Process to Develop an Agreement on Matters of Mutual Interest
Between the City of Toronto and the Greater Airports Authority
to Lester B. Pearson International Airport
The Strategic Policies and Priorities Committee recommends the adoption of the following
joint report (March 27, 1998) from the Commissioner of Urban Planning and Development
and the Chief Administrative Officer, subject to adding a Recommendation (4) as follows:
"(4) the working group obtain public input and hold public meetings."
The Strategic Policies and Priorities Committee submits the following joint report
(March 27, 1998) from the Commissioner of Urban Planning and Development Services
and the Chief Administrative Officer:
Purpose:
Seek Council's endorsement to negotiate with the Greater Toronto Airports Authority (GTAA)
on an accord on matters of mutual interest with respect to Lester B. Pearson International Airport
(LBPIA).
Funding Sources, Financial Implications and Impact Statement:
There are no immediate financial impacts, other than staff resources required to support
negotiation process.
Recommendations:
It is recommended that:
(1) the City of Toronto endorse, in principle, the establishment of an accord on matters of
mutual interest with the GTAA with respect to LBPIA;
(2) the Chief Administrative Officer to lead the City's participation to negotiate a draft
accord to be recommended to Council, and staff be authorized to participate in a working
group to identify, negotiate and resolve issues on matters of mutual interest to both
parties; and
(3) the appropriate City staff be authorized to take the necessary action to give effect thereto.
Council Reference/Background/History:
On March 23, 1998, one of the City of Toronto's representatives on the Board of the GTAA, Mr.
Gerry Meinzer, appeared before the Urban Environment and Development Committee updating
the Committee and Council on LBPIA.
On March 4, 1998 the Striking Committee recommended the following appointments: to the
GTAA Noise Management Committee, Councillors LiPreti and Sinclair, and to the GTAA
Consultative Committee, Councillors Brown, Holyday and Sinclair.
The attached appendix provides an overview of the GTAA and LBPIA.
Comments and/or Discussion and/or Justification:
(a) Rationale:
The Ground Lease between the GTAA and the Government of Canada provides that the GTAA
and the City of Toronto shall enter into good faith discussions with a view towards concluding an
agreement which addresses matters of mutual interest concerning the development of LBPIA.
Such an accord has been struck between the GTAA and the City of Brampton (August 1997) and
discussions are underway between the City of Mississauga and the GTAA on this subject.
Prior to amalgamation, the City of Etobicoke was approached by the GTAA on this matter. It
was not dealt with by Council or the City Manager pending amalgamation.
(b) Intent:
The intent of structuring an accord is to clarify the relationships, structures, responsibilities and
authorities, financial obligations and planning processes that will guide the development of
LBPIA over the medium term (4-5 years). It will also outline a mechanism by which disputes
will be resolved between the two parties if such should arise.
(c) Proposed Process:
Given the scope of the issues to be covered in an accord, it is recommended that a staff working
group be structured to assist in meeting with representatives of the GTAA, defining the issues,
undertaking necessary due diligence and making recommendations to the CAO as part of the
negotiation process.
Staff for this working group would be drawn from Economic Development, Urban Planning and
Development Services, Transportation, Emergency and Protective Services, Finance, Legal, and
the Offices of the Mayor and the Chief Administrators Office. The process would also seek the
input from the Etobicoke Community Council and City Councillors on both the GTAA
Community Consultative Committee and the GTAA Noise Management Committee. The
composition of the staff team will be confirmed by the CAO.
The Accord will be approved through Strategic Policies and Priorities Committee to Council
prior to being executed and progress reports will be provided to Council as necessary. If through
the process being recommended, it is determined that the structuring of an accord with the
GTAA would not be in the best interests of the City, or should issues arise which cannot be
resolved within a reasonable time frame, Council may elect not to execute an accord with the
GTAA or may elect to structure an agreement which is broad in scope.
(d) Timing:
While the time frame for the negotiation of an accord was deemed to be May 2, 1998 per the
Ground Lease, an extension of 120 days has been agreed to by the GTAA with an option to
extend this term if such is found to be required.
