Sheppard subway: Chong urges calm

Sheppard subway: Chong urges calm. Gordon Chong speaks with Toronto Community News about his report on financing for the Sheppard subway. Staff photo/DAVID NICKLE

"I would hope that people not consider signing the petition that's going around and wait until February 14," Chong said in an interview with Toronto Community News.

"It'll be worth it if people were really fair-minded, interested in not fooling around. Unless you're really p-ed off at the Mayor and want to scuttle the whole thing..."

Chong made the comments as his long-awaited report on the feasibility of a city-built Sheppard subway is at the printer's for its official release next week. The report is intended to go to the Feb. 13 meeting of the city's executive committee then be debated in March.

Details of the report had leaked out on Thursday, Feb. 2, and indicate what many had expected: the subway along Sheppard Avenue that Mayor Ford promised during the 2010 mayor's race is indeed feasible, and could be built for $1 billion less than the Toronto Transit Commission had estimated.

"The essential message is it's doable, it's not as expensive as the TTC estimated. We had a surveyor look at this - the revenue tools and the financing can be done and the private sector is itching to go at it," said Chong.

The report says the entire line - from Downsview station in the west to Yonge Street, and from Don Mills station to the Scarborough Town Centre in the east, could be built for $3.7 billion. TTC estimates have put the price tag higher, at $4.7 billion.

The report recommends going ahead with a private sector partnership to build the line.

Chong solicited a report from management consultants KPMG, and he said they determined that the 11-station subway could be primarily funded with private sector investment.

It will also require other revenue tools: a payroll tax, road tolls, a regional sales tax and a dedicated gasoline tax; a charge for passenger vehicles. The report also suggests that the city can use different procurement approaches and construction strategies to save money.

The project will also need $330 million that has been promised by Ottawa, and $650 million in savings from the Scarborough-Eglinton Crosstown line.

Chong has changed some of his views since he took on the job running the Toronto Transit Infrastructure company last year.

Then, Chong said he believed that the line - which Ford claimed could be built by the private sector - would only draw 10 to 30 per cent funding from private sector funds.

But he said that since he's written the report, he's heard from private sector fund managers that the private sector involvement could be considerably higher - in the 50 to 60 per cent range.

"The private sector is extremely interested, they just wish we'd get our act together," he told reporters after the interview in the mayor's office conference room.

"I'm optimistic. It's just unfortunate that the last few days has caused such a polarization on the second floor of city hall."

Chong was referring to the schism over whether to proceed with an underground Eglinton line, as Ford had negotiated with Ontario Premier Dalton McGuinty last year.

Joe Mihevc, a former vice chair of the TTC who is among those hoping to overturn the plan and return to the light rail network favoured in the former Transit City plan, said he believed the report was politically influenced by the mayor's office as a way to defend the mayor's subway promise.

"They're realizing that they're losing control of the public discussion so this is their chance to revive it. I understand this is a highly edited report that will reach the floor of council that has been vetted through political people which is not the way the relationship with the civil service should happen," said Mihevc.

In the interview, Chong maintained that the report had been through several drafts, but denied that it was politically influenced.

However, he was aware that the idea of using road tolls to help fund the project was a political hot potato. He pointed out that he believed the project would be fundable even without road tolls.

"If you look at the suite of instruments that are there - air rights and the other things, which includes the unmentionable... but even if you don't use road tolls there are sufficient revenues," he said.