For the first time since launching his subway crusade more than a year ago, Mayor Rob Ford has signaled he is willing to use modest taxation to pay for construction.

Specifically, he has indicated he is open to implementing a parking levy, which KPMG consultants estimate could bring in more than $90 million annually.

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Exactly what Ford has in mind isn’t clear, but members of his inner circle say what has been discussed is a per-space fee, which would be passed on to owners of large parking lots — malls and movie theatres, which typically offer free parking, as well as pay lots. For the latter, the added cost would probably be passed on to drivers. Ideally, the strategy would be implemented across the GTA, so there isn’t a situation where parking lots on the city limits struggle to compete.

“The best way to go is through development charges and TIFs (tax increment financing)” but parking levies are on the table, Ford told reporters Thursday morning. “You can’t have a closed mind. All the options are there,” he said, referencing Gordon Chong’s report on ways to finance a Sheppard subway extension.

In Chong’s report, tax increment financing — which involves assessing how much property values will increase as a result of transit expansion and borrowing against that future windfall — was included alongside road tolls, a gas tax, a vehicle registration tax and development charges among the funding options.

Reached Thursday, Chong said this was a great step.

“He’s been pretty adamant about not raising taxes, fees, etc. … so this was a pleasant surprise,” he said.

Ford’s statements also came as a surprise to TTC chair Karen Stintz, who in her tenure on the commission has grown increasingly frustrated with the mayor promoting a pricey subway-based transit plan with no concrete plans to pay for it.

“The big question for Mayor Ford to answer is: How is he going to get his financing? It appears as if he is now wrestling with that question.”

Until now, Ford has shied away from endorsing revenue tools to fund his subway vision. The mayor has always maintained he could extend Sheppard at no cost to taxpayers through public-private partnerships.

When Chong’s “Toronto Transit: Back on Track” report was released earlier this month, Ford immediately ruled out one suggestion — road tolls — but left the door open to other suggestions.

On Thursday, the same day Ford and brother Doug announced they would be taking over Newstalk 1010’s The City radio program, the mayor took his case for subways to the op-ed pages of The Globe and Mail.

“We can afford subways. Gordon Chong’s recent report on the Sheppard subway identifies a number of revenue sources, including development charges and tax increment financing. His estimates are conservative and many industry sources say these can produce more revenue than he projects. Dr. Chong also identifies a number of additional revenue tools that can fill in any funding gap that may exist,” he wrote.

“According to KPMG, a modest parking levy could generate more than $90 million annually. That would fund a public-private partnership model to build the Sheppard subway and generate ongoing revenue for future subway expansion. Some partnership models don’t require any taxpayer funding in the first few years. Parking revenue during those years could fund early implementation of a bus rapid transit solution in the Finch corridor. With such funding available, Toronto should move forward with a Sheppard subway plan.”

The TTC has estimated that one kilometre of subway track costs about $250 million to $300 million.

Two weeks ago, Ford’s push to scrap above-ground light rail for subways — a key pillar of his mayoral campaign — was derailed when council voted to resurrect the light rail-based Transit City vision. Earlier this week, TTC chief Gary Webster was fired without cause as retribution.

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Queen’s Park, which is paying the $8.4 billion bill for Toronto’s transit expansion, is growing increasingly irritated with the city and its mixed messages. However, Transportation and Infrastructure Minister Bob Chiarelli reiterated Thursday that the funding was “absolutely not” in jeopardy.

With files from Robert Benzie and Tess Kalinowski