Ontario Weighs Decision That Could Halt Hundreds of New Rental Housing Projects

Ontario Weighs Decision That Could Halt Hundreds of New Rental Housing Projects

Written by Merri

November 12, 2025

The Ontario government is weighing whether to step in and halt a proposed rental housing development at the northern edge of Toronto. The decision follows objections from the pharmaceutical giant Sanofi Pasteur regarding the building’s proximity to its research site.

Background of the Development

  • The project is proposed for the corner of Steeles Ave W. and Dufferin St., adjacent to Sanofi Pasteur’s large complex.
  • Initially reported by CBC Toronto in 2022, Sanofi raised concerns that hundreds of new residents could overlook its facilities, which house sensitive vaccine research and development work.
  • Sanofi described the risk as one of “national security,” due to the potential for observation of their operations.

Minister’s Zoning Order Under Consideration

  • Vic Fedeli — Ontario’s Minister of Economic Development, Job Creation and Trade — has asked the housing minister to issue a Minister’s Zoning Order (MZO) that would cap building heights at the site to 33 metres (about 10 storeys).
  • MZOs are tools that allow the province to override local municipal bylaws relating to land-use and development. They are generally used to facilitate and speed up development — not to restrict it.
  • The current provincial government (under Doug Ford) has emphasised the need for more housing. Using an MZO to block hundreds of rental homes would therefore be a notable move.

Developer’s Position

  • The project developer, Tenblock, contends that the proposed height cap would render the project unviable.
  • According to Tenblock’s vice-president Stephen Job, the “density of market housing” is required to make the whole development financially feasible; a reduced height would make it impossible to proceed.
  • Job described MZOs as “a bit of a sledgehammer” — a blunt instrument for planning issues. He says Tenblock is asking the province to instead bring all parties together for discussion.

Security Concerns & Expert Review

  • Sanofi’s objection dates back to at least 2022. It cited “24/7 overlook” of its sensitive facilities and, through legal representation in July 2024, raised the possibility of noise complaints from new nearby residents.
  • City planning staff recommended approving the development despite these concerns, but the city council voted against it, and Tenblock is now appealing to the Ontario Land Tribunal.
  • Tenblock engaged security expert Andrew Chester (former naval intelligence officer, now CEO of Juno Risk Solutions) to evaluate the claims. Chester concluded that the additional height would not increase the security risk:
    • He asserted that the angle from higher floors becomes too oblique to offer meaningful views into Sanofi’s property once above 10 storeys.
    • He also pointed out existing mitigations: meeting in interior rooms, use of blinds, and the fact that neighbouring tall-buildings near sensitive sites exist in Ottawa without documented security incidents.

Potential Precedents and Housing Implications

  • The ministry is currently accepting input on the proposed MZO. Housing advocacy groups such as HousingNowTO and More Neighbours Toronto have already commented.
  • Colleen Bailey of More Neighbours Toronto warned that applying this kind of MZO “sends a message” to developers that even approved land-use plans could be overridden — raising worries about precedent.
  • A neighbouring developer, First Capital REIT, which has its own high-rise proposal of over 1,000 units next to the Tenblock site, has expressed fear that it could face a similar MZO.

Project Details

  • The site at 1875 Steeles Ave W. would replace a current four-storey rental building.
  • Tenblock’s proposal: three connected towers, with the tallest at 39 storeys (133 metres).
  • The plan includes replacement units for current tenants, and more than 800 new rental units, a portion of which would be “affordable.”
  • Job notes there have been no noise complaints from existing residents despite decades of neighbourly coexistence with Sanofi’s complex.

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