A city councillor wanted to play hardball with the Township of Severn and the new owners of the Orillia Square mall Monday night but, after almost an hour of debate about the future of bus service to the mall, the city opted to back down.
As a result, Orillia Transit service will continue to the mall in Severn Township until at least April 30 of 2019.
Earlier this year, RioCan, the long-time owner of the mall property, decided to discontinue its annual funding of about $45,000 for Orillia Transit. While transit continued uninterrupted, the city started looking at options – including stopping service to the mall.
Then, in December of 2017, RioCan, announced it had sold the mall to Canadian Tire Real Estate Investment Trust (CT REIT). Bentall Kennedy, the property management company that now oversees the property on behalf of CT REIT, said the most they would contribute this year is $15,000.
That “offer” was not what Coun. Ted Emond was hoping for.
Emond suggested the city terminate transit service to the mall on June 30 if the mall and the township did not come up with the $45,000 that was requested. He said he is opposed to “extending taxpayer-subsidized services to surrounding municipalities.”
He noted the “Township of Severn has rejected a subsidy for this service. Why should we as taxpayers of Orillia subsidize bus service that the township is not willing to offer to one of its largest commercial taxpayers?”
Emond opined that there are “comparable retailers” located on a bus route in Orillia and noted there are “comparable employment opportunities in the retail sector available within the City of Orillia.”
He said if the mall owners and Severn aren’t willing to pay their fair share, the city could discontinue service to the mall and improve service “within our own jurisdiction.” He noted, for example, there is currently no bus service to the site of the new recreation centre – something that needs to be addressed before it opens next year.
But Coun. Mason Ainsworth said the service is too important to “arbitrarily” stop it.
“I do strongly support transit going out to Orillia Square mall,” he said. “What I’ve heard from some folks is that there is going to be mass renovations and more potential business coming there. They may not be paying taxes to Orillia, but I can tell you that the people that are working there contribute not only to our transit revenue, but to our tax base within the city. I’d like to see that continue.”
Emond countered that he would like to see it continue as well – if the township and mall owners pay their fair share.
“If they come up with money, let’s continue the service. It’ s been a good service (and) I see no reason why we shouldn’t continue if that continues, but this will at least make a very clear statement … that we, as a city, are firm in our decision to cease that operation,” said Emond.
Mayor Steve Clarke said he saw the logic in Emond’s stance.
“If we’re absolutely serious about entering a shared cost agreement … at some point, we need to send a message that they need to come up to the table,” said Clarke. “Why would they ante up any more money if … we are going to continue to waffle indefinitely? (We) need to send a message to the new mall owner to come to the table and be a serious partner.”
Coun. Tim Lauer also could see merit in “playing hardball.” However, he noted the timing of the decision was not ideal in that this term of council will end this fall. But that wasn’t his biggest concern.
“I would also point out this is a bit of a safety issue as well,” Lauer said, noting walking on the bridge over Highway 11 is perilous. “We continually have a lot of complaints about people trekking across that bridge.” He said transit service provides “ongoing access to a place they obviously want to work and want to shop.”
With that in mind, he said he was “willing to put up with a transition year” while negotiations on a more equitable deal continue.
There was some confusion about timelines, debate around potential stop dates, concerns about whether the decision should return to the council table after negotiations and other issues. A brief recess turned into a 15-minute delay that led to another long discussion.
In the end, council committee agreed to accept Bentall Kennedy’s offer and to continue providing transit service to the mall – for a reduced fee from them of $15,000 – until April 30, 2019. That is almost a year longer than the original concept presented Monday night.
While the deal is in place, staff is to “review and renegotiate” the agreement with Bentall Kennedy. If that negotiation is not successful in securing a minimum of $47,500, transit services would be discontinued as of April 30, 2019.
Clarke said the decision is “short-term pain for long-term gain,” and noted “this is a mechanism that gives staff significant leverage” in their negotiations.
Emond did not agree. He said the decision represents an even better deal for the mall and suggested if council was going to extend service until next April, they should, at the least, ante up more money.
“They are getting another four months service,” he noted, adding there’s a reason teachers strike during the school year; it’s a way to exercise leverage. He said the mall owners need to know “we don’t give things away in this city.”
Politics aside, the numbers show bus service to the mall is well used.
The transit stops at the Burnside Line mall generate approximately 40,000 passenger rides annually, which accounts for 27% of the total passengers on that route. The mall is also the most popular weekend stop and the third most popular weekday stop following Lakehead University and Georgian College.
Stopping service to the mall, staff noted, would have a considerable financial impact. Revenue from annual ridership is about $41,200. In addition, the city receives about $10,000 in gas tax funding based on that ridership.
