Ontario minister's zoning orders controversy

Under the Planning Act, the Minister of Municipal Affairs and Housing has the authority to issue a minister’s zoning order (MZO) over any property in the province, determining the development plan for that property even if it overrules a municipal zoning bylaw.[4] There is no process for appealing an MZO. The use of MZOs has traditionally been reserved mostly for emergency situations, such as after the collapse of the Algo Centre Mall, which killed two people.[5][6]

After winning a majority in the 2018 Ontario general election, the Progressive Conservative Party of Ontario formed a new government in the province, led by Premier Doug Ford. Before Ford was first elected in 2018, a video emerged of him informing developers that he would "open up a big chunk of the Greenbelt" if elected.[7] After a public outcry, Ford said he would replace any removed land and that his goal was to increase supply to reduce housing costs. Pre-election, Ford also pledged not to remove Rent Control, stating, "I have listened to the people, and I won't take rent control away from anyone. Period. When it comes to rent control, we're going to maintain the status quo." After taking office, Rent Control for all newly-built or newly-converted rental units was removed as a measure to incentivize developers to build more apartments, to help landlords cover costs and make profit, and to keep condo investors buying.[8] The government then began using MZOs at a significantly increased rate compared to previous governments.[9] Between 2019 and early 2021, Ford's government issued well over 30 MZOs, approaching the total of 49 MZOs that had been issued in the province between the 1969 and 2000, a period of three decades.[10][11]

In October 2020, the government issued a set of MZOs aimed at the West Don Lands in Toronto, allowing for towers up to 50 storeys tall to be built without the city's approval. Several Toronto city councillors voiced their disapproval of the orders, with mayor John Tory stating that "I think that is a less than ideal situation, to say the least."[12] In January 2021, a number of community groups protested against the attempted demolition of heritage-listed buildings at the Dominion Foundry Site.[13] Court action forced province to pause demolition until legal issues could be resolved.[14]

In December 2020, the government passed Bill 229, the Protect, Support and Recover from COVID-19 Act (Budget Measures), 2020. The bill contained a number of changes to development regulations in the province, notably eliminating the ability of conservation authorities to veto MZOs.[15]

In early March 2021, the government issued a further six MZOs, of which half overrided environmental limits on development proposals from Flato Developments. While announcing the MZOs, Ford defended his government's use of the orders, stating that "we will never stop issuing MZOs for the people of Ontario."[16] Later that month, the government issued another order for a plot on the west side of Beeton, allowing Flato Developments to build a 995 units on the site, despite the site being located on a flood plain managed by the Nottawasaga Conservation Authority.[17]

In April 2021, the government passed Bill 257, the Supporting Broadband and Infrastructure Expansion Act, 2021. Schedule 3 of the Act implemented further amendments to the Planning Act allowing it to issue MZOs that clash with the provincial government's development master plans. The bill further applied to all previously issued MZOs retroactively.[18][19][20]

The government has defended its use of the orders, arguing that they are necessary to help create jobs and affordable housing, especially in the midst of the COVID-19 pandemic in Ontario. The government has also stated that it only issues them in accordance with the wishes of the local municipalities.[21]

The government's use of MZOs has been described as part of a strongman approach to governance by Ford, preferring to force through policies without consideration of the destabilising effects it could have.[22] Some commentators have described the government's use of MZOs as undemocratic and have accused the government of trying to evade accountability.[23] The Ontario Federation of Agriculture stated that the "frequent use [of the orders] undermines Ontario’s long-established system of land use planning."[24]

The government has been accused of corruption over its use of MZOs, particularly by favouring developers close to the Progressive Conservative Party.[25] In December 2020, the Ontario NDP released evidence suggesting that around half of the MZOs issued by the government since March 2020 predominately benefited developers that had links to the Progressive Conservative Party.[26]

Other commentators have criticised the environmental impact the government's use of MZOs would have, such as the plan to pave over parts of the Lower Duffins Creek wetland in Pickering and the plan for greenbelt development.[27][28] Environmental Defence Canada has campaigned against the use of the orders, stating that "in addition to creating long term damage to the environment, increasing property taxes, and enabling more sprawl to eat up Ontario’s best farmland, the Minister has sent a strong message to the Ontario public that their opinion isn’t valuable, that experts don’t matter and that decisions enabling development are his alone."[29]

