Most unsurprising news of the day: Ford wants private cash to help build subways
Ever since Rob Ford won the election and declared subways for all, the big question has been where the city would find the money for his plan to scrap Transit City and replace it with an extension of the Sheppard subway system. The news broke yesterday from the Globe that Ford is hoping to entice private money to build, and possibly maintain, the Sheppard extension.
This would free up most of the $8.15-billion the province pledged to Toronto transit for an underground light-rail line on Eglinton Avenue and a replacement for the aging Scarborough Rapid Transit line.
“In order to do what the mayor wants to do, we’ve agreed that the city will find those [extra] resources,” said Mark Towhey, Mr. Ford’s interim chief of staff. “We’ve also decided that we’re not going to charge the taxpayer for those. … The solution that we’ve worked through at this point is essentially a private financing initiative.”…
The mayor’s office wants to designate a narrow band of land on the subway corridor – which would eventually stretch to Downsview station in the west and the Scarborough Town Centre in the east – as a zone where tax-increment financing and transit-oriented development fees could be used to pay back a private consortium’s upfront investment over decades.
Unfortunately, it’s not quite true to say this won’t cost the city money. As Peter Kuitenbrouwer notes in the National Post, if the city was to allow denser development along Sheppard those fees could have gone to the city instead of a private subway-builder. At first glance, though, the deal doesn’t sound like it has to be terrible—it’s just dependant on other factors, like density. For subways to be worth the cost, they need to be built around greater density than Toronto has usually gone for.
This also saves money to extend the underground part of the Eglinton crosstown LRT (which will apparently be saved) and extend the Bloor-Danforth line to replace the Scarborough RT line. Probably most pleased with this deal is Dalton McGuinty. If the plan pans out, he won’t have to spend one more red cent than already promised to Toronto.
There are still plenty of reasons to be skeptical of a public-private partnership (P3, in government lingo). Steve Munro, transit expert and not exactly a Ford supporter, says his reaction is mixed. At the very least this answers the biggest question Ford has faced about his plans—how to fill the gap between the money he needed and the money he had. Now, the public just needs to see the details.
• Ford pitches private financing plan for Sheppard subway extension [Globe and Mail]
• Peter Kuitenbrouwer: Rob Ford’s subway dream sticks it to taxpayers [National Post]
• City eyes private partner to extend Sheppard subway [Toronto Star]
• City will seek private financing for subway [Toronto Sun]
• McGuinty emerges a winner in Sheppard subway plan [Globe and Mail]
• Ford Proposes Privately Built Sheppard Subway [SteveMunro.ca]
 and extend the Bloor-Danforth line to replace the Scarborough RT line. Probably most pleased with this deal is Dalton McGuinty. If the plan pans out, he won’t have to spend one more red cent than already promised to Toronto.
There are still plenty of reasons to be skeptical of a public-private partnership (P3, in government lingo). Steve Munro, transit expert and not exactly a Ford supporter, says his reaction is mixed. At the very least this answers the biggest question Ford has faced about his plans—how to fill the gap between the money he needed and the money he had. Now, the public just needs to see the details.
• Ford pitches private financing plan for Sheppard subway extension [Globe and Mail]
• Peter Kuitenbrouwer: Rob Ford’s subway dream sticks it to taxpayers [National Post]
• City eyes private partner to extend Sheppard subway [Toronto Star]
• City will seek private financing for subway [Toronto Sun]
• McGuinty emerges a winner in Sheppard subway plan [Globe and Mail]
• Ford Proposes Privately Built Sheppard Subway [SteveMunro.ca]){kind=link}
If Rob Ford can make this work, I take my hat off to him. Not a Ford supporter, but I can respect a good idea when I see one. This extension and the Eglington line would work wonders to improve the transit in this city and I hope that it can be made possible.
I agree. Ford is using his brains instead of raising our taxes.
I always said that we need business men in office NOT silver tongued devils with graduate certificates that only prove that they can speak well and memorize. Put these same people in a private sector job and they would never last.
Way to go Mayor Ford. I hope you pull this off!
That is quite the contrast to David Miller, who studied Economics in university and has been the first and only mayor to secure federal funding for the TTC. I would have gone to the open meeting today, but honestly, I’m more looking forward to the OCAP drama, which I’m betting will occur next week. Any takers? Never mind. I’m unemployed.
Oh Missy I’ve missed you! Haven’t seen you trolling around on BlogTO lately! Where’ve you been hiding?
Sounds like fiscally responsible plan to me. Ideally, everyone invovled wins. Hopefully this becomes a reality.
And I would not put too much stock in Mr. Miller’s academic background. Apparently, his economics degree has only taught him how to run up the cost of living for Torontonians. Economic for him but not for us.
Is this public private partnership a good idea? Tell me, what sane investor would pump 3 to 4 billion dollars into a subway that isn’t even as busy as the Queen street car.
(And no, build it, and its not guarateed they come – look at stations like Eglinton West or Glencairn, hardly high density)
The only way people would invest in an underperforming subway line is by securing a financial guarantee from the government.
And who will pay the money to the investors if the Sheppard subway underperforms? While the taxpaters of course…
EM said: Oh Missy I’ve missed you! Haven’t seen you trolling around on BlogTO lately! Where’ve you been hiding?
Gosh, I hope no one else has my Missy name? lololol I opened that BlogTO page & I don’t remember it. If I did post there I don’t remember. Maybe you have me mixed up with someone else???
@EM,
Hi EM, I typed my name into the search bar & did find a lot of Missy posts, although not all were me. But I did find mine. Wow, did I loose it on some of the other posters or what?! lololol Sorry about that. It’s just that I am so tired of being taxed to death for all the stupidest hair brain schemes out there from dirty green energy to art work in the new Dufferin & Queen underpass.
I read some of the replies to me & I must say…….crazy! No wonder I am so happy Ford got elected. I did not realize that there were so many entitlement ppl out there. And no I do not work for Rob Ford…..I WISH I DID.
I am very proud of this man. And so are so many hard working people.
Have a nice day EM, & if I don’t reply, it’s just that I don’t have these pages on feeds.