FINANCE

Securitization: Port Lands Acceleration Plan

Prime Contractor: Cushman & Wakefield
Client: Waterfront Toronto
Date: October 2011
Location: Toronto, ON

Situation


The Port Lands is a 1,000+ acre industrial waterfront site situated east of downtown Toronto and slated for major redevelopment. However, extensive flood protection engineering is required before development can take place. The team helped provide development value and tax increment estimates that might fund infrastructure improvements. Additional team members included AECOM, Scotia Bank, and Urban Strategies.


Goals

  • Estimate the potential scale and value of future mixed-use development at the Port Lands and create a plan to catalyze implementation.

  • Develop securitization strategies to maximize potential capital outlays based on future value of redevelopment.
     

Services

  • Dr. Charles Warren led subtasks including a global survey of comparable redevelopment sites, a global survey of the structures and successes of urban redevelopment corporations, and a regional competitive analysis of industries that would benefit from the Port Lands’ location and work force.

  • The team evaluated and prioritized potential land development alternatives, and then quantified future development revenue streams and infrastructure expenditures, comparing the relative ability of alternatives to generate tax increment revenues to finance bond issues.


Results

  • The team produced a robust roadmap for future development of the Port Lands, enabling bond issues that will finance required infrastructure.