The apartment building at 1875 Steeles Avenue West, the site of a residential apartment proposal by Tenblock Development Inc.Sammy Kogan/The Globe and Mail
A redevelopment plan to construct as many as 960 new rental apartments in Toronto has been hobbled by an Ontario government order that will restrict the height of any new building on lands near a facility owned by a global pharmaceutical manufacturer.
After months of consultation, Rob Flack, Minister of Municipal Affairs and Housing, published a Minister’s Zoning Order (MZO) on Friday that will restrict Tenblock Developments Inc. and any future owner from building anything taller than 33 metres (about 10 storeys) on a site at 1875 Steeles Ave. West in north Toronto.
“As currently issued, the MZO does not allow for an economically viable housing project,” said Stephen Job, vice-president at Tenblock. The company had applied to replace an existing four-storey rental building with several new structures taller than 33 metres, including one as tall as 39 storeys.
Ontario moves to block plans for Toronto apartment complex near Sanofi pharma facility
Vic Fedeli, Minister of Economic Development, Job Creation and Trade, filed the application for an MZO on Oct. 14, 2025, to restrict the height of any proposal brought by Tenblock as a way to “safeguard the continued operational viability” of the adjacent manufacturing facility owned by Sanofi Pasteur Limited, which employs more than 2,000 people.
In 2024, unspecified security concerns were raised by Sanofi in submissions to Toronto City Council as it sought to block Tenblock’s application. Independent security experts Juno Risk Solutions Inc. studied the site on behalf of Tenblock and reported Sanofi’s claim “defies logic” and that “national security or business security concerns are neither created or worsened by a proposed development.”
Mr. Fedeli’s application also asked for other planning tools that would keep “non-employment uses” from affecting the Sanofi plant – despite an existing residential neighbourhood running along its entire eastern boundary.
The MZO, dated March 12, was unusually brief with just two clauses and did not discuss any further measures.
A post on the website of the Environmental Registry of Ontario summarizing the contents of the Sanofi consultation included language allowing for possible amendments to the MZO in the future, citing reasons such as increasing housing supply or protecting jobs as possible reasons.
No previous MZO published in 2026 included language that opens the door to possible amendment. Because these orders are not subject to court appeal when issued, they are typically the last word on zoning matters in the province.
Mr. Job declined to answer questions about whether Tenblock was planning to apply for a new MZO to amend the one just issued.
“We are grateful for the efforts the Ministry of Municipal Affairs and Housing has made to bring the parties together. We look forward to continuing our conversations with the provincial government on a solution that enables critical housing supply while safeguarding industry,” he said.
Friday’s MZO also did not address other adjacent sites where planning applications are still advancing. In comments shared with The Globe and Mail in November, Joshua Butcher, a senior director for development at First Capital REIT, said Sanofi had rejected any attempt to explain or negotiate its position on nearby construction.
“We have also expressed a willingness to look at revising our proposal to resolve or mitigate the alleged impacts. Regrettably, our efforts have been consistently rebuffed,” he wrote.
The Ontario government and Ottawa have invested close to half a billion dollars in the Steeles Avenue Sanofi plant since 2021: A new influenza vaccine manufacturing line, which opened in 2024, received a $415-million cash injection from the federal government with an additional $55-million from the province.
“Sanofi has $2-billion in ongoing new investments at their Ontario campus,” said Jennifer Cunliffe, a spokesperson for Mr. Fedeli. “As a critical player in Ontario’s growing life-sciences sector, the Minister’s Zoning Order will ensure their expansions move forward without unnecessary delays.”
Mr. Flack’s office did not immediately respond to a request for comment.