January 22, 1998

To: Urban Environment and Development Committee

From: Commissioner of Transportation

Subject: Vending on Major Arterial Roads (former Metro Roads)

Purpose:

To obtain approval to continue the current vendor lottery process in order to allocate the designated sidewalk/boulevard vending locations on major arterial roads (former Metro roads).

Funding Sources, Financial Implications and Impact Statement:

The vending system on the major arterial roads (former Metro roads) is designed to be financially self-supporting on the basis of the associated fees.

Recommendations:

It is recommended that:

(1) the current method of allocating sidewalk/boulevard vending spaces on major arterial roads (former Metro roads) by lottery be continued for another three year term, subject to an annual review of vending allocation policies and fees as outlined in this report;

(2) the vending locations listed in Attachment AA@ be deleted from the inventory of sidewalk/boulevard vending spaces; and

(3) the appropriate by-laws be amended accordingly.

Background:

Since 1991, vending locations established on sidewalks or boulevards on the former Metro road system have been nominated (subject to confirmation by Council after consultation with effected parties, such as abutting owners) by staff and allocated by lottery draw. This process has worked efficiently and has been accepted by the vending industry as a fair and equitable method to allocate vending spaces.

In 1991 through to 1995, the lottery draw was held every two years. Commencing in 1995, Council approval was granted to hold the draw every three years. The vendor lottery draw is scheduled to be held in 1998 prior to the expiry date of the current permits, April 30, 1998.

Comments:

At the present time, there are a variety of vending systems in place. For example, vending locations on roads that were under the jurisdiction of the former City of Toronto are allocated on a first come first served basis and the applicant submits a location for consideration. Vending locations on major arterial roads are determined by staff of the Transportation Department, confirmed by Council and allocated by lottery draw. In addition, there is a range of fees for vending within the new City of Toronto.

Amendments to Site Inventory:

At the present time 129 sidewalk/boulevard vending locations are designated on major arterial roads, with 99 sites located within the former City of Toronto and 30 in the other former municipalities. The establishment of vending locations in the suburban areas has not been very successful. For example, seven locations are designated in the Etobicoke district and no permits were issued for these sites in 1997 due to lack of interest by the vendors.

Since most of these locations were established prior to 1991, a review of each location has been carried out to ascertain their viability.

The review has revealed that some locations have been dormant for a long period of time, others have been tried and rejected numerous times and others are now in violation of the site approval criteria. The reason for the continuous returning of some sites is due to insufficient business. The sites that now fail to meet the site criteria are as a result of building modifications made by abutting property owners, in particular, the relocating of entrance ways or display windows to a position directly in front of the vending location.

It is very costly to issue and re-issue permits numerous times. Each time a permit is returned, records must be updated and a refund cheque prepared and mailed to the applicant. Also, the permit fee is $3,000.00 annually and the vendor expects to be able to recoup his costs and make a reasonable profit.

It is a benefit to vendors and to the City not to allocate vending locations that we know will not provide a satisfactory level of business for the vendor. It is therefore recommended that the vending locations listed in Attachment AA@ be deleted from the current inventory of sites. Following deletion of these sites, there will be a total of 78 spaces available for the lottery.

Lottery Process for Site Allocation:

As indicated previously, there are several different ways of acquiring a vending spot in the new City of Toronto. In the former City of Toronto area a vending space on a local road is awarded on a first come, first served basis. The space occupancy permit is renewed annually, and unless the vendor fails to renew it, it is essentially a space for life. On the former Metro road system (arterials), a vending space has been allocated for a three year period using a lottery process. The spaces are proposed by staff in consultation with vendor representatives and confirmed by Council. One of the basic distinctions between these two methods of allocating vending licenses is that the lottery system allows vendors a chance to gain entry to the industry in spots which would not otherwise be available under the first come, first served system. However, with the lottery system, an existing vendor will likely lose the space at the end of the three year term, and since there are always more names in the lottery than there are spaces, may not be able to continue in business. In the former municipality of North York, vending permits are provided on a first come, first served basis for a three year period.

Staff is considering the pros and cons of each space allocation system and other options for allocation, in the context of a review of all by-laws in the amalgamated city. Furthermore, the fees are being reviewed for harmonization. It is expected that these reviews will not be complete for some time, and in the meantime, a number of vendors, existing and new, have prepared themselves for the lottery process for spaces on the former Metro road system. Since the cost of acquiring the necessary start-up hardware and credentials is substantial, a three year permit period seems reasonable. To allow for possible changes as a result of the amalgamation reviews, the permit should be reviewed annually on the permit anniversary date. If a preferred allocation system and/or a revised fee schedule is determined by this date, the processes and fees can be amended at this time. In this regard, the existing by-law stipulates that Apermits shall be for a term of one year, and may be renewed by the permit holder for two additional one year terms, provided that no permit shall be valid beyond April 30 of the third year following the lottery draw . . . .@

Conclusions:

The lottery draw method for allocating vending spaces has been successful since 1991 and the vending industry is satisfied with this method. Furthermore, many vendors have made a significant investment with anticipation of securing a viable site for a three year period to recoup their costs and to make a reasonable profit. It is therefore recommended that the lottery draw be held in 1998 and those non-viable vending locations listed be deleted from the current inventory of sites.

