PA3.1 REPORT FOR ACTION

Parking Management Renewal Agreement with Greyhound and Coach Canada Terminal Operations Limited (GaCCTO) at 130 Elizabeth Street,

Date: August 31, 2017 To: Board of Directors, Toronto Parking Authority From: Acting President, Toronto Parking Authority Wards: Ward 27 (Toronto Centre - Rosedale)

SUMMARY

This report seeks the approval of the Toronto Parking Authority ("TPA") Board to enter into a parking management renewal agreement ("Renewal Agreement") with Greyhound and Coach Canada Terminal Operations Limited ("GaCCTO") in order to continue TPA management of the 28-space surface parking facility located at 130 Elizabeth Street, Toronto (the "Subject Property"). TPA has managed the parking operation of this lot, also known as Municipal Carpark 263, on behalf of GaCCTO since 2012.

RECOMMENDATIONS

The Acting President, Toronto Parking Authority recommends that:

1. The Board of Directors of the Toronto Parking Authority authorize staff to enter into a parking management renewal agreement with Greyhound and Coach Canada Terminal Operations Limited to manage the 28-space surface parking facility located at 130 Elizabeth Street, Toronto for municipal parking purposes under the terms and conditions as generally outlined under Table 2.0: Major Terms and Conditions of the Renewal Agreement (financial and term) and Appendix C: TPA and Owner Obligations, and any such other or amended terms and conditions as may be acceptable to the Acting President and in a form satisfactory to the City Solicitor.

FINANCIAL IMPACT

Table 1.0 below provides a summary of the financial performance of Municipal Carpark 263 over the past five (5) years:

Parking Management Renewal Agreement - 130 Elizabeth Street, Toronto Page 1 of 9 TABLE 1.0 - CP 263 Financial Performance (July 19, 2012 to June 30, 2017)

Jan. 1 to Jul. 19 to Jun. 30, Y/E 2016 Y/E 2015 Y/E 2014 Y/E 2013 Dec. 31, 2017 2012

Gross Revenue (excl. $196,407 $375,066 $323,623 $292,808 $301,652 $141,662 HST)

Gross Revenue / space / $14,029 $13,395 $11,558 $10,457 $10,773 $10,119 annum

Expenses

Direct Operating ($10,626) ($17,215) ($18,235) ($15,118) ($14,827) ($6,737)

Rent ($150,773) ($318,723) ($268,283) ($246,813) ($249,265) ($125,404)

Total Expenses ($161,399) ($335,938) ($286,518) ($261,931) ($264,092) ($132,141)

TPA Management Fee

Base $18,000 $36,000 $36,000 $36,000 $36,000 $16,258

Performance Allowance $25,485 $19,242 $10,263 $11,582 $8,294 $0

Total Management Fee $43,485 $55,242 $46,263 $47,582 $44,294 $16,258

TPA Net Profit (loss) $32,859 $38,027 $28,028 $32,464 $29,467 $9,521

Net Profit Margin 16.73% 14.73% 8.66% 11.09% 9.77% 6.72%

Over the last 12 months (July 1, 2016 to June 30, 2017), Gross Revenue from public parking at the Subject Property has totaled approximately $394,900 (net of HST) or approximately $14,103 per space.

The TPA expects that Gross Revenue at the Subject Property will continue to increase over the near term due to the continued high level in parking demand as well as an anticipated $0.50 increase to the current posted rate of $3.50 per half hour to $4.00 per half hour. This forecast rate increase, however, is not expected to take effect until sometime during the latter part of 2017, following an upcoming TPA portfolio-wide rate review to be presented to the Board for their consideration and approval. The current rate structure at the lot does not provide for a day or night maximum.

Under the terms of the proposed renewal agreement, it is anticipated that Net Profit in the first year of the renewal term will be approximately $43,000. Overall, the proposed revised management arrangement continues to be attractive, as TPA's exposure in terms of responsibility for the direct operating expenses associated with the operation of the lot namely; cleaning / maintenance of the Pay and Display machine, communication charges, revenue collection, insurance and enforcement remains fairly limited.

