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“If we don’t make a deal, Bixi Toronto goes bankrupt,” the source said.

Bixi in Montreal did not respond to requests for comment.

Astral Media, the company with the contract to supply bus shelters and litter bins to Toronto (in exchange for revenue from bus shelters and “info-pillar” ads) agreed in that deal to install self-cleaning toilets in Toronto. Councillor Denzil Minnan-Wong, chair of Toronto’s works committee, has since devised a deal in which Astral gives Toronto $5-million in exchange for not installing 11 toilets. That cash will help buy Bixi, pay off its debts and transfer it to the parking authority.

Lorne Persiko, president of the Toronto Parking Authority, said Monday that the TPA is negotiating with Alta Bicycle Share of Portland to manage Bixi in Toronto. Alta manages bike-share programs in Boston, Chattanooga, Chicago, Columbus, Melbourne, New York, San Francisco and Washington, D.C.

“We park cars,” Mr. Persiko said. “That’s why we are outsourcing the management. We think we can make it a success.”

Bixi needs one or more sponsors to soak up the shortfall between the amount riders pay to rent the bikes and the cost of running the program, Mr. Perskio said. For example, Citibank gave $40-million over five years to New York City’s bike-share program. Hence the name Citi Bike.

If we don’t make a deal, Bixi Toronto goes bankrupt

“How this business succeeds is through sponsorship to cover the cost,” Mr. Persiko said.

Bixi has struggled in Toronto owing to the small size of the network. Most of the 80 bike-rental stations, which have 1,500 docking points, are located between Jarvis Street and Spadina Avenue, south of Bloor Street. Toronto won’t have cash to open more stations, but can split up existing stations to set up smaller stations further afield, the source said.

National Post