THUNDER BAY -- City council has received formal advice not to sell off Thunder Bay’s two municipally owned parkades ahead of a Monday vote on the issue.
In a report, administration recommended against putting the assets up for sale, saying they continue to provide value to the downtowns and the city should instead focus on mitigating their long-running financial losses.
Feedback from stakeholders in the business community also urged council to at least delay the decision.
Coun. Aldo Ruberto has championed the sale, arguing the money-losing parkades aren’t necessary due to oversupply of parking in the downtowns.
If council supports his motion on Monday, the structures would be put up for sale, though city staff have suggested there may be little interest from the private sector, given their known history of operating losses.
The parkades have run average yearly deficits of just under $200,000 over the past decade, the city's report found, though it stated the facilities were never intended primarily to generate revenue.
They lost a combined $281,500 in 2019, with the Victoriaville location accounting for more than 94 per cent of those losses.
The losses are currently covered by metered parking and other revenues to the Parking Authority.
City staff project annual losses will fall to $150,000 thanks to increased parkade rates and a strategy to stretch out capital maintenance over longer time frames.
Administration's report argues that loss is justified by the parkades' benefits.
"In the downtowns, the Zoning By-law intentionally permits development without the parking required to support it, recognizing that the city has committed to providing a supply," it reads. "This allows for the continuation of the historic built form, which supports a vibrant pedestrian environment
that is not dominated by on-site parking lots."
The report mentions the possibility of renting unused space in the parkades to groups like car rental agencies. Realty services manager Joel DePeuter said it's unknown how much interest there could be from outside groups, but the city would pursue the idea if council votes to keep the parkades.
Administration also presented feedback from local business groups, who urged council to wait given major developments in the downtown.
“There are significant transitions underway in both the Waterfront BIA and Fort William BIA that make it very difficult to appropriately evaluate the long-term requirements for parking in these districts,” wrote Thunder Bay Chamber of Commerce president Charla Robinson in a letter.
The Waterfront BIA suggested the decision should be delayed “until a robust report is presented” with more public consultation and analysis of the potential impact to businesses.
The CEDC stated the two parkades should be considered separately, suggesting the Waterfront Parkade in the north end was more valuable and should be retained.
The Fort William District said it was “neutral” on the issue thanks to city councillors on the board who had “very passionate but opposing views.”
