TORONTO – The city’s public bike-sharing program BIXI and its relationship with City Hall could be in for a tune-up.
A city staff report will be presented to Mayor Rob Ford’s executive committee next week citing BIXI’s “unsupportable debt load” and suggests options for restructuring Toronto’s financial relationship with the Montreal-based company.
Mayor Rob Ford told reporters Wednesday that he will not support subsidizing the bike sharing program.
The report calls BIXI “very successful” from an operational perspective and is a “key component of the transportation plan being developed for the Pan Am Games,” but it is having difficulty covering operational costs.
Currently, $3.9 million is left owing on the loan as of Dec. 31, 2012, according to the staff report.
Councillor Denzil Minnan-Wong, chairman of the public works committee, said he’s disappointed the program isn’t as financially successful as he thought it would be.
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He said BIXI has been told to divest itself of the Toronto franchise.
Cycle Toronto, a member-supported cycle advocacy group, is calling on City Hall to buyout the loan and take ownership of the program.
“BIXI Toronto is an important part of our transit system,” said Jared Kolb, Executive Director of Cycle Toronto. “Public bike systems fill the gap between trips too close for transit, but too far to walk. BIXI provides Torontonians with a convenient, practical alternative to transit for short trips, allowing them to bicycle to their destinations. We need to invest in and expand the BIXI system.”
According to the group, public bike systems in other cities are owned by municipalities.
BIXI Toronto has signed up 4,600 members since launching.
– with files by The Canadian Press
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