The catch is to have construction complete by March 31, 2011. Yonge subway can't move that fast. It takes about 2-years to do the design on a subway; they'd be lucky if they could finish the geotechnical borings by the end of 2010 if they started now!
I'm sure there's a long list of small projects that can be done. But with the city already going full-out on a lot of projects, it's difficult to add $300-million worth. Not impossible, but it's easier to throw out one of the rules (project completion, location, etc), And then the city must find another $300-million to match the $300-million. Heck, they would have to find $900-million if they have to pay for the streetcars directly.
Incidentally ... in the
rules for the funding - you tell me where it says that the spending has to take place in a particular location. Certainly they are pushing the complete by 2011 rule ... but that doesn't seem to be the fed's biggest complaint! It seems they are more concerned that the money won't be spent in 416 ... but there doesn't seem to be any rule about that.
Good question; I'm sure it would qualify ... is the actual application somewhere?