Toronto City Council
At York and Ryerson, Layton developed close links with a number of Toronto figures including John Sewell and David Crombie. He was first elected to Toronto City Council in 1982, in a surprise upset against incumbent Gordon Chong. He quickly became one of the most outspoken members of council, and a leader of the left wing. He was one of the most vocal opponents of the massive SkyDome project, and an early advocate for rights for AIDS patients. In 1984, he was fined for trespassing when he handed out leaflets at the Toronto Eaton Centre during a strike by Eaton's staff, but the charge was later thrown out on freedom of speech grounds. Layton was also one of the few opponents to Toronto's bid for the 1996 Summer Olympics. In 1985, he moved to the Metropolitan Toronto council, in the first direct elections for members of that body. In the 1988 municipal elections, Layton traded places with city council ally Dale Martin, with Martin going to Metro and Layton returning to Toronto City Council. Layton was easily elected in a contest with former high school teacher Lois MacMillan-Walker. The election was a major victory for Layton as the reformist coalition of which he was the de facto head gained control of City Council, the first time in city history a coalition of New Democrats and independents controlled council.
On July 9, 1988, he married Hong Kong-born Toronto District School Board trustee Olivia Chow in a ceremony on Algonquin Island. Their whitewater rafting honeymoon plans had to be abandoned, however, when days before the wedding Layton collided with a newspaper box while bicycling. Chow later joined Layton on the Toronto City Council. She has been a candidate for the federal New Democrats five times, first winning her seat the third time in a close race against Tony Ianno in the 2006 Canadian election, and re-elected in 2008 and 2011.
Layton and Chow were also the subject of some dispute when a June 14, 1990, Toronto Star article by Tom Kerr accused them of unfairly living in a housing cooperative subsidized by the federal government, despite their high income. Layton and Chow had both lived in the Hazelburn co-op since 1985, and lived together in an $800 per month three-bedroom apartment after their marriage in 1988. By 1990, their combined annual income was $120,000, and in March of that year they began voluntarily paying an additional $325 per month to offset their share of the co-op's Canada Mortgage and Housing Corporation subsidy, the only members of the co-op to do so. In response to the article, the co-op's board argued that having mixed-income tenants was crucial to the success of co-ops, and that the laws deliberately set aside apartments for those willing to pay market rates, such as Layton and Chow. During the late 1980s and early 1990s they maintained approximately 30% of their units as low income units and provided the rest at what they considered market rent. In June 1990, the city's solicitor cleared the couple of any wrongdoing, and later that month, Layton and Chow left the co-op and bought a house in Toronto's Chinatown together with Chow's mother, a move they said had been planned for some time. Former Toronto mayor John Sewell later wrote in NOW that rival Toronto city councillor Tom Jakobek had given the story to Tom Kerr.
Originally known for coming to council meetings in blue jeans with unkempt hair, Layton worked to change his image to run for mayor in the 1991 civic election. He also started wearing contact lenses, abandoning his glasses, and traded in his blue jeans for suits. In February 1991, Layton became the first official NDP candidate for the mayoralty, pitting him against centrist incumbent Art Eggleton. In a move that surprised many, Eggleton elected not to run again.
Layton was opposed by three right-of-centre candidates: Susan Fish, June Rowlands, and Betty Disero. Right-wing support soon coalesced around former city councillor Rowlands, preventing the internal divisions Layton needed to win office. Layton was also hurt by the growing unpopularity of the provincial NDP government of Bob Rae, and by his earlier opposition to Toronto's Olympic bid. Bid organizer Paul Henderson accused Layton and his allies of costing Toronto the event. Despite this, October polls showed Layton only four points behind Rowlands, with 36% support. However on October 17, Fish, a former provincial Tory cabinet minister who had only 19% support, pulled out of the race, and many of her supporters moved to Rowlands. Layton lost the November 12 election by a considerable margin. However, in the same election Olivia Chow easily won a seat on City Council.
Layton returned to academia and founded the Green Catalyst Group Inc., an environmental consulting business. In 1993, he ran for the Canadian House of Commons in the riding of Rosedale for the NDP, but finished fourth in the generally Liberal riding. In 1994, he returned to Metropolitan Toronto Council, succeeding Roger Hollander in the Don River ward, and he resumed his high profile role in local politics; following the "megacity" merger of Metropolitan Toronto into the current city of Toronto, he was again re-elected to Toronto City Council, serving alongside Pam McConnell in a two-member ward. He remained on Toronto City Council until pursuing the leadership of the federal New Democrats. He also came to national attention as the leader of the Federation of Canadian Municipalities. Federally, he ran again in the 1997 election, but lost to incumbent Dennis Mills by a wide margin. In June 1999, as chair of Toronto's environmental task force, the Toronto Atmospheric Fund, he was instrumental in the preliminary phases of the WindShare wind power cooperative in Toronto through the Toronto Renewable Energy Co-operative.
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