On December 6, 2018, the Honourable Todd Smith, Minister of Economic Development, Job Creation and Trade, introduced Bill 66, the Restoring Ontario’s Competitiveness Act (Bill 66) for its first reading in the Legislature. The Bill is intended to eliminate red tape and burdensome regulations so businesses can grow, create and protect jobs.

While Bill 66 makes sweeping changes across a number of sectors, Schedule 10, which proposes amendments to Ontario’s Planning Act, will be of particular interest to landowners and developers in Ontario.

Open-for-business planning by-laws

Bill 66 proposes the addition of section 34.1 to the Planning Act, which would allow municipalities, with Ministerial approval, to pass an “open-for-business planning by-law” (OFB By-law) to authorize uses of land for “prescribed purposes.” OFB By-laws would allow a streamlined zoning approval process for certain developments, and exempt them from compliance with higher order planning documents and legislation. No advance notice is required prior to the passing of an OFB By-law and, once passed, there is no right of appeal to the Local Planning Appeal Tribunal.

The proposed streamlining results from an exemption from compliance with several policies, plans and pieces of legislation that would otherwise apply to the application. Specifically, OFB By-laws are exempt from the Provincial Policy Statement, the Growth Plan, applicable Official Plans, the Clean Water Act, the Greenbelt Plan and the Oak Ridges Moraine Conservation Plan, to name a few. OFB By-laws are further exempt from density bonusing by way of Section 37 Agreement, and cannot be subject to a holding provision. Applications subject to OFB By-laws are also exempt from the formal municipal site plan control processes established pursuant to section 41 of the Planning Act, although similar conditions may be imposed by the municipality through an OFB By-law, including:

• Various requirements regarding the contents of the applicant’s plans and drawings;
• Any condition that can be imposed by a local or upper-tier municipality via the site plan control process;
• Any reasonable requirement that the municipality considers necessary for the protection of public health and safety; and
• A requirement that the landowner enter into an agreement or agreements with the municipality respecting the conditions imposed in respect of the development.

Further conditions may be imposed at the Minister’s discretion.

What’s next?

OFB By-laws are only available to authorize uses of land for “prescribed purposes.” These purposes are not specified in the legislation and will be prescribed by regulation at a later date. Accordingly, the full breadth of the OFB By-law’s power will not be known until these “prescribed purposes” are defined. While the intention of Bill 66 is to create jobs, which has led many to presume that OFB By-laws will be limited to authorizing industrial uses, it is possible that the ultimate scope of OFB By-laws may be broader. Likewise, it is unclear how municipalities will react to what could be an immensely powerful tool for municipal councils. Burlington Mayor Marianne Meed Ward, for example, has already indicated the intention to not use OFB By-laws. It remains to be seen whether additional municipalities will follow suit. There is ample time to analyze these questions, as Bill 66 was introduced just prior to the Legislature’s winter break. It will be read for a second time and debated when the Legislature reconvenes on February 19, 2019.

Dentons will continue to closely monitor Bill 66 and its impacts on the development process in Ontario. If you have any questions about Bill 66 and its implications for your business, please do not hesitate to contact Katarzyna Sliwa or any member of Dentons’ Municipal, Land Use Planning and Development Law team.