer significant potential long-term greenfield opportunities for non-residential development, are well-positioned provided that new lands are designated and serviced in a timely manner. Figure Designated vacant Employment Lands Supply Vacant Designated Employment Land Supply (Net Ha) 1,600 1,400 1,200 1, ,350 1,295 1, Source: Compiled from various market reports and in-house databases by Watson & Associates Economists Ltd. 56

73 Figure Photo of the Milton Education Village (MEV) Observations Relative to its competitors, the Town of Milton is in a favourable position moving forward with respect to future employment lands absorption potential. Industrial and office commercial development costs in Milton are generally competitive and the Town has a sufficient supply of designated employment lands to accommodate growth along the Highway 401 corridor. Further, the Town offers a highly skilled, fast growing labour force which is increasingly important in the growing knowledge-based economy. The Town of Milton is in a favourable position moving forward with respect to future employment lands absorption potential. Though Milton is well positioned to capture a significant share of long-term regional economic growth potential, the Town faces strong competition from municipalities in the surrounding market area (i.e. G.G.H. Outer Ring and west G.T.H.A.). Municipalities in the west G.T.H.A., including Mississauga, Brampton and Oakville are highly marketable towards office and prestige employment uses. Many G.T.H.A. fringe and G.G.H. Outer Ring municipalities such as Caledon, Cambridge and Guelph, represent significant competition due to their proximity to the larger employment centres in the west G.T.H.A., availability of large tracts of competitively priced lands and access to transportation networks. JANUARY 2016 DRAFT PHASE 1 REPORT MILTON EMPLOYMENT LAND NEEDS ASSESSMENT 57

74 58

75 4.0. POLICY CONTEXT How Milton can plan for its future employment lands is bound by current Provincial and Regional policy. The current Milton Official Plan also provides for approved Council direction for employment land that is the subject of this review. The following section provides an overview of the policy framework for employment planning applicable to the Town. JANUARY 2016 DRAFT PHASE 1 REPORT MILTON EMPLOYMENT LAND NEEDS ASSESSMENT 59

76 4.1 POLICY REVIEW The policy framework relevant to employment lands in Milton includes Provincial, Regional and local policies as well as a number of guiding policy documents. This section reviews provincial policies on employment lands, amendments to the Growth Plan targets, employment targets set out in ROPA 38, and the Town of Milton Official Plan policies including the employment policies and designations, as well as other designations that are employment related. Furthermore, intensification policies and relevant information from the 2014 Milton Municipal Comprehensive Review have been provided Provincial Policy Statement, 2014 Ontario.ca/PPS 2014 Provincial Policy Statement Under the Planning Act The Provincial Policy Statement (PPS) was updated and issued on April 30, 2014 and is currently in effect. The PPS provides direction on matters of provincial interest related to land use planning and development. All plans are to be read in conjunction with the PPS and all planning decisions are to be consistent with the PPS. The PPS defines employment lands as areas designated in an official plan for clusters of businesses and economic activities including, but not limited to, manufacturing, warehousing, offices and associated retail and ancillary uses. It is a stated goal of the PPS to provide an appropriate range and mix of residential, employment (including industrial and commercial), institutional, recreation, park and open space, and other uses to meet long-term needs (Policy 1.1.1b). Further, it discourages inefficient development and land use patterns that leads to minimize land consumption (Policy 1.1.1d and e). The PPS requires that municipalities plan for sufficient land for an appropriate range and mix of land uses to meet long-term land needs based on a 20 year time horizon (Policy 1.1.2). It also requires the identification of appropriate locations and promotes opportunities for intensification and redevelopment (Policy ). The PPS requires municipalities to provide a mix of employment and institutional uses, maintain and protect a range and choice of suitable sites for current and future employment uses (Policies and ) and encourage compact, mixed-use development that incorporates employment uses (Policy 1.3.1). The PPS permits the conversion of designated lands not required for employment purposes to other land uses through a comprehensive review process that demonstrates a conversion need (Policy ). 60

77 In general, employment areas are encouraged to be located in proximity to major goods movement facilities and corridors (Policy ). The PPS protects the longterm operation of airports, rail facilities and marine facilities and requires appropriately designed, buffered and/or separation from adjacent uses (Policy ). The PPS requires an efficient, cost-effective, reliable multimodal transportation system that is appropriate to address projected needs to support the movement of goods and people (Policy 1.7.1f ). In Milton, this needs to be balanced with optimizing the longterm availability and use of land, resources, and infrastructure (Policy 1.7.1b) to support the long-term economic prosperity of the Town The Growth Plan for the Greater Golden Horseshoe The Growth Plan for the Greater Golden Horseshoe (the Growth Plan) and the Places to Grow Act promotes the creation of complete communities and recognizes the importance of providing employment opportunities as a part of these communities within the Greater Golden Horseshoe (G.G.H.). Growth Plan for the Greater Golden Horseshoe, 2006 OFFICE CONSOLIDATION, JUNE 2013 Generally, growth is managed by directing new growth to built-up areas through intensification (Policy a). The Growth Plan recognizes the importance of protecting employment areas for current and future planned uses. The Growth Plan requires a sufficient availability of land for employment which will support the G.G.H. s economic competitiveness (Policy f, , c). Under the Growth Plan, municipalities are required to plan for an appropriate mix of employment uses and to maintain a range and choice of suitable sites for employment uses to accommodate the growth forecasted by Schedule 3 of the Growth Plan. Amendment 2 (2013) to the Growth Plan updated the forecasted population and employment projections for upper and singletier municipalities in the Greater Golden Horseshoe until Ministry of Infrastructure The forecasted population and employment are the following for Halton Region: Region of Halton Population (000 s) Employment (000 s) 2031 A* B , * 2031A projections were developed in In 2013, Amendment 2 provides an updated set of projections for the same year as 2031B. JANUARY 2016 DRAFT PHASE 1 REPORT MILTON EMPLOYMENT LAND NEEDS ASSESSMENT 61

78 By 2041 Halton Region is required to be planned to accommodate 470,000 jobs. The Region has commenced a Regional Official Plan review to coordinate allocation of the Amendment 2 population and employment forecasts to Halton s municipalities. The Growth Plan further encourages cities and towns to be complete communities with a mix of land uses with a balance of jobs and housing (Policies g and h). A wide range of employment uses, including industrial, commercial and institutional uses are promoted by Policy a. Municipalities are encouraged to preserve lands in the vicinity of transportation infrastructure for industrial and ancillary uses, such as associated retail and office uses (Policy ). Policy directs major office and major institutional development to be located in urban growth centres, major transit station areas, and areas in the vicinity of existing or planned higher order transit services. These policies ensure various types of employment areas are supported by public transit and transportation infrastructure accordingly. The conversion of employment lands and planning for employment uses in greenfield areas are relevant to Milton s employment land supply. Recognizing changing conditions in employment in the long-term, the Growth Plan guides settlement area 62

79 boundary expansions to permit additional greenfield development and provides for the consideration of the conversion of employment lands to non-employment uses. These actions require a municipal comprehensive review to demonstrate the need for a change, how employment projections will be met, and how intensification efforts will not be adversely affected (Policies and ). The conversion of employment lands to residential or major retail uses are outlined by Policy , which includes the following criteria: For the purposes of employment land conversion, major retail uses are considered nonemployment uses. there is a need for the conversion; the municipality will meet the employment forecasts allocated to the municipality pursuant to the Growth Plan; the conversion will not adversely affect the overall viability of the employment area, and achievement of the intensification target, density targets, and other policies of the Growth Plan; there is existing or planned infrastructure to accommodate the proposed conversion; the lands are not required over the long term for the employment purposes for which they are designated; and, cross-jurisdictional issues have been considered. For the purposes of employment land conversion, major retail uses are considered non-employment uses. Furthermore, Policy does not apply to conversion within downtown or regeneration areas. Employment uses planned in designated greenfield areas are required to contribute to achieving a minimum density target that is not less than 50 residents and jobs combined per hectare (Policy ). Furthermore, should new employment areas be needed outside of settlement area boundaries, the Growth Plan requires the expansion make available sufficient lands for a time horizon not exceeding 20 years (Policy b) Milton is strategically located within the G.G.H. s transportation system. Facilities such as Milton GO Station represents an opportunity to encourage intensification in an urban centre which offers multi-modal access to jobs, housing, schools, cultural and recreational opportunities (Policies and ). Milton also has great access to the 400-series highways, which are prioritized by the Growth Plan to facilitate efficient goods movement (Policy ). Employment areas should be strategically located within Milton to optimize access to highway facilities. Lastly, Policy discusses the need to provide compatible land uses in settlement areas adjacent to transportation facilities. JANUARY 2016 DRAFT PHASE 1 REPORT MILTON EMPLOYMENT LAND NEEDS ASSESSMENT 63

