Northcrest’s YZD redevelopment is slated to become, arguably, the most transformative project in Toronto’s history — and RENX has learned of a major development plan change that could chart a new course through its 30-year development timeline.
The redevelopment spans 370 acres of land formerly used by Downsview Airport — illuminating the scope of its largesse is its projected three-decade, $30 billion price tag — and it’s developer is hoping changes to its commercial component could widen its appeal.
“The idea now is that we’re trying to secure zoning permissions to allow for a broad range of employment uses,” Peter Maleganovski, Northcrest’s VP of development, told RENX. To this end, the developer has submitted a new plan to the city for its North Sub District.
An expansive film studio campus was initially designed for the site — not unreasonably, given Toronto’s mantle as Hollywood North — but recent changes in that industry compelled Northcrest to rethink its best use.
The film industry isn’t as sure a bet as it was when Northcrest conceived the inclusion of a film studio campus. Rather, a cluster of uncertainty within the film industry followed including strikes, consolidation, the emergence of competing American markets, and headwinds in the Canadian economy.
Economic shifts lead to development plan changes
For that bevy of reasons, Chris Eby, Norhcrest’s EVP of corporate and public affairs, said Northcrest is operating on an altogether different terrain.
“We initially thought a film campus made sense, but that was before interest rates went up about 250 basis points,” he said, while also noting there is an active film production on YZD lands, and that filming will continue for years ahead.
“The market changed, and it changed pretty dramatically and pretty fast, but I think the plan we’ve got now is better because it allows for a broader range of uses,” Eby continued.
He noted there’s safety in diversity: “There could be downturns or a pullback or another jurisdiction that’s very competitive with taxes and incentives.”
Diverse economic uses may indeed prime YZD’s future, especially as Toronto continues evolving into self-contained neighbourhoods in which residents demand to conveniently live, working and play.
YZD will introduce seven new neighbourhoods, which will be serviced by three TTC subway stations that satisfy the Places to Grow Act, the 19-year-old provincial intensification mandate. This is why Maleganovski emphasized the importance of suitable employment lands.
“This is going to be the growth hub in the city over the next number of decades, and I don’t think there’s another area where there’s more land (that’s) slated for redevelopment,” he said.
Indeed, YZD is billed as North America’s largest redevelopment project.
And that also elucidates the necessity of strong communal engagement, Eby added.
YZD is a legacy-defining undertaking for Northcrest and, as such, no concern is too trifling or fastidious. Extensive community consultations yielded yet more changes to the plan Northcrest resubmitted for YZD’s North Sub District, taking into account the community’s concerns about the impact of development on the neighbourhood’s roads, traffic, and its interconnectivity.
Uniquely local flavour
That communal engagement was officially earmarked Thursday when Northcrest introduced the 16,150-square-foot YZD Experience Centre & Plaza, serving as one of the earliest reminders that change is afoot, and that everyone — from development stakeholders to locals — are along for the ride.
One way that will manifest is through outdoor installations featuring local artists, but the Experience Centre will have more tangible aspects, too. Designed as an immersive, experiential hub, the Experience Centre is open to the public who can play, create and socialize. There will also be a play area for kids, as well as free community programs every Sunday called Weekends at YZD.
It will also preserve the area’s rich, decades-old aviation history through hands-on exhibits, models, life-size boards, and a photography exhibition of the surrounding community. Additionally, it’s a tapestry that both preserves the old and foreshadows the area’s ample possibilities.
However, that doesn’t mean the established community, replete with post-war homes, hasn’t been anxious about what those ample possibilities might entail in the immediate future.
“We’ve tried to be very thoughtful with the transitions,” Eby said. “We’re not putting towers right next to single-family homes; it’s steps (away) from there, and the toughest part, frankly, after the traffic concern, is making them understand there will be a lot more people living there.”
But Eby is hopeful Northcrest’s latest submission will alleviate at least some of their reservations.
“We’ve come to a place where not everyone’s happy, but I think we addressed the issues that we heard and we’re happy with the (two-week-old) resubmission,” he said.
He reminded that with more people comes more amenities, both essential and recreational.
“There will be more shops, community centres, schools, parks and other things the community will want,” Eby said. “It is the — if you like — social contract, and people have by and large accepted and embraced that.”
About Northcrest Developments
Northcrest Developments is a Toronto-based, wholly owned subsidiary of Public Sector Pension Investments (PSP), a federal Crown Corporation and one of Canada’s largest pension investment managers.
It was created by PSP to lead development of the Downsview Lands, now known as YZD, after PSP purchased the property from Bombardier Aerospace in 2018.