Additional Project Costs - Purchase of Stratified Interest in 11 Wellesley Street West (Municipal Car Park 304)

At its meeting of January 19, 2017, TPA Board of Directors approved the acquisition of approximately 132 parking spaces at a cost of $50,000 excluding Harmonized Sales Tax (HST) per space for a total of $6,600,000 excluding HST. An additional $350,000 was also approved for closing costs (e.g., land transfer taxes, environmental studies, legal fees, and other transaction-related costs), as well as TPA's installation of parking equipment, for a total approved project cost of $6,950,000 excluding HST. The Agreement with the Vendor allows for TPA's acquisition of additional parking spaces at a cost of $50,000 excluding HST per space in the event the design of the underground parking garage can be optimized to add more parking. Construction of the development, including the municipal parking facility, is nearing completion. Turnover of the parking facility to TPA is scheduled for mid-2020. Operation of the facility would commence immediately thereafter. TPA has recently been informed by the Vendor that the design of the parking garage can accommodate two (2) additional parking spaces for a total of 134 parking spaces. In addition, TPA is forecasting a shortfall in approved spending for construction build out costs, parking payment equipment and closing costs (collectively referred to as Additional Costs). The purpose of this report is to request approval from TPA Board of Directors for the additional two (2) parking spaces at a cost of $100,000 excluding HST. In addition, TPA is requesting $220,370.67 excluding HST to cover additional expenditures exceeding the original estimate related to construction build out, parking equipment and closing costs. The additional project costs will result in a total project cost of $7,270,370.67 excluding HST. Sufficient funding is available in the approved 2020 Capital Budget to cover the total project costs.