80 Figure Downtown Milton Urban Growth Centre as designated by the Growth Plan

81 4.1.3 Halton Regional Official Plan Halton Region s primary role is to provide broad policy directions on strategic matters such as growth management, housing, and economic development and defer the responsibilities of local planning to local municipalities. As a part of the process to conform to provincial growth management strategies, Halton Region developed the Sustainable Halton Plan through ROPA 38, which was adopted by Regional Council in December Since adoption, ROPA 38 was appealed to the Ontario Municipal Board (OMB). ROPA 38 has been approved by the OMB and the policies are in force with the exception of site specific matters. There are a number of policies within ROPA 38 that provide overall direction for growth for the Town of Milton. The population and employment forecasts to the year 2031, on which the current land budget is based and through which development opportunities are planned, have been assigned to Milton. These numbers are in conformity with the Region s forecasts to 2031 based on projections from the Growth Plan Population Employment Halton Region, , ,000 Town of Milton, , ,000 There will be a need to accommodate additional population and employment as a result of the adjusted forecast for 2031 under the Growth Plan Amendment 2 and a further need to meet a share of the Region s growth needs to Halton based its regional plan around the vision of a healthy community that fosters a sense of well-being (Section 31(1)) and provides a full range of housing, employment, and social opportunities for everyone (Section 31(4)). Specifically, ROPA 38 recognizes the interconnection between economic development and planning in the region with the following policy: Halton recognizes the importance of a sustainable and prosperous economy and the need for its businesses and employers to compete in a world economy. Towards this end, Halton will actively maintain, develop and expand its economic and assessment base through economic development strategies, timely provision of infrastructure, cost-effective delivery of services, strong fiscal management, proactive planning policies, and support for development opportunities that respond to the vision and policies of this Plan. (Section 32) JANUARY 2016 DRAFT PHASE 1 REPORT MILTON EMPLOYMENT LAND NEEDS ASSESSMENT 65

82 Table 2A of ROPA 38 projects the amount of residential units and employment expected up to 2031 in the region based on existing trends in the Region. Halton Region Units in Designated Greenfield Area 17,899 16,606 16,350 14,371 Units inside the Built Boundary 9,187 12,245 11,606 11,699 Employment 37,490 39,191 28,026 34,290 Milton Units in Designated Greenfield Area 10,644 10,175 10,075 9,126 Units inside the Built Boundary 1,910 3,502 2,558 2,764 Employment 18,102 18,552 15,525 17,699 From ROPA 39 Package dated March 17, ROPA 38 indicates that based on existing trends, Milton is projected to accommodate approximately half of the Region s employment forecast. The majority of the remaining employment in Halton is projected to shift from Burlington and Oakville to Halton Hills in due the limited growth potential in Burlington and Oakville. Section 77(4) requires the Local Municipalities to demonstrate how the Regional distribution of population and employment will be achieved and maintained. It is the policy of the Region to prepare and adopt, in consultation with the Local Municipalities, population, employment and Regional phasing forecasts no less than every 5 years (Section 77). As such, major changes in Milton s local economic strategy will allow for adjustments in the regional phasing. 66

83 Figure Regional Structure Map from the Halton Region Official Plan Amendment 38. JANUARY 2016 DRAFT PHASE 1 REPORT MILTON EMPLOYMENT LAND NEEDS ASSESSMENT 67

84 Locations, Amount and Types of Employment Areas Currently, ROPA 38 guides the development of employment areas based on the objectives to ensure the availability of sufficient land to support Halton s economic competitiveness, to provide a fully-diversified economic base for a wide range of economic activities and ancillary uses of existing and future businesses, and to locate Employment Areas in the vicinity of existing transportation infrastructure (Section 77.1). The Region has designated Future Strategic Employment Areas in greenfield areas, under Sections and 139.7, to meet employment land needs beyond the planning horizon of Generally, these are lands located near major highway infrastructure the Region has designated for future development. ROPA 38 includes provisions to allow these lands to be included in the Urban Area to be developed prior to 2031 through a municipal comprehensive review process. ROPA 38 requires Urban Areas to be planned to accommodate the distribution of population and employment. Within the Urban Area, ROPA 38 outlines an Employment Area Overlay that sets out policies and permitted uses within the area. The Employment Area is defined by Section as and area designated in an official plan for clusters of business and economic activities including, but not limited to, manufacturing, warehousing, offices and associated retails and ancillary facilities. In general, additional new Employment Areas may be introduced by an amendment to ROPA 38 based on the completion of an Area-Specific Plan or an amendment to the Local Official Plan (Section 77.2). ROPA 38 also provides guidance on the expansion of the Urban Area through Section 77(5), which states that Urban Area expansions supported by a municipal comprehensive review may be introduced as part of the Region s statutory five-year review, provided that it demonstrates the following: sufficient opportunities to accommodate the distribution of population and employment are not available within the Region; the expansion makes available sufficient lands to accommodate population and employment growth for a time horizon of at least ten years but not exceeding 20 years; the amount of land area and the most appropriate location for expansion to the Urban Area are consistent with the PPS, the Growth Plan, and goals, objectives and policies of ROPA38 related to: o the identification of strategic employment lands within the proposed expansion area that should be designated and protected for the long-term due to their proximity to major transportation facilities and infrastructure. 68

85 Lastly, the policies in ROPA 38 to designate lands in the vicinity of existing or planned major highway interchanges, ports, rail yards and airports for employment purposes has not been approved by the Ontario Municipal Board and are expected to be modified. Employment Land Conversion In line with the PPS and the Growth Plan, Policy 77.4 (4) of Halton ROPA 38 requires Local Municipalities to prohibit the conversion of Employment Areas to non-employment uses including major retail uses unless through a municipal comprehensive review. Such conversion must be supported by a demonstrated need for the conversion, that the conversion does not adversely affect the employment land supply, intensification and density targets, or the overall viability of the Employment Area. The intent of this policy is to maintain the Regional employment land supply. The specific criteria of employment land conversation are the following: there is a need for the conversion; the conversion will not compromise the Region s or Local Municipality s ability to meet the employment forecast; the conversion will not adversely affect the overall viability of the Employment Area, and achievement of the intensification and density targets and other policies of this Plan; there is existing or planned infrastructure to accommodate the proposed conversion; the lands are not required for employment purposes over the long term; cross-jurisdictional issues have been considered; and, all Regional policies and requirements, financial or otherwise, have been met. Intensifcation of Employment Areas and Employment Supportive Uses It is the policy of the Region to require Local Municipalities to promote intensification and increased densities in both new and existing Employment Areas. ROPA 38 envisions employment intensification accomplished through the provision of compact, transitsupportive built form, which is not appropriate for Milton s Employment Areas that comprise of manufacturing and warehousing sectors. Currently, Section 77.4 (1) of ROPA 38 prohibits residential and other non-employment uses including major retail uses in the Employment Areas except for compatible JANUARY 2016 DRAFT PHASE 1 REPORT MILTON EMPLOYMENT LAND NEEDS ASSESSMENT 69

86 institutional uses at the periphery of the Employment Area and proposed new uses do not displace employment. Specifically, the policy permits some residential and other non-employment uses in employment areas due to the following exceptions: to recognize uses permitted by specific policies of a Local Official Plan on December 16, 2009; or for institutional uses identified in a Local Official Plan, as a result of a detailed study that sets limits and criteria on such uses based on the following principles: o the use is of small scale and such uses collectively within an Employment Area shall not change the character of that Employment Area; o the location and design of the use meet the Land Use Compatibility Guidelines; o the use is located at the periphery of the Employment Area; and, o such uses do not collectively displace employment from the Employment Area to result in a shortfall in Employment Areas to meet Halton s employment forecast. Intensification Areas and Urban Growth Centre A portion of forecasted employment is to be accommodated in Intensification Areas and Urban Growth Centres, which are set to achieve increased employment densities and have a mix of residential, office, institutional and commercial developments (Section 78(11)). Intensification is defined as the following: development of a property, site or area at a higher density than currently exists through redevelopment, including the reuse of brownfield sites; the development of vacant and/or under-utilized lots within previously developed areas; infill development; or, the expansion or conversion of existing buildings. Intensification Areas are lands identified by the Region or its Local Municipalities within the Urban Area that are to be the focus for accommodating intensification. Intensification areas include Urban Growth Centres, Major Transit Station Areas (including Metrolinxdesignated Mobility Hubs), Intensification Corridors, and Mixed Use Nodes. Urban Growth Centres, such as Downtown Milton, are directed by ROPA 38 to serve as a high density major employment centre that will attract provincially, nationally or internationally significant employment uses and accommodate a significant share of population and employment growth at a density target of 200 residents and jobs per hectare by 2031 or earlier (Sections 81.1 and 81.3). 70

