Item - 2008.EX26.16
Tracking Status
- City Council adopted this item on December 1, 2008 with amendments.
- This item will be considered by Executive Committee on November 10, 2008. It will be considered by City Council on December 1, 2008, subject to the actions of the Executive Committee.
EX26.16 - Waterfront Parks Operations and Capital State of Good Repair Funding Strategy
- Decision Type:
- ACTION
- Status:
- Amended
- Wards:
- All
City Council Decision
City Council on December 1, 2 and 3, 2008, adopted the following motions:
1. Subject to approval of the Government of Canada, the primary funder of Waterfront parks and public spaces, and the Province of Ontario, City Council approve creation of a Waterfront Capital Preservation Reserve Fund comprised of funds contributed by Waterfront Toronto (WT) in an amount equivalent to 10% of its capital budget for completed waterfront parks and public spaces, with this fund to be used to cover the capital state of good repair costs of Don River Park, Sherbourne Park, Jarvis public space and other waterfront parks and public spaces as they are developed for their first five years of operation.
2. City Council direct the Deputy City Manager whose responsibilities include Waterfront Revitalization, and the Acting Deputy City Manager and Chief Financial Officer, to develop criteria for management and governance of the Waterfront Capital Preservation Reserve Fund, with such criteria to be subject to Council approval.
3. When reporting to Council in 2009, with updated projections on the operating impact of waterfront renewal on City programs and services, staff address:
a. the status of the Waterfront Capital Preservation Reserve Fund; and
b. strategies for addressing capital preservation of the Central Waterfront Public Realm.
4. City Council request that the Waterfront Project Director, with WT, the Director of Partnerships, the General Managers of Parks Forestry and Recreation and Economic Development, Culture and Tourism, and the Acting Deputy City Manager and Chief Financial Officer explore the following longer term strategies for financing the operating and capital state of good repair costs of waterfront parks and public spaces:
i. development of a concession strategy;
ii. creation of BIAs whose contributions to the community support high quality parks and public spaces and attract customers and residents to the area;
iii a special services levy, in consultation with the Province of Ontario;
iv. a waterfront philanthropic and sponsorship strategy that is consistent with City policy and coordinated with other City initiatives; and
v. include funding mechanisms identified in the Parks and Recreation's Strategic Plan, entitled "Our Common Grounds".
5. The Director, Waterfront Secretariat, and the General Manager, Parks Forestry and Recreation, be directed to report back to the Executive Committee on all funding options identified in Part 4, forallwaterfront parks.
6. The Deputy City Manager whose responsibilities include Waterfront Revitalization recommend to City Council those strategies that prove to be feasible, prior to any implementation taking place.
7. Deputy City Manager Richard Butts be requested to fully explore and report to the Parks and Environment Committee on the applicability of the parks improvement association model for use in engaging residents with the waterfront parks and public spaces.
8. The appropriate City officials be authorized and directed to take the necessary action to give effect thereto.
Background Information (Committee)
https://www.toronto.ca/legdocs/mmis/2008/ex/bgrd/backgroundfile-16643.pdf
EX26.16 - Waterfront Parks Operations and Capital State of Good Repair Funding Strategy
- Consideration Type:
- ACTION
- Wards:
- All
Origin
Recommendations
The Deputy City Manager whose responsibilities include Waterfront Revitalization, the Waterfront Project Director and the General Manager of Parks, Forestry and Recreation recommend that:
1. Subject to approval of the Government of Canada, the primary funder of Waterfront parks and public spaces, and the Province of Ontario, Council approve creation of a Waterfront Capital Preservation Reserve Fund comprised of funds contributed by Waterfront Toronto (WT) in an amount equivalent to 10% of its capital budget for completed waterfront parks and public spaces, with this fund to be used to cover the capital state of good repair costs of Don River Park, Sherbourne Park, Jarvis public space and other waterfront parks and public spaces as they are developed for their first five years of operation.
2. Council direct the Deputy City Manager whose responsibilities include Waterfront Revitalization, and the Acting Deputy City Manager and Chief Financial Officer, to develop criteria for management and governance of the Waterfront Capital Preservation Reserve Fund, with such criteria to be subject to Council approval.
