Item - 2024.EX19.6

The Executive Committee recommends that:

1. City Council request the Board of Directors of the Toronto Transit Commission to direct the Chief Executive Officer, Toronto Transit Commission to provide an interim report to the Board in the first quarter of 2025 on relevant information to inform the City's public consultation on the land requirements and a final report to the Board in fourth quarter of 2025 on the completed analysis of Scarborough Rapid Transit Line 3 infrastructure and land requirements, and the assets no longer required for transit operation purposes. 

2. City Council endorse in principle to substantively remove the Scarborough Rapid Transit Line 3 infrastructure no longer required for transit operations so the corridor lands may be considered for future uses.

3. City Council direct the City Manager, in conjunction with appropriate City divisions and agencies, to report back to City Council in the fourth quarter of 2025 on next steps for the Scarborough Rapid Transit Line 3 infrastructure, after the completion of necessary technical studies and detailed legal analysis, including final scope, recommended approach for infrastructure removal which prioritizes lands of third-party owners, identifying any portion of the elevated infrastructure that could remain for future uses and estimated capital costs.

4. City Council direct the City Manager, in conjunction with appropriate City divisions and agencies, to report back in the fourth quarter of 2025 with a plan for a 'future use' analysis of the surplus Scarborough Rapid Transit Line 3 corridor land, including a strategy to undertake public consultations in 2026, with consideration for local Scarborough needs and integrating opportunities for transit, active mobility, trails, parks, privately owned publicly-accessible spaces, cultural installations and commemoration of the decommissioned Scarborough Rapid Transit into a connected corridor.

5. City Council direct the City Manager to engage the Federal and Provincial Governments and related agencies such as Infrastructure Ontario, Metrolinx and the Canadian Infrastructure Bank, as well as the University of Toronto Scarborough on partnerships and funding opportunities for required studies, planning and execution of infrastructure removal and future uses of the corridor.

The Executive Committee recessed its public session to meet in closed session to consider this item as it relates to the receiving of advice that is subject to solicitor-client privilege.

This report responds to City Council's request from March 2024 to assess scope, feasibility, costs, risks, and key considerations regarding the adaptive reuse of the right-of-way, infrastructure, and station assets which comprise the Toronto Transit Commission (TTC) decommissioned Scarborough Rapid Transit Line 3 (SRT). This request was made through Member Motions MM16.7 and MM16.29.

In July 2023, the SRT ceased operation and rapid bus replacement service was implemented. The Scarborough Subway Extension is planned for completion in 2030, extending the Bloor-Danforth Line 2 east and north into Scarborough. The TTC is currently converting the at-grade portion of the SRT line between Kennedy and Ellesmere stations, to a Bus Rapid Transit (BRT) line, which is planned to be operational by 2027.

Based on TTC's completed review and analysis, the 2.5-kilometre SRT guideway located between Ellesmere Station and one hundred metres east of McCowan Station at Grangeway Avenue, is no longer required for transit uses. Most of this portion of the SRT is elevated infrastructure except for an area located north of Ellesmere Station which includes a small portion at-grade and below-grade as it changes to an east-west orientation. As per Municipal Code Chapter 279, the TTC holds real estate and infrastructure assets for the purpose of a transportation system and therefore assets no longer required for transit operations are declared surplus.

Following direction from City Council regarding the preliminary feasibility assessment of adaptive re-use of the SRT infrastructure, staff across relevant City divisions and agencies completed the following:    

- a full review by the TTC of current and future operational requirements;

- an initial ownership analysis and legal review of easements and agreements with third-party landowners;

- an assessment of current developments, secondary plans, parks and other local requirements, and future development opportunities; and,

- a high-level estimate of the cost of required due diligence and technical studies.

Initial assessments indicate that adaptive reuse of the elevated guideway infrastructure presents legal risk that needs to be addressed, short-term and long-term capital expenditures, and implementation complexity overall. Specifically:

- the City does not have complete property ownership of the SRT corridor;

- the City has legal obligations to third-party landowners on portions of the SRT corridor including permission for restricted use to only transit operations; requirements to maintain infrastructure in good repair; and requirements to restore lands within one or two years once the transit system ceases operations, which was in July 2023;

- unfunded capital costs to undertake due diligence, retain third-party lands, redevelopment planning, and asset lifecycle requirements of aging infrastructure;

- the capital coordination of large projects in Scarborough Centre (i.e., Scarborough Subway Extension, Transit Oriented Developments, housing developments); and,

- overall redevelopment limitations of the narrow corridor.

Given these constraints, City staff recommend the SRT transit infrastructure be considered for substantive removal and derisked (i.e., addressing financial, legal, and asset lifecycle issues). The City can then review the true scope of the SRT corridor with appropriate visioning or 'future use' studies, and with dedicated capital budget. There may be city building opportunities by maintaining portions of the SRT corridor and exploring new connected land uses based on local Scarborough needs, and partnerships with active adjacent developments. These potential city building opportunities require deeper study such as transportation connections (i.e., active mobility, trails), parks, privately-owned publicly accessible spaces, and commemoration of the SRT.   

To move forward, the City should prioritize the following actions: 

- undertake a detailed legal review and title search of the SRT corridor to confirm ownership, and initiate discussions on current legal agreements;  

- undertake required technical studies, including analyzing scope, options, and cost estimates for the removal of SRT infrastructure to help determine next steps;

- confirm accountability for the structure’s maintenance, safety, and security during and after technical analysis and any future phases; and,

- plan a 'future use' study of the SRT corridor and a strategy for public consultation.

It is recommended the adaptive re-use of the SRT be pursued in a 'stage gate' process. This would enable City Council to fully understand scope, cost, risks, and timing of each step forward considering the City's financial constraints. Stage gates are as follows:

- approval to proceed with required legal and technical work to advance infrastructure removal;

- report back in Q4 2025 with final scope, recommended approach for infrastructure removal, identify portions that could remain, any new land rights required, estimated capital cost for next steps, plus a plan for a 'future use' analysis and strategy for public consultations; and,

- report back in 2026, with results of a public consultation and options for future uses of the SRT corridor.