Item - 2024.EX17.5

The Deputy City Manager, Development and Growth recommends that:  

1. City Council receive this report for information.

PortsToronto must meet a federal regulatory requirement to have Runway Safety End Areas (RESA) at Billy Bishop Toronto City Airport (BBTCA) by July 12, 2027. RESAs are level ground past the ends of a runway created to mitigate the impact when an airplane over or under shoots either end of a runway. Airports in Canada are now required to have a minimum of 150 meters of safety length beyond runway ends.

The City is hosting a public meeting on this issue on September 24, 2024. A supplementary report will be provided to the Executive Committee after the public meeting. This supplementary report will provide an overview of the federal requirement and the RESA options at BBTCA. It will also provide City staff comments on PortsToronto's RESA options and requests, and the decisions and approvals that may be required as a result of these requests. Further, City staff will summarize public consultation on this matter.

Financial implications will be outlined in the forthcoming supplementary report. There are no financial impacts arising from the recommendations contained in this report.

The Chief Financial Officer and Treasurer has reviewed this report and agrees with the financial impact information.

The Deputy City Manager, Development and Growth Services recommends that:  

1. City Council authorize the Deputy City Manager, Development and Growth Services, working with the Director, Waterfront Secretariat, to consider the detailed RESA designs provided by PortsToronto and based on those designs, to negotiate and execute an amendment to the Tripartite Agreement to permit a landmass extension that meets the RESA compliance requirements consistent with RESA Option 1 and as substantially outlined in Attachment 2, in a form satisfactory to the City Solicitor.

2. City Council direct that the execution of the amendment to the Tripartite Agreement authorized by Recommendation 1 be subject to PortsToronto fulfilling the following conditions, to the satisfaction of the Deputy City Manager, Development and Growth Services, working with the Director, Waterfront Secretariat and the City Solicitor:

a. completing the RESA Environmental Assessment;

b. engaging Toronto and Region Conservation Authority to leverage their shoreline expertise throughout detailed design and implementation and present detailed RESA designs to Aquatic Habitat Toronto for input and advice on habitat compensations strategies that advance the objectives of the Toronto Waterfront Aquatic Habitat Restoration Strategy;

c. developing a RESA construction management plan that minimizes community impacts including overnight work; and

d. developing a traffic management plan related to construction activities.

3. City Council direct the City Manager and/or delegate(s) to participate in discussions with PortsToronto and Transport Canada on a process to update the 2018 airport master plan in advance of the 2033 expiry of the Tripartite Agreement, and report to Executive Committee in 2025 with a framework to guide this process, including funding requirements, which takes into consideration the City's overall vision for waterfront revitalization, economic development and the City's housing targets.

PortsToronto has a federal regulatory requirement to implement Runway End Safety Areas (RESA) at the Billy Bishop Toronto City Airport (BBTCA) by July 12, 2027 (See Attachment 1). The potential for RESA regulations was first raised by Transport Canada in 2010, with regulations ultimately finalized and published in the Canada Gazette in December 2021. The potential RESA options at BBTCA were also highlighted in PortsToronto's 2018 Airport Master Plan.

The purpose of this report is to provide an overview of the federal RESA requirement and the proposed runway end options at BBTCA. It also provides City staff comments on the runway end options and PortsToronto's requests, and the decisions and approvals that are recommended as a result of these requests. Further, this report provides a summary of the City-led public engagement on this matter. Staff advice is focused on RESA compliance, per the federal requirement described in Attachment 1.

BBTCA is operated by the Toronto Port Authority (operating as PortsToronto) and is on land that is approximately 78% owned by PortsToronto, 20% by the City of Toronto and 2% by the Government of Canada, represented by the Minister of Transport. The operations at BBTCA are governed under a Tripartite Agreement that was signed by the three landowners in 1983, and which has a current end date in 2033. The agreement is unique because, in addition to setting out conventional lease terms, it includes numerous conditions and prohibitions respecting airport operations and describes certain requirements and responsibilities of the signatories, including a prohibition of any actions that would "…interfere with the safe use and operation of the island airport." The airport has and continues to operate safely, as is required under federal Canadian Aviation Regulations.

