This report recommends the adoption of zoning by-law amendments to modernize and clarify the rules for bars, restaurants and other entertainment venues as part of the City's inter-divisional Night Economy Review. For details on the proposed licensing framework and considerations in potential City support of the night economy, refer to the Municipal Licensing and Standards Division and the Economic Development and Culture Division staff reports prepared for the November 28, 2023, meeting of the Economic and Community Development Committee. This report also provides context on how proposed zoning by-law amendments align with the Municipal Licensing and Standards (MLS) Division's proposed updates to City licensing regulations and exploratory work led by the Economic Development and Culture (EDC) Division into City steps required to support an enhanced night economy. Staff have considered the research and input received to date and weighed this information to develop balanced regulations that intend to align with evolving business models and provide flexibility and support for businesses, while ensuring an appropriate level of regulatory oversight to mitigate potential community nuisance and public safety issues. The current zoning by-law regime for bars, restaurants and entertainment venues is a harmonization of regulations found in the Former General Zoning By-laws, with regulations originating between the 1960's to the early 2000's. The regulations do not reflect contemporary and forward focussed expectations around these activities and land uses. Other than area-specific reviews, this policy area has not had the benefit of a comprehensive review and consultation in decades. The proposed zoning by-law amendments complement proposed licensing regulations and broader City considerations to respond to a range of City Council directives related to the night economy. The proposed amendments seek to support live music, align the review of zoning and business licensing regulations, support emerging entertainment areas outside the downtown core, modernize and clarify licensing and zoning regulations for restaurants, bars and entertainment venues, and address impacts of problematic establishments. Staff recommend the following zoning by-law amendments to support the night economy: Increase the permitted maximum ancillary entertainment area inside eating establishments from 6% to 25% — Permit nightclubs outside the downtown area in certain commercial zones, subject to conditions including the requirement to be in a non-residential building — Reduce amusement arcade restrictions — Remove amusement device restrictions — Harmonize reductions for the calculation of interior floor area — and Modernize entertainment-related use definitions and align those definitions with Toronto Municipal Code Chapter 545, Licensing. The following City Divisions, Agencies, Boards and Commissions were consulted in the preparation of this report: Municipal Licensing and Standards, Economic Development and Culture, Toronto Building, Toronto Fire, Toronto Paramedic Services, Toronto Police Service, Toronto Public Health, Transportation Services, Toronto Transit Commission and the Alcohol and Gaming Commission of Ontario.
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