Parking Management Renewal Agreement - 130 Elizabeth Street, Toronto Page 2 of 9 DECISION HISTORY

At its meeting of July 24, 2012 (TPA Board Minute No. 12-124), the TPA Board of Directors approved the terms of a Parking Management Agreement with GaCCTO for 130 Elizabeth Street.

The management agreement expired on July 18, 2017 and GaCCTO has requested that the TPA continue to manage the parking facility. The terms and conditions of the proposed Renewal Agreement are outlined in the body of this report which remain subject to TPA Board approval.

COMMENTS

The Toronto Coach Terminal ("TCT") site is owned by the Toronto Transit Commission (“TTC”) and has operated as the main bus station for inter-city services in Toronto. In June 2012, the TTC relocated their offices which were located within part of the TCT site, leasing out the property to Transportation Corporation ULC (“Greyhound”). Greyhound subsequently partnered with Coach Canada to form the group known as Greyhound and Coach Canada Terminal Operations. In the summer of 2012, GaCCTO approached the TPA to gauge TPA's interest in managing the parking operations at the Subject Property. A five (5) year parking management arrangement was negotiated and TPA operations at the site were initiated on July 19, 2012. GaCCTO has requested that the TPA continue to manage the parking facility until their lease arrangement with the TTC expires on July 8, 2021.

Site Location and Particulars

The Parking Facility which is comprised of 28 surface parking spaces, is a narrow lot offering vehicular access from both Elizabeth Street to the east and Chestnut Street to the west (refer to Appendix 'A' - Site Location Map and Appendix 'B' - Photographs of Parking Facility).

Staff undertook a recent site visit of the Subject Property in order to assess the condition of the site, confirming that there are no outstanding deficiencies at the current time. Should GaCCTO fail to maintain the Subject Property to a standard satisfactory to the TPA, the TPA may exercise its right to undertake any necessary improvements and charge GaCCTO accordingly, or terminate the management arrangement.

Parking Supply and Demand

The immediate vicinity continues to be deficient in the supply of public parking. The Subject Property will continue to be supported by many of the surrounding parking demand generators including the bus terminal as well as proximity to a number of government and non-government offices, hospitals (i.e. Hospital for Sick Children) as well as retail uses along Dundas Street West and including the and . Parking demand continues to be predominantly in the form of short-term parkers. The Parking Facility which is serviced by a single Pay and

Parking Management Renewal Agreement - 130 Elizabeth Street, Toronto Page 3 of 9 Display unit, operates 24 hours a day, 7 days a week as a “Pay and Display” and "Mobile Pay" operation.

Summary of the Parking Management Renewal Agreement

The terms and conditions of the Renewal Agreement between TPA and GaCCTO are to remain unchanged from the current arrangement which are summarized below in Table 2.0: Table 2.0 - Major Terms and Conditions of the Renewal Agreement

Four (4) Years less eleven (11) days (retroactive to July Extended Term: 19, 2017 and ending July 8, 2021)

Aggregate of:

(i) $36,000 per annum, to be paid in monthly installments Management Fee: of $3,000 per month; and

(ii) fifteen (15.0%) percent of the Gross Revenue (excluding HST) in excess of the Performance Breakpoint

Performance Annual Gross Revenue (excluding HST) of $225,000 Breakpoint:

Parking Rate: $4.00 each half hour with no Day / Night Maximums

Either party has the right to terminate at any time, with Termination Provision: sixty (60) days written notice to the other party

Each party's respective obligations as detailed under Appendix 'C' - TPA and Owner Obligations, also remain unchanged as per the original term of the arrangement. In summary, GaCCTO continues to remain responsible for any repairs and maintenance associated with the lot, property taxes and snow clearing costs while the TPA remains responsible for the direct operating expenses associated with the operation of the lot namely; cleaning / maintenance of the Pay and Display machine, communication charges, revenue collection, insurance and enforcement.

Staff will contact the local area Councillor, Kristyn Wong-Tam to confirm that she is supportive of the renewal arrangement and TPA's continued management of the 28 space parking facility. City Legal will also be engaged to prepare and / or review the necessary renewal documents.

