Toronto Transit Back on Track Sheppard Subway Development

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Toronto Transit Back on Track Sheppard Subway Development Toronto Transit: BACK ON TRACK Sheppard Subway Development and Financing Study Interim Report Toronto Transit Infrastructure Limited Design: Design Services, Information Production City Clerk’s Office City of Toronto Copyright © Toronto Transit Infrastructure Limited. All rights reserved. All copyright, confidential information, patents, design rights and all other intellectual property rights of whatsoever nature contained herein are and shall remain the sole and exclusive property of Toronto Transit Infrastructure Limited ii Toronto Transit: Back on Track — Toronto Transit Infrastructure Limited Dr. Gordon Chong Toronto Transit Infrastructure Toronto City Hall 100 Queen Street 2nd floor, suite C56 Toronto, Ontario M5H 2N2 Your Worship Mayor Rob Ford City Hall 2nd Floor, Office of Mayor 100 Queen Street West Toronto, Ontario, M5H 2N2 January 27, 2012 Dear Mayor Ford, You directed that TTIL [formerly TTCL] be revived for the specific purpose of preparing a business case analysis for a potential P3 procurement of the Sheppard Subway extension. I am pleased to submit our interim report — Public Transit: Back on Track. In this initial phase, we were mandated to examine the feasibility of the Sheppard Subway extension and more generally, to examine the feasibility of a future integrated transit network utilizing subway [heavy rail] technology wherever possible for Toronto and the Greater Toronto Area [GTA]. While contemporary families are diverse in socio-economic terms, we are all confronted by a common problem — congestion on our roads and the lack of an integrated, fast, reliable and safe transit network. This transit deficit has the most profound impact on our underserved [in some cases, unserved] priority neighbourhoods in which the residents are totally dependent on public transit — “transit-captives” would be a good descriptor! Many reside in social housing without access to an automobile or are members of the cohort known as the “working poor” with limited access to a car. This phenomenon has plagued us, been discussed and examined countless times by countless recognized authorities ad nauseam. The frequently repeated phrase “integrated transit network” is in danger of becoming nothing more than a cliché if substantive and sustained action is not taken soon. The growing transit deficit has, not unexpectedly, evoked anger, frustration and cynicism from residents as to the sincerity of our political leaders. Many could be forgiven for thinking that politicians are really only interested in their near-term electoral prospects and their legacies when they see them grasp at quick fixes which are often second-class rather than first-class plans. Public Transit: Back on Track reflects discussions [both formal and informal] that took place over the last several months with planners, engineers, lawyers, financiers and experienced, open-minded transit operators. The historical development and socio-economic context of subways was also reviewed. The focus was kept on the impact of our transit deficit on contemporary families and employers. In other words, we reviewed past decisions, planning documents, and technical specifications and impact analysis for the Sheppard Subway before arriving at conclusions and recommendations. The health and well-being of the residents of Toronto and the GTA was/is paramount in our consideration of this pressing issue. Toronto Transit: Back on Track — Toronto Transit Infrastructure Limited A Public Transit: Back on Track is focused on the P3 procurement potential of subways and is mindful of municipal structural deficits and fiscal limitations. It calls for a bold transformation of our transit system, how it is governed, managed, funded, and partners with senior levels of government. It embodies a sustainable use of urban space together with innovative subway funding and financing approaches. After the last 9 months of work is tabulated, there is only one inescapable conclusion: The subway option is the most cost-effective and environmentally friendly technology for the Sheppard corridor. It is the only technology that will deliver real and measurable benefits for the residents and commuters of Toronto, and improve regional competitiveness. It is the only technology that will get Torontonians out of their cars and on to public transit. Additionally, securing financing from the private sector is both feasible and desirable for the City. History illustrates inaction has a cost. Delays in construction simply transfer the burden of fixing our transit system onto the next generation; the cost of this burden escalates over time and is significantly greater the more we delay construction than employing innovative revenue and financing tools. Social equity demands we provide the most vulnerable groups within our society and the underserved priority neighbourhoods with the same level of transit as found elsewhere in the City. It requires we provide reliable, convenient and rapid access to our cultural and sporting venues such as the ROM, AGO, Massey Hall, Rogers Centre and the Air Canada Centre. It requires us to search and employ the very best solutions that are on offer. The Sheppard Subway remains an approved transit project for the City of Toronto. It was first included in the Official Plan in 1980, as part of the Major Centres policy. Thirty years of planning studies and detailed technical and functional specifications exist. It’s time to get public transit back on track. Before concluding, I must express my deepest gratitude to Dr. Jo Kennelly who tirelessly went through TTC and Council minutes, examined international best practices, worked with Metrolinx and KPMG to ensure accuracy of data with respect to growth, development and cost calculations and met with countless transit experts and innovators who were eager to offer their expertise and experience to benefit the City the Toronto. The City of Toronto Finance and Planning staff and KPMG consultants must be thanked for working diligently and often overtime to support the development growth and capital financing analysis and options. Metrolinx staff and consultants were also of enormous assistance, as was staff from the federal agency PPP Canada. Two volunteers who care deeply for the city, Doug Turner and Steve Fry, provided many hours of valuable input. A City of Toronto engineer [working on weekends], who also lives in the eastern part of Scarborough, provided a well thought out alternative plan which should be given due consideration in the future. We have delivered on our mandate within the timeframe and limited resources provided. We believe that our Interim Report – Public Transit: Back on Track – provides the sufficient rationale for the City to move forward with the Sheppard Subway extension. We have demonstrated that this can occur quickly and have articulated a clear work plan for action. B Toronto Transit: Back on Track — Toronto Transit Infrastructure Limited Recommendation TTIL is recommending Council: 1) re-confirm completion of the Sheppard subway linking Downsview to Scarborough Centre; 2) commit to a two-phased approach for construction and completion of the Sheppard subway; and 3) approve TTIL proceeding with the second phase of the project, including establishing robust corporate governance and management structure for TTIL, updating design and environmental assessment work and examining in further detail delivery model and procurement options. On behalf of TTIL [Co-chair Councillor Norm Kelly and Director Councillor Doug Ford]. Respectfully, Gordon J. Chong Co-chair & CEO Toronto Transit: Back on Track — Toronto Transit Infrastructure Limited C ••• Contents ••• List of Figures ...............................................................................................................................................................................................G List of Tables .................................................................................................................................................................................................H 1. INTRODUCTION & KEY FINDINGS....................................................................................................................................... 1 1.1. Problem: Subsidy Driven Transit Business Model ............................................................................................... 2 1.2. Decision to be Taken ........................................................................................................................................................... 2 1.3. Key Findings .............................................................................................................................................................................. 8 1.4. Back on Track: Recommendations & Next Steps ..............................................................................................17 1.5. About Toronto Transit Infrastructure Limited .....................................................................................................20 1.6. Outline of Report .................................................................................................................................................................22 2. HISTORY OF SUBWAY CONSTRUCTION IN TORONTO ........................................................................................23 2.1. Toronto Subway History, 1910-2011 ...........................................................................................................................26
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