The growing parking problem
Located at Highway 7 and 404 in Richmond Hill Ontario, York Power Centre is a popular destination featuring six free standing restaurants.
The nine-acre site provides 930 parking spaces, however over time it became apparent the lot was being routinely used by tenants and visitors from the buildings adjacent to York Power Centre campus.
Colliers Real Estate Management Services (REMS) was responsible for the maintenance of the parking lot and found it unacceptable that they were undertaking property repairs and asphalt replacement associated with the wear and tear being created in part by usage from other buildings.
The challenge was further exacerbated by the fact that cars from adjacent landowners were often using the parking lot during peak times for York Power Centre restaurant clientele, reducing available spaces and increasing congestion.
Finding a legal solution
In an effort to resolve the problem, interviews were undertaken with city officials regarding the site development as well as any governing parking lot agreements.
The local land registry office was also consulted to see if there was a legal case for joint responsibility in terms of parking lot maintenance and ongoing repairs.
After an intense search and investigation, REMS came across an old shared parking agreement registered on the York Power Centre site—the document had legal implications for the adjacent landowners.
The agreement contained provisions that required surrounding buildings to contribute to the operational costs of the shared parking lot. REMS put the adjacent landowners on notice regarding the newly located agreement, informing them that going forward it would be enforced.
In response to initial objections, REMS implemented a paid parking system that reinforced the fact that it was in their best interest to abide by the shared parking agreement rather than the alternative paid arrangement.
Faced with the full enforceability of the shared agreement, the adjacent landowners agreed to share the maintenance costs associated with the parking lot, allowing York Power Centre to generate over $238,000 per year.
Success by the numbers
- New parking agreement generated over $238,000 per year
- Effectively managed risk by sharing maintenance costs
- Delivered an unexpected and highly effective solution
Never give up on a problem or be afraid to dig—the client loved what REMS accomplished through their persistence and will continue to reap the rewards for many years to come!