Discourses about the threat of ‘the Paris problem’ in Toronto’s racialized, low-income communities (i.e., ‘violent’ racialized young people at the centre of structural disinvestment and discrimination) (Saberi, 2017) reflect the influence of territorial stigmatization in shaping socio-spatial governance of Toronto’s racialized communities. One of the manifestations of said stigmatization - discrimination at the hands of police and the welfare system - is an emerging area of study in the Canada as encounters with the police, especially when they are consistently negative, adversely impact one's health and wellbeing. While these analyses often operationalize race as a determinant of health, they have largely failed to engage with how racial inequalities of health emerge from recursive valuations of urban space, often drawing on the neighbourhood effects literature in explaining how racial inequities in health emerge and how they should be resolved. Using qualitative research conducted with 24 young Black people in the Greater Toronto Area with direct and indirect encounters with the police, this presentation explores how police encounters and their mental health outcomes are mediated by imagined geographies of racialized youthhood. Specifically, we argue that the mental health impact of these encounters materializes even before young people physically meet police, through the production of territorial stigma across Toronto’s neighbourhoods. Drawing on Black geographies and the geographies of youth, as well as participants’ complex experiences of space as racialized subjects, we demonstrate how valuations of urban space beyond “ethnic enclaves” create and exacerbate conditions of adverse psychosocial health for Black youth and their families.