An extensive project, that could include the demolition of about 40 homes and businesses, is planned for Weber Street between College and Union Streets.
Plans were first outlined in April, and since then they have evolved and expanded, causing the cost of the project to soar.
Previously, the cost had been estimated around $40 million, but Waterloo Region says that could be closer to $52 million now with additional improvements.
Marcos Kroker, senior project manager for Waterloo Region, says some of those costs come because "we need to maintain rail traffic and we'll try to maintain as much vehicle traffic throughout construction as well."
The region says the work is necessary to ease traffic congestion in the area, whether or not the light rail transit plan on King Street goes ahead.
Currently, as many as 12-14,000 vehicles travel that section of Weber Street, part of which is only two lanes.
Adnan Kahn works at Extreme Motors on Weber Street, he says "Everyone second week or week, always accidents happen to this intersection. I have seen so many times trains hit the cars too."
While he's not happy about the business losing its front lot, he says "for the Kitchener-Waterloo public and people it's a good thing."
While some of Weber Street is already four lanes, the plan includes widening the remainder of that section and adjustments to the alignment of the roadway. At one level rail crossing a curve in the road is also expected to be straightened.
A major element of the project includes building an underpass where there is currently a level crossing for the VIA Rail tracks just north of Victoria Street.
Kroker says "There is a need to separate the cars and traffic in terms of safety and operational improvements."
The road underpass would achieve that, keeping VIA Rail trains and the new GO Transit service separate from traffic.
The project, which could include the demolition of about 40 homes, would also impact approximately 20 additional properties that could lose some land.
The project was initially proposed as part of the region's transportation master plan in 1999.
Construction is expected to begin in 2015 and take about three years to complete.
