Could Hamilton afford half an LRT?
Construction union LIUNA says it is still talking to the province about a pitch to resurrect a cancelled LRT line — but maybe in two separate phases
Construction union LIUNA says it is talking to the province about building a Hamilton LRT in two phases — west and east of the downtown — even as the government prepares to release a review of rapid transit alternatives for the city.
Ontario’s Tory government controversially cancelled a long-planned city light rail transit line in the middle of construction bidding in 2019, citing a ballooning $5.5-billion budget. But just months after the project died, a provincial task force recommended spending $1 billion to build either LRT or bus rapid transit on the same corridor.
A technical review of those options will go to provincial Transportation Minister Caroline Mulroney “in the coming days” and be released to the public “very soon,” said spokesperson Natasha Tremblay this week.
Amid that review, LIUNA submitted an unsolicited proposal to the province that suggested teaming up with the federal government and private sector to resurrect LRT at a shared cost of around $3.5 billion.
That proposal spurred ongoing talks about a potential “tripartite funding agreement” between Ontario, the federal government and LIUNA’s pension arm, vice-president Joe Mancinelli told The Spectator this week.
No level of government has committed to the pitch, he acknowledged, but described discussions as “promising.”
Those discussions have included a possible budgetstretching option of building the planned 14-kilometre, 17-stop transit line in two separate phases along the Main-King corridor: a western leg from McMaster University to downtown, followed by an extension to Eastgate Square mall.
LRT boosters like LIUNA and Hamilton’s chamber of commerce have argued LRT is a “shovel-ready” project tailor-made to aid the city’s post-pandemic economic recovery via billions of dollars in spending and thousands of jobs.
But Mancinelli said LRT fans also have to acknowledge all levels of government are struggling with COVID-19 deficits. “From a financial point of view, it is a lot easier to have your funds allocated to Phase 1, and then get Phase 2 going,” he said. “It might also speed up the process ... to get shovels in the ground.”
Mancinelli said the form and amount of private cash from LIUNA’s pension arm would have to be negotiated and allow for a long-term return on investment. “We can’t do it for nothing,” he said.
Last year’s study by LIUNA partner Fengate Capital suggested up to $250 million in private construction cash could be raised in return for land development opportunities along the light rail line or a stake in the fare box. The study assumed shared federal and provincial funding, but no capital contribution from city taxpayers.
But what if the provincial review — or Hamilton’s council — suggests switching gears to bus rapid transit instead?
Around half of city councillors polled by The Spectator last year suggested they either opposed LRT, had funding concerns or wanted to hear more about BRT, which involves express buses running in dedicated lanes.
Mayor Fred Eisenberger said he was not aware of discussions around a possible phased approach to LRT construction, but added he supports LIUNA’s efforts to get light rail back on track.
He stressed council needs to see the results of the provincial review of rapid transit options “sooner rather than later” to maximize the benefits of a post-pandemic project like LRT. “There’s no new information from my end on where this project is going, or whether it’s going at all.”
Project opponent Coun. Chad Collins argued LRT is “dead” unless Ontario restores the full, multibillion-dollar funding commitment originally made by the provincial Liberals, which budgeted $3.7 billion before losing the 2018 election. The Tory government has capped its contribution at $1 billion.
“Whether it’s a full line or half-a-line, we’re still faced with the question of who is paying for the maintenance, lifecycle and operating costs. We (the city) can’t,” said Collins.
Mancinelli said he has spoken directly to Premier Doug Ford, Mulroney and federal Liberal Infrastructure Minister Catherine McKenna about the LRT pitch within the last month or two.
Publicly, the province has offered mixed signals on light rail. In August, Ford warned Hamilton would have to “tax the pants off” residents to pay for LRT as originally envisioned.
A month later, he acknowledged LIUNA’s proposal, appealed for federal funding and appeared to open the door to building a LRT line piecemeal. “Even if we move it, a little bit, get half, get two-thirds, get anything going, we can add onto it,” he said at a press conference.
In December, Ford hailed an auditor-general’s report that supported the $5.5-billion cost estimate the Tories used to justify cancelling LRT. But at the same time, he vowed “one way or another, we’re going to get the LRT built.”
A spokesperson for McKenna reiterated federal support for LRT via email. “We would welcome the province submitting a business case for review.”