A fortunate update on the transportation project haunted by political chicanery
Graphic by Elisabetta Paiano and Andrew Mrozowski, Managing Editor
A RECAP FROM LAST YEAR
We last wrote about the state of the Hamilton light-rail transit system project on Jan. 23, 2020. The proposed project involved the construction of an LRT line, extending from McMaster University to Eastgate Square along the Hamilton Street Railway B-line.
However, on Dec. 16, 2019, the Minister of Transportation Caroline Mulroney informed Fred Eisenberger, the mayor of Hamilton, that the provincial government had decided to cancel plans for the project.
The reasoning behind this cancellation was that the project would have cost over five times more than the previous Kathleen Wynne provincial government had implied. Eisenberger considered this a betrayal on the part of Premier Doug Ford and the Ontario provincial government.
The estimated cost for the Hamilton LRT project was revealed to range from $4.6 billion to $6.5 billion in a meeting between the Ministry of Transportation and the city of Hamilton. This is approximately five times that of the initial $1 billion Wynne promised Hamilton in May 2015 for the project.
The cost was later set at $5.5 billion, without any cost breakdown. According to a statement from Mulroney on Dec. 16, the estimated costs originated from a report by an unnamed expert third party. Kris Jacobson, then director of the LRT project office, noted that without context, the estimate from the provincial government was impossible to interpret and verify.
Andrea Horwath, NDP member of provincial parliament for Hamilton-Centre and leader of the official opposition, called onFord to reveal the third-party’s cost estimate. On Dec. 18, 2019, Horwath sent a letter to the auditor general of Ontario, Bonnie Lysyk, requesting an investigation and report of the rationale behind the LRT cost estimates provided to the public. The Auditor General’s report on the Hamilton LRT costs was set to be released by the end of 2020.
Despite the cancellation of the Hamilton LRT project, it was decided the initial $1 billion commitment from Wynne’s provincial government would be used for transportation in Hamilton, with the total funding being diverted to different infrastructure.
Exactly what infrastructure would be funded by the $1 billion would be at the discretion of a newly formed Hamilton transportation task force. Comprised of five respectable people who reside within the city, the task force was responsible for creating a list of transportation projects for the ministry of transportation to consider as alternatives to the LRT.
This list was due to the provincial government by the end of February 2020. Despite the cancellation of the LRT project and the creation of a task force to plan the diversion of the allocated funding to other projects, Eisenberger remained committed to the construction of the LRT.
WHAT NOW?
More than a year later and the situation has greatly evolved. The Hamilton transportation task force made its recommendations on the allocation of the $1 billion granted to Hamilton by the Wynne government to the ministry of transportation on March 16, 2020. Mulroney later made the recommendations public for the sake of transparency.
“So basically it wasn’t an announcement per se, it was the province of Ontario following up. They said they would do an audit, they did an audit, they did a task force, the task force came back and said that higher-order transit was necessary for the city of Hamilton,” said Eisenberger.
The task force made a total of 15 recommendations. Some of the recommendations included: a "higher-order" transit system and an "intra-city" bus rapid transit or light-rail transit system along the A or B lines in Hamilton. This would resemble the previously cancelled project.
The task force made a total of 15 recommendations. Some of the recommendations included: a "higher-order" transit system and an "intra-city" bus rapid transit or light-rail transit system along the A or B lines in Hamilton. This would resemble the previously cancelled project.
LRT or BRT, the report said, would reduce congestion, bring economic uplift, thus bringing substantial benefit to the residents and businesses of Hamilton. This indicated the task force was still in favour of the Hamilton LRT project and recommended the province reach out to the federal government to acquire the funding required for the LRT project.
This recommendation came after Eisenberger spoke to Prime Minister Justin Trudeau in a visit to Ottawa prior to March 2020 about the Hamilton LRT. According to Eisenberger, the federal government was willing to fund the Hamilton LRT project, but the provincial government had to officially ask for the funds.
“That task forced looked at all the transportation options and came back with the same conclusion that higher order transit was necessary for the city of Hamilton. It was the best investment and it was certainly aligned to LRT and since then, the Premier on several occasions, has came to make sure that Hamilton gets the appropriate investment in transportation and LRT is the one that he’s been advocating for,” said Eisenberger.
This turn of events indicated a sentiment towards revisiting the Hamilton LRT project. With that said, there were other recommendations in the Hamilton transportation task force report, including a cost estimate around all-day GO service. The recommendations from the task force were welcomed by Eisenberger as an indication the LRT project was still on the table.
The awaited auditor general’s report on the breakdown of the $5.5 billion estimate for the Hamilton LRT project was released on Dec. 7 2020. Lysyk determined that the original $1 billion commitment from the provincial government only covered the costs of construction and was based on a 2012 Environmental Project Report from the City of Hamilton.
