September 20, 1999

To:Administration Committee

From:Chief Administrative Officer

Subject:Union Station Purchase of Toronto Terminals Railway Assets:

The CP Express Site

 Purpose:

This report responds to a number of Council requests regarding the CP Express site as a component of the City's proposal to purchase Union Station and to provide an update on the issues pertaining to the future use of this site as a bus terminal. This report has been prepared in consultation with stakeholders including the Toronto Transit Commission (TTC), the Ontario Motor Coach Association (OMCA), and the Parking Authority of Toronto.

Funding Sources, Financial Implications and Impact Statement:

If, as recommended, GO Transit is the purchaser of the CP Express site, it will pay all acquisition, development and ongoing operating costs of the proposed bus terminal. Aside from its significant financial interest in GO Transit, there are no direct financial implications for the City.

Recommendations:

It is recommended that:

1.Council endorse the acquisition of the CP Express site by GO Transit for the proposed GO intermodal bus terminal and to facilitate modifications to the east end of Platforms 1, 2 and 3 in the rail corridor;

2.The staff team headed by Urban Planning and Development Services staff continue to facilitate further discussions with OMCA, TTC and GO Transit regarding inter-city bus operations in the downtown; and

3.Appropriate City staff be authorized and directed to take all necessary actions to give effect thereto.

Council Reference/Background History:

Council, at its meeting held on July 27,28 and 29, 1999, by its adoption of two reports dated July 12 and July 21, 1999 from the Chief Administrative Officer included as Clause 15 of Report No.2 of the Administration Committee, authorized the CAO and the City Solicitor to execute a Purchase Agreement for the acquisition of the assets of The Toronto Terminals Railway Company ("TTR) on terms and conditions as outlined therein.

The TTR assets include three main real estate assets:

• Union Station;
• the Rail Corridor between the Don River and Strachan Avenue; and
• the CP Express Site.

In considering this matter, Council requested staff to report back on a number of items related to the CP Express site component of the purchase. Specifically, Council requested staff to address:

• the business case for a new bus terminal on the CP Express site;
• a management model for the new bus terminal, and
• the inclusion of the TTC in negotiations regarding the new bus terminal

As pointed out in the Chief Administrative Officer's July 12, 1999 report, a team of City staff headed-up by Urban Planning and Development Services Department staff would be reviewing the related issues of:

• ownership and management options for the new bus terminal;
• the value and alternative uses of the existing bus terminal at the Bay/Dundas site;
• assessment of operational needs for a new bus terminal;
• assessment of the physical constraints of the CP Express site, and
• traffic impacts of a bus terminal located on the CP Express site.

 Comments:

1.Background

There is a long history of proposals and studies for a new bus terminal in the City's downtown. The more recent history begins in 1989 when the Council of the former City of Toronto, in approving the renovation of the existing Bay/Dundas terminal as an interim measure, went on record "¼.as preferring a location for a new bus terminal in the vicinity of the Gardiner Expressway and Bay Street" as the long-term solution. In July 1994, the TTC, which is the owner and manager of the existing bus terminal, announced plans to discontinue bus operations at the Bay/Dundas facility in the next three to five years. This announcement prompted the Ontario Motor Coach Association (OMCA) to finance a consultant's study of alternative sites for a new bus terminal in the vicinity of Union Station in keeping with the stated planning objectives of the former City of Toronto. It was hoped that a new bus terminal would accommodate the needs of both the private carriers and GO Transit, and the OMCA's 1995 study identified the CP Express building as one of three potential candidate sites. However, since that study was completed, a number of conditions have again changed. The TTC has indicated it is willing to operate the inter-regional bus terminal as long as it does not require any cash operating subsidy. GO Transit's bus terminal needs have been re-assessed in the light of a higher than expected growth in its "train-bus" services operating out of Union Station. Private carriers have experienced minimal growth in passenger demand while facing the uncertainties of possible deregulation within the bus industry.

