Item - 2025.TTC4.5

The TTC Board:

1. Directed TTC staff to:

a. Freeze current parking fees at all commuter lots, and conduct further analysis of the parking rates.
b. Consult with the President, Toronto Parking Authority and PRESTO to explore payment options maintaining lower differential parking fees for TTC customers than parking fees paid by those not transferring onto the transit system, and report back Q3 2026.

2. Approved re-negotiating the leases respecting the Finch West Station and the Pioneer Village Station parking lots to reduce the size of the lots (reducing the number of parking spaces) to better match current demand.

3. Approved retaining the following, non-City-owned, leased parking lots for customer use and monitor lots underutilized or below target utilization for potential future changes in alignment with demand and lease/license conditions:

• Kipling Station – North (well utilized)
• Kipling Station – South (well utilized)
• Finch Station – West (well utilized)
• Finch Station – East (below target)
• Islington Station – Lomond (well utilized)
• Highway 407 Station (well utilized)
• Yorkdale Station (underutilized)
• Islington Station – Fieldway (below target)
• Don Mills (underutilized)

4. Approved retaining the following City-owned parking lots for customer use while continuing to monitor utilization and investigating opportunities for alternative TTC uses, community uses and/or future redevelopment potential with City partners as operational needs evolve:
• Lawrence East Station (underutilized)
• Ellesmere Station (underutilized)
• Keele Station (well utilized)
• Kennedy Station – South (currently repurposed for bus operations)
• Leslie Station (well utilized)
• Wilson Station –Transit Road (well utilized)

5. Approved the revised Corporate Policy “Commuter Parking” in Attachment 5 to:

a. eliminate requirements to replace parking spaces on a 1 for 1 basis when parking lots are redeveloped;
b. commit to reviewing and adjusting parking rates concurrently with transit fare adjustments; and
c. include a target utilization rate for parking lots at 85% with rates adjusted to optimize usage and ensure availability.

At its February 2023 meeting, the Board directed staff to review the TTC’s Commuter Parking Lot Strategy (the “Strategy”) in response to a significant increase in fees to license Hydro One Networks Inc. (HONI) lands for use as commuter parking lots. TTC has completed the review and, in this report, proposes a refreshed strategic direction.

To develop this new direction, TTC has considered various factors, including operating costs, current and projected utilization, pricing, North American transit station parking best practices, local and regional policies and plans, legislation and trends, and peer reviews, which have informed the analysis and recommendations of this report.

The policy context in which TTC’s commuter parking lots are situated has changed over the past decade. In March 2024, City Council directed staff to explore specific real estate portfolios, including City-owned parking facilities, that could support city building, the City's housing plan and fiscal sustainability goals, as part of the Long-Term Financial Plan Update and from the agreement between the City and the Province, as part of the Recovery Through Growth Act (City of Toronto), 2023. Furthermore, a need to increase non-fare revenue has been identified to better support the provision of TTC services and reduce TTC’s reliance on the farebox. The Strategy supports the TTC's Corporate Plan, by increasing non-fare revenue, as highlighted in Action 5.2.3. Maximize Non-Fare Revenue Streams. The Strategy also aligns with TTC’s Non-Fare Revenue Strategic Review, which outlines additional opportunities to maximize the use of TTC assets, including parking lots for revenue generation. The TTC’s Non-Fare Revenue Strategic Review is expected to be brought to the Board for approval in Q2 2025.

TTC’s commuter parking portfolio includes 23 parking lots, as outlined in Attachment 1 – List of TTC Commuter Lots. The list identifies seven lots that are planned to be repurposed for Housing Now projects, as approved by City Council. All parking lots are under evaluation in collaboration with CreateTO to assess their redevelopment potential as directed by City Council in the Long-Term Financial Plan. Early analysis shows that most lots have limited redevelopment potential due to non-City-ownership (e.g., HONI Lands), or restrictive encumbrances (e.g., utility corridors, parking under an overpass). Of the 23 parking lots, three parking lots are currently closed and repurposed for bus operations or construction. For the remaining parking lots, performance was assessed based on utilization and financial viability. Ten are considered well utilized, two fall below the target range, and seven are underutilized. Benchmarks for categorization can be found on page 12 and 13 of this report. The Yorkdale Station lot is excluded from the utilization analysis as it is not operated by Toronto Parking Authority, while the Victoria Park Station lot is excluded as it will be permanently closing in June 2025.

Overall, TTC commuter parking lots have been operating at a financial loss over the past several years. According to utilization data, direct revenue generated from parking rates does not cover the expenses for maintenance, snow clearing and leases. Additionally, only 2% of TTC customers accessing the subway park in a TTC parking lot, meaning that fares of non-drivers and City subsidies are being used to make up for the lost revenue required to maintain and lease these parking lots.

This report provides recommendations on opportunities to optimize parking assets, support city building objectives, offset inflationary costs, increase ridership and enhance overall TTC revenue. Furthermore, TTC will continue to progress 5-Year Service & Customer Experience Action Plan initiatives to facilitate easier last kilometre transfers to and from TTC stations.