Death by traffic: Toronto's economy and return to office plans are choking on congestion | Canada News Media
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Death by traffic: Toronto’s economy and return to office plans are choking on congestion

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Toronto the Good is now Toronto the Gridlocked, with billions being lost in productivity, drivers losing their minds and goods taking longer to get where they need to go

Giles Gherson had 20 minutes to get from his office on the Toronto waterfront to a restaurant at Yonge and Dundas for a lunch meeting. Ample time, in other words, or so the chief executive of the Toronto Region Board of Trade assumed as he settled into the back of an Uber for the short trip.

Forty-five minutes later, he was still nowhere near his destination, and the car he was travelling in was stuck in traffic just a few blocks north of where he started. The clock was ticking, and in that anxiety-inducing moment, Gherson, a recreational runner, understood what he needed to do: he bailed out of the vehicle and hightailed it as fast as his feet, in black dress shoes, could carry him to the meeting.

“Getting around the city just takes so much longer than it used to,” he said. “These days, if you say to someone in Toronto, ‘Look, I am stuck in traffic, and I am going to have to walk now, or I am going to have to run,’ people get it.”

Do they ever. In bygone years, small talk among Torontonians ran to griping about the weather and the fortunes and follies of the Maple Leafs, touchstone office water-cooler topics that have lately been joined by exchanging horror stories about traffic-choked streets.

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Pedestrians walk in front of stopped vehicles on Toronto’s Bay Street. Photo by Peter J. Thompson/Financial Post

No stranger to world-class congestion at the best of times, Toronto appears to have entered its worst age, a doomsday commuter scenario brought on by a slew of infrastructure projects, including the massive, multi-billion-dollar, multi-year Ontario Line transit project. There are condo builds, and the subterranean infrastructure to support them, sewer-pipe and watermain replacements, and multiple other transit tweaks, big and small.

Billions are being lost in productivity; drivers are losing their minds, not to mention precious time at home with their loved ones; goods are taking longer to get where they need to go; return-to-the-office plans are being rejected; and the forward-looking potential punch in the gut is that companies looking to open an office in North America may start to think twice about looking too hard at Toronto. Toronto the Good is now Toronto the Gridlocked.

Just how bad is the mess? No other major North American urban centre has more construction projects underway, according to the city, and that means there are no shortcuts, optimized routes or back-alley workarounds to circumvent the gridlock.

Vehicles and construction signs on Toronto’s Yonge Street. No other major North American urban centre has more construction projects underway than Toronto. Photo by Peter J. Thompson/Financial Post

Perhaps even more defeating is the knowledge that there is no end to the disruptions in sight. Estimated delivery times on projects range from months to eight more years for the Ontario Line, a rough estimate roughly no one in Toronto is buying, not after the city’s Homeric experience with the Eglinton LRT, the “new” transit line in the north end that is now four years late, $3 billion (and counting) over budget and still nowhere near finished.

The city in 2014 took a stab at quantifying how much gridlock cost the Greater Toronto Area annually during a deputy mayor’s “roundtable on gridlock and traffic congestion.” The number arrived at was $6 billion, and the takeaway was something needed to be done. Nine years later, there is lots happening, and congestion has grown more hellish than ever.

“When potential investors and businesses come to us, they are now saying, ‘We want our people in the office. What does the return to the workplace look like in Toronto?’” Gherson said. “And when they get told, ‘Well, we are not really all the way there yet,’ and they ask why, one of the major reasons is the massive congestion problem.”

 

The University of Toronto’s School of Cities’ downtown recovery index, which measures cellphone use in the downtown core and compares it to pre-pandemic rates, pegs Toronto at 70 per cent. By comparison, Mississauga, a major suburb to the city’s west, is at 91 per cent.

There are fewer people downtown and fewer cars, according to the city, yet commute times have increased, and the smoking gun is the construction. Inrix Inc., an American-based transportation analytics company, in 2022 put a number to Toronto drivers’ tale of woe in its global “traffic scorecard.” Toronto drivers spent 118 hours stuck in traffic, which was slightly worse than what New York City drivers put up with (117 hours), but not quite as bad as Chicago (155 hours) and Boston (134 hours).

Everybody is unhappy about the gridlock … and they are unhappy for the same thing: gridlock represents a massive loss in production

Jon Love

Theories on how to mitigate the city’s traffic jam abound. Jon Love may not match your imagined image of an anti-congestion online crusader. Sitting in his office on the 37th floor of a downtown tower on a recent afternoon, he fit the bill of a conservatively dressed, diet-cola-sipping, 69-year-old private-equity real estate tycoon.