When the City's negotiations with TTR evolved to encompass acquisition of TTR's assets including the CP Express site, the opportunity presented itself to reconsider the future requirements for bus terminal facilities in the downtown and the role that the CP Express site might be expected to play in meeting these needs. At Council's direction a staff working team has been created to involve all stakeholders and particularly TTC.

2.Issues

2.1Operational Requirements

There is a pressing need for an off-street bus terminal in the vicinity of Union Station due to the growth of GO bus activity in the area. GO provides bus services to supplement its rail operations, particularly during off-peak periods when passenger trains are not operational. Initially, this back-up service was provided by around 40 bus movements each weekday but this figure has now grown to 158, with some 40 bus departures from Union Station during the 6:30 - 8:00 p.m. period alone. Currently, these buses assemble on various downtown streets and then pull up at Union Station on Front Street to board passengers around the scheduled departure time. These buses, which park and circulate around the Union Station area, add to downtown traffic congestion. There would be a clear public benefit to having them operate from an off-street terminal such as could be provided on the CP Express site. Such a terminal would also add to passenger convenience.

GO expects the use of supporting bus services at Union Station to remain high as the opportunities for expanding passenger rail service, particularly along the Lakeshore corridor, remain limited in comparison to the expected increases in GO patronage. Consequently, GO's bus terminal requirements are higher than originally contemplated. In addition, much of GO's activities at the existing bus terminal, where it occupies the Elizabeth Street station, would be transferred to the bus terminal at the CP Express site. This transfer would free up capacity for private inter-city bus carriers at the existing bus terminal or allow the Elizabeth Street facility to be sold or put to another beneficial use such as Bus Parcel Express. As a result, in the short term, GO would be the sole user of the CP Express site. TTC is supportive of this move in principle, subject to having continuing involvement in the decision-making process.

2.2Site Constraints and Traffic Impacts

The CP Express site is relatively constrained in terms of its size and access opportunities. The original concept for a bus terminal on this site had the bus platforms at ground level with passenger waiting, drop-off and bus parcel express facilities located above at the rail level. GO Transit has advised that the original concept has been changed to meet their primary long term requirement for increased capacity on the rail Platforms 1, 2 and 3 of Union Station, directly above and adjacent to the CP Express site. Particularly, changes to the east end of Platform 1 to increase rail passenger capacity will have implications for the use of the second level of the CP Express site for bus passenger purposes.

However, the bus terminal can be expanded, at a cost, by excavating under the rail corridor to enlarge the grade-level floor plate. There may also be the opportunity to use the access provided by the Teamway on the east side of Bay Street to connect to and, possibly, integrate the operations of the CP Express site with the future development of the neighbouring site to the south of the rail corridor.

In the basic design concept, access to the bus terminal is provided by right- turns in from Bay Street northbound and right turns out on to Yonge Street southbound. Pedestrian access could be provided from the track level of Union Station by enhancing of a pedestrian connection, along existing Platform 1, over Bay Street and from the sidewalks at street level. The possibility of providing a direct pedestrian connection to the subway platforms at Union Station is also being studied. It should be noted that one of the preconditions for the purchase of Union Station is the consent of Public Works Canada, which has property interests in and adjacent to the CP Express site, to allow redevelopment of the site as a bus terminal.

The traffic impacts of a bus terminal on the CP Express site are difficult to address until an actual design has been finalized and the capacity optimized. The larger the capacity of the bus terminal the greater its potential traffic impacts and a particular concern is the possibility of conflicts with pedestrian movements at the access points on Bay and Yonge Streets. In regard to this latter point, the use of the teamway to bring buses into the terminal from the south side of the rail corridor might, if feasible, prove a desirable option.

City staff will continue to address at the access opportunities and traffic impacts of the bus terminal, in detail, during the Site Plan Approval process.

2.3Management Model and Business Case

In light of GO Transits increased requirements for the CP Express site, such that for the short term at least it will be the sole user of a new facility, the parties are in agreement that the CP Express site should be purchased by GO Transit (through the City) for its own bus operations and the expansion of rail platforms. This makes a management model for the new bus terminal straightforward. It is proposed that the new terminal be owned and managed by GO Transit.

