City takes a major step toward accepting $3.4B offer for LRT in Hamilton

The city of Hamilton will take its first step in hammering out an agreement to accept a $3.4-billion offer from the federal and provincial governments for a light-rail transit (LRT) system.

In a vote of 9-6, city councillors voted Wednesday morning to enter into a memorandum of understanding with Metrolinx and government officials for LRT. The decision still has to be ratified by city council a week from now.

While Ontario and Ottawa are each offering $1.7 billion to cover costs of building the LRT, Hamilton would be required to pay for operation and maintenance.

"The community deserves to have an end to this. It's been a long journey," said Mayor Fred Eisenberger, long-time LRT advocate.

A new report from the city estimates that net costs could be between $6.4 million and $16.5 million per year. The range depends on ridership and how many buses are removed.

Councillors approved moving forward with the first scenario, which removes 29 HSR buses from the road. That includes removing the B-Line express and cutting the operating hours of #1 King and #5 Delaware bus routes by one third.

If ridership grows by eight per cent, the LRT would cost $6.4 million to run. But no growth in ridership would mean costs of $10.4 million.

It's the second time the city has made an agreement with Metrolinx for LRT.  Staff have been directed to report back to the committee "as soon as possible" with the draft, which would also require a vote.

Eisenberger said the upcoming agreement will not be any different than the current one, but just needs "updating."

City councillors have been divided on whether they want to take the multi-billion dollar deal, which the governments have specified is only for LRT.

City councillors who are supportive of the project say it would bring economic uplift that would benefit outlying areas and reduce long-term congestion, among other benefits.

Those opposed to LRT say they worry about the costs of operating the system and the impacts on residents' taxes. 

Ward 9 (upper Stoney Creek) councillor Brad Clark, who voted opposed, said the "clear majority" of his residents still don't support LRT, although that majority has diminished. But he said he'll see the project to fruition.

"An LRT is going to start moving forward. My role then is to provide advice where I see it in ways to help the project succeed," he said.

The line proposed is a 14-kilometre route from McMaster University to Eastgate, running alternately on King and Main streets.

While Hamilton would foot the operating bill, the province has said it would retain ownership of the LRT assets and cover life-cycle costs. 

Clark said he still has concerns about distance between stops for seniors and those with disabilities — city officials estimated LRT stops at 1 kilometre apart, whereas bus stops are generally 290 metres apart.

If council is worried, city manager Janette Smith said it can look at making shorter distances a priority.

Public advocates for HSR

Nearly all delegates at the meeting urged councillors to involve HSR in the LRT project.

Eric Tuck, president of Amalgamated Transit Union Local 107 that represents HSR workers, said negotiations would make the difference between a train that helps the city and a "gravy train" for developers.

It's not clear who will operate the system. Lora Fontana, executive director of human resources at the city, said if they're unable to find alternate work for HSR employees, the collective agreement would be invoked.

"That would be problematic," she said.

General manager of public works Dan McKinnon says about 30 operators retire per year. Balanced with the hours added each year to the service, he said, the impacts of cutting buses would be minimized.

Other changes

The motion also approved having a future city council consider eliminating incentive programs in the September 2023 review of the bylaw.

Those include the Community Improvement Project Area development charge exemption of 40 per cent and the Hamilton tax increment program, but only in the downtown area.

"Theoretically, the next term of council can take this motion, roll it up, and smoke it," said Ward 11 (Glanbrook) councillor Brenda Johnson, who voted opposed.

The origins of an LRT system in Hamilton date back to 2007, when the city used a Metrolinx grant for an environmental assessment. In 2015, the then-Liberal Ontario government earmarked $1 billion for the project. 

In December 2019, Minister Caroline Mulroney and her PC provincial government cancelled the LRT project, saying it had gone over budget and Hamilton couldn't afford it.

In February, the province announced it would pitch in $1 billion, as long as the federal government helped out too. 

How they voted

Who voted to draft a memorandum of understanding

Mayor Fred Eisenberger, Maureen Wilson (Ward 1), Jason Farr (2), Nrinder Nann (3), Sam Merulla (4), John-Paul Danko (8), Arlene VanderBeek (13), Esther Pauls (7), Lloyd Ferguson (12). 

Who was opposed

Chad Collins (5), Tom Jackson (6), Brad Clark (9), Maria Pearson (10), Brenda Johnson (11), Judi Partridge (15).