The government had previously also passed a bill that stripped a number of powers from local conservation authorities.[30] The government's approach has been described as harming local conservation authorities, with Conservation Ontario general manager Kim Gavine stating that they were now "basically the only landowners in Ontario who cannot appeal most planning decisions which affect their lands."[31] In December 2020, seven members of the Ontario Greenbelt Council resigned in protest over the government's approach to development.[32]

After re-election in 2022, and amidst a worsening housing and affordability crisis, Ford became embroiled in controversy over properties released from Greenbelt protection.[33] One developer had purchased property shortly before the decision was made. A total of 7,400 acres of Greenbelt land was removed, while 9,400 acres of land was added.[34]

Ford has disagreed with criticism regarding his friendships with developers, saying, "no one can influence the Fords".[35] Specifically, he called questions about the optics of developers attending his daughter's pre-wedding party in August 2022, "ridiculous". Ford sought clearance for the event from the Integrity Commissioner in January 2023.[36] In February 2023, the Ontario Provincial Police anti-rackets branch were still looking into complaints about his government's decision to open up a portion of the Greenbelt for development.[37] The OPP asked the RCMP to take over the file in August 2023, in order to avoid any perceived conflict of interest.[38]

On August 9, 2023, the Auditor General released a report on the Greenbelt swap-out which found the government's flawed process had favoured certain developers who stood to earn over $8 billion.[39] The AG also confirmed that alterations to the Greenbelt were not necessary to reach Ontario's housing target and that Housing Minister Steve Clark's chief of staff "failed to consider environmental, agricultural and financial risks and impacts".[40] Calls from the opposition for Clark to resign were resisted by Ford and Clark himself, but Clark's chief of staff stepped down. At the end of August, Ontario's Integrity Commissioner found Clark had broken ethics rules, and on September 4, Clark tendered his resignation and was replaced by Paul Calandra.[41] The following day, Ford reiterated he would follow 14 of the Auditor General's 15 recommendations but would proceed with allowing the construction of affordable homes under $500,000 for "newcomers and young people" on the Greenbelt.[42] He also stated more applications to remove land from the Greenbelt would be reviewed.[43] He did not answer a reporter's question about reinstating Rent Control, nor did he comment on calls from First Nation Chiefs across Ontario to return traditional territories to the Greenbelt.[44]

On September 20, another minister from Ford's cabinet, Kaleed Rasheed, resigned over his relationship with a developer involved in the Greenbelt land swap.[45] The next day, Ford announced that after continuous backlash from constituents and two reports regarding the flawed process of opening the Greenbelt he would reverse his decision to open the Greenbelt to development. He apologized to the people of Ontario and promised to encourage building within urban boundaries.[46]

On October 10, the RCMP announced it was opening a criminal investigation into the allegations around developer favouritism in the Greenbelt land swap process used by the Province of Ontario. [47]

On October 16, Minister Calandra tabled a bill that would restore the Greenbelt lands removed in 2022 and that any future changes to the Greenbelt would have to go through the legislature.[48]

The following companies owned land in the Greater Toronto Area Greenbelt at the time that the Ontario Government proposed to develop the greenbelt:

• Richmond Hill, Ontario
  • Seven companies owned by Vaughan-based construction family De Gasperis family (president: Silvio De Gasperis[49]), owners of Tacc Developments, Tacc Construction.[50] Arista Homes, Opus Homes and Decast Ltd.[51] Companies include Tacc Developments (Block 41) Inc, Leslie Elgin Developments Inc.[50]

• King, Ontario
  • Green Lane Bathurst GP Inc. owns five parcels of land. Green Lane Bathurst GP's president is president Michal Rice,[52] owner of Rice Group.[50][53]

• Stouffville, Ontario
  • Torca II Inc (president Marcelo Perez-Hassaf)[50]
  • A numbered company with the same directors as Torca II Inc
  • 2502536 Ontario Limited (president: Weixiang Wang)[50]

• Markham, Ontario
  • Three numbered companies, also with the president Weixiang Wang)[50]
  • Flato Upper Markham Village Inc. (president: Shakir Rehmatullah)[50][54]
  • Minotar Holdings[50]

• Clarington, Ontario
  • Nash Road Developments (president: Peter Tanenbaum)[50]

• Ajax, Ontario
  • A numbered company (president elect: Yuchen Lu of Fuyang, China)[50]

• Premiership of Doug Ford
• Zoning