It will likely take new road tolls and congestion charges and other revenue tools to help deliver “the biggest transit deal in North America, or perhaps the world,” says the man hired to pave the path toward the $4 billion Sheppard Subway.

As such, claims that the private sector will step in and build the line on their own are not realistic, says Gordon Chong, ex-city councillor, ex-chair of GO Transit, ex-TTC commissioner and now chair of the Toronto Transit Infrastructure Ltd., the dormant investment arm of the transit company.

As well as tolls, there will need to be increased government grants, unprecedented development fees, revenue tools not used here before, plus the public-private partnership Mayor Rob Ford covets in order to make the project happen, Chong said in an interview.

As he moved into an empty and surplus section of City Hall this week, Chong’s reality check is a sobering reminder of how many hurdles stand in the way of a subway-building future he and others crave.

Taxpayers will have to be sold on the matter of tolls.

“People don’t like it when you tax them and the money disappears. If you tax them and they can follow the money trail to transit, they won’t like it but they will understand it,” he says. “Everybody in the world is paying tolls, what’s so special about us?”

Chong concedes that a segment of the population — maybe even the Ford administration — believes the private sector will build the Sheppard subway extension wholly on its own, with a little help from the federal infrastructure fund.

But that federal fund has only $1.2 billion for the whole country. Sheppard will end up costing as much as four times that amount. Vancouver tapped into the federal government’s public-private fund to complete the Canada Lands rail line, but the Sheppard line will cost twice as much.

“Is there going to be the political will to look at all the potential tools? If you want to get back in the subway building plan you have to consider everything,” Chong says.

Besides tolls and congestion charges, the plan will need contributions from the federal government. And developers who benefit from the presence of subways near their property should have 20 per cent to 40 per cent of the increased value clawed back development fees, Chong says.

“Everything that can potentially generate revenues should be on the table,” Chong says.

That’s music to the ears. But considering the bent of the current administration, it’s also whistling Dixie.

Mayor Ford came to power promising fewer taxes. He promised and succeeded in ending the $65 vehicle registration tax, and he did not divert it to transit — the type of action that will be needed to finance subway building.

So, Chong has an uphill task. Can Ford be convinced to embark on a huge subway-building venture, using all the funding tools needed? That would be heavenly. But Chong has to tread carefully.

The former city councillor actually supported Rocco Rossi’s mayoral bid last year. Still, he was part of Ford’s transition team. Now, he’s been tossed the hot potato that grew out of Ford’s cancellation of Transit City — the plan to put light rail lines down the middle of six or more major streets.

Ford wants transit lines underground, and Chong agrees. Beyond that, their relationship will be tested in the coming months.

Chong has advertised for a consultant to do a preliminary testing of what it takes to deliver the project and report by August. Following that, a comprehensive plan — costing as much as $6 million and lasting six months to a year — will define the financing model, revenue tools, planning regime and zoning changes needed, station locations, ridership projections, and funding sources.

Loading... Loading... Loading... Loading... Loading... Loading...

“It will define all the things to get the private sector to invest in the project, to go to the financing firms and say, ‘Here’s what you need to decide if you can invest in this,’” he says. “The private sector folks are no fools. They are not going to throw money at something that doesn’t make sense.”

Royson James usually appears Tuesday, Thursday and Saturday. Email: rjames@thestar.ca