Item - 2026.TE28.29

The Acting Deputy General Manager, Transportation Services, recommends that:

1. Toronto and East York Community Council receive this report for information.

As directed by Toronto and East York Community Council at their meeting on November 27, 2025, this report summarizes the background, current status, key challenges, planned communications approach, anticipated construction timelines, phasing, and next steps for the John Street Corridor Improvements project.

A key "Cultural Corridor" in the downtown, John Street runs between Stephanie Street (north of Queen Street West) and Front Street West and is an important route of civic and cultural importance for the City of Toronto.  Following a Municipal Class Environmental Assessment (EA) study which developed and evaluated several different design options, City Council endorsed a Preferred Design for the John Street corridor in 2012.

The Environmental Assessment Preferred Design recommended several significant street improvements, including: wider sidewalks; a narrower roadway; new street tree plantings; new custom street furniture integrated with public art elements; a distinctive paving treatment from building face to building face; combined roadway, pedestrian, and accent streetlighting; and a "flexible boulevard" along the east side of the street to accommodate loading and deliveries, while maintaining an expanded sidewalk.

Enabling infrastructure work to facilitate the John Street Corridor Improvements project has begun - from 2018 to 2024, significant utility construction work was undertaken to bury the overhead hydro infrastructure, relocate a major gas main, and construct a shared utility trench.

The full reconstruction of John Street is anticipated to start in 2028 and be completed in 2031. Current construction cost estimates are significantly higher than previous construction cost estimates and exceed the City's capital budget currently allocated to the project by approximately $16 million. City staff are exploring opportunities to reduce construction costs as well as opportunities to identify additional funding sources to bridge the gap in order to ensure the project can advance to construction in coordination with other area construction projects.

In Spring 2026, Transportation Services will be implementing targeted interim repair improvements at the King Street West and John Street intersection, due to the condition of the roadway and boulevard. This intersection is a key location with expected high pedestrian and vehicle traffic volumes during FIFA World Cup 26^TM and Toronto International Film Festival (TIFF) events planned to occur later in 2026.

There are no financial implications for this budget year resulting from the recommendations included in this report. Based on the latest construction cost estimate from early 2025, it's estimated to cost approximately $92.6 million to construct the remainder of the project. The incremental needs required for the project, above and beyond what has already budgeted in previous budget submissions, will be submitted as part of the 2026-2035 Capital Budget Submission subject to Council approval. This includes funding contributions from several City Divisions, including Transportation Services, Toronto Water, Parks & Recreation, Economic Development & Culture, and City Planning, and includes approximately $20 million from Section 37 funds collected from area developments over the past several years.