Executive Committee gives nod to CafeTO changes, but asks staff for options around fees, other concerns

The city’s Executive Committee has approved a slew of changes to make the CafeTO program permanent, but has asked staff to take a closer look at the fees that that will be charged to businesses amid some criticism.

Mayor John Tory and other members considered the changes at a meeting of the Executive Committee Tuesday.

The program launched during the pandemic as a way to help struggling restaurants and bars stay in business, but has gained popularity since its implementation. Recognizing the way that the program has livened up many parts of the city during the warmer months, council moved in 2021 to make the program permanent.

A staff report released last week, however, recommended that the city begin charging participating businesses fees to help pay for the program and also to deter some businesses from taking up space with sidewalk cafes which are under-utilized.

The annual fees recommended by staff would see businesses pay around $1,449 for the average sidewalk cafe and about $3,077 for the average curbside cafe. That would be in addition to a one-time application fee of $865 plus one-time construction costs for curbside patios — a cost which typically reaches about $14,000.

While some money is available through a federal grant and to local Business Improvement Areas to help offset some of the costs, some businesses have expressed concern that the fees might be prohibitive.

Responding to some of that concern Tuesday, Tory moved a motion for an amendment that would ask senior staff to report to city council with options around the fee schedule, a grace period for platform installations and other issues when council considers the matter on Feb. 7.

While businesses are now being asked to pay fees, the city is still chipping in $1.4 million to subsidize the program this year. The proposed fees from businesses will only cover about 68 per cent of the city’s costs, staff have said.