CONTACT

Gregory Blyskosz, Manager of Real Estate Development and Marketing (416) 393-7267, [email protected]

Parking Management Renewal Agreement - 130 Elizabeth Street, Toronto Page 4 of 9 SIGNATURE

______Andrew Koropeski Acting President, Toronto Parking Authority

ATTACHMENTS

Appendix 'A' Site Location Map Appendix ‘B’ Photographs of Parking Facility Appendix ‘C’ TPA and Owner Obligations

Parking Management Renewal Agreement - 130 Elizabeth Street, Toronto Page 5 of 9 APPENDIX 'A'

SITE LOCATION MAP

Parking Management Renewal Agreement - 130 Elizabeth Street, Toronto Page 6 of 9 APPENDIX 'B'

PHOTOGRAPHS OF PARKING FACILITY

View East from Chestnut Street

View West from Elizabeth Street Parking Management Renewal Agreement - 130 Elizabeth Street, Toronto Page 7 of 9 APPENDIX 'C'

TPA AND OWNER OBLIGATIONS

TPAs' Obligations During the Term, the TPA will without limitation: a) operate the Parking Facility during the Hours of Operation as a ‘Pay and Display’ and 'Mobile Pay' type of operation. Under the 'Pay and Display' option, patrons pay by credit card or cash, and receive a ticket which they then display in the vehicle. Under the 'Mobile Pay' option, patrons initiate a parking session using their mobile device; b) maintain the Pay and Display machine; c) operate and enforce payments at the Parking Facility diligently and in an economical and efficient manner and maximize Gross Revenue; d) keep accurate books of account and records of any and all monies received and disbursed in the operation and maintenance of the Parking Facility. These books of account and records will be available for inspection and audit by the Owner or its authorized representatives at any time during normal business hours; e) set the rate for parking charges, and charge and collect fees from the public for the privilege of parking in the Parking Facility; f) promptly pay over the Owner’s Net Profit to the Owner at the time and in the manner provided; g) handle complaints and claims made for loss or damage to vehicles parked at the Parking Facility, save and except complaints and claims made for loss or damage due to poor maintenance of parking surface and any other reasons as a result of the failure of the Owner to fulfill its obligations described below; h) obtain and keep in force commercial general liability insurance against claims for bodily injury, death or property damage occurring in or on the Parking Facility arising as a direct result of the negligence of the TPA in the operation of the Business in an amount per occurrence of not less than two million dollars ($2,000,000). The Owner will be named as an additional insured party(s). The TPA will provide the Owner with a confirmation of insurance upon written request from the Owner; and i) obtain all licenses and permits required to construct and operate the Business at the Parking Facility.

Parking Management Renewal Agreement - 130 Elizabeth Street, Toronto Page 8 of 9 Owners' Obligations The Owner or GaCCTO will: a) purchase and / or supply Pay and Display machine(s) necessary to operate the Parking Facility; b) keep the Parking Facility free and clear of litter and debris; c) pay all charges for electricity, water and any other utility services furnished to the Parking Facility and maintain all such utilities in good order and working condition; d) make and pay for any repairs and maintenance including, without limitation, repairs to parking surface, fencing, light standards and line striping, where and so often as need be to maintain the Parking Facility in good and substantial repair and condition unless the need for repairs and maintenance is necessitated by the acts or negligence of the TPA in which case the TPA shall make good and pay for any such repairs and maintenance; e) insure the Parking Facility with “all risks” property insurance; f) pay all real property taxes, rates, charges and assessments, and any other taxes, rates, charges or assessments levied, rated, charged or assessed against the Parking Facility, the operation thereof, the Business, the Management Fee or the Operating Expenses, including, without limitation, any tax directed, directly or indirectly, at the parking of motor vehicles; g) make and pay for any improvements or developments required by any governmental authority or body in order to operate the Parking Facility; and h) perform snow clearing duties and pay all snow clearing charges for the Parking Facility.

Parking Management Renewal Agreement - 130 Elizabeth Street, Toronto Page 9 of 9