Mayor’s decision to axe Sheppard, Finch LRTs will cost
City agreed to reimburse Metrolinx for cash spent already
(Written for Town Crier April 1.)
The city taxpayers are on the hook for at least $49 million now that the Ontario government and Metrolinx agreed to cancel two previously approved light rapid transit lines for Sheppard and Finch.
Early in his term Mayor Rob Ford announced the Transit City plan for four surface LRT lines on Sheppard, Finch, Eglinton and in Scarborough was dead. His office spent four months negotiating with the province and Metrolinx to spend the allotted $8.4 billion on making the Eglinton LRT underground and converting the Scarborough RT to a surface LRT.
He also sought permission for the city to look for $4.2 billion in private sector funding for a new Sheppard subway.
That deal, announced March 31, included a provision that the city pay Metrolinx back for any costs associated with canceling the previously approved projects. The bill to the city will be at least $49 million, Metrolinx confirmed to the Town Crier on April 1.
“At this time we estimate there are $49 million in sunk costs mostly for work on the environmental assessments, designs or engineering and project management for Finch LRT and Sheppard LRT,” said Metrolinx spokesperson Vanessa Thomas. “The $49 million (is) for costs we already accrued.