Again.. there is no parking garage subsidy at Ontario Place, or at least only a relatively small one.
You really have to walk that back. It is a cost incurred on behalf of a private operator, for which the government is liable.
That is subsidy by any reasonable description. Will that subsidy be offset by revenues?, clearly the answer is yes, how much so is a matter of some conjecture.
Excluding amortized cost of construction, a garage like this will have at least a 15M annual operating tab (lighting, staff, security, routine maintenance etc.
The province is anticipating it will be a profitable garage (or at least cover its own costs). It's a pay-for-use garage which will see a lot of regular turnover for visitors to the Science Centre, Therme, RBC Amphitheatre, BMO Place, etc. It's not equivalent to a transit project which requires operating subsidies heaped on top of a 100% capital write-off.
Really? If East Harbour Station is a prerequisite for the development proposed by Cadillac Fairview, What would the resulting tax generation look like?
Would a 'trophy' level of architecture here enhance that number by even 6-8% per annum?
Maybe it's not such a write-off after all.
The Ontario Place garage is wildly expensive, yes. But if it gets anywhere close to the amount of traffic expected of it
That's a big IF.
, it will pay for the vast majority of the cost on operating profits. The province is spending $400 million on it but is anticipating $60 million in annual revenue.
Let's use my numbers above.......and assume, 45M in net operating revenues.
But you have to offset ~400M in debt, financed at ?? ( let's assume it's general government debt, which is being generous, ~4%)
Annual Ammortization ~13M per year. (at commercial rates ~18M)
So, net profit is something like 32M, maybe.
Your profit covers your costs to break-even in 16 years.
That's below what business would typically accept for ROI.
I expect more than double that on my investments.