PortsToronto has requested that Transport Canada and the City amend the Tripartite Agreement by providing permission to extend the available landmass, which is currently prohibited.

As a result of due diligence and public engagement, City staff are in a position to recommend PortsToronto's "Option 1" as the most efficient option for meeting RESA compliance by the federal regulatory deadline. Accordingly, this report recommends that City Council authorize a limited Tripartite Agreement amendment to permit the essential land mass expansion required for Option 1. This would be a limited, technical amendment to permit limited lakefill works to achieve RESA compliance most quickly.

City Council's adoption of the recommendations in this report would indicate the City's support for the completion of Option 1 and provide clarity to PortsToronto's Board of Directors on the extent of City approvals that will be provided to enable RESA compliance.

Providing permission for essential land mass expansion (and thus limited lakefill works) will focus the project as a compliance effort and encourage PortsToronto to ensure delivery of an essential and time-sensitive public safety upgrade for this important transportation asset.

Providing permission for the lakefill required for RESA Option 1 represents a balanced approach that preserves the airport's existing commercial operations (thus maintaining its contribution to the city's economy) while having the lowest possible incremental impacts to livability on Toronto's waterfront. City Council approval of the lakefill required for Option 1 would in effect be a continuation of 'status quo' from a waterfront revitalization perspective.

Among the RESA options under study by PortsToronto, Option 1 represents a focused scope of work which is:

- The lowest risk scenario to achieving the mandated federal safety requirements by the July 12, 2027 federal deadline;

- Has a considerably lower project cost;

- Avoids the need for additional planning approvals, such as an Official Plan Amendment, which would add additional time; and,

- Provides the shortest construction timeline and smallest scope of lakefill, resulting in minimum disruption over two and a half years to residents and recreational activities within the surrounding area.

PortsToronto has also requested an extension to the lease to provide for a longer window for RESA financing, as well as greater operational and planning certainty; the request is for the agreement to run for 48 years from 2025, meaning an extension of term from 2033 to 2073 (an extra 40 years). Further, PortsToronto has proposed related/ancillary airport infrastructure and safety upgrades that could be enabled by expanded lakefill scope. Due to RESA compliance timelines, PortsToronto has requested City Council direction on their desired amendments to the Tripartite Agreement by November 29, 2024, and for a new or amended Tripartite Agreement, to be signed by the parties, by January 31, 2025. 

City staff are not recommending changes to the term of the Tripartite Agreement in this report, as this issue is also best considered as a part of an airport master planning exercise and following robust public consultation.

City staff note that the ancillary works that are proposed in more complex RESA options, as well as other items, could be implemented later, in an incremental fashion, and are best considered in the context of an airport master planning exercise. This would allow for a holistic study while avoiding building these items into a considerably larger size RESA project that has additional cost, risk and complexity associated with non-essential (to the RESA project) lakefill works.

City staff are also not making a recommendation that would result in a material and immediate impact to airport operations, such as not taking a position on RESA compliance, reducing declared runway distances or implementing an Engineered Material Arresting System (EMAS) option. These options represent significant changes and would have wide ranging implications on matters which have not been studied since the last comprehensive airport proposal in 2014. Rather the study of broader issues is better considered as a part of a fulsome public conversation in the context of an airport master planning exercise.

PortsToronto and some stakeholders have raised the need for a broader public discussion on the future of the airport. With the focus on RESA compliance, PortsToronto, Transport Canada and the City have not fully explored how such a public discussion could occur. Further, BBTCA's airport master plan was last updated in 2018 with best practices dictating an update every ten years. PortsToronto has previously committed to updating its master plan every five years. Accordingly, this report recommends that staff be authorized to participate in discussions with PortsToronto and Transport Canada on the need for an update to the airport's 2018 master plan and be directed to report to Executive Committee in 2025 on the framework, including funding requirements, required for such a process. It is important that the parties work together to develop a process to guide this larger discussion and agree on its timelines. An effective process would seek to promote robust engagement, allow for thoughtful consideration of the issues involved, and provide transparency and accountability in decision making.