87 4.1.4 Town of Milton Official plan The in-effect Town of Milton Official Plan (OP 1997) was most recently consolidated in August To respond to changes in both provincial planning legislation and regional planning policy related to growth management and intensification, Official Plan Amendment 31 (OPA 31) was adopted by Council in It is currently awaiting Regional approval and, as such, is not in full force and effect. OPA 31 does not apply to several secondary plan areas, including Bristol Survey, Sherwood Survey, Boyne Survey and Derry Green Corporate Business Park except for policies related to population and employment forecasts. OPA 31 updates the policies in Milton Official Plan regarding Community Vision and Goals and continues to contribute to the vision set-out in Destiny Milton 2, the 2006 update to Milton s comprehensive Strategic Community Economic Development Plan. OPA 31 is consistent with the PPS, conforms to the Growth Plan, the Greenbelt Plan, the Niagara Escarpment Plan and ROPA 38. Section of OPA 31 outlines the growth management targets for Milton, which aligns with projections in ROPA 38. To meet the growth management targets provided by the Region, OPA 31 provides updated policies regarding maintaining an adequate supply of land and promote land use intensification. In regard to Employment Lands, OPA 31 sets an objective to provide sufficient employment lands to ensure adequate choice of sites to meet the employment targets of the Town (Policy e). Major office, retail, cultural and institutional uses are directed to the Urban Growth Centre (Downtown Milton), Major Transit Station (Milton Go Station) Areas and areas with existing or planned higher order transit services (Policy n). JANUARY 2016 DRAFT PHASE 1 REPORT MILTON EMPLOYMENT LAND NEEDS ASSESSMENT 71

88 Figure Land Use Plan of Town of Milton Official Plan Amendment 31 (June, 2010) OPA 31 includes the Urban Area expansion permitted by ROPA 38 which allows the Town to accommodate population and employment growth between 2021 and New greenfield areas have a minimum development density target of 58 residents and jobs combined per gross hectare. OPA 31 is further aligned with Halton ROPA 38 in regard to provisions regarding the Future Strategic Employment Areas. Significant updates were made to the structure of Milton OP. The reorganized OPA 31 sets out provisions for Commercial Areas that includes a Major Commercial 72

89 Centre designation that was previously within the Employment Area in the 1997 OP. Furthermore, employment land uses have been updated to reflect the detailed current employment needs anticipated in Milton. OPA 31 includes 5 types of employment land categories, rather than the two found in the OP from The following table summarizes land use policies relevant to employment land needs in Milton: Provisions OP 1997 (in-effect) OPA 31 (2010) Employment Intensification Employment Conversion Mixed Use N/A permits the revitalization and conversion of older employment and industrial uses in designated Community Improvement Areas ( ) area selection of Community Improvement Areas is partly based on land use conflicts and economic instability ( f and i) Residential / Office Area permits office and high rise residential development along with special needs housing, local institutional and commercial uses (3.3.2) Residential / Employment Area permits medium and high density residential development along with a range of employment uses including office, light industrial and institutional uses (3.4.2) policies based on Halton ROPA 38 policies to create compact, transit-supportive built-form and minimizing surface parking ( ) encourage the intensification of commercial and high industrial uses ( ) and permits complementary uses ( ) in designated office employment areas conversion policies based on Halton ROPA 38 policies ( ) Residential / Office Area largely based on OP 1997 with updates that require a minimum density of 100 employees per ha for office uses (3.3.2) Central Business District permits a variety of commercial, institutional and office uses, and community facilities, including a diversified mixture of basic shopping facilities, specialty retail, business and professional offices, personal service uses, special needs housing and religious, recreational, entertainment and cultural facilities (3.5.2) Secondary Mixed Use Nodes permits commercial uses including a food store, grocery store and supermarket, office, institutional, medium and high density residential uses ( and ) designated as intensification areas ( ) JANUARY 2016 DRAFT PHASE 1 REPORT MILTON EMPLOYMENT LAND NEEDS ASSESSMENT 73

90 Provisions OP 1997 (in-effect) OPA 31 (2010) Employment Area focuses on office and commercial uses ( ) includes subcategory of major retail uses including highway commercial development ( ), and regional or sub-regional commercial development ( ) located along major transportation corridors specifies a set of objectives for employment areas, including strategic location near highway and rail yards, promotes a mix of employment prohibits residential and other non-employment uses including major retail uses ( ) Provides 5 specific employment land use designations: Prestige Office - permits offices, research and development, and limited service commercial uses including restaurants ( ) Employment Area Business Park Area permits light industrial, office, service commercial, hotel, research and development, institutional, restaurant, theatre, automobile-related commercial and recreational uses ( ) does not permit truck terminals, fuel depots, cement and aggregate facilities, and waste management ( ) Industrial Area permits light and general industrial uses, including recycling industry, accessory service, wholesale, retail and office use related to industrial uses (3.9.2) Office Employment - permits business and medical offices, banquet halls, place of assembly, hotels, training and educational facilities with limited service commercial uses and complementary uses on the ground floors ( ) Business Commercial - permits hotels, training and educational facilities, automobile-related commercial, truck stops and convenience retail and service commercial uses, including restaurants and offices ( ) Business Park - permits light industrial, office and accessory service, wholesale, and retail related to industrial uses, research and development and restaurants (3.8.2) Industrial - permits light and general industrial uses, including recycling industry, accessory service, wholesale, retail and office use related to industrial uses (3.9.2) Institutional Area permits hospitals, major educational, religious, supportive housing, residential care facilities, correctional facilities, and other major community uses (3.10.2) permits accessory servicing, retail, office, and residential uses The current planning framework, from the provincial to the local level, has largely been aligned to support growth management and intensification of urban areas. Land use and intensification strategies sensitive to local context should be supported given that local municipalities are best able to plan for local needs. 74

91 Milton Municipal Comprehensive Review In 2014, the Town of Milton conducted an initial study to inform its municipal comprehensive review process with respect to planning for employment and commercial lands. The report looked at the employment, commercial and retail land needs for the Town. The study included a comprehensive review of the Town of Milton s employment lands, including an assessment of current and future land supply and demand based on Provincial, Regional and local employment growth objectives and an evaluation of the Town s current land use structure. This study included recommended policies, a detailed analysis of employment land supply and an evaluation of retail lands. The reports identified approximately 213 net hectares of Strategic Employment Lands are needed to meet the employment land demand to An urban area expansion was recommended to redesignate approximately 400 gross hectares as Sustainable Halton Plan (SHP) Growth Area-Employment and included lands designated by ROPA 38 and OPA 31 as Future Strategic Employment Areas.2 It was recommended that lands currently designated as SHP Growth Area-Employment in OPA 31 may be developed prior to 2021 to meet the immediate employment land needs. These lands include the Milton Education Village, the CN lands, Trafalgar Derry lands and Milton 401 Industrial/ Business Park Expansion Area. Figure new employment area and commercial nodes proposed by the 2014 Town of Milton Draft Municipal Comprehensive Review Macaulay Shiomi Howson et al., Draft Municipal Comprehensive Review of Employment Commercial/Retail Land Needs, October ibid. JANUARY 2016 DRAFT PHASE 1 REPORT MILTON EMPLOYMENT LAND NEEDS ASSESSMENT 75

92 Furthermore, demand for new commercial and retail space is forecast to require approximately 487,050 square metres (5.2 million square feet) by 2031, which will need to be met through intensification and possible new retail sites within the SHP Growth Area. Some of these retail spaces were recommended to be provided in new designations of Super-Regional Nodes and Regional Nodes. These nodes are located at 8th Line and Britannia Road, at Derry Road and Trafalgar Road, and at Britannia Road and James Snow Parkway (see Figure 4.1.4). The 2014 Municipal Comprehensive Review report evaluated the potential for a Milton Urban Area Boundary expansion and found it satisfied the criteria outlined by Provincial, Regional and Town policies on Urban Area Boundary expansions. 76

93 4.2 RELATED PROVINCIAL PLANNING Changes to the Planning Act - Bill 73 Bill 73, the Smart Growth for Our Communities Act was brought forth to the Ontario Legislature in March 2015 and proclaimed January 1, It was introduced to address numerous issues including lengthy delays related to official plan conformity exercises which often resulted in appeals to the Ontario Municipal Board. Bill 73 amends the Planning Act with the following relevant changes: Extends the review of new municipal official plans to ten years, instead of the current five-year cycle; Imposes restrictions on appeals of official plans, zoning by-laws and minor variances for 2 years; Prevents appeals of whole official plans; and, Prevents partial official plan appeals related to provincial matters, such as those with respect to Greenbelt areas and forecasted population and employment growth in the Growth Plan. The intent of these amendments is to provide municipalities a period of time to implement policy changes without facing appeals before municipalities can demonstrate the effectiveness of the policies. JANUARY 2016 DRAFT PHASE 1 REPORT MILTON EMPLOYMENT LAND NEEDS ASSESSMENT 77

