Arbo Phase 2 Application Advances Downsview Lands Redevelopment in Toronto

According to UrbanToronto, the redevelopment of Toronto's Downsview lands is moving forward with an application for Arbo Phase 2. The wider plan would turn the area into 15 districts for up to 115,000 residents. The Phase 2 site covers about 13.5 hectares of mostly open land between Keele Street and Sheppard Avenue West, wrapping around an excluded retail plaza and the Downsview Long Term Care Home. Canada Lands Company is the developer, and its real estate operations are being incorporated into Build Canada Homes.

What the proposal includes

The application calls for approximately 3,160 homes in buildings of up to 35 storeys, taller than the 20-storey maximum approved for Phase 1. The plans organize 17 buildings across 11 development blocks. Most would be mid-rise, typically six to eight storeys, with some reaching 10 storeys. According to UrbanToronto, the tallest building would reach 116 metres, with taller elements concentrated near Keele Street and Sheppard Avenue West. Four new public streets would structure the neighbourhood.

Of the roughly 3,157 rental units envisioned, 2,841 would be market-rate and 316 affordable. The affordable share is 10% of Phase 2, below the 20% district-wide target described earlier. At least 40% of the homes would have two or three bedrooms.

Community facilities and open space

Community facilities could include a Toronto Catholic District School Board elementary school and a 929 square metre daycare, potentially sharing a central block near the woodlands. Retail would be concentrated along Keele Street and the main pedestrian route to Downsview Park station. The open-space strategy proposes about 1.54 hectares of parkland beside the Arbo woodlands, plus 0.96 hectares spread through the district. A 370-metre Ancestors Trail would connect the plaza to one of the new streets.

Transit and access

Downsview Park station on University Line 1 and GO Transit's Barrie line is about 350 metres from the edge of the district, and approximately 94% of Phase 2 lies within an 800-metre radius of the station. Several TTC bus routes run along Keele Street and Sheppard Avenue West. Planned cycling facilities along Keele, Sheppard and the Dovehouse Avenue Extension are also part of the proposal.

Background

The land once housed military personnel at Canadian Forces Base Downsview, which closed in 1996. Phase 1 received zoning approval in 2022, and a June 2025 amendment raised its permitted housing count from 1,400 to 1,700 units. According to UrbanToronto, the application is still at the proposal stage.