In what the provincial government is calling a "brand new kind of partnership," a private developer will rebuild Mimico GO station in exchange for development rights above the site.

Developer Vandyk will refurbish and add new features to the existing station in exchange for receiving the air rights above the property.

The company intends to build a mixed-use development above the station, though specific details about it are not yet available.

Ontario and Metrolinx are calling the deal a win for both taxpayers and transit users. The redevelopment will come at no direct cost to the public and it is hoped that it will lead to increased ridership.

While announcing the deal on Thursday morning, Transportation Minister John Yakabuski said the deal represents an instance of the new government finding savings for taxpayers.

"By working with businesses to develop this site, we are delivering on our promise that Ontario is open for business, while we get this work done at a lower cost to the taxpayer," he also said.

Following Thursday's announcement, the Ontario NDP called for greater transparency and for affordable housing to be included in the development plans.

"Any deal regarding this site, which has been the source of scandal in the past, must be absolutely transparent. Furthermore, such a deal must include affordable housing, which is sorely needed in this community," said NDP transit critic Jessica Bell.

In 2012, Metrolinx backed out of a similar deal with a different developer to erect a 242-unit condo building with direct access to the GO station. It proved to be a prescient move.

From the beginning, the project was plagued by logistical and legal problems. Last year, the development was placed into court-ordered receivership, leaving some 200 buyers on the hook for homes that will never exist.

An aerial view of the proposed Mimico GO station. (Metrolinx)

Metrolinx expecting big jump in traffic

The new station will include an accessible entrance, pedestrian tunnels, refurbished platforms and below grade parking. The station itself is expected to cost $102 million.

Details about the mixed-use development to be built above the station are not yet available.

"There's no doubt that the value we'll be receiving for the air rights exceeds the value of the air rights," said Phil Verster, Metrolinx CEO. "More people living in this area means more travellers for us," he added.

Mimico Station was built in 1967, when GO Transit first launched. It currently serves 1,200 riders daily, but that figure is expected to triple by 2031.

A temporary station is scheduled to be in place by 2023. Metrolinx and Vandyk have yet to negotiate a completion date for the finished station.

Metrolinx stresses that, despite the involvement of a private developer, the transit agency will control aspects of the project such as deadlines and station features.

Metrolinx previously struck a deal with another developer to build a new GO bus terminal and office complex behind Union Station in 2017.