Metrolinx stops buying LRT land citing provincial spending freeze
Transit agency says the temporary halt in land acquisition for 14-km line will continue “pending further government direction.”
https://www.thespec.com/news-story/8...ending-freeze/
Metrolinx has stopped buying land needed for Hamilton's planned $1-billion LRT citing a discretionary spending freeze ordered by the new provincial government.
It's not clear what the decision means for landowners and tenants in the path of the 14-kilometre lower city light rail transit line — especially those in the middle of suddenly suspended negotiations.
The former Liberal government announced full capital funding in 2015 for Hamilton's planned LRT. The 14-kilometre route from McMaster University to Eastgate Square requires the purchase of 80 full buildings and project head Metrolinx has already spent $45 million on 45 properties.
But Memphis Cadeau said an LRT project official told her this week Metrolinx could not make a purchase offer or pay for an updated appraisal on her Main Street East building because of a provincewide "audit freeze" initiated by the new Progressive Conservative government.
The news was particularly galling for Cadeau because she had just listed the Grim City Tattoo Club building to gauge its market value after unproductive back-and-forth with Metrolinx over sale prices.
She said a project official immediately contacted her to say she should note Metrolinx' interest in the property in her real estate listing — while simultaneously admitting the agency could not make a purchase offer. "I feel like they wanted to prevent us from selling our building at fair market value," she said.
But Cadeau also asked what will happen to building owners or tenants who may have already agreed to leave but have yet to negotiate compensation for damages, moving expenses and relocation costs. "What do you tell your tenants now?" she asked.
Metrolinx spokesperson Jamie Robinson confirmed Wednesday the agency has "temporarily paused" new property purchases and related spending because of provincial "direction on discretionary spending."
He said the agency is "honouring our commitments with property owners where an agreement has already been reached pending closing, or where terms of an agreement have been negotiated in good faith."
Robinson couldn't say how long the purchasing pause might last, other than that it will continue "pending further government direction."
One of the first directives issued by Ontario's new Progressive Conservative government headed by Premier Doug Ford was to freeze hiring and discretionary spending until it could get a closer look at the state of Ontario's finances.
Those efforts are supposed to include detailed audits of provincial spending in an effort to balance the budget and finding $6 billion in unspecified savings promised during the recent election campaign.
Robinson could not immediately say why the agency classified property purchases under the approved, funded project as "discretionary" spending. (The Spectator is also waiting for comment from provincial treasury board officials on what is included in the spending freeze.)
New Tory MPP Donna Skelly said the temporary halt in property purchases is in keeping with the provincewide spending directive. But she also stressed the "funding commitment remains" for the project.
Robinson also emphasized spending related to the ongoing project RFP has not stopped. (Three pre-qualified consortiums are working on bids to design, build and operate the line, but a contract is unlikely to be awarded before mid-to-late 2019.)
Kris Jacobson, the city's LRT director, said any "discretionary protocol" has so far not affected Hamilton staff in their role in the joint project office, which is provincially funded. "Our technical team, community engagement, it's all still moving forward," he said.
The controversial LRT continues to be dogged with political uncertainty, despite the ongoing procurement process and about $105 million already spent on staffing, property acquisition, design and project studies.
Ford said during the provincial election he would give Hamilton council the choice of sticking with the LRT or using project funding for other infrastructure priorities. That promise has set up light rail transit as a key municipal election issue ahead of the Oct. 22 vote.
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