James Pyo

Last week, the Ontario Government announced the Transportation for the Future Act, which will introduce a new funding tool called the Station Benefit Charge. This Charge, paid by developers at the building permit stage on lands surrounding a new/planned GO station, is intended to help municipalities offset the costs to build a new transit station. It is based on the assumption that transit will attract development, much like tax-increment financing, but municipalities are putting themselves at risk by incurring the costs upfront. What if development never comes? Then they’re out millions of dollars. For example, Guildwood GO (see satellite image below) remains surrounded by nothing more than surface parking and a U-Haul storage facility despite convenient access to transit. It shows there is no guarantee that transit attracts development.

My speculation is it’s a stunt by the Ford government to appear they are trying to address the fiscal issues municipalities are currently facing, by granting something they’ve been asking for – a new funding tool. While I’m glad they realize it’s about revenue rather than spending, I remain skeptical.