Metrolinx has advised Toronto’s City Manager that it is putting the Scarborough LRT project on hold pending resolution of various issues related to funding the proposed Scarborough subway.

In a letter from President & CEO Bruce McCuaig, Metrolinx states:

The Scarborough LRT remains an approved part of the Master Agreement among Metrolinx, City Council and the TTC, consistent with The Big Move and sound transit planning for the region. We will not expend any more funds on the project because it no longer enjoys the essential support of our partner, City Council. It would be imprudent for us to spend more on a project Council has by majority vote repudiated, as further expenditures would increase the sunk costs already incurred for which the City is responsible. As you know, Metrolinx estimates that sunk costs amount to $85 million at this time. Putting the Scarborough LRT on hold is not due to any shortcomings inherent in the project. The project would serve Toronto and its communities well. In the event the City suspends pursuit of the subway extension, Metrolinx is prepared to return to implementing the current project.

Metrolinx will remove the SLRT from the procurement process for the Eglinton Crosstown line so that this project can proceed on its own.  Planned improvements at Kennedy Station will be redesigned to avoid delay of the Eglinton project, but obviously the changes cannot preclude future inclusion of the SLRT should that project be revived or unless it is truly cancelled.

Provincial funding available for the subway project remains at $1.48b (2010$).  However, this does not include the offset for sunk costs which will be charged to the City reducing the amount available for the subway project to about $1.4b.