Conclusions:
Lester B. Pearson International Airport is a strategic component of the urban and economic
structure in Toronto and the whole of Southern Ontario. It provides significant economic
benefits, both in terms of employment and in its role as the principal international air gateway for
Canada. Through the process of structuring an accord between the city and the GTAA, it is
hoped that we will be in a better position to jointly maximize the potential of the airport for the
benefit of the Toronto region.
The structuring of an accord between the City of Toronto and the GTAA will serve to create a
higher level of understanding between both parties and will clarify the relationships, structures,
responsibilities and authorities, financial obligations and planning processes that will guide the
development of LBPIA over the medium term (4-5 years), a very critical time given the airport
expansion plans which are now underway.
If, through the proposed process, it is determined that the structuring of an accord with the
GTAA would not be in the best interests of the City, or should issues arise which cannot be
resolved within a reasonable time frame, Council may elect not to execute an accord with the
GTAA.
Contact Name:
Christine Raissis, Economic Development, 392-3385.
Anna Pace, Urban Planning and Development Services, 392-8117.
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Appendix 1
Background on the GTAA/Pearson International Airport
(1) Structure of the GTAA:
The Greater Toronto Airports Authority (GTAA) was established in March 1993 as a community
initiative led by the Regional Municipalities with the local Boards of Trade and Chambers of
Commerce throughout the GTA. Under Canada's National Airports Policy, the GTAA was
reconstituted in accordance with Canadian Airport Authority guidelines and recognized by the
Minister of Transport in November 1994 as the CAA for the transfer of Lester B. Pearson
International Airport (LBPIA).
The GTAA is a private, non-profit corporation with a mandate to manage and operate LBPIA
within a regional system of airports to enhance regional economic growth and development. The
GTAA assumed the management, operation and maintenance of Lester B. Pearson International
Airport (LBPIA) on December 2, 1996.
The GTAA is governed by a fifteen member Board of Directors comprised of nominees from the
City of Toronto, four regional municipalities, the Province of Ontario and the Federal
Government. According to the by-laws of the GTAA, the City of Toronto appoints three (3)
directors to the Board, each for a three-year term. One of these representatives is a nominee of
the Board of Trade of Metropolitan Toronto (Mr. Gerry Meinzer), one is a nominee of Council
(Dr. Robert Bandeen) and the third nominee represents the interests of labour (Ms. Sharon
Moss). The latter two positions are up for renomination on May 12, 1998.
(2) Background on the Transfer of LBPIA to the GTAA:
The transfer of LBPIA is effected by a Ground Lease which governs the relationship between the
GTAA, as tenant, and Transport Canada, as landlord for a period of sixty years, subject to one
renewal term of 20 years. The Ground Lease determines the rent to be paid, the scope of
authority of the GTAA in managing the operation of the airport and allocates the risks and
responsibilities between the GTAA and the Federal Government for all matters covering the
operation of LBPIA.
The GTAA leases the lands, buildings and fixtures which comprise LBPIA from Transport
Canada and assumes all existing leases, licenses, contracts and other agreements between
Transport Canada and companies operating at LBPIA which were in existence prior to the
transfer.
The GTAA has the right to determine and collect landing fees from airlines, rent space to
concessionaires and other commercial operators, issue permits to taxi and limousine operators,
construct and develop the infrastructure of LBPIA and pledge its leasehold interest in LBPIA as
security for loans to do so. In return for the right to manage LBPIA and to collect revenues, the
GTAA pays a monthly rent to the Federal Government.
The GTAA offered employment to all Transport Canada employees at LBPIA on the same terms
and conditions they had with Transport Canada. Ninety four percent, or 504 of 534 eligible
employees, transferred to the new organization. The GTAA has assumed the obligations of
Transport Canada and will honour and be bound by all existing collective agreements governing
the unionized employees at LBPIA.
