The city and province have reached a tentative deal under which council would endorse Premier Doug Ford’s transit plans, in exchange for Queen’s Park scrapping its proposed takeover of the TTC subway network and letting Toronto off the hook for the cost of new projects.

Mayor John Tory announced the agreement, which still has to be approved by council, at a press conference at city hall Wednesday morning. He described it as “tremendously good news for residents of the city of Toronto,” even as critics warned that changing course on transit plans would lead to yet more delays in getting new lines built.

The announcement was timed with the release of a city report that outlines the deal, partial details of which were first reported by the Star. The report recommends members support the province’s designs for the Ontario Line and three-stop Scarborough subway extension, which would replace advanced council-approved plans for a relief line subway and one-stop Scarborough extension respectively, and agree to reallocate more than $3.8 billion in federal transit funding that had been earmarked for the two council-approved projects to the two provincial ones instead.

In addition, under the terms of the agreement, the Ontario government wouldn’t seek direct contributions from Toronto for constructing any of the four projects under the Progressive Conservatives’ $28.5-billion transit plan, which also includes the Yonge North subway extension to Richmond Hill and the Eglinton West LRT.

The province has also committed to reimbursing Toronto for sunk costs the city has already spent on the relief line and one-stop Scarborough extension. A previous report estimated the city had spent about $200 million on planning and design work for those two projects.

“After almost a year of discussions, I believe we have a way forward that will see close to $30 billion of new transit built in Toronto right across the city and will keep the existing subway system in the hands of Toronto taxpayers,” Tory told reporters.

“We have defended our TTC, we have found a way to move forward on transit expansion and to invest in improvements in our existing system, and we have done so with an increased financial commitment from the provincial government.”

Tory asserted the arrangement would ensure “we are protecting and investing in our transit system while rapidly expanding the transit network at the same time.”

The Ontario government estimates the city’s share of the cost for its four transit projects would be $6 billion, but agreed to waive that funding on the condition Toronto use the money for state of good repair work on the existing transit system, or pay for additional new lines like the Waterfront LRT or Eglinton East LRT to Scarborough.

The city only has a funding source for about $1 billion of that money however, and would have to find additional sources for the remainder. The full $6 billion would fall far short of addressing the TTC’s capital repair backlog, which the agency estimated earlier this year was about $33.5 billion, roughly two-thirds of which was unfunded.

The city report also revealed, and the provincial government soon confirmed, the Progressive Conservatives have abandoned what was perhaps the most controversial aspect of their transit plans — taking ownership of the TTC subway.

That proposal was fiercely opposed by transit advocates, the opposition Ontario NDP, the TTC workers union and a majority of city council.

At Queen’s Park, Transportation Minister Caroline Mulroney said the goal of the upload plan was to be able to expedite the delivery of new transit lines, but “our government has now determined that we can deliver these four projects quickly and efficiently by working with the city.”

Under the deal, the city would retain ownership of the existing subway system and the TTC would operate the new lines. The province has already passed legislation enabling it to own the four new projects it plans to build.

At the centre of the province’s transit plans is the Ontario Line, which would snake 15.5 km from the Exhibition GO station in Liberty Village to the Ontario Science Centre in Don Mills.

The province has estimated it would cost about $11 billion, and has committed to completing it by 2027.

The city and TTC assessment of the Ontario Line released with Wednesday’s report noted many potential positives of the project, including that it would serve the low-income communities of Flemingdon Park and Thorncliffe Park, have good connections to local and higher-order transit, and serve areas designated for population and employment growth.

But staff also raised red flags about the initial business case Metrolinx prepared for the Ontario Line, saying in “many instances” it reached conclusions “where no backup documents are provided.”

The report stated the Ontario Line’s route and station locations may “change significantly” as the project develops, and given “the early state of design ... the city and TTC are unable to assess the validity of the stated timetable or the estimated cost” of the project.

Coun. Gord Perks (Ward 4, Parkdale-High Park) said uncertainty around the Ontario Line and the province’s admission that the three-stop, eight-kilometre Scarborough subway extension will take at least three years longer to build than the city-approved one-stop plan, is proof Toronto transit has been delayed again. The province’s proposed completion date for the $5.5-billion Scarborough extension is 2029 or 2030. The city’s version would cost about $4 billion and open by 2026 at the earliest.

“The projects that the province is supposed to deliver will take longer and quite possibly cost more than what the city was going to do,” Perks said.

“We’ve moved from a firm date to an imagined date on both projects.”

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The 7.5-kilometre first phase of the relief line has undergone more study than the Ontario Line, and was scheduled to be complete by 2029 at the earliest, at a cost of at least $7.2 billion.

NDP MPP and transit critic Jessica Bell (University-Rosedale) said her party is “pleased that the provincial government has backed down on the upload of the subway,” but “there are considerable concerns about the Ontario Line,” including how and where it can be built.

Also criticizing the Ontario Line Wednesday was Liberal MP Adam Vaughan (Spadina-Fort York), who called in to a Toronto radio station to respond to a report in the Star that party leader Justin Trudeau was prepared to fund the project if the Liberals are re-elected Monday.

Appearing to break with party leadership, speaking to Newstalk 1010 Vaughan, whose riding includes a portion of the Ontario Line route, called the project a “ridiculous doodle that Doug Ford has produced.” He predicted it would never be built, at least not without major revisions, because “quite frankly it doesn’t make any sense.”

Vaughan stressed the Liberals are committed to listening to cities however, and agreed the federal government should review whatever plans Toronto endorses.

For other elected officials, the agreement was the best outcome the city could have hoped for given the province’s superior legislative authority.

Brad Bradford, designated by Tory as council’s “relief line champion,” said his initial criticism of Ford’s Ontario Line as a delay-causing “mess” was triggered by the city being blindsided with details about it in the Star.

“Do we want to talk about how those stations interface with our neighbourhoods and our infrastructure — or do we want to walk away and have nothing to do with it and leave up to the province?” said the Ward 19, Beaches-East York councillor.

“I think the negotiations that have taken place between staff … landed on a good outcome.”

Freeing up funding for TTC maintenance, provincial money for a double-sized relief line, and the death of the subway upload will benefit Torontonians, Bradford said, but he doesn’t believe the 2027 completion target is realistic, declining to suggest when the line could actually open.

In a statement, the premier praised Tory, Trudeau, and Conservative Party Leader Andrew Scheer. Last week Scheer also pledged to fund the province’s transit plans if his party wins the federal election.

“I welcome today’s announcement from Mayor Tory and the city of Toronto to move forward with a new and groundbreaking partnership to transform transit in Toronto and get shovels in the ground as soon as possible on these critical projects,” Ford said.

“With all three levels of government working together, I am confident we can bring our transit system into the 21st century.”

With files from David Rider and Robert Benzie.

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