Meeting Date: April 18, 2007

Subject: Spadina Subway Extension Update -April 2007

Recommendation

It is recommended that the Commission receive the following report for information.

Funding

Funds of $49 million have been identified in 2007 for the Spadina Subway Extension Project (the Project) as outlined on pages 1455–1459 of the TTC’s 2007-2011 Capital Program.  This Project is currently identified as “below the line” as full funding has yet to be identified and Project approval is not yet in place.

The funds outlined on pages 1455-1459 of the TTC 2007-2011 Capital Program were prepared in mid-2006 predicated on the Project being granted approval by late 2006 which has not occurred. This budget needs to be reviewed. The annualized Project expenditures will require review and revision at the time the Project is approved to reflect the slippage of time and any subsequent scope changes.

In anticipation of funding approval in the foreseeable future, staff have been engaged in continuing with critical project work that will allow for the initiation of major project work once funding and other requisite approvals are confirmed.

To date, the Project does not have Federal Environmental Assessment (EA) approval. Governance, operating and other agreements are being worked on but have not yet been concluded.  It is noted that the TTC/City EA to Steeles Avenue submitted in February 2006 was approved by the Provincial Government on October 18, 2006.

To date, the Move Ontario Trust has released funds of $205,000 for some specific project expenditures to the end of April 2007. It did indicate that it would consider releasing further funding to address the critically urgent issue at Steeles West Station, subject to Federal funding contribution. A Federal contribution was announced in the March 19, 2007 Federal Budget, however, this funding commitment is subject to several specific conditions being satisfied.

Background

At the Commission meeting of February 27, 2007, staff were requested to report back on a number of items as noted.

1. Early funding request further to Commission Report No. 5 of February 27, 2007
2. Opportunities to integrate development
3. Advisement to TTC Property Committee and City Planning and Growth Management Committee

Discussion

1. Early Funding

As noted in the Funding statement, a request for funding for critical work is under consideration before the Move Ontario Trust. Staff verbally updated the Commission on this matter at the March meeting.

There is on record with the Trust a request for funding for a total of $3,650,000. A letter requesting release of the balance of funding above the $205,000 was sent by the Interim Chief General Manager to the Trust on March 12, 2007.

At the time of writing staff were awaiting the Trust’s decision on the release of this funding pending the Trust’s meeting of April 10, 2007. Staff will verbally update the Commission on the Trust’s decision at the meeting of April 18, 2007.

Also, there has been an announcement from the Federal Government that it will contribute the amount of $697 million which is the balance required to provide full Project funding. However, staff understand that there remain a number of requirements, agreements and administrative exercises to be fulfilled including Federal budget approval prior to Federal funds coming available. Staff are working with City staff and monitoring developments to ensure that what needs to be done to expedite funding is attended to in a timely manner.

Following City approval of TTC’s budget on March 7, 2007, TTC project staff have now funding to continue with critical Spadina project management exercises with existing staff up to October-November 2007.

2. Development Opportunities

With regard to opportunities to integrate station development into the Spadina Subway Extension Project, attached are copies of letters from the General Secretary to the Chair TTC Property Committee and the City Clerk.

It is noted that the property on which the subway will be located will belong to the City and opportunities to pursue and integrate development are best handled by the City. TTC staff favour such development and will co-operate in achieving such integration.

Of the four stations proposed in Toronto, two (Finch West and Steeles West) are largely on road allowances with bus facilities on adjacent lands.  One station will be on York University lands on which an integrated development is currently proceeding. The remaining station, Sheppard West, will be on Parc Downsview Park lands currently under the control of the Federal Government.

3. Request City to Increase Development of Transit Corridors

The planned densities are likewise the mandate of the City. A copy of the motion adopted by the Commission requesting the City of Toronto to consider requiring minimum densities along the Spadina Subway Extension corridor has been directed to the City as noted in Item 2.

Justification

Project staff will monitor funding situation and submit further request for funding as required and continue with most critical project management work to prepare the Project for efficient implementation.

April 18, 2007
50-2-1
1104836

Attachment: March 5, 2007 letter to Chair TTC Property Committee
March 5, 2007 letter to City Clerk