Toronto Port Authority provides update regarding Macro Settlement Agreement with City of Toronto

The Toronto Port Authority (“TPA”) advised today that the previously announced Macro Settlement Agreement between the TPA and the City of Toronto (the “City”) has closed to the satisfaction of all parties. The Macro Settlement Agreement, approved by City Council on December 4, 2009 by a vote of 36-0, involved the collaborative settlement of a variety of historical issues between our two organizations, including:

  • • The sale of an 18.4 acre parcel of land by the TPA to the City for $1.00. This parcel of land, at Leslie Street and Lakeshore Boulevard, is an integral component of Toronto’s Transit City initiative to expand light-rail rapid transit service in the coming years;
  • • The payment by the TPA to the City of $6.419 million on account of Payments in Lieu of Taxes (“PILTs”) for the period 1999-2009;
  • • The payment by the City to the TPA of $11.7 million on account of outstanding payments related to property transactions under the 2003 Settlement Agreement; and
  • • A new agreement on Harbour User Fees in which the City agrees to pay approximately 6 cents per round-trip passenger using City ferries to the Toronto Islands.

The TPA also confirmed today that its Board of Directors determined at a recent meeting to pay $1.44 million for PILTs representing an additional amount for 2009 and an amount for the first six months of 2010. The City has agreed to accept these two PILTs payments, in keeping with the PILTs payments via the Macro Settlement Agreement mentioned above, until such time as there is a final determination as to the appropriate total of PILTs payable to the City by the TPA for the relevant periods.

The TPA pays more in PILT’s to its host City than most other Canadian Port Authorities operating under the Canada Marine Act. In 2009, the TPA’s PILTs burden represented approximately 6.4 per cent of its gross revenue, as compared to a PILTs average of 3.8 per cent of gross revenue paid by four comparable port authorities – Hamilton, Vancouver, Halifax and Quebec City.

The TPA also confirmed that while its legal counsel is in constructive discussions with the City to resolve the outstanding issues that would lead to a long-term agreement over PILTs, the TPA Board of Directors has approved a request for a hearing before a new Federal Dispute Advisory Panel (“DAP”) following the June 24, 2010, Federal Court decision. In that decision, the Court overturned the January 2009, recommendation of the DAP, while clarifying the legal positions of the two parties. The TPA’s request for a new DAP is solely to ensure that the issue receives a new hearing at the earliest possible opportunity and signals that the TPA is not seeking to appeal the Federal Court decision.

“We welcome the conclusion of the Macro Settlement Agreement, which was a key initiative of our Board in 2009,” said Mark McQueen, Chairman of the TPA. “The TPA’s decision to call for a new Dispute Advisory Panel is consistent with our stated desire to resolve this last outstanding issue between the City and our organization. Our payment of $1.44 million of PILTs beyond what was called for in the Macro Settlement Agreement speaks to our strong belief that our agency should pay a fair sum to our municipal partner. To voluntarily pay for the first six months of 2010 is just another example of our commitment to work with the City to achieve our shared goals. We welcome the continuation in the positive new era of relations between the TPA and the City administration.”

Correspondence related to this matter, and other municipal issues, is regularly posted on the TPA website at

About the Toronto Port Authority

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 at

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