The recommendations outlined in this report would allow for RESA implementation by the 2027 deadline, while separating this safety objective from the much larger discussion about the airport in the context of broader City goals. City staff are recommending this approach to provide the time and space for robust and thoughtful consideration about an update to the airport master plan and the possible comprehensive review and renewal of the Tripartite Agreement. 

Previous City Council directions and City policies acknowledge the complexities of a downtown airport including the land-use compatibility challenges in the Bathurst Quay neighbourhood, the City's broader objectives related to waterfront revitalization, including building more housing, and the regional economic importance of this unique transportation asset.

In 2000, the vision document Our Toronto Waterfront: Gateway to a New Canada, set out a new direction for the waterfront to become a "model to the world of how economic development, environmental protection and cultural and recreational growth can complement each other… [creating] a place to play, live and work." While the vision has evolved, including through the core principles of the Central Waterfront Secondary Plan and the renewed priorities of the Next Phase of Waterfront Revitalization, what is unchanged is the idea that waterfront revitalization offers a unique opportunity to address complex, often intersecting challenges to create a prosperous, vibrant and livable city. This includes the need to balance public policy objectives as we continue to recover, renew and enhance Toronto's global competitiveness. A downtown airport is an asset that can support Toronto and the region’s economy by contributing to key sectors such as film and culture, innovation & technology, life sciences and cleantech, while enhancing the visitor economy.

As detailed further below City Council authority for RESA Option 1 and direction for staff to work with Transport Canada and PortsToronto on an updated airport master plan would achieve the following public policy objectives:

- Encourage compliance with relevant City of Toronto Official Plan lakefill policies, which limit lakefill to meeting the needs of "essential public works."

- Reinforce the core principles of the Central Waterfront Secondary Plan and the principles which guide the Next Phase of Waterfront Revitalization.

- Create the space for a longer-term discussion to occur about the airport master planning process and the possible comprehensive review and renewal of the Tripartite Agreement.

Next Steps for RESA

Following City Council decision making, the next steps on RESA will largely be determined by PortsToronto, which will complete its Environmental Assessment and identify a preferred option.

Should PortsToronto select their current Option 1 as a compliance-focused RESA design that is limited to essential lakefill works, the RESA project could proceed in short order and maintain the critical path required for compliance by 2027. In this scenario, PortsToronto may refine their approach following City Council approvals since the Environmental Assessment is ongoing.

Should PortsToronto pursue a RESA option that is substantially scoped beyond Option 1 and the essential lakefill works required to achieve RESA compliance, other City processes such as an Official Plan Amendment would be required. An Official Plan Amendment for example would require submission of an application with a number of information items (plans, reports and studies) that may be required to assess proposals and the completeness of applications. Community consultation meetings are requirements in the Official Plan Amendment process. Staff evaluate requests for site specific Official Plan Amendments through a rigorous process that includes reports to committee and Council, public consultation, and an appeal period. Additional processes and approvals would add to project timelines and could have a negative impact on achieving RESA compliance by the federal deadline.

Next Steps for Airport Master Planning

Subject to City Council approval, City staff will enter further discussions with PortsToronto and Transport Canada on an airport master planning process that would set out a clear and transparent framework to guide an upcoming public process. City staff will report back on these matters in 2025.

Costs related to construction of Runway End Safety Areas (RESA) will be borne exclusively by PortsToronto as airport owner and operator.

The City Planning division has advanced the City's role as outlined in this report within existing approved budgets. This included securing $125,000 in specialized aviation consulting services and $50,000 in public and Indigenous engagement support in 2023 and 2024. These services were required on an urgent and specialized basis to provide staff with technical inputs to respond to an evolving PortsToronto workplan related to RESA; they were procured on a non-competitive basis under existing delegated authorities.

Future year requirements will be addressed in the 2025 report to Executive Committee and in future year budget submissions.

The Chief Financial Officer and Treasurer has reviewed this report and agrees with the information as presented in the Financial Impact Section.