Finding Mutual Benefit in Urban Development

Abstract

Problem, research strategy, and findings

Public and nonprofit agencies struggle to compete for space in cities as development pressures and unaffordability intensify. We have identified a potential solution in creative mixed-use projects: ad hoc, cross-sectoral partnerships to develop mixed-use buildings involving a public or nonprofit use. We built our analysis on a census of 54 projects in Toronto (Canada), interviews with 24 stakeholders, and a rich data set of secondary sources. We traced the emergence of this approach in Toronto over 2 decades, mapping its geographical expansion, stakeholder diversification, and the various mutually beneficial spatial arrangements of buildings. Building on the theory of collaborative advantage, we analyzed the motivations behind cross-sector partnered ventures, finding a gradual shift from resorting to partnership in reaction to obstacles to partnerships strategically designed to pool together land, resources, and support for development. Third, we highlight here the role of champions in underwriting risks and the limits of relying on market solutions for social purposes. We conclude by discussing the relevance of collaborative city-building in land-constrained North American planning contexts.

Takeaway for practice

Government agencies, nonprofit organizations, and developers alike can benefit from creative mixed-use partnerships, which unlock access to land, resources, development capacities, and community support. Contrary to popular perceptions, intentional separation of nonprofit and for-profit uses can be mutually beneficial. Despite the one-off nature of creative mixed-use development, it can be propelled by an initial cohort of successful partnerships and landmark projects. Limited-time leases, insufficient organizational capacity, and low market demand hinder its implementation.

Keywords:

• mixed use
• nonprofit organizations
• partnerships
• real estate developers
• Toronto

ACKNOWLEDGMENTS

We thank Clara Shipman, Hazelmae Valenzuela, Sarah Chan, and Cecelia Pye for their contribution to the creative mixed-use project census. We thank the three anonymous reviewers and the editor for their constructive and helpful comments.

DISCLOSURE STATEMENT

No potential conflict of interest was reported by the authors.

Research Support

This work was supported by the Social Sciences and Humanities Research Council of Canada under Insight Grant No. 500419.

Data Availability Statement

The authors confirm that the data supporting the findings of this study are available within the article and its supplementary materials. The participants of this study did not give written consent for any additional data to be shared publicly.

Supplemental Material

Supplemental data for this article can be accessed online at https://doi.org/10.1080/01944363.2023.2170908

Notes

1 The census of CMU projects in the city of Toronto was compiled gradually from a variety of secondary sources since 2016 as part of a larger applied research project. It was updated, verified, and refined in 2022 for the purpose of the research outlined in this article.

2 Section 37 is now being phased out in favor of inclusionary zoning. This policy change has not yet been implemented and is therefore not reflected in this article.

Additional information

Notes on contributors

Yinnon Geva

YINNON GEVA ([email protected]) is a postdoctoral fellow in the Department of Geography and Planning at the University of Toronto.

Matti Siemiatycki

MATTI SIEMIATYCKI ([email protected]) is the director of the Infrastructure Institute at the School of Cities and a professor in the Department of Geography and Planning at the University of Toronto.