(3) Airport Development:
The Airports existing terminal facilities have a handling capacity of approximately 28 million
annual passengers. It is estimated that this annual practical capacity threshold will be met in the
2000-2004 time frame. Today, capacity is exceeded in the peak hour and peak season periods at
Terminals 1 and 2.
In order to provide sufficient airside, terminal and groundside capacity in the future and to
enhance the Airports competitive position as a gateway airport to North America, the GTAA has
initiated an Airport Development Program, the phasing of each component to be determined on
the basis of demand.
Funding for the Airport is expected to be provided principally through the issuance of debt
securities. The GTAA's initial public offering of revenue bonds, which generated $947 million,
will be used to pay down debt related to the GTAA's acquisition of Terminal 3 and to begin the
development program.
Airside Development:
A new north/south runway and first stage of the dual taxiway project was completed in 1997.
The north/south runway will increase efficiency during times when strong crosswinds force
aircraft away from the higher capacity east/west runways.
Phase II of the plan calls for the construction of a new east-west parallel runway on the south
side of the Airport lands. Site preparation will begin this year with construction to begin in 1999.
Longer term plans, after 2010, propose a new east-west runway on the north side of the Airport
lands.
Now in the design phase, the GTAA's Infield development Project will see the freight and cargo
area, presently situated between Terminals 1 and 3, relocated into the infield.
Terminal Development:
The primary objective of the Terminal Development Project is to replace the capacity-constrained and outdated Terminals 1 and 2 with a single terminal building. The new terminal
will be constructed on the site where Terminals 1 and 2 are currently located. The new terminal
will include a three-level roadway system and a new multi-level public parking garage. The
design will preserve rights of way for future mass transit access to the Airport. Stage 1 of the
development.
(4) Transportation/Access:
Transit Improvements:
Improving existing transit services to the airport and protecting for a future rapid transit
connection will be critical steps to meeting the groundside travel demands of projected increases
in airport use.
The Ministry of Transportation in consultation with Metro Toronto, Peel, Etobicoke, Mississauga
and the GTAA has identified a transit corridor that would allow the construction of a transit link
between the Georgetown GO transit line to the new terminal at LBPIA. The protection of this
corridor will be pursued through amendments to the Official Plans of affected municipalities.
The terminal redevelopment plans for Pearson should also include rapid transit corridor
protection within the airport which is compatible with the corridor identified by the provincial
study. The estimated cost to construct the connection is between Pearson Airport and the
Georgetown GO line is between $27 and 30 million depending on the technology used.
Construction of the rapid transit connection is dependent on the upgrading of the Georgetown
corridor to accommodate all-day GO rail service which was estimated at $135 million. No
funding is committed for either proposal.
Road Access:
The new terminal design requires that highway access for air passengers will be via Hwy. 409.
The GTAA and the Province have determined that the new terminal will require new ramp
connections between Highway 409 and Highway 427. In the west, a new interchange with Hwy
401 will serve the new infield cargo terminal. The cost of these works is estimated at over $60
million but there are no funding commitments. These modifications to the highway system will
significantly improve road based access to the airport and complement the terminal
redevelopment plans.
(5) Noise Management:
Aircraft operations from LBPIA affect an area which extends beyond the actual geographic
boundary of the airport. The GTAA has a Noise Management Policy which outlines its approach
to liaising with area residents, managing noise from airport operations, and protecting the airport
from incompatible uses, such as residential development, in areas of high noise exposure. The
GTAA has two standing committees, a Community Consultative Committee and a Noise
Management Committee, the latter which is a vehicle for the community to have input on noise
concerns directly to the GTAA.
The noise management policy states that the GTAA will oppose residential development in areas
above the 30 NEF noise contour to protect current and future airport operations from
incompatible uses. In May 1996 the Federal Government revised its policy regarding residential
uses near airports to recommend that residential development not be permitted in areas above 30
NE. In February 1997 the Ontario government adopted a policy to prohibit residential
development within the 30 NEF to protect major airports from incompatible development.