Lysyk concluded in her report that the $5.5 billion estimate that led to Mulroney cancelling the LRT project was a more accurate estimate for the total costs of the project. Although Ford welcomed this news as vindication for his government, the auditor general’s report indicated that the city of Hamilton was misled on the actual costs of the LRT for years.
“The Ministry of Transportation was aware as early as December 2016 that the estimated costs for the project were significantly higher than its public commitment of $1 billion in 2015, which was only for construction costs. The increases were not made public or communicated to the City of Hamilton until fall of 2019,” said Lysysk in the report.
“The Ministry of Transportation was aware as early as December 2016 that the estimated costs for the project were significantly higher than its public commitment of $1 billion in 2015, which was only for construction costs. The increases were not made public or communicated to the City of Hamilton until fall of 2019.”
Bonnie Lysyk, Auditor General of Ontario
According to Eisenberger, the city of Hamilton and the province of Ontario have a signed memorandum of understanding which outlines how the project will proceed. In the event of budget constraint, it is documented that the provincial government would lobby at the federal level to gain more funding for the project.
“[The city’s] level of involvement is not at the highest order, but certainly awareness as to what direction [the province is] going [in] . . . So true to that original [memorandum of understanding], [the provincial government is] following up with the federal government and as I understand it, they are warmly received. Now it’s a matter of discussions on who’s going to contribute what,” explained Eisenberger.
While the project is now set to conclude at Gage Park, Eisenberger plans to continue the project in phases.
“We’re not going to be tearing up everything from Eastgate to McMaster,” emphasized Eisenberger.
Currently there is no estimated time as to when the project will be completed. However, the mayor is looking forward to the benefits that the project will bring.
“The whole idea behind this project was to inspire new opportunities, to inspire new development, to inspire more people coming along that corridor to provide more business opportunities. More shops, more stores and more housing,” said Eisenberger.
On Dec. 16, 2019, Minister of Transportation Caroline Mulroney informed Fred Eisenberger, the mayor of Hamilton, that the provincial government had decided to cancel plans for Hamilton’s light-rail transit system, which was set to begin construction in 2020. After Mulroney called for a press conference to deliver the cancellation news in Hamilton, she cancelled it due to safety concerns linked to the large crowd that had gathered for her announcement. Instead, Mulroney issued a statement and cited impractical costs as the reason for the LRT’s cancellation.
“. . . The [LRT] project will actually cost five times more than the previous [provincial] government led us all to believe,” said Mulroney in her statement.
The proposed corridor was set to extend from McMaster to Eastgate Square, amounting to a new 14 km system.
THE MEETING
Prior to this termination, Eisenberger says that the provincial government had given no indication that the project would be cancelled or that a press conference was to be called [on Dec. 16, 2019]. He also claims that on April 10, 2019, Premier Doug Ford had sent Jeff Yurek, the previous Minister of Transportation, to Hamilton to confirm that the provincial government would support the LRT’s construction.
Eisenberger considers Ford’s failure to follow through a betrayal.
“You said Nov. 28, 2018: ‘When people democratically elect someone, if he wants an LRT, he’s gonna get an LRT,’ adding ‘that’s democracy,’” said Eisenberger in an open letter to the office of the Premier.
THE COST
In May 2015, Premier Wynne promised the city of Hamilton $1 billion to fund capital costs of the LRT project. In September 2019, a meeting between the Ministry of Transportation and Hamilton revealed that the preliminary project budget for the LRT, including both capital and non-capital costs, ranged from $4.6 billion to $6.5 billion. The provincial government sent a new estimate to Eisenberger days before the Dec. 16 press conference; this new estimate puts project costs at $5.5 billion.
Eisenberger and his team had questions regarding the new Dec. 12 estimate, which they never had a chance to raise.
According to Mulroney’s Dec. 16 statement, the $5.5 billion estimate came from a report by an “expert third party”.
Kris Jacobson, director of the LRT project office, broke down the difference between capital and non-capital costs. Hamilton has a memorandum of agreement with the provincial agency Metrolinx, where the province is responsible for upfront capital costs. This includes lifecycle costs for the LRT system, such as from construction, purchasing trains and replacing tracks. On the other hand, Hamilton would have been responsible for non-capital costs, such as day-to-day operations and general maintenance of the corridor and stations.
Jacobson noted that without any context, the provincial government’s $5.5 billion estimate is impossible to interpret and verify.
“There’s a lot of options and methodology that are used to develop these numbers that we don’t know . . . so to us, they’re just numbers,” said Jacobson.
