Not sure if this is even legal or not, but one of the conditions for the approval of the Woodbine Casino that Council could potentially impose is paying for a percentage of the construction of the LRT extension. Perhaps under the guise of having a viable alternative method of accessing the site, and to help mitigate some of the increased vehicular traffic that would be sure to arise from a casino there. I don't think that would fall under Section 37, but maybe there's something similar that Council can use.
Legislative change is going to allow traditional development charges to be applied to capital expenses for transit expansion. In much the same way that dev charges would pay for widened roads due to increased traffic, it can now instead pay for improved transit.