TORONTO — Toronto Mayor Olivia Chow is demanding the province return expropriated waterfront lands after the federal government rejected Premier Doug Ford’s plan to expand Billy Bishop Toronto City Airport for jets — a move business leaders are calling a blow to the city’s economy and investor confidence.Federal Transport Minister Steven MacKinnon announced late Friday that Ottawa will focus “exclusively on the approved safety enhancements” already underway at the island airport. Those upgrades — 150-metre runway end safety areas required under new federal rules — are expected to finish by mid-2027. The larger expansion to accommodate jets will not proceed “at this stage.”MacKinnon cited more than 87,000 responses to a two-month public consultation, with an overwhelming majority opposed. He said the feedback raised concerns ranging from economics to environmental impact to quality of life, adding that “Toronto voices will shape any future plans for Billy Bishop Airport.”.Chow thanked Prime Minister Mark Carney and MacKinnon for “listening to the people of Toronto.” On Monday she and Deputy Mayor Ausma Malik filed an urgent motion at city council calling on the province to repeal Bill 110 — the Building Billy Bishop Airport Act — and return the city’s land.The legislation, passed in early June, allowed Ontario to take control of city-owned parcels around the airport, including portions of the Toronto Islands and Little Norway Park, and removed the city from the long-standing tripartite agreement governing the facility.“Council has formally opposed the unacceptable overreach” Chow posted on social media. “Return our waterfront to us.”Premier Doug Ford privately told Carney he was “disappointed” by the decision, according to The Toronto Star..Ontario Transportation Minister Prabmeet Sarkaria signalled the province is not giving up. In a statement, Sarkaria said:“We look forward to continuing to work to advance the expansion of Billy Bishop Airport. The benefits are clear: the project will contribute up to $8.5 billion to Canada’s economy every year, create thousands of jobs, and improve connectivity for millions of travellers and businesses across Ontario, North America and beyond.As this work continues, we look forward to seeing and anticipate a plan that ensures the project protects public spaces, including the Toronto Islands, addresses potential noise and environmental impacts, expands and improves Little Norway Park, supports new housing opportunities in the area, and delivers lasting benefits for local communities.”.Business groups echoed that economic case and expressed clear frustration. Giles Gherson, president and CEO of the Toronto Region Board of Trade, called the federal response “disappointing,” describing the downtown airport as “hugely valuable as a business asset and helping to grow the economy here.”He noted the 1983 operating agreement effectively locks the airport into aging turboprop aircraft that are no longer being manufactured, leaving it on “borrowed time.”Pascal Chan, vice president of strategic policy and supply chains at the Canadian Chamber of Commerce, said modern transportation infrastructure is essential for strengthening internal trade, diversifying exports, improving labour mobility, expanding tourism, and building a more resilient economy.Shopify CEO Tobi Lutke also voiced frustration on X, responding to NDP Leader Marit Stiles’s praise of the federal decision: “Toronto said yes. But we also knew that the NIMBYs would somehow figure out a way to stop it. Like everything else anyone actually wants to improve. Doug at least tried.”.The Toronto Port Authority and Porter Airlines declined further comment beyond supporting the safety upgrades. Air Canada said it remains engaged in the airport’s development and growth, citing recent expansions to U.S. cities and increased domestic flights, and will continue collaborating on the facility’s future, including the ongoing safety work.The clash underscores federal-provincial friction over infrastructure at a time when Canadian business confidence is under pressure. Critics of the expansion celebrated the decision with waterfront gatherings. Supporters argue Ottawa prioritized local opposition over economic growth and connectivity.City council is expected to debate Chow’s motion this week before the provincial legislature returns in the fall. The limited safety upgrades will continue as planned, but the broader future of jets at Billy Bishop remains unresolved.