However, municipalities are not compelled to implement the provincial policy and still have the
discretion to approve residential development in areas above 30 NEF.
The Meadowvale area of Mississauga has large amounts of land in areas above 30 NEF
designated, but not yet built, for residential uses. The GTAA has opposed further approvals for
zoning and plans of subdivision on these lands. Applications to redesignate additional industrial
land for residential uses in areas above 30 NEF have been filed and are being considered by the
City of Mississauga. Within the City of Toronto there has not been significant development
interest in redesignation of industrial lands for residential uses in areas above 30 NEF, however
prior to amalgamation, Metro Planning had been directed to prepare an official plan amendment
to implement the Provincial policy.
(6) Community Consultation:
The GTAA provides for community consultation though two committees: The Community
Consultative Committee (CCC) is the primary vehicle for regular community input and
participation in the activities of LBPIA. It meets every second month with the President and
CEO of the GTAA as chair of the committee. The Noise Management Committee (NMC) meets
bi-monthly, alternating with the CCC. This committee focuses on the management and
communication of any noise issues and, as with the CCC, is open to the media and public and
offers an opportunity for public deputations.
(7) Traffic Statistics:
Approximately 26 million passengers passed through Pearson Airport in 1997. This represents a
7.8 percent increase over the year previous. This increase was a result of a 13.6 percent increase
in transborder traffic, a 5.6 percent increase in domestic traffic and a 3.5 percent increase in
international traffic.
(8) Economic Impact:
Using the model developed in a Marketing and Economic Impact Study undertaken for LBPIA in
1995, it is estimated that in 1997 the airport generated $11.5 B billion in business revenue;
generated 111,995 jobs and $3.2 billion in wages.
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(Communication dated April 6, 1998, addressed to the Strategic Policies
and Priorities Committee from Ms. Sylvia Giovanella, President,
Etobicoke Federation of Ratepayers' and Residents' Associations (E.F.R.R.A.)
Upon reading the above document, as President of EFRRA, I am concerned negotiations with the
GTAA are being entered with little opportunity for input from community organizations. We
recognize the importance of Pearson Airport to the economy of Toronto and its neighbouring
communities. However, the environment and the health of residents of the western and northern
communities within Toronto will be deeply impacted by planned operations and development at
Pearson Airport on a daily basis.
In the letter from Mr. Garrett under the heading of 'Timing' is a statement to the effect
negotiations with the GTAA were to be completed by May 2, 1998. We favour extending the
deadline by at least 120 days to give the Committee an opportunity to obtain a balanced and
reasoned position prior to entering negotiations. It is essential that the Committee not allow
itself to be pressured into a premature agreement by an artificial deadline declared by the Board
of Directors of the GTAA.
To aid the Committee in arriving at a balanced position, copies of the following documents have
been included:
(a) The EFRRA presentation to the Miller Commission outlining our concerns and issues;
(b) An EFRRA grant request to the Grants Committee requesting funds for airport noise
monitoring;
(Both items (a) & (b) have been unanimously endorsed by the EFRRA Council at a
meeting on April 1, 1998).
(c) The High Intensity Runway Operations (HIRO) document as an example of the GTAA
implementing an initiative that is contrary to the noise mitigation procedures used by
Transport Canada;
(d) An agreement between Transport Canada and the GTAA for allowing the expansion of
night time operations and testing of residents' noise tolerance;
(e) A letter from an EFRRA association member to Minister Collenette explaining flaws and
the negative impact of such an agreement on residents.
It is the intention of EFRRA to make representations to the following Committees:
Urban Environment & Development;
The Miller Commission;
The Etobicoke Local Council;
And any other committees and municipal organizations as seen as affecting these issues.
EFRRA is an umbrella organization for ratepayer and resident associations from across the
district of Etobicoke within the City of Toronto.
(Documents referred to above, submitted by Ms. Sylvia Giovanella, have been forwarded to all
Members of Council under separate cover on April 8, 1998, and copies thereof are on file in the
office of the City Clerk).
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