“Everybody is unhappy about the gridlock,” the founder and executive chairman of KingSett Capital Inc., said. “Office tenants, residential tenants, business owners — everybody is unhappy — and they are unhappy for the same thing: gridlock represents a massive loss in production.”

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KingSett is a major landlord in Toronto, with a portfolio of properties that includes the Royal York Hotel, a hospitality icon currently operated by Accor SA’s Fairmont brand. Making deliveries at the Royal York has become an adventure in creative planning and time and money lost.

Jon Love pictured in London, U.K. The founder and executive chairman of Kingsett Capital has emerged as an unlikely online anti-congestion crusader. Photo by Courtesy Jon Love

Love can’t exactly pinpoint when his patience ran out. He initially joined X, formerly known as Twitter, way back when to air his thoughts on finance, real estate and urban issues impacting his hometown and Canada at large, but he found the experience was like elbowing up to the “bar at last call,” where every well-lubricated patron gives an opinion.

So, he ditched the X mob for the professional networking site LinkedIn, and, much to his surprise, built an audience of 40,000 followers. One of his recurring topics is Toronto #gridlock, and he has some pretty good ideas on how to go about fixing the mess.

Near the top of the list is to dramatically reduce the time it takes to complete major public infrastructure projects by requiring contractors to operate two shifts a day, seven days a week, to complete them. Imagine that new transit line that was budgeted for 12 years being done in four.

As for condo developers, Love suggests Toronto should borrow a page out of New York’s building code for Manhattan. Builders there are required to do the work without the construction site taking out a street lane — as per the Toronto norm. Big jobs get contained within the footprint of a job site. This is a feat of engineering, he said, but there is no lack of brilliant engineers who could figure this stuff out.

Love also loves bike lanes, but not on every street, and he believes Toronto needs a “congestion czar,” an all-powerful, whip-cracking individual laser focused on ensuring all the players involved in a project are aligned on delivering the finished goods, without needlessly blowing taxpayer money.

“If we are going to have a war on congestion, then let’s have a war,” he said. “Gridlock is a cost nightmare, a growth nightmare and an environmental nightmare.”

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Pedestrians and a cyclist cross a busy street in Toronto. Love says bike lanes don’t need to be on every street in the city. Photo by Peter J. Thompson/Financial Post

Love has done more than most of the social-media crowd and taken his ideas straight to the source. He sent Mayor Olivia Chow an open-letter-style email in late October, sharing some thoughts around congestion management, and he intended to do some additional sharing at a meeting scheduled with Roger Browne, the city’s director of traffic management.

“I am going to say to him, ‘What can I do to help you?’”

Traffic is a major headache for most ordinary humans. But for Browne, a civil engineer turned civil servant, managing traffic is his life’s work. It is a career path he didn’t anticipate as a youngster. He always fancied becoming an astronaut before learning that he had an uncanny “knack for dirt,” a.k.a., the soil foundation underlying roads.

That self-discovery led to a further realization that working with dirt was kind of boring, particularly when compared to working on traffic issues that, at their most fundamental, involve moving people safely from A to B. Being the traffic guy in a city paralyzed by congestion is kind of like being the marketing guy for a big tobacco company: spin things however you please, there isn’t any real good news, only varying degrees of bad.
Roger Browne, Toronto’s director of traffic management. The role, in a city choking on congestion, could be compared to that of being the chief of marketing for a tobacco company. Photo by Supplied/Roger Browne

But when Browne meets someone for the first time, the overriding emotion expressed towards him isn’t road rage, but sympathy. After all, who in their right mind would want to be Toronto’s traffic guy?

“I am actually afraid that someone is going to try to hit me,” the 50-year-old said, with a laugh.

But the gridlock is not his fault. Toronto needed to make massive public transit investments 40 years ago, but it didn’t. About two million people have shown up in the area over the past two decades, so getting downtown or around the downtown by car still involves using a road network that was built for a city that doesn’t exist anymore.

Hence, gridlock.

The city’s guiding philosophy toward traffic management in recent years has been to only greenlight infrastructure projects deemed critical, in part to limit road closures. Congestion was already bad enough, or so the reasoning went, so when the water department came to the traffic department to talk about doing some repairs and closing off streets, Browne and company’s first question was: Can it wait?

