Item - 2021.EX20.2

The Executive Committee recommends that:  

1.  City Council approve the terms set out in the Term Sheet attached as Attachment 1 to the report (January 13, 2021) from the Deputy City Manager, Infrastructure and Development Services (the "Term Sheet") and City Council authorize the City Manager and any other relevant City Officials, in consultation with the City Solicitor, to negotiate, enter into and execute amendments to the Ontario-Toronto Agreement in Principle with the Province of Ontario necessary for the implementation of the SmartTrack Stations Program (the "AIP Amendment") in accordance with the Term Sheet and on such other terms and conditions satisfactory to the City Manager and in a form satisfactory to the City Solicitor.

 
2.  Subject to entering into the AIP Amendment in accordance with Recommendation 1 above, City Council endorse the re-allocation of $585 million in federal funding under the Investing in Canada Infrastructure Program – Public Transit Stream for the SmartTrack Stations Program to the revised SmartTrack Stations Program as described in the Term Sheet (the "Federal Funding"), and direct the City Manager to advise the Government of Canada and the Province of Ontario accordingly.

 
3.  Subject to entering into the AIP Amendment in accordance with Recommendation 1 above and receiving confirmation of the Federal Funding in accordance with the terms of the AIP Amendment, City Council approve a contribution of up to $1.463 billion to the Province for the SmartTrack Stations Program, inclusive of both $1.195 billion for Base Station Infrastructure and $268 million for City-Initiated Station Requirements.

 
4.  Subject to entering into the AIP Amendment in accordance with Recommendation 1 above, City Council authorize the City Manager to negotiate and execute any agreements necessary with the Province and/or any other relevant provincial agency including a Master Agreement for the implementation of the SmartTrack Stations Program, based on the terms set out in the Term Sheet and on such other terms and conditions satisfactory to the City Manager and in a form satisfactory to the City Solicitor.

 
5.  City Council direct the Chief Financial Officer and Treasurer to report back on required amendments, if any, to the capital funding and financing strategy for the SmartTrack Stations Program as part of the 2022 Budget process.

 
6.  City Council, with respect to the SmartTrack Stations Program:

a.  authorize the Deputy City Manager, Infrastructure and Development Services or designate to identify and approve the inclusion of enhancements to City infrastructure in or near work being done for the Program, as well as any investigative, planning and design studies considered necessary for City infrastructure and services in the vicinity of the Program ("Additional Infrastructure") which Metrolinx's contractor will be asked to construct as part of SmartTrack Stations Program procurements, subject to the following conditions:

1.  the Deputy City Manager, Infrastructure and Development Services or designate, in consultation with the applicable Division Head, is of the view that the price provided by Metrolinx, as may be reviewed by an independent reviewer, for the Additional Infrastructure is fair and reasonable; and

 
2.  the funding for the cost of the Additional Infrastructure is or will be available in the year required, within an approved capital budget;

 
b.  authorize the Deputy City Manager, Infrastructure and Development Services or designate, in consultation with the Chief Financial Officer and Treasurer, to obtain and pay for pre-estimates and estimates for Additional Infrastructure from Metrolinx; and

 
c.  authorize the Deputy City Manager, Infrastructure and Development Services or designate, in consultation with the Chief Financial Officer and Treasurer, to negotiate, enter into and execute Municipal Infrastructure Agreements with Metrolinx for Additional Infrastructure, including any amendments.

 
7.  City Council delegate authority to the Deputy City Manager, Corporate Services or designate, to negotiate and execute a real estate protocol with Metrolinx to implement the real estate principles set out in the Term Sheet, including:

a.  the disposal to Metrolinx of certain City property for nominal consideration in accordance with the Term Sheet that is determined by the Deputy City Manager, Corporate Services to be required for the implementation of the SmartTrack Stations Program (the "SmartTrack Transit Lands"), provided that:

1.  the lands are not required for any current or future City purpose;

 
2.  the lands will be used solely for the implementation and operation of the SmartTrack Stations Program; and

 
3.  the lands will be subject to the reservation of easements or such other interests, as required for City purposes; and

 
b.  such other terms and provisions deemed appropriate as may, in the opinion of the Deputy City Manager, Corporate Services or the City Solicitor, be desirable to give effect the real estate principles set out in the Term Sheet.
 

8.  City Council authorize the implementation of the real estate principles identified in the Term Sheet in respect of the SmartTrack Transit Lands as follows:

a.  authorize the permanent closure of any SmartTrack Transit Lands that are public highways and exempt these lands from the requirements of City of Toronto Municipal Code Chapter 162, Public Notice;

 
b.  direct the appropriate City staff to advise the public of the proposed closures of any SmartTrack Transit Lands that are public highways, prior to implementation, in accordance with the requirements of the Municipal Class Environmental Assessment for Schedule A+ activities, by posting notice of the proposed closures on the notices page of the City's website;

 
c.  authorize the granting of easements for services and utilities in the SmartTrack Transit Lands for nominal consideration in accordance with the Term Sheet on terms satisfactory to the Deputy City Manager, Corporate Services, and in a form acceptable to the City Solicitor; and

 
d.  exempt the disposition of the SmartTrack Transit Lands from policies generally applicable to the disposal of City land and authorize the Deputy City Manager, Corporate Services to approve and execute such additional or other agreements or documents and to do all things deemed appropriate as may, in the opinion of the Deputy City Manager, Corporate Services or the City Solicitor, be desirable to give effect.

