Toronto is allocating $5 million to explore the ins-and-outs of redeveloping about 400 hectares of former industrial property in the Port Lands.

Mayor John Tory says – opening up the lands would create “a thriving new neighborhood” and create space for new social housing and jobs.

But there’s a big catch.

The area is prone to major flooding. And according to Waterfront Toronto, some 290 hectares cannot be developed until they are protected from flooding.

So, a study will be done to assesss the possibility of “naturalizing” the mouth of the Don River – which would involve re-routing the waterway and creating a new island community out of the Port Lands.

At a media conference on Polson Pier today – neither Provincial Minister of Economic Development Brad Duguid nor Federal Finance Minister Joe Oliver would commit to their governments contributing to the almost $1-billion mega project.