The cost of the flood protection project as part of the development of eastern Toronto’s Port Lands has risen from $975m to $1.25bn, it was confirmed yesterday.
A due diligence study from tri-government agency Waterfront Toronto said the probability of the actual cost of the work coming to $1.25bn or less is 90%,
Toronto Star reports.
The increased costs for the project, which was made a priority by Waterfront Toronto 14 years ago, are mostly due to the need for additional excavation of sand and peat, as well as more “environment risk management measures,” the report said.
It will take seven years to complete the flood protection work and install basic city infrastructure such as roads, hydro and water and sewer mains, starting next year at the earliest, according to the study.
Once the site has been flood protected, Waterfront Toronto will sell off most of the government-owned land for development, with the ultimate vision of rerouting the Don River to create an “urban island” called Villiers Island – which Mayor John Tory hopes will become Toronto’s own version of London’s Canary Wharf.
Waterfront hopes the project will eventually attract between 18,000 and 25,000 residents, incorporating 20% affordable housing, as well as creating 25,000 to 30,000 jobs.
Mayor Tory’s plans for the area include the development of a SmartTrack station at the former Unilever site, where First Gulf has planned for large-scale development of condos and office building facilities.
The construction and development of the land is expected to add $5.1bn to the economy through employment and government revenues, the report said, plus an additional 50,000 jobs through the Unilever site.
City staff are expected to recommend to Mayor John Tory’s executive committee next week that the other levels of government commit to a one-third share each, according to the report.
And costs will continue to rise if the project is delayed – Waterfront estimates say it will cost $30m annually in inflation for each year the project is pushed back.
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