THE REACTION
Andrea Horwath, the Member of Provincial Parliament for Hamilton-Centre and leader of the official opposition, held a press conference at Redchurch Café + Gallery, a business along the proposed LRT route. She called on Premier Ford to come forward with the third-party’s detailed cost estimate.
“The bottom line is Mr. Ford’s making up the numbers to justify this cut. So, show us the numbers, show us the report and give us an apples to apples comparison with the other projects that are ongoing right now in our province,” said Horwath.
The Hamilton LRT was estimated to cost $5.5 billion for the 14 kilometre corridor. Similar projects in other jurisdictions include the Hurontario LRT in Mississauga, which is estimated to cost $1.6 billion for an 18 kilometer corridor; the Eglinton Crosstown LRT, which is estimated to cost $12 billion for a 19 kilometre corridor, 10 kilometres of which are underground; and the ION LRT expansion in Cambridge, which is estimated to cost $1.4 billion with an 18 kilometre corridor. All of these projects have gone over their original cost estimates. Yet they continue to receive provincial funding.
Horwath highlighted that Metrolinx has spent taxpayer money buying land and creating documents necessary for the procurement process. Metrolinx is now in possession of the stretch of land that would have been the LRT.
Horwath also publicly criticized Donna Skelly, the Member of Provincial Parliament for Flamborough-Glanbrook and the only Progressive Conservative elected in Hamilton.
“There’s no doubt [Skelly] didn’t support [the LRT] as a city councillor, but as I said that’s not the will of the people of [Hamilton]. They voted for a pro-LRT mayor and Ms. Skelly . . . Mr. Ford should respect the right of our municipality to plan its own future and to determine what transportation infrastructure is the best for Hamilton,” said Horwath.
On. Dec. 18, Horwath sent a letter to the Auditor General of Ontario, Bonnie Lysyk requesting the office investigates the rationale behind the LRT cost estimates provided to the public under the Liberal and Provincial Conservative governments.
“The public deserves to receive honest and reasonable cost estimates when assessing the value of public transit projects that cost billions of dollars,” wrote Horwath.
In her reply, Lysyk stated that, as part of an ongoing audit, her office is currently examining Metrolinx. She also declared that she would examine cost estimates for projects such as the LRT.
According to Skelly, the Auditor General’s report will likely be released by the end of 2020.
THE REASONING
For Skelly and her government, the cost was too prohibitive, not only for the province but also for municipal taxpayers. Evidence for this claim is limited to Mulroney’s Dec. 16 statement, in which she claims that, over the 30 year lifespan of the LRT project, taxpayers would have paid $1 billion.
According to Skelly, the provincial government believes the previous Wynne Liberal government was aware that the LRT could not be built for the $1 billion promise, but had informed neither the mayor nor city council.
“I see it as a smart and responsible decision because my priority, and the priority of our government, is to ensure that we respect taxpayers and their hard earned dollars, and money was being spent on a project that should never ever have seen the light of day,” said Skelly in response to the Mayor calling the LRT cancellation a “personal betrayal.”
THE OUTLOOK
The provincial government’s initial $1 billion commitment to the LRT project will be diverted towards Hamilton’s transportation infrastructure.
Skelly believes the commitment provides an incredible opportunity towards the city, specifically when examining the Hamilton Street Railway bus system.
While $1 billion is not enough to finish the LRT, it will be up to the Hamilton Transportation Task Force to determine where this funding should be allocated.
This task force will be comprised of five non-politically affiliated community members, four of which will be decided by the province and one by the city of Hamilton. Their primary role will be to create a list of transportation projects for the Ministry to consider as viable alternatives to the LRT, due by the end of February 2020.
It has been suggested that the Laborers International Union of North America, a pro-LRT labour union, will be involved in some capacity.
Mayor Eisenberger remains committed to the LRT and continues to urge the provincial government to reconsider their decision.
“I’m hopeful but not confident that [the project will be reinstated], but we’ll do everything we can to try to set that kind of change,” said Eisenberger.
Jacobson and his team leading the LRT project also do not see this as the end.
“Who knows what the future holds for LRT in Hamilton . . . here is a commitment to funding transportation and transit improvements in Hamilton, which is a positive. So there is something that’s going to come from this. What is it? That still needs to be determined,” said Jacobson.
The state of transportation in Hamilton will remain in the air until the task force reports to the Minister of Transportation.
The Silhouette reached out to Minister of Transportation Caroline Mulroney for an interview about the Hamilton LRT project being cancelled, but the Minister declined our request.
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Keep an eye out in next week's print issue for a feature on Hamilton's LRT project. For now, here are the updates:
[Video descripton: Andrew Mrozowski, A&C Editor at the Sil, walks around campus to discuss updates on Hamilton's LRT project.]
