Council approves more money for subway extension project

Cp24.com
March 31, 2015
By Chris Fox

Toronto city council has voted in favour of a $150 million fix to finish the Toronto-York-Spadina Subway Extension project.

The subway extension into Vaughan was initially expected to be completed by 2016 at a cost of $2.634 billion, however a TTC staff report released last week said that an additional $150 million – $60 million of which would be covered by taxpayers in York Region - is needed just to ensure the project can be finished by the end of 2017.

Rob Ford, Joe Cressy and Gord Perks were the only councillors to vote against the motion.

“I support subways, I understand the project, this ship has already left the pier but you can’t sit here and condone that," Ford said of the cost overruns.

"Millions and millions of dollars just squandered and if I was to sit here and vote for that, the taxpayers would say Rob, that is no example. If you do it for this then you do it for everything."
Council will also be dealing with another apparent funding woe during this session of council.

According to a staff report from City Manager Joe Pennachetti, there is an estimated provincial funding shortfall of $85 million for the project and if Queen’s Park doesn’t top up their contribution to meet its $1.059-billion share the city may have to dip into its capital reserve fund to make up the difference.

The provincial shortfall is a result of the province not funding their full share of the cost of the project at the outset and instead putting $870-million into a trust under the belief it would grow by 4 per cent annually to reach its commitment.

“The Move Ontario Trust has an anticipated shortfall because the return on investment has been lower than hoped, as a result of the 2008 global market collapse and recession. We have no plans to make up that shortfall through the Trust and money continues to flow towards the project as needed from the Trust through 2015, 2016 and 2017,” Ministry of Transportation Spokesperson Patrick Searle said in a statement issued Tuesday morning.

Coun. James Pasternak said the issue could be "another bad news story" for the city.

"The negotiations continue. We are hoping for a good news ending," he told CP24 Tuesday.

"Never bet on rosy scenarios when you are dealing with taxpayers money. You have to be risk averse. That was done seven or eight years ago and ... the province didn't hit those numbers and we are paying for it."

Woodbine up for debate again

City councillors will also be debating whether to reconsider expanded gaming at Woodbine Racetrack. City council will be asked to authorize City Manager Joe Pennachetti to conduct a public consultation process and prepare a report for the June 30 council meeting that includes an assessment of the size and type of gaming facility that would be suitable for Rexdale racetrack, the potential economic benefits and revenue to the city, as well the potential social costs.

The motion, which was approved at executive committee last week, comes nearly two years after council voted 24-20 against expanded gaming at the site, however the debate at the time largely focused around a more contentious proposal to build a large downtown casino and some councillors have suggested that the idea may be worth revisiting.

Mayor John Tory has also expressed a desire to revisit the file, telling reporters last week that he would be open to expanded gaming at Rexdale so long as it is “accompanied by other kinds of development that will create more jobs for people.”

“It is a part of the city that desperately needs investment and job creation,” Tory said of Rexdale.