Province to contribute $1.4 B to subway extension in Scarborough

Ontario Transport Minister Glen Murray responds to Toronto city council’s decision on transit in Scarborough on Thursday, July 18, 2013.

The province has announced it will contribute $1.4 billion toward a proposed subway extension in Scarborough, representing two-thirds of the expected cost. But TTC chair Karen Stintz immediately said the contribution isn’t enough.

Ontario Transportation Minister Glen Murray made the announcement Thursday afternoon at the Kennedy GO Station, which is adjacent to the Kennedy subway station and currently the last stop in Toronto’s east end on the Bloor-Danforth subway line.

But according to the City of Toronto’s proposed subway extension plan, $1.8 billion is required from the provincial Liberals -- which had previously been committed to a light-rail project -- as well as a contribution from the federal government to cover 50 per cent of the net capital costs.

Despite the funding gap, Toronto Mayor Rob Ford praised the provincial government’s decision, saying both the province and the city are “moving in the right direction.”

“I am very happy to see that the provincial government has committed to the Bloor-Danforth subway extension,” Ford said in statement Thursday afternoon. “I look forward to meeting with the federal and provincial ministers to discuss how to move forward together, and get this subway built.”

He added that he is “confident” all three levels of government will be able to work together to deliver the “vital” project to commuters in Scarborough.

Murray noted that more funding was needed and called on the federal government to contribute one-third of the cost.

“We think that Mr. Flaherty and our colleagues in Ottawa, who have some federal members elected from here, owe people from Toronto and owe people from Scarborough,” Murray said.

The minister said it became clear to him that the lack of transit infrastructure in Scarborough had become a sticking point with residents after he spent some time riding the rapid-transit line that currently serves the region.

“This has been a cultural symbol for Scarborough that they never got a fair deal … that the cranes never came back and the jobs never came here that were promised,” he said, noting that the residents largely believe they got “second-class transportation infrastructure.”

He promised that the days of Scarborough residents being “second-class citizens" in terms of transit were over, and renewed his call on the feds to respond.

Shortly after Murray’s announcement, the TTC’s Stintz told CP24 that the province’s contribution falls short by $400 million.

Even if the city got matching federal funding from Ottawa, she said it still couldn’t afford to build the subway if it doesn’t get the full $1.8 billion from the province.

“We need that $1.8 (billion) or there’s really no point in continuing the discussion,” Stinz said. “We need the provincial government to honour its commitment because the SRT (Scarborough Rapid Transit) always had a budget of $1.8 billion.”

She said Toronto was told the province won’t pay the full amount because a separate cross-town rail line on Eglinton came in over budget by $400 million.

“But you know what, this is a separate project,” she said, adding that under the proposed plan the city would commit $500 million to the new project.

She said the city will restate its position and it’s up to the province what happens next. “The province needs to decide if they want this subway built.”

Murray’s announcement came one day after Toronto city council voted to approve an extension of the subway line in Scarborough.

City councillors voted 28-16 Wednesday to extend the Bloor-Danforth subway line into Scarborough, despite a previously approved plan to build light rail transit there.

The new plan includes a continuation of the existing Bloor-Danforth subway line north and east from Kennedy Station, with three stations continuing to Sheppard Avenue east. The subway plan includes a route extension of 7.6 kilometres.

The light rail project has a proposed rail extension of 9.9 kilometres with seven additional stations.

But the subway plan will only move forward if the city receives provincial and federal funding. Council’s motion Wednesday gives the province and the feds until the end of September to decide whether to fund the project.

According to a report recently released by City Manager Joe Pennachetti, the subway plan would need an additional $1.1 billion in funding, over and above the budget for the already-approved light rail plan.

Toronto had approved a light rail plan in 2012, which included a line for Scarborough. But in May, some Toronto councillors began pushing for a subway extension for Scarborough instead. That was the plan approved Wednesday night.

Pennachetti’s report recommended a property tax hike of between 1.1 to 2.4 per cent over three years to cover the additional cost, starting in 2015. It also recommended a minimum tax increase of 0.5 per cent in 2014.

Ford has stated that he is open to raising taxes by 0.25 per cent.

Below is a map of the proposed Scarborough subway extension, zoom out and click on the points to see where the proposed stations will be located:

View Scarborough Subway Plan in a larger map

With files from the Canadian Press