Toronto's city council has signed off on a plan that will see $417 million in TTC capital spending deferred so that the TTC can buy new streetcars.
"This purchase will allow the TTC to replace its aging streetcar fleet with modern light rail vehicles that can carry more riders," Mayor David Miller said Friday in a news release following the special meeting.
"This is a made-in-Ontario solution that will generate thousands of desperately needed manufacturing jobs, provide a huge infusion into the economy and generate millions in tax revenues to the provincial and federal governments."
He would later tell reporters that "we've just secured the transit future of the city for a generation."
The Bombardier vehicles, to be manufactured in Thunder Bay, are technically known as Light Rail Vehicles (LRVs). The deal had to be completed by midnight.
The fleet of 204 will replace Toronto's streetcar fleet, which is coming to the end of its lifespan. The current generation was purchased in the 1970s and 1980s.
"The new streetcars will be low-floor, quieter, have features such as air conditioning for greater customer comfort, and be able to carry almost twice as many people as the TTC's current streetcars do," the city said.
The city had committed $355 million to the $1.2 billion deal, with the province adding another $416 million.
Toronto had hoped to have the feds fund another one-third through the federal infrastructure fund set up to provide stimulus during this recession.
However, federal Transport Minister John Baird said repeatedly that the purchase didn't qualify. The program was designed to provide funding to municipal governments for "shovel-ready" projects. The money had to be spent within two years.
The first LRV prototype won't be available until 2011. The first for passenger service will arrive in either late 2011 or early 2012 with the last being delivered in 2018.
To fund the purchase, the city will defer capital spending that had been planned for between 2012 and 2018.
"While those capital projects are important, acquiring new streetcars for Toronto is a priority. These changes to the TTC's capital budget will not impact service or fares," the city said.
One dissenting councillor blasted the deal.
"This is an embarrassment to the mayor, it's an embarrassment for the city. All council is doing is cleaning up the mess," said and former transit commissioner Brian Ashton.
With a report from CTV Toronto's Dana Levenson and files from The Canadian Press