94 4.2.2 Co-ordinated Land Use Planning Review The Province is undertaking a simultaneous review of four provincial plans related to G.T.H.A. municipalities, including the Growth Plan for the Greater Golden Horseshoe, the Niagara Escarpment Plan, the Oak Ridges Moraine Conservation Plan and the Greenbelt Plan. The first phase of the review involved public consultation that took place between March and May The public s input was intended to inform an appointed 6-member Advisory Panel, which was tasked to develop recommendations on how to amend the plans. The finding of the Advisory Panel is summarized in a report released on December 7, The Advisory Panels report, titled Planning for Health, Prosperity and Growth in the Greater Golden Horseshoe: provides 87 recommendations. The relevant recommendations to the Milton Employment study are the following: Recommendation 7 calls for the development of a new method for measuring and forecasting employment in advance of the next review of the forecasts. Recommendation 9 recommends considering the development of guidance materials and/or new policies to help municipalities plan for and phase-in the construction of new infrastructure. Recommendation 10 calls to assess and apply potential increases in intensification targets and stronger criteria for settlement boundary expansions. Recommendation 14 calls for increased density targets for designated greenfield areas. A relevant recommended action is to update the current approach of using combined density targets for residents and jobs in designated greenfield areas. Recommendation 15 relates to coordinated efforts to identify and intensify strategic areas within the planned and existing transit network. Recommendation 23 calls for the update of the Growth Plan to recognize the dynamics of a changing economy, better protect industrial uses, and provide greater flexibility to the growing knowledge and service-based economy by encouraging municipalities to identify, as part of their assessment of employment land needs: 78 Core employment areas that support and protect traditional employment uses and appropriate related permitted uses while excluding incompatible and sensitive uses; and Mixed-use employment areas that would support a mix of permitted employment uses.

95 Recommendation 24 calls for identifying strategic and provincially-protected employment lands within settlement areas within proximity to major transportation infrastructure. Recommendation 25 calls for municipalities to use transit and transportation networks to connect office, institutional and retail employment areas with a focus on designated urban growth centres and existing office clusters. It also calls for the expansion of the major office designation to include single-use employment areas (e.g. business parks) to improve transit service to these employment areas. Recommendation 62 calls for modal split targets in specific areas, including GO stations, urban growth centres, and employment lands. Recommendation 66 calls for the updating of Schedule 6 of the Growth Plan to identify all primary goods movement clusters and facilities and the incorporation of the forthcoming Ministry of Transportation s Freight- Supportive Guidelines in planning to support goods movement. If adopted, these recommendations may change the ways employment land needs are forecasted and provided in the Greater Golden Horseshoe. In addition, changes to intensification and density targets could affect the locations and types of employment planned. Lastly, the recommendations call for integration of public and freight transportation considerations in employment planning. The Co-ordinated Land Use Planning Review is on-going and public consultations will continue in The Ministry of Municipal Affairs and Housing is expected to propose policy amendments to the Growth Plan for the Greater Golden Horseshoe based on the recommendations in this report, which the public, municipalities and government agencies will have opportunities to provide feedback on. JANUARY 2016 DRAFT PHASE 1 REPORT MILTON EMPLOYMENT LAND NEEDS ASSESSMENT 79

96 Prior to this report, a number of key documents were also released to inform the Coordinated Land Use Planning Review. The following is a summary of relevant reports: Megazones, when combined with five smaller Suburban Knowledge-Intensive Districts (SKIDs) and Downtown Toronto, have achieved 10% increase in core employment from 2001 to 2011 while other areas within the region saw a 6% decrease. Planning for Prosperity: Globalization, Competitiveness, and the Growth Plan for the Greater Golden Horseshoe The Neptis Foundation released a report to highlight the employment and economic trends within the Greater Golden Horseshoe, where more industries are relocating offshore or favouring automation. Using figures obtained through the Labour Force Survey, 2011 National Household Survey, and a variety of other sources, the study noted the polarizing growth of both low-knowledge-content jobs and knowledge-intensive jobs in the G.T.H.A. The report noted that knowledge-intensive jobs are concentrating in a few locations. The study finds three employment megazones which contain about 543,000 jobs. These megazones, when combined with five smaller Suburban Knowledge-Intensive Districts (SKIDs) and Downtown Toronto, have achieved 10% increase in core employment from 2001 to 2011 while other areas within the region saw a 6% decrease. The report noted that the Growth Plan does not address the needs of these employment hubs, which are not included in the 25 Urban Growth Centres. Furthermore, the report highlights the Growth Plans efforts to manage residential growth but require additional policies to support job growth, especially in the knowledge-based employment sectors. Implementing the Growth Plan: Seeking Provincial and Municipal Alignment to Support a Prosperous Ontario This report by the Regional Public Works Commissioners of Ontario, Regional Planning Commissioners of Ontario, and Ontario Regional and Single Tier Treasurers aimed to inform the Co-ordinated Land Use Planning Review regarding the implementation issues of the Growth Plan. Municipalities of the Greater Toronto and Hamilton Area and the Regions of Niagara and Waterloo are included in this study. The report highlighted the misalignment of infrastructure investments, concerns with the Growth Plan population and jobs forecasts, long conformity timeframe of the Growth Plan, the costrecovery deficiency of development charges and requested stronger protection of employment lands from conversation. 80

97 Figure Spatial Economic Structure of the G.G.H., 2011 by the Neptis Foundation. JANUARY 2016 DRAFT PHASE 1 REPORT MILTON EMPLOYMENT LAND NEEDS ASSESSMENT 81

98 4.3 OTHER DOCUMENTS A number of additional policies provide guidance for employment planning. They include Halton Region Land Use Compatibility Guideline, Halton Region Economic Development Strategy, 2015 Halton Region Investment in Employment Areas and the on-going development charge background study. These policy documents influence the timing and locations of available employment lands due to infrastructure investment of the Region and financial impact of developing these lands Halton Region Land Use Compatibility Guideline Halton Region has a set of Regional Official Plan Guidelines that are aimed to create healthy developments. Specifically, the Land Use Compatibility Guidelines support the implementation of ROPA 38 policies to permit employment-supportive uses on employment lands based on land use compatibility (Policy 77.4(1)b)[ii]). The objective of these policies is to minimize the adverse effects of noise, vibration, odour and air pollution from industrial, transportation and utility sources on sensitive land uses. It promotes appropriate development, including intensification, mixed use communities, transit supportive urban form, and economic development. The guideline outlines the steps in evaluating land use compatibility, which includes determining the nature of the development, identifying potential land use conflicts, carrying out studies, and assessing mitigation approaches. Figure identifies a list of sensitive land uses and their potential area of influence. These identified uses are mostly related to light industrial and transportation, both of which have a high presence in the Town of Milton. As such, the development potential of lands surrounding employment areas generally may be diminished. This guideline provides a set of considerations to evaluate the compatibility of land uses for any local policies that supports non-traditional and business supportive uses in employment areas. 82

99 Figure The Halton Region Draft Land Use Compatibility Guideline Provides a List of Sensitive Uses and Their Area of Influence Halton Region Economic Development Strategy The Region s Economic Development Strategy, approved by Council in December 2011 identified employment land development as a key economic development priority for the Region. A number of key goals relevant to employment lands are the following: Work to ensure a sufficient supply of Halton employment lands with available Regional trunk Water and Wastewater servicing over the ten year horizon to 2021, in order to react quickly to new investment opportunities and meet the Region s employment growth targets and fiscal objectives. Support Local Municipalities in servicing site selection inquiries through the provision of information regarding Regional Services. JANUARY 2016 DRAFT PHASE 1 REPORT MILTON EMPLOYMENT LAND NEEDS ASSESSMENT 83

100 Coordinate work of Halton Region s Planning, Public Works and Finance departments in the provision of information needed to support Local Municipalities in the development of business cases for Regional trunk Water and Wastewater servicing of employment lands, and once approved, help facilitate the preparation and implementation of local servicing. The Region further provides strategic directions on supporting existing and emerging employment sectors, attracting investment and retaining business, and promoting local entrepreneurship and improving the quality of place. In general, the analysis of employment land supplies in Milton will better inform these economic development goals from Halton Region. Since employment densities is not a performance measure of the Halton Economic Development Strategy, the directions called for by the Region must be balanced with planning objectives that ensures Milton can develop as a complete community Halton Region Investment in Employment Areas On November 4, 2015, Halton Region staff provided an update report on three key employment areas in the Region that were approved by Council for infrastructure investment, including Milton Business Park II (Derry Green Corporate Business Park). Infrastructure to support Phase 1 of Milton s Derry Green Corporate Business Park was designed in 2014 and tendered early this year. Completion of these works is scheduled for December These investments are correlated with the overall economic strategy of Halton Region On-going Development Charges Background Study The Town of Milton has completed an update of its existing Development Charges (DC) Background Study and DC By-law ( ). The Study and draft by-law were received for information by Council on December 14, The updated DC Study includes a detailed residential and non-residential growth forecast for the Town s designated lands (ie. Pre-HUSP Area and Phase residential and non-residential greenfield areas). Meetings with key stakeholders will be held in 2016 to discuss the results of the Study prior to the statutory public meeting required under the Development Charges Act and the subsequent Council approval of the Study and DC By-law. 84

