January 13, 2012

Toronto budget proposals include $1.5 million Infrastructure Ontario loan for Leaside arena construction

The executive committee of Toronto City Council voted Thursday in favour of a capital budget that includes a cash flow in 2012 of $2.832 billion. It also recommends the city loan the Leaside Arena Board $9 million for an expansion project, which would include a loan of up to $1.5 million from Infrastructure Ontario.

Meanwhile, it is unclear whether the Toronto Transit Commission will get $23 million for additional storage for buses.

Leaside Memorial Community Gardens, located at Millwood Road and Laird Drive, is undertaking a fundraising drive to build a second ice pad for its 60-year old arena, which was originally in the Town of Leaside before it was absorbed by the Borough of East York, which in turn was absorbed by the City of Toronto.

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Both the executive and budget committees are recommending full council approve a loan up to $7.5 million from the city, and up to $1.5 million from IO, to the Leaside Arena Board.

Full council is scheduled to vote on the tax-supported capital and operating budgets next week.

The executive committee, chaired by Mayor Rob Ford, includes 12 of the 44 city councilors. Its vote Thursday came three days after the budget committee voted to recommend that full council approve the 2013 to 2021 Budget Committee Recommended Capital Plan, estimated at $12.824 billion.

The recommended 2012 capital budget has a total project cost of $1.124 billion and a cash flow of $2.832 billion.

In November, Toronto city staff presented a $14.8-billion capital proposal for 2012 through 2021, which included $137.477 million from 2012-16 to develop the West Don Lands and East Bayfront precincts, designated for conversion from brownfield to mixed use by Waterfront Toronto.

It also included $87.209 million over 10 years for cycling infrastructure, nearly $20 million over two years to revitalize Nathan Phillips Square in front of City Hall and $17.942 million in 2013 to construct a pedestrian and cycling bridge over the Canadian National Railway tracks between Strachan Avenue and Bathurst Street.

The budget committee held several meetings in December and January, culminating in several decisions Jan. 9. It reviewed reports from several agencies, including the Toronto Transit Commission. The TTC noted it needs $23 million for additional bus storage (while another $22 million is needed for 54 new buses), and that $45 million in capital funding is not available from the TTC. The budget committee is recommending full council request that the TTC “provide appropriate financing alternatives to offset the $45 million in new capital costs and associated debt for vehicles and additional storage, and report back to the Budget Committee prior to TTC's commitment to the purchase of the vehicles.”

The budget committee also reviewed a report from the Deputy City Manager and Chief Financial Officer on Leaside Memorial Arena, which resulted in the loan recommendations.

Both the budget and executive committees voted that authority be granted to receive funds through donations and contributions from The East York Foundation, and that agreements be entered into between the city, arena board, IO and the foundation, to “ensure that all donations received by the Foundation and the Arena Board for the Project, after the initial fundraising capital campaign of $2.5 million, net of reasonable fundraising costs, are solely applied to the IO Loan, and further, that all expenses paid from the fundraised donations collected for the Project are valid documented expenses which are necessarily incurred as a direct consequence of securing the donations.”

The committees also voted in favour of having the city council appoint a representative from IO to the Arena Board.

In addition to Ford, the executive committee includes: Doug Holyday, deputy mayor and councilor for Ward 3 Etobicoke, as its vice-chair; budget committee chairman Mike Del Grande (councilor for Ward 39 Scarborough Agincourt); and parks and environment committee chair Norm Kelly, councilor for Ward 40. Peter Milczyn and Michelle Berardinetti, councilors for Ward 5 Etobicoke Lakeshore and Ward 35 Scarborough Southwest respectively, are on both the budget and executive committees. The other councilors on the executive committee are Paul Ainslie, Giorgio Mammoliti, Denzil Minnan-Wong, Cesar Palacio, Jaye Robinson, David Shiner and Michael Thompson.

In addition to Del Grande, Milczyn and Berardinetti, the councilors on the budget committee are Frank Di Giorgio, Chin Lee, John Parker and Doug Ford.

DCN DIGITAL MEDIA

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