9.  City Council direct the Deputy City Manager, Infrastructure and Development Services to report back to the Executive Committee prior to the issuance of any Request for Proposals related to the Bloor-Lansdowne Station, on what steps the City will take to ensure that Metrolinx continues to deliver on its commitments made to the local community during the consultation period for their transit expansion project, and to ensure that the following connections are funded by Metrolinx:

a.  the connection from the Bloor-Lansdowne station to the north part of the public realm of the Davenport Diamond;

b. the connection from the Bloor-Lansdowne station to the Junction area through Dora Avenue and Sterling Road;

c.  the connection from the Bloor-Lansdowne station to the West Toronto Rail Path; and

d.  the connection to the public realm by bridge over the Davenport Diamond to Earlscourt Park.

 
10.  City Council authorize the public release of Confidential Attachment 1 to the report (January 13, 2021) from the Deputy City Manager, Infrastructure and Development Services following the completion of the construction of the SmartTrack Stations Program.

The SmartTrack Stations Program (the "Program") represents a significant investment to improve transportation choices within Toronto and to leverage existing transit infrastructure to serve more people. Combined with Metrolinx's GO Expansion Program, SmartTrack will transform heavy rail infrastructure in Toronto from a regional commuter service into an urban rapid transit network. This report recommends terms negotiated with the Province that will allow the SmartTrack Stations Program to proceed to construction.

Effective November 30, 2016, the Province and the City entered into an Agreement in Principle ("AIP") that established principles with respect to cost-sharing on the Program and other transit expansion initiatives. The Program progressed in April 2018 when City Council approved a contribution of up to $1.463 billion towards the Program and requested Metrolinx to proceed with procurement, subject to the terms and conditions approved by City Council as described in item 2018.EX33.1. In May 2018, the Mayor and then-Premier signed a non-binding Ontario-Toronto Memorandum of Understanding to formally indicate the intention of the City and the Province to amend the AIP to reflect the 2018.EX33.1 terms and conditions. The Province subsequently halted the stations' procurement in December 2018 with the intention of having them delivered through a market-driven transit-oriented development delivery strategy.

More recently, the Province's and the City's roles and responsibilities related to transit expansion have changed per the terms of the Ontario-Toronto Transit Partnership that was authorized by City Council in October 2019 through the adoption of item 2019.EX9.1 and the subsequent Ontario-Toronto Transit Partnership Preliminary Agreement ("Preliminary Agreement") signed by the parties in February 2020. The Preliminary Agreement establishes the principles and responsibilities of the Province and the City in implementing major transit initiatives in Toronto, and outlines that the Province now has responsibility for funding and delivering the construction of the Subway Program (i.e., Ontario Line, Scarborough Subway Extension, Eglinton Crosstown West Extension and Yonge North Subway Extension). In turn, the City agreed it would redirect the capital contributions that the City would otherwise be expected to dedicate to the Subway Program to instead support state-of-good-repair improvements to the existing transit system and/or towards other City priority transit expansion projects. The City and the Province reiterated through the Preliminary Agreement their commitment to advancing and delivering the SmartTrack Stations Program, and, to that end, have negotiated amendments to the Program terms.

Staff recommend that City Council adopt the terms in Attachment 1 to this report in order to advance the SmartTrack Stations Program. These terms provide that the Program, which will be delivered by the Province and/or its agencies (such as Metrolinx and Infrastructure Ontario), will consist of five stations: Finch-Kennedy, East Harbour, King-Liberty, St. Clair-Old Weston and Bloor-Lansdowne. Two previously contemplated SmartTrack stations, Lawrence-Kennedy and Gerrard-Carlaw, have been removed from the Program because they have been replaced by two new stations being funded and delivered by the Province as part of the Subway Program, namely Lawrence Station on the Scarborough Subway Extension and Gerrard Station on the Ontario Line, respectively. Altogether, the SmartTrack Stations Program, GO Expansion, the Subway Program and the LRT Program (i.e., Eglinton Crosstown and Finch West) comprise a multi-billion dollar investment from all orders of government that will substantially increase the amount of transit infrastructure in Toronto.

The recommended City capital contribution to the Program has not changed, and remains $1.463 billion, inclusive of both $1.195 billion for Base Station Infrastructure and $268 million for City-Initiated Station Requirements. The Province will not fund any portion of the Program Budget but will be accountable for its expenditure in consultation with the City. The Province will monitor and manage the Program scope, Budget and schedule through coordination with the City of Toronto and as outlined in the Ontario-Toronto Transit Coordination governance framework. The Province will also pursue transit-oriented development/transit-oriented communities ("TOD/TOC") opportunities in a manner consistent with the Ontario-Toronto MOU on TOD (see 2020.EX12.3). All benefits from TOD/TOC will be transferred to the City. The City will be responsible for reviewing station designs and assisting the Province in evaluating bids, and will continue to engage and collaborate with the Province throughout the design, procurement, construction, delivery and operation of the Program. If approved, the Program will be procured beginning in the second quarter of this year and is anticipated to be constructed in its entirety by 2026.