Province to pay rent for a privately-owned ServiceOntario in downtown Toronto

The Ford government is stepping in to pay the rent of a privately-owned ServiceOntario outlet in downtown Toronto.

While sources had told CityNews this was related to Staples, the Premier’s office confirms that is not the case, but instead has to do with personal reasons related to the operator of the 33 Victoria Street location.

The government said in a statement, “ServiceOntario worked with the private service provider and reached an agreement for an 18-month contract that ensured no service gaps in the community.” 

Normally, the government doesn’t incur any costs for privately-run ServiceOntario locations like 33 Victoria. The operators pay their own rent, utilities, and wages.

CityNews was unable to reach the operator for comment.

When asked specifically if this was due to Staples pulling out at the last minute, a spokesperson for the Minister of Public and Business Service Delivery, Todd McCarthy, said it was, “not correct” but did not answer any further questions, or return calls from CityNews.

Critics say the government paying the rent for a private business is “highly unusual.”

“I think it’s highly unusual and an abuse of taxpayer dollars for the government to be paying the rent of a privately-owned business,” said Ontario Green Party Leader Mike Schreiner. “This whole ServiceOntario scandal does not pass the smell test and again, it’s another example of the government engaging in backroom deals with wealthy, well-connected insiders at the expense of ordinary Ontarians.”

Sources tell CityNews that while the government is paying the rent for this private operation for 18 months, it’s providing no funds for the 11 privately-run ServiceOntario locations that are being shut down. The government is not providing any severance, or covering any remaining months on those leases.

CityNews reported exclusively on Monday that the government is paying for the necessary store upgrades at the Staples and Walmart stores that will host ServiceOntario outlets.

Staples, in a job posting, said it’s looking to monetize the arrangement.

“The Regional Service Manager-Service Ontario, in alignment with the organization’s strategy and tactics will execute accordingly to influence the monetization of Service Ontario traffic,” read the posting from Staples.

The contract given to Staples was sole-sourced and not put to tender, meaning other companies could not openly bid on it.

A spokesperson within the Premier’s office said the government conducted lengthy consultations with retail partners and that Staples Canada was selected due to the size of its stores, parking availability, number of locations across Ontario, and willingness to participate

McCarthy’s office continues to not respond to requests for an interview with CityNews on the latest updates on ServiceOntario.

Editor’s Note: A previous version of this story stated sources told CityNews the reason the province would be paying the rent of the Victoria Street ServiceOntario is because Staples passed on the location last minute. The government has confirmed this is not the case.