A MORE COSTLY UNION
Transit hub overhaul price tag rises to $800M.
The overhaul of union Station — billed by city staff as “the single most challenging project currently underway in the GTA, and very likely the country” — is expected to cost another $80-million, according to a report that puts the latest price tag at nearly $800-million.
city council first approved the construction project in 2009, at $640.2-million. Just under half of that is funded by the city, with the remainder paid by GO, Transport canada and VIA rail.
Since then, another $75.2-million has been added and approved, including an increase of $40-million for a new northwest PATH tunnel linking Front Street to Wellington.
The revamp, still slated for completion in 2016, restores and preserves many heritage elements, expands GO concourse space three-fold, adds exits and a new shopping concourse below the station.
ci t y officials s ay t he $80-million can be partially attributed to the fact that design work was incomplete when the project was first approved — the same rationale given for other escalating price tags, such as the redevelopment of the St. Lawrence Market North building, Nathan Phillips Square, and the TTc’s second platform at union Station, a separate project valued at $161-million.
In the larger union Station revitalization, city staff said they were unaware of the full extent of heritage restoration work, resulting in an extra $31-million cost. Another $20-million is for additional retail improvements, according to councillor david Shiner, and $29-million in “unforeseen expenses.”
councillor doug Ford vows to “hammer” city staff at next week’s meeting of the government management committee, at which the report will be discussed, suggesting their explanation of the inflated cost is “the same bS.”
“everything is on time, everything is on budget, until they run out of time and they run out of budget, and they come with their cap in hand,” said Mr. Ford. “We got to change something on preliminary planning, someone is dropping the ball. you just can’t ask for $80-million without someone dropping the ball.”
The staff report predicts that the city will be able to rake in more money than previously expected, mainly by hiking commercial rents in the retail area. That extra $98-million is more than enough to pay off the debt taken on for the additional costs, the report states. The city will, however, have to draw $20-million from reserves because of cash flow. The report recommends referring consideration of the new financial plan to the 2014 budget debate, and also asks for permission to amend certain contracts and retainers.
“It’s not going to cost taxpayers more money, which is the important thing,” said Mr. Shiner, who chairs the government management committee. He noted that the rent revenue stream is expected to result in a $115-million con- tribution to a union Station reserve fund once the debt is paid off, in 30 years. “They are intricate projects and when you get involved with something as large as union Station, with the heritage aspect, you can run into difficulty.”
The complexity of the overhaul, wedged into one of the most congested parts of the city, is apparent to anyone who walks by the beaux Art station that opened in 1927, now fronted by an open pit. It is going on at the same time as the TTc’s subway project, GO Transit atrium and track signal repairs and the union Pearson express terminal station — all while maintaining passenger, station and rail operations.
“The uniqueness and complexity of the project, although recognized at inception, has proven even more intricate than originally anticipated,” the report stated. It said certain elements, including the full extent of the Great Hall and VIA concourse restorations, are on hold pending further word from council. The report also warns of “future risks” to both cost and schedule of part of the PATH. despite the challenges, the city report describes the union Station project a “technical marvel and financial success.”