Road tolls and other taxes might be needed to finance the Sheppard Avenue subway expansion, according to a forthcoming report.

An opponent of Ford's subway expansion plan crowed at the recommendations coming from former councillor Michael Chong, appointed by Mayor Rob Ford to investigate how to best pay for the expansion.

"It's going to cost billions of dollars, and who's going to pay for it? The drivers of the Greater Toronto Area," said Ward 21 Coun. Joe Mihevc on Thursday.

Scarborough Centre Coun. Michael Thompson, a supporter of Ford's plan, said he was open to options.

"I'm in favour of considering all the different options that would help us improve transit, improve efficiency, in the city of Toronto," he told CTV Toronto.

Mihevc, a former vice-chair of the TTC, said the line isn't needed. Thompson, however, said a million new residents are expected in the Toronto area in the next 20 years.

"The question is where are you going to put them?" Thompson said, adding that the answer is new residents can live along the Sheppard line.

The report is to be made public in five days, but several media outlets obtained a copy in advance.

In the report, Chong predicts the private sector could pay for between 50 and 60 per cent of the subway's construction costs.

But in late 2010, Chong put the figure at 10 to 30 per cent.

The cost for the subway line has apparently dropped, going to $3.7 billion for a line extending from Downsview subway station to Scarborough Town Centre as opposed to an earlier estimate of $4.2 billion.

Up to $1 billion of public sector money would go toward the project. Ottawa would provide $330 million, while up to $650 million would be redirected from the $8.2-billion Eglinton light rail line, the Globe and Mail reports.

In return, the city would have to provide the following revenue to the private sector, in addition to road tolls:

  • air rights
  • development charges
  • tax-increment financing
  • parking levies

Transit has been shaping up as the next big battle at city council. Some councillors have been trying to revive the former administration’s Transit City light rail plan.

TTC chair Karen Stintz has been pushing the idea of putting the eastern leg of the Eglinton LRT line above ground to construction reduce costs. The savings would help fund the Sheppard project.

But on Wednesday, Ford appeared at a photo opportunity with some Scarborough city councillors to tout underground transit.

"I campaigned on building subways and I stand behind that commitment 100 per cent because it is the right thing to do," he said.

"Putting trains down the middle of congested, jammed-up streets like the one behind us is not the answer. It is wrong," said the mayor, standing near the intersection of Eglinton and Victoria Park Avenues in Scarborough.

Council has not voted on the shift in direction away from Transit City to subways.

With a report from CTV Toronto's Natalie Johnson