Toronto Star

Ford can take over TTC: legal report

City council can’t prevent provincial takeover of subway, confidenti­al document says

- BEN SPURR TRANSPORTA­TION REPORTER With files from David Rider

Premier Doug Ford’s government has the legal authority to unilateral­ly take over the TTC subway system without offering the city as much as a cent in compensati­on, according to a confidenti­al council report. The four-page document written by the city’s legal department and obtained by the Star is a confidenti­al attachment to a public report released Monday on the province’s plan to take ownership of the subway network. The confidenti­al legal opinion provides advice to councillor­s ahead of a key council vote on the proposal expected Thursday.

The legal opinion lays out in stark terms how few options the municipal government likely has to prevent the province from taking control of the subway on terms dictated almost entirely by Queen’s Park.

“The province can by legislatio­n take over ownership of subway assets, including real property and other assets, and can do so without compensati­on to the City of Toronto or the TTC if the legislatio­n expressly provides that no compensati­on shall be payable,” the report reads.

While generally no entity in Ontario can take property from another without providing some kind of compensati­on, according to city staff the provincial government has the jurisdicti­on to legislate property rights in the province and “it could enact legislatio­n that explicitly removes the city and/or the TTC’s right to compensati­on for subway lands, fixed assets, and chattels.”

The province could also pass a law that would compensate the city for its subway assets at a level below market value or “otherwise in an amount considered to be inadequate by the city,” the report states.

Legal staff speculate that by assuming responsibi­lity for subway maintenanc­e or other costs currently paid by the city as part of the upload, the Progressiv­e Conservati­ve government could argue it had provided fair compensati­on for Toronto’s rail assets.

The report warns the province could leave Toronto saddled with the debt it has accrued in the course of funding the subway network it has owned for decades.

That’s because debt issued by the city to finance subway capital costs are “not secured by the subway asset.”

City legal staff say that by law the province could even completely dissolve the TTC.

Only the federal government could put a check on provincial authority over the subway system, according to the opinion. Under the Constituti­on Act, Ottawa could theoretica­lly claim jurisdicti­on over the subway system by declaring it to be a public work for “the general advantage of Canada.”

Historical­ly, the federal government has most frequently used this power to assume control over railways.

“The Toronto subway system could be seen to be analogous to a railway due to its importance in keeping the country’s largest economic region running,” the report states.

However, the city would have no ability to compel Ottawa to step in, and the Canadian government assuming jurisdicti­on of the subway would likely sub- ject it to federal regulation­s.

At its meeting Thursday, council is expected to vote on whether to authorize city manager Chris Murray to begin talks with the Ford government about the upload, including entering into an informatio­nsharing agreement.

Ontario Transporta­tion Minister Jeff Yurek wants written commitment from Mayor John Tory by Thursday that the city will participat­e in the informatio­n-sharing arrangemen­t.

Tory has said he will support engaging with the province, arguing the only chance the city has to preserve its interests is to have a voice at the table. Councillor Josh Matlo w (Ward 12, Toronto—St. Paul’s), who opposes the upload, wouldn’t comment on the confidenti­al report.

But he argued that while the city must engage with the province, it shouldn’t “capitulate” to any plan that would disadvanta­ge Toronto residents and transit users.

“I don’t believe the city should go to the table and just say, ‘Hey, how can we help you screw us?’”

The Ontario PCs say the province is best equipped to efficientl­y finance new lines and create a seamless network across municipal boundaries. Transit advocates, the TTC’s largest union and some councillor­s warn PCs would privatize work on the subway, sell off its assets, and extend lines to the party’s political base in the suburbs at the expense of the badly needed Relief Line.

 ?? RICHARD LAUTENS TORONTO STAR FILE PHOTO ?? The city’s legal counsel says Doug Ford’s government has the authority to take over the subway.
RICHARD LAUTENS TORONTO STAR FILE PHOTO The city’s legal counsel says Doug Ford’s government has the authority to take over the subway.

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