Ontario to designate Toronto island airport special economic zone after land takeover

People arrive at Billy Bishop Airport in Toronto on Friday, July 19, 2024. THE CANADIAN PRESS/Christopher Katsarov

TORONTO — Ontario’s transportation minister says the province plans to soon designate Toronto’s island airport a so-called special economic zone to expand it faster now that it has taken over the land.

The province passed into law Thursday a bill that allows it to take over all the land on the Toronto Islands where Billy Bishop Toronto City Airport is located.

It also allows the province to take Toronto’s spot in a tripartite agreement that governs the land, an accord that is currently between the city, the federal government and the Toronto Port Authority, which is a federal agency.

The port authority is also on board with the expansion, which Premier Doug Ford hopes will increase passenger traffic from two million a year to 10 million.

• READ MORE: Toronto island airport expansion - how much it will cost

Transportation Minister Prabmeet Sarkaria says he wants to expedite construction of the airport that will feature longer runways to allow jets to land and take off.

The federal government has been publicly noncommittal on the idea, though it has not rejected the plans.

The opposition roundly criticized the takeover and expansion plans while Toronto Mayor Olivia Chow has called it a land grab without consultation. The province has said it will not take over the entirety of the Toronto Islands despite the language in the legislation, and will work with the city to only use the land needed to expand the airport.

The province passed a controversial law last year that gives cabinet the power to create special economic zones, areas where it can suspend any and all provincial and municipal laws.

This report by The Canadian Press was first published May 28, 2026.

Liam Casey, The Canadian Press