Funding
When initial costs were estimated in 2001, it was believed the revitalization project would total $17 billion, where $4.3 billion was funded from the public sector and $12.7 billion was funded from the private sector. However, due to construction inflation, the total estimated costs were raised to $34 billion. Additional funding is expected to be obtained by public-private partnerships (P3s).
As of March, the corporation and its tri-government had invested $1.5 billion in projects. In the 2015/2016 year, it plans to invest another $73.2 million. It is estimated 91 per cent of the $1.5 billion of the governments funding will be fully invested in waterfront revitalization. The additional revenue is expected to be obtained through land sales and P3s.
The breakdown of funds for the total support of the project include:
- $1.5 billion in government seed funding;
- $79 million in additional government supported investments; and
- $321 million in Waterfront Toronto generated revenue.
These equal a total capital investment of $1.9 billion, and do not include projects or initiatives without formal commitment and support from the tri-government. To date, Waterfront Toronto and the tri-governments have invested $769.5 million in projects, unlocking $10 billion of potential private sector investments and creating new public spaces, municipal infrastructure, and tourism amenities. These investments include:
- $219.6 million in municipal infrastructure utilities and flood prevention;
- $113.6 million in land acquisition;
- $161 million to make or improve parks;
- $230.1 million for development approvals, master planning, and environmental approvals;
- $45.2 million in corporate overhead;
- $130 million in GO transit;
- $25 million for the Union Pearson Express—a passenger train directly connecting Union Station and Pearson International Airport; and
- $9.3 million for staff salaries.
Using these investments and their returns, Waterfront Toronto has completed public and private sector development deals valued at $1.475 billion—far exceeding the $965 million of public funding spent.
During 2014/2015, 80 per cent of funding was derived from government funding, while 20 per cent was revenue generated by Waterfront Toronto itself. In 2015/2016 it is estimated government funding will lessen to 54 percent while Waterfront Toronto revenue will increase to 46 per cent. This increase in reliance on Waterfront Toronto funding will require an increased dependence on business development and revenue opportunities.
Another new initiative in 2015/2016 is the introduction of a philanthropic plan to begin targeted fundraising and partnerships aligned with public realm projects. Once the corporation has a finalized plan, it can better understand the corporate business efforts and resources required to support these fundraising efforts.