“It was a bit of a kick-it-down-the-road approach, and the hens have now come home to roost,” he said. “Every single project that comes across my desk now is, ‘Well, remember this one from five years ago that you said to put off? It can’t be put off anymore.’ It is now mission critical.”

The city’s traffic manager works from home two days a week. On the other days, he drives his black Hyundai Sonata from his home in a northeast suburb to the nearest subway station. It is a 15-minute trip, traffic permitting. On a good day, the drive plus subway ride makes for a one-hour commute. On a bad day, well, welcome to life in Toronto.

Where the traffic nerds do see some slivers of hope is in smart traffic signals optimized by artificial intelligence. Most Toronto traffic signals are not smart, but vintage 1980s. They operate on timers. Honk if this scenario sounds familiar: the light turns green, 40 seconds or so later, it turns red, and the cycle repeats itself, even when the person waiting at the red is watching precisely nobody go through the green.

The newest-generation AI-optimized traffic signals learn and react to traffic conditions in real time. They also factor in pedestrian and cyclist volumes. A smart signal will understand that if cars are beginning to pile up in, say, the left turn lane, it will flush out the lane with an advanced green; if pedestrians are jammed in so tight on a corner that they are toppling off the sidewalk, the signal will change to get those people moving.

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Vehicles snarled in traffic on Toronto’s Church Street in November. Smart traffic signals optimized by artificial intelligence may provide the city some relief from congestion. Photo by Peter J. Thompson/Financial Post

Browne and his team are piloting the new signals at select downtown spots, hopefully starting soon, and the city has budgeted $40 million to accelerate the transition to smarter signals while setting aside an additional $45 million once “cost estimates” are “further refined.”

Alas, AI isn’t a magic bullet. Neither is the recent headline-grabbing news that the cost of operating the Don Valley Parkway and Gardiner Expressway — two major arteries leading into the downtown core — were being uploaded to the province. The move is expected to free up hundreds of millions of dollars annually for the city, but money alone isn’t going to cure what ails Toronto drivers. What really needs to change is people’s relationship with their car.

Toronto is a crown jewel city. We have got to get our mobility back

Giles Gherson

“Where we look for our inspiration is Europe,” Browne said. “The culture is dramatically different. It is far less of a car-centric culture to begin with, and transit options and solutions are so much better, and are already existing, already integrated and already linked up with major destinations, but we are on the right path.”

Someday, the never-ending Eglinton LRT construction project will end, the much-ballyhooed Ontario Line will begin whisking people downtown and the construction digs and road repairs at the root of the current congestion crisis will give way to new and hopefully less disruptive projects.

Through it all, there is one key thought to hold onto: congestion is not necessarily a bad news story. Rather, it is proof that the once staid, predominantly white, stores-closed-on-Sunday Toronto of your grandmother’s day is now a dynamic, growing, remarkably diverse global boomtown.

“Congestion is a symptom of a city where people want to be, and where there is economic and social activity taking place,” Matti Siemiatycki, a geography professor and director of the infrastructure institute at the U of T’s School of Cities, said.

The few times congestion has eased or even disappeared altogether has been during those times that are best not repeated: major economic downturns and a once-in-100-years global pandemic.

The trick when stuck in traffic, Siemiatycki said, is to try to remain calm and remember that while congestion is incredibly “frustrating,” the construction underway now is critically important and will ultimately transform the city — if not in time for us poor suckers, then at least for our kids.

Giles Gherson already has two adult kids, and he possesses wisdom gained through past experiences. For example, he never, ever drives downtown.

However, he does avail himself of ride-sharing services now and again, knowing it is a roll of the dice as to whether they will deliver him to his destination on time, which is added motivation for a recreational jogger to stay in shape — just in case he needs to make another run for it.

“The congestion war stories are humiliating,” he said. “Toronto is a crown jewel city. We have got to get our mobility back.”

 

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B.C.’s debt and deficit forecast to rise as the provincial election nears

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VICTORIA – British Columbia is forecasting a record budget deficit and a rising debt of almost $129 billion less than two weeks before the start of a provincial election campaign where economic stability and future progress are expected to be major issues.

Finance Minister Katrine Conroy, who has announced her retirement and will not seek re-election in the Oct. 19 vote, said Tuesday her final budget update as minister predicts a deficit of $8.9 billion, up $1.1 billion from a forecast she made earlier this year.

Conroy said she acknowledges “challenges” facing B.C., including three consecutive deficit budgets, but expected improved economic growth where the province will start to “turn a corner.”

