Cities can use stimulus cash for repairs, Ottawa confirms

Infrastructure Minister says first phase of funding should flow by spring, and may be applied to "recapitalization and repairs,” not just new projects

Thestar.com
Jan. 21, 2016
By David Rider

Desperately needed maintenance and repairs for Toronto Community Housing homes and TTC equipment should be eligible for federal stimulus funding, Canada’s infrastructure minister said Thursday, to applause from Toronto officials.

Amarjeet Sohi said the Justin Trudeau government is considering a two-phase approach to its campaign pledge to double infrastructure funding - almost doubling its infrastructure investment over the next decade to nearly $125 billion, from the current $65 billion.

Cities would be eligible to apply for money for “recapitalization and repairs” in the first two-year, $10-billion phase, the former Edmonton city councillor and bus driver told a Toronto Region Board of Trade luncheon at the downtown Sheraton hotel.

Traditionally, stimulus funding is restricted to “shovel-ready” projects that generate new jobs, as opposed to projects the municipalities would have had to do at some point anyway.

But the lobby group for Canadian mayors, including Tory, pleaded with Sohi to help them pay for billions of dollars in repairs to crumbling roads, bridges, sewers, housing and transit facilities.

Sohi said he listened, and wants to give immediate relief to municipalities with help on projects involving public transit, “green” infrastructure such as environmental retrofits and “social” infrastructure including public housing.

“It’s not enough to be shovel-ready - projects need to be shovel-worthy as well,” he said, adding later that it’s important to maintain existing jobs as well as create new ones.

“We can help rebuild our water and waste-water systems. We can upgrade our aging bus fleets. We can fix what we have now, instead of delaying and paying more later.”

New projects would also be allowed in the first phase, Sohi said, adding that final decisions will be in this spring’s federal budget. He wants federal cash to flow to municipal “partners” in time for the summer construction season.

Sohi also singled out Port Lands development as a possible funding recipient, and pledged to make the approvals process quicker and more transparent.

Mayor John Tory, who met with Sohi and other Toronto-area mayors Thursday morning, said he was “extremely encouraged” by the speech.

Councillor Ana Bailao, Tory’s lead on social housing, said in an interview that infrastructure funding for repairs would improve living conditions for low-income Torontonians and see fewer commuters stranded by bus breakdowns.

She is hopeful Toronto will get the $864 million it has requested from Ottawa for social housing repairs, and that the funding will spur the Ontario government to match it.

“It's very assuring to have a federal government that understands it's not about flashy ribbon-cutting - maintenance and reliability is important,” Bailao said.