After selling its streetlights to Toronto Hydro in 2005 to raise $60 million, the City of Toronto will pay more than $420 million over the next 30 years to rent the lights back, the contract agreement shows.

The controversial contract was obtained by the Greater Toronto Electrical Contractors Association through a freedom of information request — which the city strongly opposed.

Bob O’Donnell, executive director of the association, said the sale is likely a poor deal because no one else was allowed to bid for the streetlights.

Toronto Coun. Denzil Minnan-Wong said he agrees. “We sold it off in desperation and didn’t get a good price for it.”

Adjusted for inflation: The agreement lists the annual payment as $13.6 million, but the amount is adjusted yearly for inflation. That means the cumulative payment over the 30-year life of the contract will top $420 million.

Source: Metro News http://www.metronews.ca/toronto/local/article/456513–city-to-pay-420m-over-30-years-to-rent-streetlights