Ontario weighs rare move to block high-rise project, threatening hundreds of new rental homes

Ontario’s housing minister is considering using a minister’s zoning order (MZO) to stop a major rental development project near Toronto’s northern border. The proposed three-tower development by Tenblock at Steeles Avenue West and Dufferin Street would replace an aging four-storey apartment building and add more than 800 new rental units, including affordable housing.

However, pharmaceutical company Sanofi Pasteur, whose research and development campus sits next door, has opposed the project for years. The company argues that taller buildings would create a national security risk by giving residents a view into its sensitive facilities.

In response, Economic Development Minister Vic Fedeli has requested the housing minister issue an MZO to limit building heights on the site to 10 storeys. MZOs are typically used to fast-track construction, not restrict it. Tenblock says the reduced height would make the project financially impossible.

The developer disputes Sanofi’s security concerns and points to an independent risk assessment that found taller towers would not significantly increase espionage risks. The expert also noted that similar sensitive facilities in Ottawa are already located near highrises without issue.

The development was previously rejected by Toronto city council and is currently under appeal at Ontario’s land tribunal. Meanwhile, housing advocates warn that if the province intervenes to block the project, it could discourage other builders and threaten plans to increase the supply of rental housing near major transit and employment areas, including York University.
The province is collecting public feedback on the proposed MZO until Thursday.