Ford makes another push for subway expansion

Mayor Rob Ford is making yet another push for a subway expansion in Toronto.

The mayor announced Wednesday he's asked city staff to come up with a report discussing how to fund the building of more subways in the GTA.

Three years ago when he ran for mayor, Ford made subways a key component to his campaign.

On Wednesday he made it clear he wasn’t going to give up on the idea, despite a strong political push for light-rail transit (LRT) across the city.

Opponents of Ford, including TTC Chair Karen Stintz, have heralded LRT lines as a strong alternative, saying subways would cost too much money for cash-strapped Toronto.

The mayor made the announcement to reporters during a break from the city’s executive committee.

Land Transfer Tax

The committee spent a good part of the day debating a staff report that explored ways to cap the Municipal Land Transfer Tax, slash it by 10 per cent or get rid of it over four years though cuts to tax rates and increases to the first-time home buyer rebate.

But the report warns that the city may not be able to afford cuts to the MLTT because they would put pressure on the 2014 operating budget and force the city to cut spending or hike fees in other departments.

With revenue of $344.5 million in 2012, a 10 per cent cut to the MLTT would leave the city with a $34-million revenue gap.

According to the report, the MLTT generates almost 10 per cent of the tax-supported operating budget.

Councillors cited recent funding cuts from the province as one of the reasons for not supporting the move.

Coun. Doug Holyday, a committee member and the city’s deputy mayor, is in favour of a 10 per cent cut.

“It’s just a matter of trying to find the savings to pay for that reduction. We think we can do it and we’re going to give it a try,” Holyday told CP24 reporter Sue Sgambati before the meeting.

Holyday said he wants the MLTT to be eliminated, but it would be too difficult to get rid of it all at once.

The report recommends that the proposal be sent to the budget committee for consideration during the 2014 budget process.

Among other items up for debate at the meeting include a proposal to hike development fees, and expand the island airport.

The 13-member committee, chaired by the mayor, was also set to discuss the future of the financially-troubled Bixi bike-sharing program and increased fees for developers.

City eyes development fee hike

A separate staff report recommends city council hike development fees -- increasing the cost of building a new house, condominium or commercial building.

The report calls for a 90 per cent increase for residential development fees and 30 per cent for non-residential fees.

The one-time fees are tacked on to new construction projects to pay for the city’s capital costs.

The proposed increases are laid out in a new development charges bylaw that would replace an existing bylaw that expires in April 2014.

According to the report, the fee increases would be phased in over a nine-month period so that they would be implemented by July 2014. The increases could boost revenue to an average of up to $260 million.

Staff report on proposed airport expansion

Executive committee members were expected to get an update Wednesday on an ongoing staff review of Porter Airlines’ quest to land jets at Billy Bishop Toronto City Airport.

In April, Porter and Bombardier signed a conditional purchase order for 12 CS100 jets, with options for an additional 18.

The US$2.29-billion agreement depends on two conditions that require the approval of the city, federal government and Toronto Port Authority, co-signers of a Tripartite Agreement that has governed the island airport since 1983.

Porter and Bombardier are trying to convince the co-signers to reverse a ban that affects most jet-powered aircraft, and extend the runway by 168 metres at each end.

In May, city council asked staff to review the request in two phases, and report back to the executive committee with the preliminary findings of the first phase.

A lengthier report on the first phase is scheduled to be presented at September’s council meeting.

Meanwhile, the cost of the first phase has ballooned to an estimated $400,000 from the original estimate of $225,000 to $275,000. The city is now working on a funding arrangement with the Toronto Port Authority.

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