101 4.4 OTHER FACTORS Natural Environment The Town of Milton is located in an environmentally enriched area. The Niagara Escarpment is located at the western portion of the Town and provides a set of natural amenities that are protected at the provincial level by the Niagara Escarpment Plan. These areas are also protected as a part of Milton s Natural Heritage System. The focus of the Natural Heritage System for the Town of Milton is to encourage the protection, maintenance and enhancement of significant natural features and areas, including Escarpment features; significant valleylands, woodlands, and wildlife habitat; fish habitat; groundwater recharge areas; headwaters and aquifers; areas in the Regulatory Flood Plain; Provincially Significant Wetlands; Environmentally Sensitive and Linkage Areas; Public Open Space and Corridor Areas of the Parkway Belt West Plan; Regionally Significant Wetlands; Provincially and Regionally Significant Areas of Natural and Scientific Interest; Carolinian Canada sites and Halton Agreement Forests. These areas are protected by the Official Plan and are not appropriate for any types of development. As such, the lands occupied by natural features along with buffers and setbacks of various sizes diminish the amount of land available for future employment use. Lastly, the natural courses of waterways and valleys can sometimes result in employment sites that have irregular or inefficient parcel shapes. Therefore, these natural features will pose as location-specific constraints for the development of employment lands in Milton and shall be considered in the employment land supply analysis. JANUARY 2016 DRAFT PHASE 1 REPORT MILTON EMPLOYMENT LAND NEEDS ASSESSMENT 85

102 Figure Key Natural Features in the Town of Milton

103 4.4.2 Transportation Employment land development is reliant on the timely provision of different levels of transportation infrastructure. In general, efficient highway and transportation networks increase accessibility to major areas of employment and encourage employment developments. Within Milton, transportation infrastructure is provided by the Region of Halton while local roads are managed by the Town. The phasing of road construction can impact the timing of employment land development, which also needs to be supported by a network that connects to business-supportive uses. To promote high density and mixed use development, a network of public transportation is also needed. Currently, local transit in Milton is provided by the local municipality through Milton Transit and interregional bus and GO service is provided by Metrolinx. Further investments into public transportation can spur office-based employment especially in areas supported by rapid transportation. At the Provincial level, the Ministry of Transportation is currently conducting analysis on the proposed GTA West Transportation Corridor, which is expecting to connect Milton s Highway interchange to Highway 400 in Vaughan and King Township. While this major transportation infrastructure project will not be implemented in the shortterm, the proposed corridor improves the transportation connection between Milton and the rest of the GTA, which will position Milton to be a more attractive location for employment and influence the demand of certain sites within Milton. Figure Current and Proposed Metrolinx Transit Network in the Greater Toronto Area JANUARY 2016 DRAFT PHASE 1 REPORT MILTON EMPLOYMENT LAND NEEDS ASSESSMENT 87

104 There is a need to continue to plan for community growth and not planning by pipes Wastewater and Water Servicing A sufficient supply of employment lands in Milton is dependent on the available Halton Regional trunk Water and Wastewater servicing. The amount of employment lands available within the next 10 years depends heavily on servicing provided by the Region. Therefore, the speed at which Halton Region constructs sewage and water infrastructure may limit the amount of land available for employment development. An evaluation of where employment lands are in demand within the Town of Milton will assist the Region in prioritizing necessary infrastructure projects, thereby ensuring appropriate amounts of employment lands will be available for development at the right time. There is a need to continue to plan for community growth and not planning by pipes. 88

105 5.0 PLANNING POLICY MUNICIPAL PRACTICES The Official Plans of five municipalities, Ajax, Hamilton, Oakville, Toronto and Vaughan, have been evaluated in this section. These municipalities share similar characteristics as the Town of Milton, such as access to major passenger with notable employment land bases. The City of Toronto was included not in relation to its context but the approach to its employment policies. In general, most municipalities permit smaller-scaled office uses in industrial employment areas. Municipalities also surveyed permit planning provisions to permit a mix of employment (office) and commercial uses at high-profile locations, such as along major streets, or in areas that transition from traditional employment to sensitive uses, such as residential and open space Town of Ajax JANUARY 2016 DRAFT PHASE 1 REPORT MILTON EMPLOYMENT LAND NEEDS ASSESSMENT 89

106 5.1 EMPLOYMENT DESIGNATIONS AND USES The Town of Ajax Official Plan has four main employment land use designations. Similar to many GTA municipalities, there are two main employment designations: Prestige Employment for office park areas and General Employment for light industrial areas. Furthermore, there are two employment area designations that permit nonemployment uses. The Employment Mixed Use designation permits a mix of office and commercial uses to provide a gradual transition between Ajax s downtown areas to the adjacent industrial employment lands to the west. Given the areas around the Ajax GO Transition Station are developed as employment lands, the GO Transition Station Mixed Use Area was created to promote residential uses around the transition without compromising the employment nature of the area. Analysis Both Employment Mixed Use and GO Transit Figure Land Use Map off the Town of Ajax Official Plan (June 2010)

107 Town of Ajax Official Plan (2015) Employment Land Use Designations Employment Mixed Use (Section ) Transition zone between Ajax s downtown to the adjacent employment lands to the west GO Transit Station Mixed Use Area (Section ) An existing employment and mixed commercial area around the Ajax GO Train Station Prestige Employment (Section 3.3.4) Employment lands with exposure along Highway 401 and Arterial Roads except areas subject to Area Specific policies General Employment (Section 3.3.5) Generally located within interiors of employment areas Permitted Uses A broad variety of prestige employment and commercial offices Offices Non-employment Uses Commercial uses Institutional uses Entertainment facilities Community facilities Places of worship Utilities A broad variety of prestige employment and commercial offices that is compatible with adjacent residential uses Non-employment Uses Commercial uses (maximum GFA of 500 m 2 ) Institutional uses Community facilities Medical facilities Trade schools Parks Residential uses Entertainment facilities Recreational facilities Offices Research and development facilities Warehousing, distribution centres Accessory retail (20% of gross floor area) Automobile retail and service Employment supportive uses (maximum of 350 m 2 ) Financial institutions Restaurants Personal service establishments Recreational facilities Banquet facilities, convention centres, hotels and motels Non-employment uses Places of worship Public storage facilities Schools Offices Research and development facilities Manufacturing, warehousing, distribution facilities Non-employment uses Public storage facilities Accessory retail (20% of gross floor area) Automobile retail and service Permitted Built Form Between 3 to 8 storeys 2.0. FSI Exclude s freestanding major retail use (exceed 4,645 m 2 ) 2.5 FSI permitted when 50 jobs per hectare is achieved in the area. Employment uses are required to occupy at least one-third of the floor space of mixed use developments. Maximum height of 25 storeys. Require ground floor animation uses (retail, studios, office entrances, and residential lobbies). Employment supportive uses are limited to limited to 15% of the total building coverage. permitted outdoor storage shall be screened from public view and does not exceed 50% of the site area. JANUARY 2016 DRAFT PHASE 1 REPORT MILTON EMPLOYMENT LAND NEEDS ASSESSMENT 91

108 Station Mixed Use Area designations provide a flexible level of mixed uses in special areas. These designations allow an appropriate mix of transitional uses in areas with existing transportation, infrastructure, and amenities. The supportive residential uses permitted in GO Transit Station Mixed Use Area have a set of appropriate conditions that allows the Town to ensure residential uses do not compromise the core function of the employment area. The density level and proportions of an employment use within a building can be flexibly adjusted based on the local context and the desired level of residential integration. Lastly, General Employment and Prestige Employment designations in Ajax permit a small level of non-employment uses. In the case of Prestige Employment, the cap of 350 square metre for employment-supportive uses, such as financial institutions and restaurants, ensures employment areas are well-served but also ensures the primary use of employment remains intact. The locations of these employment-supportive uses are not prescribed by the Town of Ajax Official Plan. 92

109 5.1.2 City of Hamilton The City of Hamilton has two sets of Official Plan documents, one for Rural Hamilton and one for Urban Hamilton. For this study, only the Urban Hamilton Official Plan, which covers the built-up areas and the Hamilton harbour, has been analyzed. The Official Plan includes four employment designations, which are Industrial Land, Business Park, Airport Employment Growth District, and Shipping and Navigation. Figure Land Use Map of Urban Hamilton Official Plan (September 2015) JANUARY 2016 DRAFT PHASE 1 REPORT MILTON EMPLOYMENT LAND NEEDS ASSESSMENT 93

