It sets the stage for the biggest subway transfer in the history of the Toronto Transit Commission.

Premier Doug Ford’s government on Tuesday released the terms of reference for the deal to “upload” the building and maintenance of new and existing TTC subway lines to the province from the City of Toronto.

The plan, a cornerstone of the Progressive Conservatives’ election platform last June, would leave the TTC responsible for day-to-day operations of the subway while keeping fare box revenues.

Buses and streetcars would continue to be run by the city.

“With an upload, our government can cut through red tape to start new projects and finish construction faster,” Ford promised.

“Necessary maintenance and investment in the subway system has been put off for too long. We’ve also been waiting far too long for subway expansions. New subway construction has been stuck in red tape for years. It’s time to take action and speed things up,” the premier said.

Transportation Minister Jeff Yurek said the “bold action” would speed up construction, making life easier for commuters from across the Greater Toronto and Hamilton Area.

“As a government, we are turning priorities into real projects and get the job done. We know that a lack of transit infrastructure and traffic congestion are costing money, jobs and time,” said Yurek as the framework was announced.

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“The signing of the terms of reference between the province of Ontario and the City of Toronto signals a shared interest to improve subway service, build more transit projects, to expand, and integrate the regional network and get people moving,” he said.

That means a push for more integrated fares and services between the TTC and regional transit systems, including GO.

“As we continue to work with the city and TTC, we will act in an open and transparent manner to get desperately needed transit built sooner and we will make every decision with ... taxpayers and transit riders top of mind,” said Yurek.

As part of nine-page accord, Queen’s Park and the city will assess the value of the subway system, which carries 289 million people annually, and the price tag for deferred maintenance.

Sources told the Star that both sides are close to agreeing that the subway is worth between $8 billion and $9 billion, with about $5.6 billion required to maintain and upgrade existing equipment such as signals, tunnels, and track.

That suggests the city would have a one-time net gain on its bottom line of between $2.4 billion and $3.4 billion.

But according to a report published by the TTC last month, the subway network and stations will require roughly $22 billion in capital investment over the next 15 years, a figure that doesn’t include the cost of building the much-anticipated relief line or other expansion projects. More than $16 billion is unfunded.

The required work, which the TTC says is necessary to keep current levels of service and meet future demand, includes capacity improvements on Lines 1 and 2, installing the automatic train control signalling system, buying new trains, and expanding Bloor-Yonge station.

The terms of reference released Tuesday make clear that options on the table include ones that would fall short of a complete transfer of subway assets to the province. The city and province will also examine a model under which Ontario would only assume ownership and responsibilities of new transit expansion projects.

In December, Toronto council voted overwhelmingly to reaffirm its position that the subway should remain in the city’s hands. But at the same meeting of that largely symbolic decision, councillors also voted to enter talks with the province to set terms of reference for discussions about the upload.

Despite Mayor John Tory and the majority of councillors registering their disapproval of the upload proposal, many said they felt they had little choice but to sit down with the province, having received confidential legal advice that the city had no legislative authority to prevent Queen’s Park from taking over the rail network.

“Discussions between city staff and the province will continue now guided by the approved terms of reference and I expect a full report to council at the appropriate time,” Tory said Tuesday.

“I continue to firmly believe that any actions taken with regard to our subway system need to be in the best interests of the people of Toronto, including transit riders and employees, and that Toronto must be completely involved and fully consulted as Premier Ford previously indicated would be the case,” the mayor said.

“It is a good document that has been agreed upon by the two parties to now shape the discussion. The real decision time will come once those discussions have happened and whether or not they produce some kind of a deal or some kind of a change from the status quote that is good for employees, transit riders, taxpayers and anybody else who is a stakeholder from the city of Toronto,” he said.

“I can’t tell you if that’s going to be the case or not.”

At Queen’s Park, the opposition New Democrats said Toronto’s subways are “one step closer to being stolen by Doug Ford.”

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“What Toronto’s subways need is the provincial investment they’re owed, not a complicated Doug Ford scheme to break subways apart from the TTC,” said MPP Jessica Bell (University-Rosedale).

Green Party Leader Mike Schreiner was also not convinced.

“Centralizing power in the premier’s office is not a silver bullet for fixing transportation delays,” he said in a statement, calling for a downtown relief line as soon as possible.

“Given Ford’s well-documented distaste for above-ground public transit, I am skeptical about the ability of his government to make evidence-based decisions for the TTC,” Schreiner said.

“Putting the relief line on the back burner while Ford builds subways to the suburbs would be disastrous for the TTC and for anyone trying to travel in Toronto.”

The terms of reference released Tuesday lay out objectives that largely reflect council’s stated position from the December meeting that the framework for discussions should give consideration to guiding principles of good governance, fair allocation of financial obligations between the city and province, and an integrated transit system.

They also state the province and city will consult the public on the proposal, which council had also set out as a condition for talks in the December vote.

Under the framework, there would be more private-public partnerships to build infrastructure like the Eglinton Crosstown LRT, which is slated to open in 2021.

“The parties jointly recognize the need to pursue alternative approaches to the planning, funding, decision-making and delivery of transit in Toronto, and spanning the broader region,” stated the document signed by the province and the city on Monday.

This means the “accelerated implementation of priority transit projects,” better integration of TTC with Metrolinx and transit agencies in the 905, the “modernization and enhancement” of the existing subway system and a “long-term sustainable, predictable funding model” for transit.

However, there remains a lot of room for the deal to go off the rails.

Josh Matlow, the one member of council who voted against entering into talks with the province, said he took no comfort in the fact the terms state the two parties will consider options under which the city would retain ownership of existing subway assets while ceding new projects to the province.

“I think we’re being suckered,” said Matlow (Ward 12-St. Paul’s).

Citing past statements by the premier and the province’s recently announced strategy of using private development at station sites to fund transit, he charged the Ford government is dead set on taking over Toronto’s subway system wholesale and selling off land and air rights along the lines.

Matlow said councillors would be a “bunch of Pollyannas” to believe otherwise.

“Metaphorically, they’ve already announced that they want to take over your house and all the belongings in it. And to get you to the table to give them your keys and the number for your alarm they’ve said, oh yeah, we’ll also discuss some other options too. Maybe we’ll only take your furniture.”

Councillor Joe Cressy (Ward 10- Spadina-Fort York) slammed the upload talks as “a waste of time.”

Cressy said if Ontario was sincere about improving transit, it would increase its spending for the TTC instead of trying to take the subway system from the city.

“If the province truly wants to support the TTC and the movement of people and goods and services in this city, they should invest in it,” he said.

But proponents argue the province, which can borrow more money and run a deficit, will be better positioned to build and repair the subway network.

With files from David Rider

Robert Benzie is the Star’s Queen’s Park bureau chief and a reporter covering Ontario politics. Follow him on Twitter: @robertbenzie

Ben Spurr is a Toronto-based reporter covering transportation. Reach him by email at bspurr@thestar.ca or follow him on Twitter: @BenSpurr

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