The Business Case analyses for the new terminal has been undertaken by GO Transit. It is being updated, based on current GO Transit needs and will be presented, in its final form, to its Board and the GTSB this fall. We are advised by GO that:

• sufficient capital funds are available for site acquisition and development of the new terminal. The funds have been allocated to GTSB for GO Transit infrastructure improvement.

• The anticipated operating expenses at the new terminal will be less than the existing operating expenditures for GO downtown bus operations.

From a broader planning or public policy perspective the acquisition of the CP Express site by GO Transit can be supported on two key premises. First, the new bus terminal will enable the removal of a large number of GO buses from the streets around Union Station while offering better facilities for bus passengers. The second is to enable GO Transit to make changes to Rail platforms 1, 2 and 3 in the rail corridor to accommodate more trains at Union Station during peak times. The expansion will accommodate double the number of trains in the peak hour on the three rail platforms. Additionally, GO Transit may be able to rationalize its bus operations and withdraw from the Elizabeth Street terminal. In the longer term, the CP Express site could be developed to accommodate the vision of a single, consolidated bus terminal at Union Station.

2.4Process

City staff have continued to consult with those individuals and agencies having a direct interest in the development of a new bus terminal at Union Station. A joint meeting, which included representatives from GO Transit, TTC and the OMCA, was held on September 16, 1999 to review the draft of this report. In particular, TTC staff have been consulted with regard to the Union Station negotiations and will continue to be involved in the discussions regarding the new bus terminal. OMCA, while supportive of the acquisition of this site for a new bus terminal, has expressed concern about its ability to utilize the new facility and exploit the intermodal opportunity it presents.

GO Transit has advised that its immediate priority is to commence design and reconstruction of the east end of Rail platforms 1, 2 and 3. This work will take about 3 years to complete. In the interim, GO proposes to build a scaled-down temporary bus terminal at the CP Express site to remove the buses off the streets surrounding Union Station.

This three year period will provide opportunities for further discussions regarding the consolidation of bus terminal operations. Any move towards consolidation would have to be supported by a business case for such a merger strategy, including the impacts on the future use and/or disposition of the existing Bay/Dundas bus terminal should it be considered redundant. However, in the context of the City's current purchase of Union Station these concerns are not an immediate factor that needs to be weighed in the present decision-making process.

Conclusion:

There are obvious benefits to the City acquiring the CP Express site as part of the Union Station purchase. Principally, it enables GO Transit to develop an off-street terminal for its expanding bus passenger services and facilitates changes to Rail platforms 1, 2 and 3 to increase the rail capacity of Union Station. The platform lengthening will accommodate two ten-car GO trains simultaneously, thereby improving the utilization of Union Station.

Initially, the new bus terminal at Union Station will be a temporary facility. In the longer term, it could be considered for a consolidated facility that could meet the needs of all inter-city bus operators, both public and private. GO Transit is prepared to study capacity enhancements for the bus terminal upon completion of its design for expansion of rail Platforms 1, 2 and 3.

The CP Express site remains an attractive proposition for GO Transit as a bus terminal whether or not it is shared with private carriers and, consequently, GO Transit will directly fund, develop and operate the facility. GO, TTC and OMCA will continue their efforts for public/private partnerships in the ongoing bus terminal operations.

Consolidating GO bus operations at Union Station will free-up capacity for private carriers at the existing Bay/Dundas bus terminal. However, the debate over the desirability and the feasibility of having one or two downtown bus stations cannot be settled immediately. It will be at least three years before the permanent bus terminal at the CP Express site is operational and this gives time to further explore the long-term objective of consolidating all bus operations in a single terminal at Union Station or to identify measures to protect for this possible, future outcome. In the meantime there remains a compelling case to acquire the CP Express site while the opportunity presents itself to meet GO Transit's present needs and increase the City's long term flexibility to address future transportation needs in the downtown.

Contact Name:

Greg Stewart

Program Co-ordinator, Transportation Planning

Urban Planning and Development Services

Telephone: 392-2691

MICHAEL GARRETT

Chief Administrative Officer