ONTARIO PLACE | the Value of Toronto's Public Space

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ONTARIO PLACE | the Value of Toronto's Public Space ONTARIO PLACE | The Value of Toronto’s Public Space January 2020 EXECUTIVE SUMMARY Ontario Place has more sustainable long-term value as a high-quality, public space that will create diverse benefits for the regional community. HR&A Advisors, Inc. 2 Since 2005, new public spaces and community venues have expanded along Toronto’s central waterfront edge. Sherbourne Common (2009) Underpass Park (2012) Canoe Landing Park (2009) Corktown Commons (2013) Ireland Park (2007) Marilyn Bell (2006) Aitken Place (2019) Cherry Beach Sport Fields (2006) Waters Edge Promenade (2010) York Quay (2012) Sugar Beach (2010) HTO Park(2007) Harbourfront Promenade (2005) In Progress • Rees Street Park Spadina Quay Wetlands (2007) • York Street Park • Lake Ontario Park Bentway (2018) • Front Street Promenade Trillium Park & Davis Trail (2017) • Don Greenway HR&A Advisors, Inc. 3 The success of the city during this time is the direct result of this strategic investment in waterfront open spaces that are public- focused, well-maintained, and thoughtfully programmed. Toronto’s waterfront…. ✓Prioritizes essential public nature of a region’s natural amenities and assets ✓Accommodates a wide mix of activities and promote new ways for people to use the waterfront ✓Forges connections between dispersed destinations and surrounding communities ✓Promotes continuous and intuitive mobility throughout the city’s urban fabric ✓Integrates with existing economic activity and orients future growth ✓Serves all spectrums of a community’s diverse population HR&A Advisors, Inc. 4 Toronto’s waterfronts are economic engines that are inextricably linked to the identity and vitality of the city. HR&A Advisors, Inc. 5 Forward-thinking cities across North America are actively investing in public space and reclaiming their waterfront assets for public use. New York City | $1.5B+ invested in Dallas | 200-acre redevelopment Seattle | $0.7B invested to San Diego | 40-acre makeover of the new public spaces, community plan underway to create the transform 26 blocks of shoreline Embarcadero to expand public destinations, and waterfront largest urban park in the U.S. into a seamless, connective tissue access and create a central parks over the last 20 years along the Trinity River between Downtown destinations waterfront attraction for the city Washington D.C. | 5+ new signature Houston | $1.0B invested to Philadelphia | 3+ new waterfront Boston | $25B invested in cleanup waterfront parks created over the diversify its public spaces and parks and trails created over the and launched Boston Waterfront last decade along both the transform the bayou network into last decade to transform both Initiative to build a new network Potomac and Anacostia Rivers active public destinations sides of the Delaware River of public spaces along the harbor HR&A Advisors, Inc. 6 This trend is also occurring in international cities that are trying to maintain or reinvent their image as vibrant waterfront communities. Sydney | $6B invested to Paris | Expansive public plans Madrid | 6-km linear park Seoul | $0.9B invested to expand the vibrant harbor are targeted at expanding created along a sunken create a network of linear district to include 54-acres of public access along the Seine motorway to reconnect the parks and public spaces new development and public River to increase year-round city center and adjacent along a daylighted urban spaces use and activity neighborhoods to the river stream HR&A Advisors, Inc. 7 These investments in high-quality public waterfront assets are driven by two primary motivations. LONGEVITY OF BENEFITS DIVERSITY OF BENEFITS The long-term, The diverse variety enduring nature of of community benefits that stem benefits generated from high-quality by high-quality public spaces. public spaces. HR&A Advisors, Inc. 8 High quality public spaces are unique because their investment horizon is much longer than any commercial use. Central Park | 1960s Central Park | Today (60 years later) HR&A Advisors, Inc. 9 The evaluation of costs and benefits of investment decisions must incorporate multiple criteria. Commercial Use (w/ limited public access) Investment Decision Evaluation Criteria ▪ Upfront Investment Cost ▪ Ongoing Investment Cost Investment Decision ▪ Associated Community Benefits ▪ Benefits Lifespan Public Space Use ▪ Public Risk HR&A Advisors, Inc. 10 When compared to public space uses, commercial uses will typically create short-term improvements but at the expense of long-term, enduring benefits. ▪ Risk of decline and public subsidy Commercial Use ▪ Risk of commercial failure (w/ limited public access) ▪ 20-30 year investment life span ▪ Recurring need for significant reinvestment Investment Decision ▪ Lower