Taxes are obviously not the central problem, and they may not be an issue at all.
Five seconds of thought and a five second visit would reveal some of the real problems behind why interesting and vibrant retail hasn't sprouted on Queen's Quay. There's no magic solution.
- no established retail/neighbourhood character to latch onto.
- astoundingly poor quality retail spaces hidden by pillars and along an oppressive streetscape continously fractured by driveways and parkettes and lobbies and random blobs of concrete (athough better streetscaping, while it'd be an improvement, will not suddenly trigger Ethiopian restaurants and couture poncho shops).
- the above is because our city is not designed, it is regulated and engineered, and once parking requirements, amenities requirements, park space, road right of way widths, snow storage, fire access, garbage access, sidewalk width, turning radii, building codes, windbreaks, massing studies, arcades for climate protection (ha), and on and on and on are mandated, there's absolutely nothing left that is conducive to a Queen Street-style retail atmosphere.
- as for a comically fractured streetscape (likely a problem on all new Avenues), this is because the waterfront is divided up into large square lots with few side streets or alleys...great for industry, terrible for main streets. Queen Street would die if one of every three stores was replaced with a driveway (in addition to a large percentage of the street frontage being occupied by condo amenity rooms with tinted windows).
- local demographics (say, 50% yuppies and 30% single gay men and 20% other...is there a group less likely to open stores and restaurants or more likely to want to shop/be seen shopping/eating on Bloor or Queen or King?)
- the fact that retail in new developments always takes a number of years to sort itself out and cater to who actually lives and shops there, not who some market research says should live or shop there. Rabba and a dry cleaners will work...anything else is a gamble.
- the old city of Toronto isn't gaining people...condo growth is shifting the population around, and if they keep shopping and eating in their old haunts, that means new retail streets may not be especially viable and an area that should - or, at least, could - be a great retail/dining spot will have to struggle that much more.
- you can't force trendiness and charm and you can't force people to show up and spend their money on one street and not another.