Premier Kathleen Wynne’s government assured Mayor John Tory that Toronto would get toll-enabling regulations plus a doubling of the gas tax, according to people involved in talks before Wynne yanked tolls off the table.

Officials and politicians involved in the city-provincial discussions say Tory knew the premier was facing a “rough ride” from her 905-belt MPPs, but he felt blindsided by a phone call from Wynne to say she would not pass regulations allowing Toronto to toll the Gardiner Expressway and Don Valley Parkway once the SmartTrack and Regional Express Rail lines are built.

“I would describe the mayor’s reaction as shocked and disappointed,” said a city official who was with Tory when he got the call on Jan. 18 and, like others involved who spoke to the Star, agreed to describe the four-month, behind-the-scenes toll talks only on condition of anonymity.

Wynne’s public announcement nine days later of a gas tax windfall for all Ontario municipalities, but no tolls for Toronto, sparked joy in communities around Toronto and hammered a wedge into the previously cosy political relationship between Ontario’s premier and Toronto’s mayor.

READ MORE:

Tory challenges Wynne’s leadership after she rejects road tolls

How Premier Wynne betrayed Mayor Tory on road tolls: Cohn

Wynne stopping Tory’s plan for tolls on DVP, Gardiner

Their future partnership on a host of issues is under a cloud after an uncharacteristically angry Tory told reporters he is sick of “being treated as a little boy going up to Queen’s Park in short pants.”

Those close to Wynne say she is personally pro-toll but, facing a major caucus revolt and warnings of defeat in the 2018 provincial election, felt she had no choice but to make a U-turn.

The road to their split started in September when Tory went to Queen’s Park for a regular meeting with Wynne. The main topic was revenue tools: new fees or levies to help the city address a looming crisis over the gap between its ambitions and its means.

For years council had been afraid to use new taxation powers in the 2006 City of Toronto Act, but Tory was persuaded it was time. He presented revenue tool options to Wynne and her top officials, who outright rejected some, including a Toronto-specific alcohol tax.

When Tory raised the idea of tolling the Gardiner and DVP, which the city owns and funds, Wynne said: “Go for it, we won’t stand in the way,” according to city and provincial officials with knowledge of the meeting.

The mayor and his staff kept reviewing options until he decided he would stick his neck out on tolls. Part of the political calculus was that 905-belt residents using the roads would have to pay their “fair share,” as Tory emphasized in making his tolls pitch during a speech on Nov. 24.

There was little uproar from Torontonians. Politicians representing 905-belt residents, however, were furious. Progressive Conservative Leader Patrick Brown went on the attack, declaring that “families can’t afford this new toll tax.” NDP Leader Andrea Horwath joined him in urging Wynne to refuse to pass the regulations.

“We’re not going to do that,” Wynne shot back Dec. 6, accusing Brown of having “no plan for building transit or for building transportation infrastructure in this province and no plan for where the funding would come from.”

Inside the government, however, tolls were a tough sell. Liberal MPPs abstained when opposition MPPs voted against tolls.

On Dec. 13, Toronto city council embraced tolls 32-9. Tory’s office notified Wynne’s people, who warned of a “caucus problem” over tolls.

The third week of December, Wynne’s people told Tory’s office the internal opposition was serious, but they proposed a possible solution: Wynne could double gas tax revenue for all municipalities and, during the spring session, pass regulations allowing tolls only after SmartTrack and RER are built.

Tory’s staff was thrilled with the extra revenue — one called it “historic” — and they dubbed the plan “Tolls Plus.” They were fine with delayed toll implementation, unsure if Wynne’s office realized the Gardiner would have been under construction from 2019 to 2023, making toll introduction unlikely then anyway.

In the new year, Tory’s staff pressed provincial counterparts for details of what would be in the regulations.

At the same time, several MPPs, who had got an earful over Christmas, were passing it on to Wynne. They were already taking enough heat on hydro bills and didn’t need another “affordability” issue. Wynne, however, was unconvinced. Sources say she sees the benefits of road pricing — as do some of her advisers.

On Jan. 17, a day before Wynne’s cabinet meeting, city manager Peter Wallace informally talked through how toll regulations could work with Steve Orsini, Wynne’s top civil servant. The next day, Wynne faced her cabinet.

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

Three 905-belt ministers strongly made the case for blocking tolls. They were hearing more about tolls at doorsteps than hydro bills. Seats could be lost, some ministers and MPPs might not even seek re-election if tolls were on their horizon.

Tory staffers eagerly awaited word. It came that evening when Wynne phoned Tory while he was at the opening of the research and development office of e-commerce company Shopify. The Liberal government would not pass any toll regulations.

Wynne “said it was not up for debate, that it was a very, very difficult place that she was in,” said a member of Tory’s staff with knowledge of the discussion.

“I guess our assumption was that if a premier with a majority government wanted it to happen, it would happen. And it didn’t,” the staffer said.

Although Wynne was promising Toronto $170 million per year in new gas tax revenue by 2021 — if her government was re-elected — “it made no sense for us without the regs,” the official said. “We weren’t going to trade away our municipal autonomy for $170 million. It had to be both tolls and gas tax.” Over the long term, tolls would earn the city more than $170 million per year.

On Friday, as Tory waited at city hall to fire back, Wynne said in Richmond Hill: “I know that people are having a hard time keeping up with the rising cost of living. I hear it from people everywhere I go.”

Wynne’s press secretary, Jennifer Beaudry, in an email Saturday, would not discuss a detailed timeline presented by the Star, saying cabinet and caucus decision-making is confidential.

“However, I would like to reiterate what Premier Wynne said yesterday: ‘In all of my conversations with Mayor Tory I’ve talked about the need for options and I’ve talked about timing. Right from the beginning of this process I’ve talked about those conditions that needed to be in place and they’re not in place and you know the fact that we are doubling the gas tax for the municipalities in the GTHA and around the province I think is a pretty clear indication that we are listening to municipalities, that we want that supportive relationship and that we will continue to work with them.’ ”

Don Peat, Tory’s communications director, said in an email: “We are now $170 million closer to a solution but the mayor has made it clear we need to know the province’s plan to increase support to our city, especially for child care, waterfront redevelopment and housing.

“The mayor was always prepared to accept that tolls couldn’t be implemented until some transit improvements were made. Providing the regulation needed to toll this spring and agreeing to double the gas tax was presented to the city as a way to appease the 905 MPPs while addressing Toronto’s bold request. It also would have helped to address any concerns about available transit options.”

Tory wanted only a simple regulation change and was prepared to “suffer the slings and arrows of tolls” to get sustainable funding, Peat added.

As for Tory and Wynne’s partnership: “Mayor Tory remains dedicated to building the infrastructure that Toronto residents need to improve their daily commutes.”

Tory and Wynne have their next monthly meeting on Monday.

With files from Robert Benzie

Read more about: