Tuesday, February 17, 2026

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“Toronto Revives Mixed-Use Neighborhoods for Business Growth”

Tucked away in the serene residential areas of Toronto are remnants of a bygone era in the city’s urban development. In the early 1900s, the city’s decision-making power was limited by provincial regulations, leading to a blend of commercial and residential buildings that are rare in present-day Toronto.

According to Paul Hess, a geography and planning professor at the University of Toronto, this mixed land use was common in North American cities before the automobile era. Neighborhoods housed small factories, bakeries, and other businesses essential for daily life and livelihoods.

In the past, shops and businesses were integral to Toronto’s history, but mid-20th-century policies restricted new businesses from opening. Only existing businesses grandfathered in or those with specific city approvals could operate within residential areas.

Recently, Toronto’s city council made a significant decision to permit certain detached properties on select residential streets to be converted into retail stores in specific wards. This change marks a shift in planning rules that were established in the early 20th century across wards like Davenport, Parkdale-High Park, and others.

While some local officials applauded the move, Hess expressed reservations about its success due to the challenges faced by traditional retail stores in recent years. However, the architect behind a successful neighborhood café, Contra Café, located at Shaw and Dupont streets, supports these changes. The café, originally a corner store transformed into a vibrant coffee shop, has thrived by integrating with the local community.

Aaron Letki, the architect and owner of Contra Café, emphasized the social and economic benefits of having businesses like cafes in residential neighborhoods. He highlighted the value of such establishments in fostering community engagement and enhancing the urban fabric.

The evolution of Toronto’s planning regulations to accommodate neighborhood businesses reflects a broader shift towards creating more vibrant and inclusive urban environments.

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