110 Urban Hamilton Official Plan (2013) Employment Land Use Designations Employment Area Policies For All Designations (Section E.5.2.4) Industrial Land (Section E.5.3) Business Park (Section E.5.4) Permitted Uses Clusters of business and economic activities, such as: o Manufacturing o Research and development o Transport terminal o Building or contracting supply establishment o Tradesperson s shop o Warehousing o Waste management facilities o Private power generation o Office o Accessory uses o Building and lumber supply establishment Ancillary uses Full range of manufacturing uses Warehousing Repair service Building or contracting supply establishments Building and lumber supply establishments Transport terminals Research and development Communication establishment Private power generation Dry cleaning plants Salvage/storage yards Motor vehicle repair and wrecking Limited office uses Waste processing facilities and waste transfer facilities Accessory uses, such as limited retail and office Ancillary uses which primarily support industry, businesses and employees: o Hotel o Fitness Centers o Financial Establishments o Restaurants o Personal Services o Motor Vehicle Service Stations o Retail Establishments o Labour Association Halls o Conference And Convention Centres o Trade Schools o Commercial Parking Facilities o Commercial Motor Vehicle And Equipment Sales o Commercial Rental Establishments Manufacturing Warehousing Repair service Building or contracting supply establishments Building and lumber supply establishments Transportation terminals Research and development Office Communication establishment Private power generation Waste processing facilities Accessory retail and office Uses which primarily support industry, including: o Labour association halls o Conference and convention centres o Trade schools o Commercial motor vehicle and equipment sales o Commercial rental establishments Ancillary uses which primarily support businesses and employees within business parks, including: o Hotels o Health and recreational facilities o Financial establishments o Restaurants o Personal services o Motor vehicle service stations and washing o Retail establishments o Commercial parking facilities Permitted Built Form The design and placement of buildings, structures, parking, loading, outside storage and assembly areas, lighting and landscaping, shall provide a safe, functional and visually attractive environment for pedestrians and vehicles. Prohibited uses include: Major retail uses and Residential uses and other sensitive land uses. E Retail establishments shall serve the businesses and employees of the Employment Area and shall be limited to 500 m 2 of GFA for any individual business. Prohibit salvage yards and other uses which are unsightly or otherwise incompatible with the design policies and image for business parks New development and redevelopment of existing sites shall contribute to a quality image for the business park by incorporating quality building and landscaping designs in those areas adjacent to and visible from public roads, and by complementing the landscape qualities of adjacent sites 94

111 Urban Hamilton Official Plan (2013) Employment Land Use Designations Airport Employment Growth District (Section E.5.5) within proximity of John C. Munro International Airport Shipping and Navigation (Section E.5.6) on lands owned by the Hamilton Port Authority Permitted Uses Manufacturing Warehousing Repair service Transportation terminals Research and development High technology industry Fuel storage Communication establishments, Private power generation Airport-related industrial uses Airport-related business uses: o Hotels and motels o Convention and exposition centres o Labour association halls o Trade schools o Restaurants o Catering services o Commercial motor vehicle and equipment sales o Commercial rental establishments o Automobile rental, leasing and servicing o Taxi terminals o Commercial parking facilities o Financial institutions Office Post secondary school Accessory uses, such as restaurants and office Ancillary uses supporting businesses and employees: o Hotels o Fitness and health facilities o Financial establishments o Restaurants o Personal services, o Gas bar o Car washes o Commercial parking facilities Uses such as the movement, management, safety and convenience of ships Uses involved in the carriage of goods or passengers to other modes of transportation Related storage and processing Vessel and barge docks Industry and commerce ancillary or necessary to the port Recreational boat facilities Ancillary uses, such as retail and restaurant Provision of services such as security, employment, immigration, labour, administration, technical, food, fuel and maintenance Permitted Built Form Salvage yards and other uses which are unsightly or otherwise incompatible with the design policies and image for business parks shall be prohibited Offices shall not exceed 9,999 m 2 per free standing building Ancillary uses shall only be permitted at strategic locations and may contain a gross floor area restriction Ancillary retail uses shall be limited to 500 m 2 of GFA JANUARY 2016 DRAFT PHASE 1 REPORT MILTON EMPLOYMENT LAND NEEDS ASSESSMENT 95

112 Analysis The designations of Industrial Land and Business Park are consistent with the norm of employment land designation.based on the analysis of permitted uses, the Business Park designation in Hamilton generally permits high-profile office employment and highway-related employment. Industrial Land land use designations generally permits logistics-reliant employment and internal back-land employment. Generally, the list of ancillary uses supporting business and employees in these areas are relatively more extensive compared to other municipalities sampled. Consistent with provincial policies, major retail and residential uses are explicitly prohibited in all lands designated for employment uses. Both the Airport Employment Growth District and Shipping and Navigation designations are relevant to employment areas that surrounding a major transportation infrastructure. It is noted that the John C. Munro International Airport operates largely as a cargo airport with some seasonal and charter passenger flights. The permission of specific uses relevant to transportation hubs is appropriate for Hamilton and helps define the special nature of these transportation hub areas while still providing supportive uses for these special employment areas. 96

113 5.1.3 Town of Oakville The Town of Oakville has two sets of Official Plan documents. For the purposes of this study, only the Livable Oakville Plan, which covers the southern built-up areas of Oakville, has been evaluated. There are four employment land use designations in the Livable Oakville Plan. Three of the four designations, Office Employment, Business Employment and Industrial, provide a spectrum of traditional employment uses, ranging from office to light industrial to heavy industrial. Lastly, Business Commercial permits a blend of office and commercial uses along major collectors and arterial roads. Figure Land Use Map of Livable Oakville Plan (February 2015) JANUARY 2016 DRAFT PHASE 1 REPORT MILTON EMPLOYMENT LAND NEEDS ASSESSMENT 97

114 Livable Oakville Plan (2015) Employment Land Use Designations Office Employment (Section 14.3) majority of these areas are existing and are located adjacent to the QEW and Highway 403 corridors Business Employment (Section 14.4) Industrial (Section 14.5) Business Commercial (Section 14.6) Generally located along major collector and arterial roads Major offices Offices Light industrial uses Permitted Uses Employment-supportive uses Hotels, banquet halls, meeting halls and convention centres Training facilities and commercial schools. Limited convenience retail Accessory retail Service commercial uses, including restaurants Motor vehicle related uses Offices Light industrial uses : o Manufacturing o Assembling o Processing o Fabricating o Repairing o Warehousing o Wholesaling Accessory uses Accessory retail Employment-supportive uses Banquet halls, meeting halls and convention centres Training facilities and commercial schools Light industrial Heavy industrial: o Manufacturing o Assembling o Processing o Fabricating o Refining o Repairing o Warehousing o Wholesaling Outdoor storage A waste processing station, waste transfer station and transportation terminal Accessory uses Accessory retail Some offices in special areas Employment-supportive uses Training facilities and commercial schools, where they are related to and supportive of an Industrial use. Motor vehicle related uses Offices Employment-supportive uses Hotels public halls training facilities and commercial schools motor vehicle related uses Convenience retail (not exceed 2,500 m 2 ) Service commercial uses, including restaurants. Permitted Built Form Uses are within enclosed buildings. No outside storage or processing shall be permitted. Accessory retail uses shall be on the same lot and clearly subordinate, and directly related, to the functioning of the permitted use. 1 Uses are within enclosed buildings. Limited outdoor storage and display areas shall be adequately screened. Accessory retail uses shall be on the same lot and clearly subordinate, and directly related, to the functioning of the permitted use. Outdoor storage and display areas shall not be visible from residential area, open space, or major and arterial roads. Outdoor storage and display areas are restricted. 98

115 Analysis The employment land use designations in Oakville provide a spectrum of employment uses. Office Employment provides the most office uses, Industrial provides the most industrial uses, and Business Employment provides a blend of office and industrial uses. The amount of non-employment and employment-supportive uses are correlated with amount of office uses. This spectrum approach to employment land designation departs from the norm of two major employment designations in the GTA and offers an intermediate between office and industrial areas. The mix of commercial and office uses permitted by the Business Commercial designation offers appropriate employment-supportive uses along major collector and arterial roads. The prescription of appropriate locations for blended commercial employment areas ensures the core of employment lands are not infiltrated by major retail uses. JANUARY 2016 DRAFT PHASE 1 REPORT MILTON EMPLOYMENT LAND NEEDS ASSESSMENT 99

116 5.1.4 City of Toronto City of Toronto Council adopted Official Plan Amendment 231 on December 18, 2013 which contains new economic policies and new policies and designations for Employment Areas. It is currently appealed to the Ontario Municipal Board. OPA 231 addresses employment land conversion, employment uses near major transit stations, and the amount of retail uses in employment areas. OPA 231 expands Employment Areas into two designations: Core Employment Areas and General Employment Areas. The Regeneration Areas designation remains the same to promote urban redevelopment and intensification while retaining some industrial uses in the transitional phase. Analysis From OPA 231, the City of Toronto provides two main employment land use designations, one for the core employment area and the other for the periphery to permit a mix of uses beyond pure employment. The permitted uses of the periphery include uses in the core plus appropriate retail uses facing major collectors and arterial roads. This simplistic arrangement is appropriate for the City since Toronto initially needed to amalgamate the Official Plans of its former boroughs. Furthermore, as a single-tier municipality, Toronto needs to provide high-level planning policies in its Official Plan. The organization of employment land designations in Toronto OPA 231 provides an Figure Land Use Map of the City of Toronto Official Plan (July 2015)

