Despite a formal agreement that Toronto would find private money to fund the construction of the subway extension along Sheppard Avenue, Mayor Rob Ford met with Premier Dalton McGuinty last month to ask for help.
The current plan is for the city to extend the Sheppard line to the Scarborough Town Centre in the east, and Downsview Station to the west to the tune of approximately $4 billion — a boon to local businesses and residents throughout the area.
A memorandum of agreement from last March states that the province will pay for the construction of the Eglinton LRT, estimated to cost $8.2 billion. If construction costs less, the province will give the city up to $650 million of unspent money to help build the Sheppard subway expansion. Otherwise, according to the province, the city is responsible for funding.
“The city doesn’t have the tax base to fund transportation on its own, and why should we? The system is used regionally,” said Coun. James Pasternak.
Previously, Ford said the subway would be funded through privatization. While Pasternak said privatization is an option, additional money from both provincial and federal levels is essential. Kathleen Wynne, minister of transportation, said that the March agreement with the city made it very clear that there is no additional funding available. “We have a memorandum of understanding in place; it’s something that took some weeks to settle,” she said.
Coun. David Shiner said both provincial and federal funding for transit is actually owed to the city. According to a 2002 study he conducted, both governments made a profitable return after contributing the $1 billion needed to build the first phase of the Sheppard subway line.
Construction spurred a residential and commercial boom in the area; because of that, both governments collected an increased amount of taxes.
“That money is Toronto money, and it should go back to the extension of the line,” he said.
