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New Transit Funding Sources

Palma said:
Well it is. After Finch you are in Vaughan - Steele.
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I don't get your point. The subway is mostly in Toronto, it's not entirely in Vaughan. Vaughan begins after Steeles, how are you in Vaughan after Finch. Is York University in Vaughan?
 
innsertnamehere said:
You honestly think the Mafia is involved with Smart Centres? As someone who has personally met Mitch Goldhar, I can assure you they have no Mafia connections. Does he have political conections and did he lobby to have the subway extended to his plot of land? possibly, but not through the Mafia.
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LOL. No, I wasn't slurring Smart Centres. I was slurring Vaughan itself.
 
Ontario unveils plan to sell ‘green bonds’ to help fund transit plans
Ontario plans to introduce “green bonds” as a new way to fund infrastructure, including desperately needed transit projects.
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Link
 
TOareaFan said:
Interesting but I am not sure how "taking on more debt" can be described as a new funding tool ;)
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It's a deferral tool. NDP might vote in favour of debt even if they are against boosting revenue. In the mean time, tenders can happen and construction can begin.

Of course, revenue needs to happen at some point; the next election might provide a majority government.

It's also possible the NDP would go for an HST bump if it was packaged with a corporate income tax rate bump. Downtown companies would pay higher rates if it meant dramatically better GO service.
 
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rbt said:
It's a deferral tool. NDP might vote in favour of debt even if they are against boosting revenue. In the mean time, tenders can happen and construction can begin.

Of course, revenue needs to happen at some point; the next election might provide a majority government.

It's also possible the NDP would go for an HST bump if it was packaged with a corporate income tax rate bump. Downtown companies would pay higher rates if it meant dramatically better GO service.
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Sure...but the only way these bonds will attract attention/investment is if they offer a market/above market rate of return....so if the cost of the bonds is the same as the general government borrowings it ends up being just more debt issued by, and backed by, the government of ontario......other than a PR exercise, not sure what the point is.
 
TOareaFan said:
Sure...but the only way these bonds will attract attention/investment is if they offer a market/above market rate of return....so if the cost of the bonds is the same as the general government borrowings it ends up being just more debt issued by, and backed by, the government of ontario......other than a PR exercise, not sure what the point is.
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I wondered that too.

Perhaps by tying the bonds to specific projects some investors may accept a below market rate in order to indirectly benefit other areas of their operation.

For example OMERS (Oxford) and OTPP (Cadillac Fairview) portfolio's would get a huge boost from the completion of dramatically improved transit to downtown Toronto.

Both are known for taking a very long-term view to investment (20 to 40 year return window) and could come up with $10B between them for nominal returns (match general inflation). A permanent $10 to $20 boost in Toronto lease rates would be the reward.
 
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TOareaFan said:
Sure...but the only way these bonds will attract attention/investment is if they offer a market/above market rate of return....so if the cost of the bonds is the same as the general government borrowings it ends up being just more debt issued by, and backed by, the government of ontario......other than a PR exercise, not sure what the point is.
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Interest rates are at a very low rate at the moment. People are even buying automobiles at 0% (zero percent). Best time for the government to borrow while interest rates are low.

If GM is selling GM Bonds at between 2.75 % and 3.25%, why can't Ontario sell Green Bonds at a even lower rate, say 1.5%?
 
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W. K. Lis said:
Interest rates are at a very low rate at the moment. People are even buying automobiles at 0% (zero percent). Best time for the government to borrow while interest rates are low.

If GM is selling GM Bonds at between 2.75 % and 3.25%, why can't Ontario sell Green Bonds at a even lower rate, say 1.5%?
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No doubt....in fact any municipality bragging about being debt free and with a AAA rating (I am looking at you Brampton) is just not efficiently managing their balance sheet.

That said, this does not describe the province of Ontario (which is in the market borrowing almost every day) nor does it match the whole hype around new "funding tools"...it is the oldest funding tool we know.
 
Heard a rumor that the Transit review panel (the one with Anne Golden) will be releasing something tomorrow discussing what they call the "big U" transit line, a line running from Markham to Meadowvale. No idea on tech, and the only other thing I heard is that the "little U", or DRL, is still on the table. or something like that. Apparently inspired by the Crossrail in London.
 
innsertnamehere said:
Heard a rumor that the Transit review panel (the one with Anne Golden) will be releasing something tomorrow discussing what they call the "big U" transit line, a line running from Markham to Meadowvale. No idea on tech, and the only other thing I heard is that the "little U", or DRL, is still on the table. or something like that. Apparently inspired by the Crossrail in London.
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Sounds like S-bahn on the Milton and Stouffville lines.
 
innsertnamehere said:
Heard a rumor that the Transit review panel (the one with Anne Golden) will be releasing something tomorrow discussing what they call the "big U" transit line, a line running from Markham to Meadowvale. No idea on tech, and the only other thing I heard is that the "little U", or DRL, is still on the table. or something like that. Apparently inspired by the Crossrail in London.
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Ok...now I am really, really, really confused....isn't this panel to review funding options for the Big Move....when was it announced that they were gonna introduce new ideas for new lines in new corridors....in other words...when did the Transit Investment Strategy Advisory Panel become the "Ontario is Starting Over Again on Transit Panel"?
 
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