117 City of Toronto Official Plan Employment Land Use Designations Core Employment Areas new in OPA231, previously Employment Areas (Section 4.6) geographically located within the interior of employment areas General Employment Areas new in OPA231, previously Employment Areas (Section 4.6) generally located on the periphery of Employment Areas on major roads Regeneration Areas (Section 4.7) Permitted Uses Manufacturing Warehousing Wholesaling Transportation facilities Offices Research and development facilities Utilities Industrial trade schools Media facilities Vertical agriculture (Policy 4.6.1) Secondary Uses Hotels Parks Small-scale restaurants and catering facilities Small-scale service uses that directly serve business needs such as courier services, banks and copy shops Small scale retail outlets that are ancillary to and on the same lot as the principal use (Policy 4.6.2) In addition to permitted uses in Core Employment Areas the following uses are permitted: Retail and service uses Restaurants Fitness centres Ice arenas Light industrial Institutional Commercial Residential Parks and open space Live/work Utility uses (Policy 4.7.1) Permitted Built Form Policy provides general policies on built form measures that will contribute to the creation of competitive attractive, highly function Employment areas Major retail developments with 6,000 m 2 or more of retail gross floor area may be considered in General Employment Areas outside of the Downtown and Central Waterfront on lots that front onto and have access to major streets Policy states development should not proceed prior to approval of a Secondary Plan that guide the revitalization of the area Large scale, stand-alone retail stores & power centres are not permitted. (Policy 4.7.3) appropriate approach to plan different traditional employment lands based on their locations in the urban structure. The Regeneration Areas designation is also specific to conditions in Toronto. Given the larger amounts of brownfield land in Toronto, areas with a Regeneration Area designation are former employments lands in which the City encourages residential and commercial intensification. Given the urban locations of these lands, industrial employers generally have already left the area before the change in designation occurs. In 2013, a number of employment areas have been redesignated as Regeneration Areas and are currently undergoing secondary plan studies to be considered for redesignation as mixed use neighbourhoods. JANUARY 2016 DRAFT PHASE 1 REPORT MILTON EMPLOYMENT LAND NEEDS ASSESSMENT 101

118 5.1.5 City of Vaughan The Vaughan Official Plan 2010 is the first Official Plan for Vaughan that includes the planning provision for a new downtown spurred by a new subway extension. Within the Official Plan, there are four employment land designations: Employment Commercial Mixed Use, Downtown Mixed-use, General Employment and Prestige Employment. In general, the various land use designation are also effected by a hierarchy of intensification that includes Vaughan Metropolitan Centre, Primary Centres, Local Centres and Primary Intensification Corridors. Figure Land Use Map of the City of Vaughan Official Plan (July 2015) Analysis The overlay of the hierarchy of intensification that includes Vaughan Metropolitan Centre, Primary Centres, Local Centres and Primary Intensification Corridors helps the City prioritize areas for intensification, density and a greater mix of uses at specific locations. This hierarchy of intensification allows for a greater diversity of consideration within each employment land designation that appropriately responds to the urban structure envisioned for Vaughan. While Vaughan has freight facilities, there isn t any special employment land use designation related to these facilities. 102

119 City of Vaughan Official Plan (2010) Employment Land Use Designations Employment Commercial Mixed Use (Section ) Permitted Uses In Intensification Areas Office Uses Hotel Cultural and Entertainment Uses Retail Uses (not exceeding a GFA of 3,500 m 2 ) Gas Stations In Non-Intensification Areas: Office Uses (a maximum of 12,500 m 2 GFA per lot) Cultural and Entertainment Uses Retail Uses (not exceeding a GFA of 3,500 m 2 ) Gas Stations Downtown Mixed-Use (Section ) for Vaughan Metropolitan Centre conforms to the Vaughan Metropolitan Centre Secondary Plan General Employment (Section ) generally located within interiors of employment areas Prestige Employment (Section ) employment lands with exposure along Highway 401 and Arterial Roads except areas subject to Area Specific policies Industrial uses o Manufacturing o Warehousing o Processing o Transportation o distribution Accessory retail uses (10% of gross floor area) Accessory office Industrial uses o Manufacturing o Warehousing o Processing o Transportation o distribution Offices (a maximum GFA of 10,000 m 2 ) Accessory office Accessory retail uses (10% of GFA) Gas stations Ancillary retail uses o GFA of any one ancillary retail unit shall not exceed 185 m 2 o the total GFA of all ancillary retail uses on any one lot shall not exceed 20% of the total GFA of all uses on the lot or 1,000 square metres, whichever is less Permitted Built Form In intensification areas, a minimum of 30% of the total GFA of all uses shall consist of uses other than retail uses ( d) Outdoor storage permitted for industrial uses Accessory office and accessory retail uses shall not exceed 49% of the total GFA of the primary use Outdoor storage permitted for industrial uses Accessory office and accessory retail uses shall not exceed 49% of the total GFA of the primary use greater office densities may be considered at sites located in higher profile areas such as major intersections or in proximity to planned transit stations ancillary retail use must be located within 200 metres of the intersection of two arterial or collector streets The General Employment and Prestige Employment designations in Vaughan are consistent with the norm of employment designations. The permitted ancillary uses are limited compared to other municipalities. However, the provisions to require office and ancillary retail uses at accessible and high-profile areas, such as at street intersections, are appropriate and contribute to the goal to efficiently intensify employment areas. Currently, the Downtown Mixed-Use designation acts as a placeholder in the Official Plan and permits more detailed development policies to be developed for a high priority area in Vaughan. The function of this designation is to provide a better organization of land use designations in the Official Plan. The Employment Commercial Mixed Use offers a land use designation that generally provides transition from employment areas to residential and other sensitive areas or provides intensification along major collectors and arterial roads. This designation is increasingly being adopted in GTA municipalities to provide for office, professional services, and retail uses, which are generally compatible with each other as oppose to industrial uses. JANUARY 2016 DRAFT PHASE 1 REPORT MILTON EMPLOYMENT LAND NEEDS ASSESSMENT 103

120 5.2 SUMMARY OF PLANNING POLICY PRACTICES Of the five Official Plans evaluated in this section, all municipalities have a set of traditional employment designations. These traditional employment areas are organized based on use (i.e. office and industrial) and designate employment lands based on geographic attributes, such as access to 400-series highways. In most municipalities evaluated, smaller scale office uses are permitted in industrial employment areas, but not all industrial uses are permitted in office employment areas. This is appropriate given issues of land use compatibility associated with industrial use. Municipalities take one of two approaches in allowing a mix of employment (office) and commercial uses: permitting standalone or ancillary retail uses in traditional employment areas or creating a new designation of mixed office and commercial use. Since permitting standalone retail uses in existing traditional employment lands have the potential to change the employment nature of these areas, most municipalities require ancillary retail uses to be located at high-profile locations, such as along major Official Plans Ajax Traditional Employment Area Designation(s) (spectrum of office to industrial) 2 designations Standalone/Ancillary Uses in Traditional Employment Areas Office (in industrial areas) Retail Mixed Employment & Commercial Designation Special Employment Designations GO Transit Station Mixed Use Area Urban Hamilton Livable Oakville Toronto Vaughan 2 designations 3 designations 2 designations in OPA designations special areas accessory office only along major streets max. 185 m 2 per unit near intersections Airport Employment Growth District; Shipping and Navigation Regeneration Areas Downtown Mixed- Use 104

121 streets. Similarly, the locations of mixed employment and commercial designations are generally along major streets or in areas that transitions to sensitive uses, such as residential and open space. Municipalities create special employment designations around major passenger and freight transportation infrastructures. GO Transit Station Mixed Used Area in Ajax and Downtown Mixed Use Area in Vaughan are existing employment areas that expect intensification due to major public transit stations. These designations manage the addition of residential and commercial uses while protecting existing employment uses. In Hamilton, areas around major freight transportation infrastructure have special employment designations. These designations protect the important functions of ports and airports while still ensuring a diversity of supportive uses to maintain the vibrancy of these areas. Lastly, some municipalities are specifically restricting certain lower-density employment uses through Official Plan or secondary plans. This approach to manage uses such as warehousing and distribution facilities, transportation facilities, trucking facilities, waste processing and transfer facilities are not implemented across an entire municipality, but rather at key high-density employment areas and intensification corridors. JANUARY 2016 DRAFT PHASE 1 REPORT MILTON EMPLOYMENT LAND NEEDS ASSESSMENT 105

