Item - 2025.PA15.4

The Board of Directors of the Toronto Parking Authority:

1. Recommends that City Council request the Executive Director, Corporate Real Estate Management, and the Toronto Transit Commission Board to request the Chief Executive Officer, Toronto Transit Commission, to jointly prepare a business case for the required rehabilitation to Car Park 36, located at City Hall and Car Park 52, located at 40 York Street, in collaboration with the President, Toronto Parking Authority, and to submit for consideration as part of the 2026 Budget Process.

At its meeting on June 25, 2025, the Toronto Parking Authority - Audit and Risk Management Committee considered Item PR10.3 and made recommendations to the Board of Directors of the Toronto Parking Authority.

Summary from the report (June 4, 2025) from the President, Toronto Parking Authority:

The purpose of this report is to provide the Board of Directors of the Toronto Parking Authority (TPA) with an overview of the Toronto Parking Authority’s State of Good Repair (State of Good Repair) strategy - a key component of the organization’s Capital Expenditures (CapEx) program. The report includes a summary of the State of Good Repair strategy, 2024 State of Good Repair performance and presents the forward-looking plan for 2025 and beyond.

Toronto Parking Authority has adopted a proactive, long-term approach to infrastructure management by fully integrating our Asset Management Program (AMP), State of Good Repair Strategy, and Enterprise Risk Management (ERM) framework into our capital planning and funding processes. This integrated framework enables Toronto Parking Authority to take a risk-based approach to State of Good Repair projects that deliver our strategic imperatives while optimizing financial performance and resource allocation.

Post 2017, Toronto Parking Authority’s underinvestment in infrastructure led to a deficiency in State of Good Repair resulting in a growing backlog of rehabilitation and critical repairs negatively impacting our parking portfolio. To address these shortcomings, in 2021 management conducted an extensive Building Condition Assessment (BCA) of Toronto Parking Authority owned parking garages and parkades (lots). The results of the Building Condition Assessment program revealed an estimated $280 million (adjusted to 2024 dollars) backlog in State of Good Repair work over the next 10 years.

In response, the Toronto Parking Authority implemented a streamlined State of Good Repair strategy - a structured, facility-by-facility approach that systematically assesses, repairs, restores, and refurbishes each site sequentially before moving to the next project. Management began addressing the first five priority garages between 2023 and 2025.

The efficacy of this approach is reflected in Toronto Parking Authority’s improved State of Good Repair capital execution. From 2018 to 2021, only 11 percent of the planned State of Good Repair budget was spent annually. Since launching the new program in 2021, performance has improved, with $20.17 million (88 percent) of planned State of Good Repair work delivered in 2023 and $15.38 million (72 percent) in 2024. In 2025, Toronto Parking Authority has allocated $12.6 million of State of Good Repair Capital Expenditures at three garages.

Toronto Parking Authority has identified a State of Good Repair backlog of approximately $280 million over the next 10 years, adjusted to 2024 dollars. The recently established Net Income Share Agreement with the City of Toronto is expected to support $128 million of this total. The remaining $152 million is associated with two major rehabilitation projects—Car Park 36 (CP36) and Car Park 52 (CP52)—which are currently excluded from the agreement.

Although the projected costs for Car Park 36 and Car Park 52 are included in the overall backlog figure, these facilities are not part of the active State of Good Repair program. Both locations are physically integrated with other City-owned infrastructure, operated by Corporate Real Estate Management (CREM) and the Toronto Transit Commission (TTC). As a result, they present complex funding, operational, and governance challenges that extend beyond Toronto Parking Authority’s direct mandate. These projects represent a significant capital challenge that will require cross-divisional collaboration and alignment of priorities to proceed. Management will update the Audit and Risk Committee regarding next steps with these facilities in 2026.

Over the next decade, continued investment will be required to address both current and emerging infrastructure deficiencies, while keeping current with ongoing repair and maintenance requirements. Toronto Parking Authority’s goal is to reach a steady state by 2030, where 80 percent of garages are in good repair, 10 percent are in the repair planning phase, and 10 percent requiring immediate action. Continued investment, guided by robust asset management systems, will enable Toronto Parking Authority to assess, restore, and modernize its infrastructure, reinforcing our commitment to safety, operational excellence, and long-term value creation.