A community-based nonprofit is calling out the City-owned Toronto Parking Authority (TPA) and alleging it has nearly doubled the rent for a business in the Kensington Market neighbourhood.

The Kensington Market Community Land Trust (KMCLT) — one of a handful of such organizations fighting to keep commercial rents affordable — attacked the TPA on social media this week with a scathing thread alleging unfair rent hikes for a business on Baldwin Street.

The TPA leases out six commercial spaces on Baldwin Street, on the ground floor of its Green P multilevel garage.

According to KMCLT, one of the tenants of these spaces — Dipped Donuts — recently renewed their lease with TPA and had their rent nearly doubled from $45.89 per square foot ($1,414.94 per month) to $80 per square foot ($2,559.17 per month).

Today we're calling out the Toronto Parking Authority (TPA/Green P) for rent increases in Kensington Market. TPA, which is owned by the City, has nearly doubled the rent for a small business in Kensington Market. We have also seen another business under TPA lands go under lately. pic.twitter.com/kYaSTocbnc

— Kensington Market Community Land Trust (@KMCLandTrust) June 5, 2024

In a follow-up post, the KMCLT shared revenue figures for the parking authority, asking, "does TPA need to jack the rents of these small businesses?"

"TPA states this parking facility on Baldwin is among their TOP 15 MOST productive garages, with $1.65 million in revenue for 2023, which was $500k BETTER than pre-pandemic in 2019," the thread continues.

The thread posted by KMCLT goes on to slam the apparently thriving TPA, asking "why gouge small businesses for just a few thousand $ more each month?"

In addition, the recent construction work on the parking garage will cost $7.5 MILLION (excluding HST) for renovating 417 parking spaces. Thus, if the site is so productive & worth investing 7.5 Million in, why gouge small businesses for just a few thousand $ more each month?

— Kensington Market Community Land Trust (@KMCLandTrust) June 5, 2024

The posts allege that this practice "exemplifies City-led displacement and gentrification," accusing the City of "pushing out small businesses to seek higher-paying tenants."

"To TPA, these spaces are just budget lines; to us, they are small business owners trying to make a living."

A City of Toronto representative tells blogTO that the City "is committed to working with tenants to support rent changes and is currently in negotiations with this tenant."

"In situations when there are rent increases to bring a property up to its current market value, the City endeavours to implement the increase in a phased in approach to minimize the impact on tenants."

The City claims that the tenant in question "has not had a rent increase since 2018," and that the TPA is "required to charge market rent to commercial tenants under the City of Toronto Act and treats all tenants equally and transparently in the determination of rent."