The $8.9 billion deficit forecast for 2024-2025 is followed by annual deficit projections of $6.7 billion and $6.1 billion in 2026-2027, Conroy said at a news conference outlining the government’s first quarterly financial update.

Conroy said lower corporate income tax and natural resource revenues and the increased cost of fighting wildfires have had some of the largest impacts on the budget.

“I want to acknowledge the economic uncertainties,” she said. “While global inflation is showing signs of easing and we’ve seen cuts to the Bank of Canada interest rates, we know that the challenges are not over.”

Conroy said wildfire response costs are expected to total $886 million this year, more than $650 million higher than originally forecast.

Corporate income tax revenue is forecast to be $638 million lower as a result of federal government updates and natural resource revenues are down $299 million due to lower prices for natural gas, lumber and electricity, she said.

Debt-servicing costs are also forecast to be $344 million higher due to the larger debt balance, the current interest rate and accelerated borrowing to ensure services and capital projects are maintained through the province’s election period, said Conroy.

B.C.’s economic growth is expected to strengthen over the next three years, but the timing of a return to a balanced budget will fall to another minister, said Conroy, who was addressing what likely would be her last news conference as Minister of Finance.

The election is expected to be called on Sept. 21, with the vote set for Oct. 19.

“While we are a strong province, people are facing challenges,” she said. “We have never shied away from taking those challenges head on, because we want to keep British Columbians secure and help them build good lives now and for the long term. With the investments we’re making and the actions we’re taking to support people and build a stronger economy, we’ve started to turn a corner.”

Premier David Eby said before the fiscal forecast was released Tuesday that the New Democrat government remains committed to providing services and supports for people in British Columbia and cuts are not on his agenda.

Eby said people have been hurt by high interest costs and the province is facing budget pressures connected to low resource prices, high wildfire costs and struggling global economies.

The premier said that now is not the time to reduce supports and services for people.

Last month’s year-end report for the 2023-2024 budget saw the province post a budget deficit of $5.035 billion, down from the previous forecast of $5.9 billion.

Eby said he expects government financial priorities to become a major issue during the upcoming election, with the NDP pledging to continue to fund services and the B.C. Conservatives looking to make cuts.

This report by The Canadian Press was first published Sept. 10, 2024.

Note to readers: This is a corrected story. A previous version said the debt would be going up to more than $129 billion. In fact, it will be almost $129 billion.

The Canadian Press. All rights reserved.

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Mark Carney mum on carbon-tax advice, future in politics at Liberal retreat

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NANAIMO, B.C. – Former Bank of Canada governor Mark Carney says he’ll be advising the Liberal party to flip some the challenges posed by an increasingly divided and dangerous world into an economic opportunity for Canada.

But he won’t say what his specific advice will be on economic issues that are politically divisive in Canada, like the carbon tax.

He presented his vision for the Liberals’ economic policy at the party’s caucus retreat in Nanaimo, B.C. today, after he agreed to help the party prepare for the next election as chair of a Liberal task force on economic growth.

Carney has been touted as a possible leadership contender to replace Justin Trudeau, who has said he has tried to coax Carney into politics for years.

Carney says if the prime minister asks him to do something he will do it to the best of his ability, but won’t elaborate on whether the new adviser role could lead to him adding his name to a ballot in the next election.

Finance Minister Chrystia Freeland says she has been taking advice from Carney for years, and that his new position won’t infringe on her role.

This report by The Canadian Press was first published Sept. 10, 2024.

The Canadian Press. All rights reserved.

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Nova Scotia bill would kick-start offshore wind industry without approval from Ottawa

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HALIFAX – The Nova Scotia government has introduced a bill that would kick-start the province’s offshore wind industry without federal approval.

Natural Resources Minister Tory Rushton says amendments within a new omnibus bill introduced today will help ensure Nova Scotia meets its goal of launching a first call for offshore wind bids next year.

The province wants to offer project licences by 2030 to develop a total of five gigawatts of power from offshore wind.

Rushton says normally the province would wait for the federal government to adopt legislation establishing a wind industry off Canada’s East Coast, but that process has been “progressing slowly.”

Federal legislation that would enable the development of offshore wind farms in Nova Scotia and Newfoundland and Labrador has passed through the first and second reading in the Senate, and is currently under consideration in committee.

Rushton says the Nova Scotia bill mirrors the federal legislation and would prevent the province’s offshore wind industry from being held up in Ottawa.

This report by The Canadian Press was first published Sept. 10, 2024.

The Canadian Press. All rights reserved.

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