Ford proposes asset sale: Enwave and 10 per cent of Toronto Hydro
Toronto is looking to sell assets, including its share of the downtown’s district heating and cooling system, real estate and a 10 per cent stake in Toronto Hydro to help solve its financial woes.
The proposed sale, to be considered by the executive committee next week, is expected to raise as much as $600-million over the term of the current council once lawyers and bankers take their share. The money will be used to fund capital projects, rather than day-to-day operating expenses, says a staff report made public Tuesday. The move will result in some loss of revenue for the city, the report says, but will save Toronto about $65-million in debt charges over a decade. Following that period, the sale will cost the city about $10-million per annum in lost revenue, the report states.
Assets that could go on the block include the city’s 43 per cent stake in Enwave Energy Corp., the decades old system that uses a network of underground pipes to heat more than 140 buildings in the downtown core and more recently began to use water from the deep below the surface of Lake Ontario to cool buildings. The remaining share of Enwave is owned by OMERS, a public-sector pension fund.. As well, the report recommends the sale of 10 per cent of Toronto Hydro to the public through an initial public offering, with special consideration being given to local residents. The sale of some of the city’s close to $16-billion in real estate holdings is also recommended. The city has already identified 32 properties worth an estimated $230-million for sale, the report states.
This is not the first time the idea of selling all or part of Toronto Hydro has been floated. Rocco Rossi, who ran against Mayor Rob Ford in last year’s election, made it part of is election platform – an idea Mr. Ford spoke against on the campaign trail.
Asked Tuesday if the proposal marked a change of heart, the mayor said he is against the city selling all of its hydro operations, but is open to a partial sale.
“What I said during the election is that I am not going to sell all of hydro. Some of my competitors said that,†Mayor Ford told reporters. “There is a report going forward saying 10 per cent only...The people of this city might want to buy shares in Hydro. [Let’s] take a different approach to it and see how that works.â€
The mayor added that he has always supported the sale of Enwave.
“This is going to come forward to the executive committee and we are going to have our debate,†he said. “It’s going to create millions and millions of dollars of revenue.â€
