If Mayor Rob Ford had convinced anyone the Sheppard subway expansion would be paid for with corporate cash, he shattered the illusion on Wednesday.In a morning meeting at Queen’s Park, Ford asked Premier Dalton McGuinty to give the city $650 million for Sheppard by 2014. His justification: $333 million in federal money depends on that provincial money.
For a mayor who said in April that the $4.2 billion Sheppard project would not require a major government investment — “I’m not quite sure where taxpayers’ money is coming in when we’re using private money,” he said — the request represented a notable turnabout. It also provided ammunition for critics, transit experts among them, who say the project is not feasible.
Under the March agreement that killed the Transit City light-rail plan, the province agreed to direct up to $650 million to the Sheppard project if it had leftover funds from the Eglinton-Scarborough Crosstown LRT project, for which it is paying.
Ford’s policy director, Mark Towhey, said Ottawa is willing to hand over the $333 million it promised for light rail on Sheppard under Transit City — but only if the province hands over the $650 million by 2014.
Towhey believes McGuinty can commit now because it is already certain that the Eglinton project will come in more than $650 million under its $8.2 billion budget. McGuinty disagrees.
“It’s very difficult to determine how much would exist by way of residual funds at this point in time. If anything,” he told reporters after the meeting.
Vanessa Thomas, a spokesperson for Metrolinx, the provincial agency overseeing GTA transit, said the agency would know what the surplus is only after environmental approvals are finalized and contracts are awarded. “There’s no firm estimate on timing,” she said.
McGuinty said he would consider Ford’s pitch. And he said he would, regardless, see if the city and province could “work hard together” to encourage Ottawa to spend the $333 million.
But he pointedly noted that the federal money was intended for Transit City, which was championed by former mayor David Miller.
“New mayor, new deal,” McGuinty said.
A senior official in his government put the onus for a decision on the $333 million on federal Finance Minister Jim Flaherty, a Conservative with whom Ford has close ties.
“I’m sure Minister Flaherty wants to make this work for Mayor Ford,” the official said.
The Sheppard expansion was originally estimated at $4.2 billion. Gordon Chong, leader of the city entity developing the business case for the line, later used $4.7 billion.
Towhey said he believes, based on estimates from “industry,” that the expansion will cost “much less” than even $4 billion. He said revenue-generating tools such as tax increment financing, in which a city borrows against future tax windfalls from subway-area properties whose value increases, would raise far more than critics believe.
And Ford said the Sheppard project is “definitely, definitely feasible.”
Asked if it is feasible without federal or provincial funding, Ford paused, then said, “We’re going to obviously need help from all three levels, but it’s going to get off the ground and we’re going to have the Sheppard subway built.”
“It’s important to taxpayers, and it was clearly stated during the election,” he said. “People voted in that area, you look at the poll results, I campaigned on the Sheppard subway and people supported my platform.”
Left-leaning Councillor Joe Mihevc, a former TTC vice-chair, criticized Ford for cancelling Transit City, which would have included a light-rail line on Finch Ave., in favour of the unfunded Sheppard subway expansion he said “will never be built.”
“Here we had a fully funded, fully committed plan. He’s turned that down, and now he’s going cap in hand to the provincial government,” Mihevc said. “This is a betrayal of the mayor’s initial commitment, which was that he’d get this money from the private sector. It’s interesting that he’s now at the dole of the province to fund this ill-fated project.”
Ford, sensitive to the perception that he is begging for dollars, said he had not asked McGuinty for “new money” during the meeting. The McGuinty official took issue with that claim with regard to the subway.
McGuinty faces a tough election battle against Progressive Conservative Leader Tim Hudak, whose party Ford supports. PC MPP Elizabeth Witmer would not be specific when asked if her party would provide the Sheppard funding if elected, saying only that it would invest $35 billion in infrastructure.
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Source: Toronto Star
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