The City of Toronto’s Executive Committee has booted the Bixi bike deal back to staff in an effort to save the shaky bike-sharing program.
If a new deal cannot be reached the city would be on the hook for the $3.9-million loan given to the program in order to bring it to Toronto, and Bixi Toronto Inc. cannot meet its debt payments or repay the $1-million owed to suppliers.
“We are trying to save Bixi. We’re not sure it’s possible to save Bixi. We are concerned that they do not have a handle on their affairs and we are concerned that they keep changing the terms of the agreement that we are trying to reach.”said Executive Committee member and Councillor Denzil Minnan-Wong.
The councillor went on to tell Newstalk 1010’s Amber Gero that a deal was in place and was set to be debated by the Executive Committee on Wednesday, but at “the eleventh hour they phoned us and said no deal.”
Minnan-Wong says Bixi Toronto Inc has been making it difficult for the city by changing the terms of the agreement and asking for “unreasonable things”. However because the details of the deal are confidential, the councillor couldn’t go into great detail.
The issue of what to do with the beleaguered bike program has been sent back to city staff in an effort to hammer out a new deal. The results will go to City Council for a vote in November.