Contact Name:

Mr. Ron Rout, Toronto Transportation

Metro Hall Office, Road Allowance Control Section

Phone No. 392-5365, Fax No. 392-6517

E-mail address: Ron_Rout@metrodesk.metrotor.on.ca

D. P. Floyd

Commissioner

Reviewed by Barry Gutteridge

Acting Executive Commissioner

RR/tm:wo

Attachment "A"

SITES WITH CRITERIA CONFLICT:

7 BLOOR ST. E., NORTH SIDE, 35.59 M EAST OF YONGE ST.

17 BLOOR ST. W., NORTH SIDE, 16.24 M EAST OF BAY ST.

18 BLOOR ST. W., NORTH SIDE, 43.94 M EAST OF BAY ST.

35 BLOOR ST. W., NORTH SIDE, 18.06 M WEST OF YONGE ST.

81 UNIVERSITY AVE., EAST SIDE, 40.00 M NORTH OF EDWARD ST.

110 ADELAIDE ST. W., NORTH SIDE, 15.80 M WEST OF DUNCAN ST.

SITES NOT ISSUED DURING 1995, 1996, 1997:

4 BLOOR ST. E., SOUTH SIDE, 11.72 M WEST OF JARVIS ST.

20 BLOOR ST. W., SOUTH SIDE, 10.57 M EAST OF BEDFORD RD.

21 BLOOR ST. W., SOUTH SIDE, 13.82 M EAST 0F DEVONSHIRE PLACE

32 DANFORTH AVE., NORTH SIDE, 30.00 M WEST OF DONLANDS AVE.

54 QUEEN'S PK. CRES., WEST BRANCH, 72.22 M NORTH OF HOSKIN AVE.

74 UNIVERSITY AVE., WEST SIDE, 35.82 M NORTH OF DUNDAS ST. W.

91 UNIVERSITY AVE., WEST SIDE, 5.40 M SOUTH OF GERRARD ST. W.

106 YONGE ST., EAST SIDE, 25.22 M SOUTH OF WELLINGTON ST. E.

303 THE QUEENSWAY, NORTH SIDE, 13.10 M EAST OF UNO DR.

304 THE QUEENSWAY, SOUTH SIDE, 34.70 M EAST OF ROTHSAY AVE.

307 DUNDAS ST. W. , NORTH SIDE, 21.50 M WEST OF BURNHAMTHORPE RD.

308 DUNDAS ST. W. , SOUTH SIDE, 2.30 M EAST OF ROYAL AVON CRES.

412 ELLESMERE RD., SOUTH SIDE, 8.50 M WEST OF NEILSON RD.

84 UNIVERSITY AVE., EAST SIDE, 11.22 M NORTH OF ELM ST.

SITES NOT ISSUED 1996, 1997:

33 DANFORTH AVE., SOUTH SIDE, 85.22 M WEST OF GREENWOOD AVE.

41 DANFORTH AVE., NORTH SIDE, 13.97 M WEST OF GREENWOOD AVE.

61 SPADINA AVE., EAST SIDE, 110.26 M NORTH OF LAKE SHORE BLVD.

65 SPADINA AVE., EAST SIDE, 8.70 M SOUTH OF BALDWIN ST.

85 UNIVERSITY AVE., EAST SIDE, 12.72 M NORTH OF GERRARD ST. W.

96 YONGE ST., EAST SIDE, 6.83 M NORTH OF S. EDGE GRANBY ST.

104 YORK ST., WEST SIDE, 18.15 M NORTH OF QUEEN'S QUAY W.

107 YONGE ST., EAST SIDE, 10.02 M NORTH OF WOOD ST.

201 YONGE ST. , EAST SIDE, 152.50 M NORTH OF BISHOP AVE.

202 YONGE ST. , WEST SIDE, 18.20 M NORTH OF ELMHURST AVE.

214 DON MILLS RD. , WEST SIDE, 12.20 M NORTH OF SCIENCE CENTRE DRIVEWAY

314 BURNHAMTHORPE RD., NORTH SIDE, 95.00 M WEST OF THE WEST MALL.

401 WARDEN AVE., EAST SIDE, 14.00 M NORTH OF BRIDLETOWNE CIRCLE

SITES RETURNED 2 TIMES OR MORE: NO. OF TIMES RETURNED

22 BLOOR ST. W., SOUTH SIDE, 30.00 M WEST OF BAY ST. 2

28 BLOOR ST. E., NORTH SIDE, 6.86 M EAST OF PARK RD. 2

46 LAKESHORE BLVD W., SOUTH SIDE, 7.00 M EAST OF REES ST. 2

58 QUEEN'S PARK, WEST SIDE, 12.92 M NORTH OF COLLEGE ST. 2

68 UNIVERSITY AVE., EAST SIDE, 14.00 M SOUTH OF PEARL ST. 2

76 UNIVERSITY AVE., WEST SIDE, 194.00 M NORTH OF QUEEN ST. W. 2

92 UNIVERSITY AVE., WEST SIDE, 18.50 M NORTH OF WELLINGTON ST. 2

206 YONGE ST. , WEST SIDE, 12.80 M NORTH OF NORTH YORK BLVD. 2

209 YONGE ST. , WEST SIDE, 13.40 M SOUTH OF FINCH AVE. W. 2

306 BLOOR ST. W. , NORTH SIDE, 15.60 M WEST OF ISLINGTON AVE. 2

410 MORNINGSIDE AVE., EAST SIDE, 29.00 M NORTH OF LAWRENCE AVE. 2

3 BLOOR ST. E., SOUTH SIDE, 9.45 M WEST OF CHURCH ST. 3

8 BAY ST., EAST SIDE, 39.00 M NORTH OF QUEENS QUAY W. 3

40 DUNDAS ST. W., SOUTH SIDE, 43.18 M EAST OF BAY ST. 3

71 UNIVERSITY AVE., EAST SIDE, 28.00 M NORTH OF RICHMOND ST. W. 3

97 YONGE ST., WEST SIDE, 45.52 M NORTH OF QUEEN'S ST. W. 3

310 DUNDAS ST. W. , SOUTH SIDE, 11.80 M EAST OF SUBWAY CRES. 3

26 BLOOR ST. W., SOUTH SIDE, 133.50 M WEST OF QUEEN'S PK. 4