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NEWS: City to convert former CSI building to homeless shelter (Jan. 2026)

March 9th, 2026 · No Comments

Near Bloor and Bathurst, shelter will be Indigenous-focused

By Rose Haberer

The former home of the Centre for Social Innovation (CSI), at 720 Bathurst St., has entered a new phase. CSI sold the building for $16 million to an “anonymous social purpose entity,” later revealed to be the City of Toronto, which intends to convert the former co-working hub into an Indigenous-focused shelter.

“The city’s purchase helped CSI find a buyer in a very depressed real estate market,” said Tonya Surman, CSI co-founder and CEO.

CSI spent two years seeking a social-purpose buyer and was “delighted” when the city made an offer. Surman called the sale a “win-win,” solving a challenge for CSI and giving the building renewed social purpose.

“Converting the building into an Indigenous-focused shelter will meet a significant need in our city and will help address the disproportionate impact of homelessness on Indigenous people,” said Surman.

In 2021, the City of Toronto reported that Indigenous people represent 15 per cent of people experiencing homelessness but constitute only two per cent of the general population of Toronto.

The shelter, expected to open in 2028 or 2029, will house up to 80 Indigenous adults and include 24/7 staffing, on-site medical care, meals, laundry, and cultural programming. Its rapid purchase was made possible by the city’s 2022 Shelter Infrastructure Plan which allows council to approve multiple shelter sites at once and gives staff the authority to open or modify shelters without returning to council. As a result, nearby residents are often informed only after key decisions are made.

Paul MacLean, board chair of the Palmerston Area Residents’ Association (PARA), said he has been in contact with the city’s shelter services department, Councillor Dianne Saxe, (Ward 11, University-Rosedale), and nearby residents likely to be affected by the site.

“The only concern I’ve heard so far is that there’s going to be two to three years of construction. We can speculate all we want about what the shelter will be like, but that’s three years away,” MacLean said.

He noted that some residents who live near 720 Bathurst have already endured eight years of construction from the Mirvish Village redevelopment. 

Residents on the east side of Markham Street, who share a laneway with 720 Bathurst, are expected to be particularly affected as they will be “essentially living in a construction zone rather than a neighbourhood.” MacLean emphasized that ongoing dialogue between these residents and the city will be essential as the project moves forward.

“People want this facility to be successful,” said MacLean, though he questioned what success would look like. 

Councillor Saxe suggests that success for this project means the upcoming shelter must “be a good neighbour to the surrounding community,” a factor she says that will distinguish it from other shelters, such as St. Stephen’s Community House in Kensington Market. 

She said it was near an injection site and known for disturbances. “I don’t want to see anything like that in my community, and I’m here to make sure it doesn’t happen,” she added.

The city has highlighted neighbourhood impact as a key priority, with shelter residents required to follow a “good neighbour” policy. The city has stated that the site will not include supervised drug consumption services and will not provide unregulated substances. 

It will feature security measures such as cameras and controlled access. The city has also said it will work with Toronto Police to address concerns as the project moves forward.  

Councillor Saxe emphasized that 720 Bathurst will not be a drop-in shelter. “The word ‘shelter’ is confusing—people think it means you just drop in. Residents will live at 720 Bathurst for six to eight months.” 

She added that it will be run by a known Indigenous organization but could not disclose which one at this time.

When asked about concerns over the two-to-three-year construction period, Saxe said the work would be carefully managed, with clear communication and minimal disruption, while noting that such renovations are routine for older buildings. “This kind of construction happens in Toronto all the time. I am heavily involved in ensuring this is properly supervised, that complaints are addressed calmly, that there’s good communication with the neighbours, and that every precaution possible is taken to avoid disturbance. Yes, it will be loud, but it’s an ordinary feature of the city.”

With the shelter not expected to open for some time, the months and years ahead for the Palmerston community will be shaped by an interim period focused more on construction and consultation than on shelter operations. 

To begin this next stage, the city says it will hold a community meeting early in the new year to provide an overview of its plans and address questions and concerns. 

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