The SmartTrack Stations Program represents a significant investment to improve transportation choices for people within Toronto by leveraging existing transit infrastructure. The Program consists of five stations along three GO rail corridors: East Harbour, Bloor-Lansdowne, St. Clair-Old Weston, Finch-Kennedy and King-Liberty. The SmartTrack Program Budget is $1.689 billion, inclusive of $878 million from the City of Toronto, $585 million from the Government of Canada and $226 million from the Province of Ontario. In November 2024, the Ontario Minister of Transportation sent a letter to Mayor Chow formally notifying the City of cost pressures that exceed the approved Program Budget. The Province noted that global market conditions driven by rising interest rates and escalating prices for materials, skilled trades and labour are resulting in higher costs for the Program. After receiving this notification, the City, Province and Metrolinx met to assess options to address these cost pressures. Confidential Attachment 1 includes the letter to the Mayor from the Province, current cost pressures provided by the Province, and all options assessed by City, Provincial and Metrolinx staff to address the cost pressures along with incurred costs to date provided by Metrolinx. Based on the assessment completed by City, Provincial and Metrolinx staff, the following two options emerged that stay within the Program Budget, while maximizing the number of stations prioritized (three stations): Option 2a - East Harbour, Bloor-Lansdowne and Finch-Kennedy. Option 2b - East Harbour, Bloor-Lansdowne and St. Clair-Old Weston. Both these options maintain East Harbour and Bloor-Lansdowne. East Harbour is critical to the transit network, providing both subway and GO transit connections, as well as to significant planned employment and residential development. The Bloor-Lansdowne construction contract has been awarded and as both the design and early construction works are underway, there would be financial penalties for cancellation. Staff recommend option 2b which prioritizes the delivery St. Clair-Old Weston over Finch-Kennedy (option 2a). The St. Clair-Old Weston station is required to ensure delivery of the City’s St. Clair Transportation Master Plan, provides higher-order transit to a Neighbourhood Improvement Area, and has significant development, housing including future Transit Oriented Communities, and employment growth potential. Financial details for options 2a and 2b, along with all other options assessed are outlined in Confidential Attachment 1. Since Finch-Kennedy and King-Liberty stations will benefit the Province through increased ridership on the GO system, and as the Province will own and maintain the stations, the City continues to maintain that the Province, through Metrolinx, should deliver all five SmartTrack Stations. As such, this report seeks Council authority to request the Province identify a funding solution, including exploring funding opportunities with the Government of Canada, to deliver the remaining two stations, King-Liberty and Finch-Kennedy at no cost to the City. To ensure the three prioritized stations (option 2b) can be delivered within the Program Budget, this report recommends City Council direct the City Manager to request the Province ensure that the Government of Canada maintains its full funding commitment of $585 million. Direction from Council is required before Metrolinx can proceed to award construction contracts for St. Clair-Old Weston and East Harbour, which are planned for the first and second quarter of 2025.
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