public risk Public Space Use ▪ 50-100 year investment life span ▪ Ongoing maintenance and moderate upgrades HR&A Advisors, Inc. 11 Another motivation for investing in high quality public spaces is their ability to create significant and measurable benefits for their respective regions. REAL ESTATE TOURISM SOCIAL & CULTURAL TALENT ATTRACTION BENEFITS BENEFITS BENEFITS BENEFITS The ability of public The additional The improvements The influence spaces to increase tourism public public spaces public spaces have development value spaces attract, and create in healthy on attracting and and serve as the associated lifestyles, social retaining residents, orienting anchors spending cohesion, and workers, and for new growth generated in the quality of life employers economy. HR&A Advisors, Inc. 12 REAL ESTATE BENEFITS TOURISM BENEFITS SOCIAL & CULTURAL BENEFITS TALENT ATTRACTION BENEFITS Public spaces increase the value of adjacent properties, accelerate the volume of development, and serve as orienting anchors for new growth. Since the waterfront Toronto has more than Across the U.S. public revitalization began, To-date, Toronto’s 400 high-rise projects spaces have increased the Downtown Toronto has waterfront public spaces in the pipeline, the average pace of adjacent become one of the have attracted more than majority of which are development by as much fastest growing real $21.5B in private real concentrated along the as 1.4X - 3.0X estate markets in North estate investment waterfront America Intentional investment in New development along Across twelve signature 63% of future space under public space along the Toronto’s waterfront, public spaces, properties construction near waterfront has anchored includes more than 1.5M within a .8km radius Toronto’s waterfront is new neighborhoods SF of new commercial experienced an average preleased and vacancy including East Bayfront, development and 5K real estate premium of has dropped to West Don Lands, and housing units 17% over citywide values historic lows Quayside HR&A Advisors, Inc. 13 REAL ESTATE BENEFITS TOURISM BENEFITS SOCIAL & CULTURAL BENEFITS TALENT ATTRACTION BENEFITS Given its location, Ontario Place will have significant real estate implications on Exhibition Place and diminished public space will impact its value creation potential. • 192 acres of prominent real estate at Exhibition Place will be more valuable if public open space at Ontario Place is preserved Exhibition Place • Proximity to Ontario Place is a value driver for any potential future Ontario Place development on Exhibition Place or nearby neighborhoods HR&A Advisors, Inc. 14 REAL ESTATE BENEFITS TOURISM BENEFITS SOCIAL & CULTURAL BENEFITS TALENT ATTRACTION BENEFITS Well-designed public spaces become regional destinations that catalyze tourism and create incremental spending in the local economy. More than 4,000 annual 50% of visitors to programs and events 2% increase in leisure Toronto’s waterfront parks Toronto’s waterfront parks at Toronto’s waterfront tourism associated with attract more than 17M are from international parks serve the city’s every 10% increase in visitors every year destinations outside diverse residents and public space investment Canada visitors Public spaces contribute Shoppers are willing to Surveyed shoppers to the “cumulative Public spaces encourage pay an average 9-12% reported a 30% higher attraction principle” both day and overnight “amenity margin” for satisfaction with the and the greater diversity visitors to stay longer goods in areas with quality of goods in areas of amenities broadens a in a region greater public space with greater public space city’s tourism appeal HR&A Advisors, Inc. 15 REAL ESTATE BENEFITS TOURISM BENEFITS SOCIAL & CULTURAL BENEFITS TALENT ATTRACTION BENEFITS A rich portfolio of public spaces can enhance a community’s population health, public safety, social cohesion, and overall quality of life. Public spaces create Toronto has embraced its To-date, the revitalization stable neighborhoods by 5% decrease in stress and identity as a waterfront of Toronto’s waterfront increasing social anxiety reported by city and preserving has created more than interaction between regular users of public uninterrupted public 750 acres of new open different groups and spaces access is critical to space and cultural venues increasing residents’ fulfilling this vision sense of belonging 99% of cities experienced Public space is associated Many kilometers of trails 15% decrease in the odds lower crime risk following with a 41% increase in the and cycling of being overweight for investment in public green odds of residents within a connections have begun residents living in areas space that averaged 1.5 – half mile engaging in to link Toronto’s with adequate parkland 3.8 fewer felonies per 1K regular light physical
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