3. When reporting Council in 2009, with updated projections on the operating impact of waterfront renewal on City programs and services, staff address: (a) the status of the Waterfront Capital Preservation Reserve Fund; and (b) strategies for addressing capital preservation of the Central Waterfront Public Realm.
4. Council request that the Waterfront Project Director, with WT, the Director of Partnerships, the General Managers of Parks Forestry and Recreation and Economic Development, Culture and Tourism, and the Acting Deputy City Manager and Chief Financial Officer explore the following longer term strategies for financing the operating and capital state of good repair costs of waterfront parks and public spaces:
a. development of a concession strategy;
b. creation of BIAs whose contributions to the community support high quality parks and public spaces and attract customers and residents to the area;
c. a special services levy, in consultation with the Province of Ontario; and
d. a waterfront philanthropic and sponsorship strategy that is consistent with City policy and coordinated with other City initiatives.
5. The Deputy City Manager whose responsibilities include Waterfront Revitalization recommend to Council those strategies that prove to be feasible, prior to any implementation taking place.
6. The appropriate City officials be authorized and directed to take the necessary action to give effect thereto.
Summary
The purpose of this report is to recommend strategies to mitigate the financial impact of new waterfront parks and public spaces on City operating and capital state of good repair budgets. Recommendations reflect findings from the Waterfront Parks Operations and Maintenance Strategy Study, prepared for the City and Waterfront Toronto (WT) by HR&A Advisors and reported to Council in November 2007, entitled "Operating Budget Impacts of Waterfront Revitalization" (Executive Committee Report 13.4).
In managing waterfront parks, the City will have financial responsibility for capital state of good repair costs and routine operating costs, such as litter picking, grass cutting, garbage and recycling, and maintenance of washrooms, playgrounds and other facilities.
Revenues from mitigation strategies recommended in this report are intended to augment base funding provided through traditional municipal sources. In the short term, these strategies include securing a contribution from WT equivalent to 10% of its capital budget for parks and public spaces to be held in a Waterfront Capital Preservation Reserve Fund managed by the City and used to cover capital state of good repair costs of new waterfront parks and public spaces for their first five years of operation. Capital state of good repair costs include the repair and replacement of park features and facilities.
Also in the short-term, opportunities for enhancing onsite earned revenue in a manner that allows waterfront parks to develop as year round destinations with appropriate public amenities will be explored.
In the longer term, as new waterfront communities develop adjacent to new parks and public spaces, additional strategies will be evaluated, including: creating BIAs whose mandates include supporting adjacent parks and public spaces, recognizing that these spaces will attract significant customers to the area; assessing the feasibility of a special services levy through which new development adjacent to higher-end waterfront parks may contribute to parks costs; and with WT, exploring the viability of implementing philanthropic and sponsorship strategies that support individual parks. Implementation of these initiatives, should they prove feasible, will require Council approval.
Financial Impact
WT currently estimates the capital cost of parks included in its long term plan at $70 million. Included in this estimate are Don River Park, Sherbourne Park and Jarvis Slip Public Space, all of which are scheduled for completion in 2010. Also included are Aitken Place Park, the Cherry Street TTC Loop, Parliament Street Park, Dominion Foundry Mews, Cork Town Mews, Front Street Triangle, and Lake Ontario Park Phase 1. The value of the WT contribution to a Capital Preservation Reserve Fund would be 10% of this capital estimate, or $7 million, which would be held in the Waterfront Capital Preservation Reserve Fund and used to pay for capital state of good repair costs for these parks in the first 5 years of their operation. On a go forward basis, WT would continue to contribute 10% of the park capital cost for additional waterfront parks as they develop.
Further discussion is required with other waterfront stakeholders to determine the appropriate mechanism for financing capital state of good repair costs for the Central Waterfront Public Realm. Options in this regard will be reported in 2009, when staff update the operating impact of waterfront renewal on all municipal programs and services.
The preliminary annual operating and capital state of good repair costs for Don River, Sherbourne and Jarvis parks are estimated at $2 million (operating) and $0.6 million (capital). These estimates will be refined based on detailed business cases to be submitted on a park specific basis as part of the City Operating and Capital Budget process for the year in which these parks become operational.
The Deputy City Manager and Chief Financial Officer has reviewed this report and agrees with the financial impact information.
Background Information
https://www.toronto.ca/legdocs/mmis/2008/ex/bgrd/backgroundfile-16643.pdf