Bixi Toronto always expected city to invest, but Mayor Rob Ford says nix to Bixi
That Bixi Toronto is struggling financially shouldn’t come as a surprise to city council.
When councillors signed off on the deal in 2010, the understanding — although there was no official vote — was that the city would invest in and expand the bike-sharing network once it got off the ground, says Daniel Egan, the manager of cycling infrastructure and program.
The program was never going to succeed at its current level: 1,000 bikes and 80 stations. A Bixi spokesperson said Tuesday that the system needs a fleet of 3,000 to get out of the red.
“Bixi Toronto is not in a position to spend any more of their money to expand the system,” said Egan. “I think the expectation when this was being developed was that Bixi would launch the program and then, once successful — at some future point — the city would invest … I think there was an expectation from Bixi that the city would come to the table.”
According to Egan, other cities that operate Bixi programs are typically investing their own money and/or using grants to expand the system’s infrastructure.
The City of Toronto has spent no money on the Bixi program, although council did guarantee a $4.8 million loan.
And while staff says the program has proved “very successful,” Bixi Toronto is struggling financially because of its high debt load and underdeveloped network. Toronto is on the hook if Bixi defaults, though there is no suggestion that that is imminent.
Later this month, city staff will circulate a confidential report to councillors with recommendations.
On Wednesday, Mayor Rob Ford made it clear where he stands.
“I’m not going to subsidize it. Absolutely not,” he told reporters. “If they can’t pay for it, then obviously we have to take other actions. It’s unfortunate. That’s why I’m always careful when people come and ask us for money.”
Trinity-Spadina Councillor Mike Layton, who has championed the program at city hall, said Toronto has options besides direct subsidies.
Layton says it could look at sponsorship opportunities. He’d also like to consider allocating some development charges to expanding the network.
Speaking off the top of her head, downtown councillor Kristyn Wong-Tam, a left-winger with bona fide business credentials, suggested partnership with a cellphone company: “Sign up for a contract and get a free membership for a month,” she said. (Wireless company Telus is already a “partner” of the program and its name appears on bikes.)
Wong-Tam also appeared to favour exploring ways Toronto can help Bixi without directly contributed to the company’s coffers.
The debate will come to executive committee April 23.
With files from Paul Moloney
