Globe and Mail
GO deal one step closer
Council committee approves plan to buy part of Union Station
JENNIFER LEWINGTON
CITY HALL BUREAU CHIEF
November 22, 2008
A proposed deal by GO Transit to buy part of Union Station, which cleared a key hurdle at city hall yesterday, sends a strong signal about prospects for a major refurbishment of the transportation hub.
Under the deal - believed to be worth more than $30-million - GO Transit would buy the west wing above the first floor of Union Station, taking over the 90,000-square-foot area as its new head office in 2013. GO would also lease an additional 13,000 square feet in the station's centre block.
Of equal significance is GO's decision to build and own new east and west concourses at the station, assuming the city completes negotiations by next spring with a private-sector investor to manage new underground retail space.
The proposal, which goes to council in early December, won unanimous backing yesterday from council's government management committee.
Later, Mayor David Miller called the deal "good news" for the city and GO Transit.
Despite the trembling economy, Mr. Miller said the deal with GO fortifies the city's ability to renew the station with public and private dollars.
"It sends a signal this project is well on track," he said, with talks ongoing with several investors, believed to be major Canadian pension funds.
GO chairman Peter Smith said it became clear "very recently" that the city was prepared to sell a portion of the building. Union Station remains in city hands, but the so-called "strata" agreement with GO is akin to buying a condominium.
He described Union Station as "the centre of the universe for GO Transit," with 98 per cent of its customers moving in and out of the station.
The provincial-government-owned agency, which owns the train tracks and train shed, is already making service improvements.
Assuming the deal closes as scheduled on March 31 and that the city brings in a private investor to lease the underground retail area, the proposed $100-million-plus facelift will still take years to complete. As part of its deal with the city, GO has agreed to split the $65-million cost of a new northwest link from the station to downtown, long-proposed to ease congestion for commuters.