Attention News Editors:

Toronto Port Authority and City of Toronto reach "macro solution" to a wide variety of outstanding issues

Settlement helps propel Toronto's 'Transit City' initiative and marks new era of co-operation between City and TPA

TORONTO, Nov. 25 /CNW/ - The Toronto Port Authority ("TPA") announced today that on November 23, 2009, its Board of Directors approved a draft agreement whereby the TPA and the City of Toronto have agreed, subject to the approval of Toronto City Council, to settle a wide variety of legal and administrative issues between the two organizations.

During the summer of 2008, the TPA Board of Directors began an initiative to resolve every dispute between the TPA and the City of Toronto, some of which had been outstanding since the TPA was created in 1999.

"On behalf of the TPA Board of Directors, I want to thank Toronto Mayor David Miller and his team for working with us to resolve a long list of issues in such a constructive manner," said Mark McQueen, Chairman of the TPA Board of Directors.

Subject to Council's approval, this agreement will involve the City of Toronto paying the TPA $11.7 million relating to capital and operating payments that had been withheld by City Council in relation to previous land parcel transfers by the TPA to the City of Toronto. The TPA will pay to the City a sum of more than $6.4 million, which reflects the amount of Payments in Lieu of Taxes ("PILTs") that the TPA believes is due and payable for the 1999 to 2009 period.

As a notable component to this agreement, the TPA is also selling, for the sum of $1, an 18-acre parcel of land that the Toronto Transit Commission ("TTC") intends to use for its new Leslie Street streetcar facility. This property represents a critical component of the TTC's expansion program for the residents of Toronto.

"With this land transfer, we are delighted to be able to play a role for the benefit of the people of Toronto in helping make 'Transit City' a reality," Mr. McQueen added. "We are also pleased to be able to say we've now 'paid our taxes', the City has settled all of its outstanding accounts, and Toronto's Transit City vision is one step closer to reality. This macro solution is the culmination of a very positive dialogue with the Mayor's team, key Councillors and senior City staff over the past 12 weeks, and we are delighted with the outcome. The TPA is looking forward to putting past conflicts with the City behind us and beginning a new era of co-operation."

The TPA has agreed to accept payments relating to Harbour User Fees ("HUFs") that treat the City of Toronto's historic ferry fleet in the same fashion as Toronto-based commercial tour boats. The impact of this calculation means that the City of Toronto will pay HUFs of approximately six cents per passenger, based upon traditional seasonal use; this amount represents less than one percent of the current $6.50 adult fare charged by the City for round-trip passage to the Toronto Islands. This component of the agreement will see the City pay the TPA approximately $380,000 to cover all HUFs that have accrued dating to 1999, covering in excess of 6 million round-trip passengers in aggregate.

The Toronto Port Authority was incorporated on June 8, 1999, as a government business enterprise under the Canada Marine Act as the successor to the Toronto Harbour Commissioners. It is a federal public authority providing transportation, distribution, storage and container services to businesses. The TPA owns and operates the Billy Bishop Toronto City Airport, Marine Terminals 51 and 52, and the Outer Harbour Marina. The TPA also provides regulatory controls and public works services to enhance the safety and efficiency of marine navigation and aviation in the port and harbour of Toronto.

Further information about the TPA is available on the TPA website at www.torontoport.com.

For further information: Janet MacDonald, Toronto Port Authority, (416) 863-2003