Oversight of two major Toronto highways - the Gardiner and the Don Valley Parkway - is being uploaded to the provincial government, announced by Premier Doug Ford and Mayor Olivia Chow on Monday.

As part of the deal, the city is also permitting the province to take over responsibility for the entirety of Ontario Place, paving the way for the province's controversial redevelopment of the site to proceed.

Ford and Chow both described the agreement as a "historic" during a press conference on Monday.

"When Toronto succeeds, Ontario succeeds. When Ontario succeeds, Canada succeeds," said Ford.

The province asserts that the deal would provide $1.2 billion in new operating supports for the city over the next three years. This would allow the city to invest in projects like the Eglinton Crosstown LRT and Finch West LRT, increased police presence on the TTC, as well as operating support for homeless shelters and new subway cars, contingent on matching federal support.

"By uploading the Gardiner and DVP, the city will be able to spend billions more on affordable housing, fixing transit and building communities," stated Chow. "Over the next few years, we will continue to examine the city's finances and work on Toronto's long-term financial sustainability. It's a beginning of a journey, it's a wonderful first step."

Ford and Chow have also called on the federal government to similarly increase funding to the city, a common rallying cry from the pair in recent months.

A spokesperson for federal Finance Minister Chrystia Freeland said the government "has and will continue to be a strong partner for the people of Toronto."

City facing budget crunch

Last year, city staff estimated annual maintenance costs for the two major highways adds up to about $16 million per year, while $2.2 billion has been budgeted over the next 10 years for the rehabilitation of the Gardiner. Ford assured that the two highways will never be tolled by the province.

The arrangement comes as Toronto has launched its latest budget process. Without money from Ford's government and the federal government, Chow and Toronto city council would likely be left considering service cuts or large tax increases in the coming months.

Toronto is grappling with a $1.5 billion budget hole. Unlike other levels of government, the city is required to balance its budget every year.

The province's plans for redevelopment at Ontario Place's waterfront site have been controversial, with Chow herself previously promising to push back against Therme Canada's indoor water park and spa, slated for the West Island. The mayor also recently suggested that the site should be located at the Better Living Centre, part of Exhibition Place.

When asked about a perceived flip-flop on the issue on Monday, Chow said her position is "clear". Ontario place should be a public park.

However, she also admitted, "It is called Ontario Place, the land belongs to the provincial

government, and we do not have the authority to stop the development."

The debate over Ontario Place's future will happen at Queen's Park, not at the municipal level, Chow added.

Controversial plans for Ontario Place

The province affirmed in a news release that as part of this deal, the city is accepting "that the province has the authority to advance project approvals for Ontario Place and intends to do so imminently."

The province has also agreed to explore relocating parking for the site to the nearby Exhibition Place grounds to "improve public access to the shoreline," as per the news release.

Therme Canada unveiled a new design featuring a smaller main building and more public park space back in August.

The redesign came after politicians and community members expressed opposition to the initial proposal because of its plan for a $350 million "year-round, family-friendly" waterfront attraction, the centerpiece of which would have been a 65,000-square-meter, seven-story indoor private "wellness center" and water park.

Earlier this year, the company said its redesign will include more open parkland, natural spaces, public trails, and places for people to gather.

Meanwhile, Ontario Place for All, a community group against the redevelopment, is seeking an injunction to halt the process.