122 5.3 POLICIES ON LOW DENSITY EMPLOYMENT USES Some G.T.H.A. municipalities are restricting certain lower-density employment uses through Official Plan or secondary plans. This approach to manage uses such as warehousing and distribution facilities, transportation facilities, trucking facilities, waste processing and transfer facilities are not implemented across an entire municipality, but rather at key high-density employment areas and intensification corridors. Brampton and Mississauga have placed limitations on uses with lower-density, such as warehousing and transportation. The 2006 Official Plan of Brampton restricts warehousing and distribution uses in certain employment areas. Policy on intensification corridors states to accomplish the intended vision for the City s intensification corridors uses such as highway commercial, auto repair, warehousing/distribution and those involving open storage are discouraged. As well, Policy of the Brampton Official Plan states the following: the City may establish restrictions in secondary plans on the location and extent of warehousing and distribution uses to minimize impacts on the proper functioning of the road network and to provide for other uses that yield greater employment or assessment. Both of these policies provide Brampton with tools to prohibit lower density uses from areas intended to be intensified. Mississauga also restricts transportation facilities, trucking facilities, waste processing and transfer facilities at Corporate Centres, including Airport Corporate, Gateway Corporate, Meadowvale Business Park and Sheridan Park areas (Policy ). These policies can manage the amount of lower-density employment uses at key locations, such as major business parks and intensification areas. These approaches to managing the amount of lower-density employment uses may be appropriate for municipalities aiming to meet the density goals of the Growth Plan. 106

123 6.0 EMPLOYMENT LAND EVALUATION CRITERIA The Phase 2 report will evaluate employment land supply in the Town of Milton as well as the appropriateness of the range and mix of uses in designations as established in current policies and through OPA31. The amount of employment lands can be impacted by changes related to intensification and employment land conversion to other uses as specific areas in Milton grow and accommodate a different set of urban activities. To guide the Phase 2 report, criteria should be established to 1) explore potential intensification of employment lands; and 2) aid the review and potential conversion of a number of identified employment lands sites in the Town of Milton. Criteria for these evaluations must be clarified and supported by good planning. The criteria set forth in this section will be sensitive to the local employment and community development context. JANUARY 2016 DRAFT PHASE 1 REPORT MILTON EMPLOYMENT LAND NEEDS ASSESSMENT 107

124 6.1 EMPLOYMENT INTENSIFICATION CRITERIA In order to support general employment land redevelopment and intensification of existing employment areas in Milton, evaluation of appropriate sites and uses will need to be considered. As new technologies and outsourcing continue to influence the industrial sectors, employment density on individual sites will continue to decline over time. Traditional employment lands are designed to have extensive space with low building footprints and lot coverage; therefore, there may be opportunities to use methods to intensify employment uses and increase employment densities at appropriate sites. Unlike residential or mixed use intensification, employment land intensification is less predictable since individual sites and business operations influence the intensification potential. Furthermore, each industrial use has a unique set of building design, transportation, compatibility and locational requirements that influence appropriateness for intensification. The following criteria for assessing candidate sites can assist in determining the potential for the specific areas to undergo employment intensification and will be applied in Phase 2 of the Study. 1. The employment site has low land coverage and does not have environmental and physical constraints. 2. The existing structure(s) on the employment site or area is/are near the end of the expected building lifespan. 3. Office employment sites with large surface parking can accommodate parking above or below grade. 4. High profile locations in employment areas, such as along major streets or at street intersections, suitable for complementary and employment supportive uses. 108

125 6.2 EMPLOYMENT LAND CONVERSION CRITERIA The analysis regarding the potential for employment land conversion in Phase 2 of the Employment Land Needs Assessment will need to meet policy requirements of the PPS and the Growth Plan. Specifically, Policy, of the Growth Plan outlines the criteria that a municipal comprehensive review must address to permit employment land conversion. Furthermore, Policy of PPS 2014 also establishes conditions for permitting conversion of lands within employment areas to non-employment uses: Planning authorities may permit conversion of lands within employment areas to non-employment uses through a comprehensive review, only where it has been demonstrated that the land is not required for employment purposes over the long term and that there is a need for the conversion. By expanding the conversion criteria set forth by the PPS and Growth Plan, local municipalities can include policies that address the specific needs of the local economy and local context. For example, in addition to revising its land use designations and policies, the, City of Toronto through OPA 231 provided policies regarding employment conversion. Policy of the City of Toronto OPA 231 states during a Municipal Comprehensive Review regarding requests to convert lands within Employment Areas, the City will assess a number of criteria in addition to ones set forth by the PPS and Growth Plan. The additional criteria include avoiding incompatible uses to be added to employment areas through conversion that will prevent the normal operations of existing industrial uses. The criteria also include ensuring new residents and institutional users will have access to community infrastructure which may not exist with exiting employment uses. Overall, the addition of local conversion criteria can ensure local priorities are reflected while allowing appropriate conversion of employment lands. JANUARY 2016 DRAFT PHASE 1 REPORT MILTON EMPLOYMENT LAND NEEDS ASSESSMENT 109

126 The Phase 2 employment land conversion analysis will review potential candidates for employment land conversion in Milton, based on local land use planning and economic conditions. As such, a set of land use planning and economic criteria which considers local employment context will be established. The proposed set of criteria includes the following: Policy Requirements 1. There is a need for the conversion. 2. The municipality will meet the employment forecasts allocated to the municipality pursuant to the Growth Plan for the Greater Golden Horseshoe. 3. The conversion will not adversely affect the overall viability of the employment area, and achievement of the intensification target, density targets and other policies of the Growth Plan for the Greater Golden Horseshoe. 4. There is existing or planned infrastructure to accommodate the proposed conversion. 5. The lands are not required over the long term for the employment purposes for which they are designated. 6. Cross-jurisdictional issues have been considered. Economic Vitality Considerations 7. The conversion will not reduce the functioning of and accessibility to established or proposed employment areas. 8. The conversion will not limit the sufficient supply of optimum land parcels (size, configuration, physical constitutions, and access) for the range of permitted employment uses. 9. Employment lands with access to essential freight transportation infrastructure and human capital are strategically preserved. 10. The conversion will diversify and not compromise Milton s economic base of a variety of employment uses and a broad range of stable employment opportunities. 11. The Conversion site does not offer potential future expansion on existing or neighbouring employment lands. 110

127 Land Use Compatibility Considerations 12. The conversion site is located outside of an established or proposed industrial area or business park or is already surrounded by nonemployment uses. 13. The conversion would not create incompatible land uses based on Ontario Ministry of the Environment D series guidelines and Halton Region Land Use Compatibility Guidelines. 14. Non-employment use(s) not permitted in employment areas is already accommodated on the conversion site. Community Vitality Considerations 15. The conversion would be consistent and supportive of the Town s planning objectives and does not conflict with any of the Town s planning policies. 16. Any site to be converted to include residential uses should be within walking distance to parks, public transit, and community facilities. 17. New residents or institutional user on the conversion site will not be adversely affected by noise, vibration, odour and air pollution from existing industrial, transportation and utility sources. The following lands are potential candidates for employment conversion: Former Meritor site; Bronte Street Corridor from Derry Road to Main Street, including the Allendale campus and the EC Drury campus; Lands within the Steeles Avenue corridor; Lands within the Urban Growth Centre; and, McKinley Lands. A thorough evaluation will be completed in Phase 2 of this study to ensure potential conversions meet the criteria listed above and consider the policy, economic, land use and community implication of such conversion. JANUARY 2016 DRAFT PHASE 1 REPORT MILTON EMPLOYMENT LAND NEEDS ASSESSMENT 111

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129 7.0. AF T PHASE 1 REPORT SUMMARY The purpose of this first study report has been to summarize the background research and findings from Phase 1 of the Study. The report provides a summary of the current market context and trends at the provincial, regional and local levels. Further, it explores how current economic and socio-economic trends and changes have impacted employment lands in Halton Region and the Town of Milton. DR This Phase 1 report has set out Milton s current employment land profile including recent non-residential development trends, vacant land supply and regional competitiveness. The report provides an overview of the current policy framework for employment lands and outlines and analyzes examples of other municipal planning practices regarding employment lands and employment land planning. The work undertaken as part of the Municipal Comprehensive Review has also been reviewed and incorporated into the background findings. Through this research, key findings have been highlighted in the report and are also summarized in the executive summary. The insights from the stakeholder interviews are summarized in this report as well as highlights from the expert panel session held in November Many of these insights will be further considered in looking at changes to policies to address the challenges noted and the trends affecting employment development. The first phase of the Employment Land Needs Assessment Study also developed a set of principles to be considered with the Phase 2 work, which will begin to assess and evaluate the current employment land supply and demand, projections for employment growth, consideration of employment intensification areas and potential conversion sites. The Phase 2 report will also formulate draft policies, directions and recommendations related to future employment lands in Milton. JANUARY 2016 DRAFT PHASE 1 REPORT MILTON EMPLOYMENT LAND NEEDS ASSESSMENT 113