Transit hub in Kitchener could cost $24M more than expected

The proposed transit hub in Kitchener now carries a $130 million price tag, nearly $24 million more compared to what was estimated in 2020, with work set to begin as early as this fall.

The transit hub proposed for King and Victoria Streets, was discussed at by regional councillors at a meeting Tuesday morning.

“That cost increase is fully attributed to cost escalation in the current environment because there actually has been no additional design work done on that. It is just an update based on the current situation,” said Ellen McGaghey, the regions director of facilities and fleet management.

The province has already committed to giving the region $43 million for the Phase 1 of the hub.

Regional staff said they are hoping for more help for to cover costs for Phase 2. In December, the region sent an application for the Investing In Canada Infrastructure Program (ICIP). The region said they are waiting to see if they were approved for additional funds.

“If approved, that would secure 73 per cent of the cost to be funded through the ICIP. The remaining 27% would need to be financed by the region,” said Craig Dyer, the region’s financial commissioner.

According to Ellen McGaghey, the region's director of facilities and fleet management, Phase 1 of the program includes work by Metrolinx and could start in the fall of 2023.

“As part of Phase 1, Metrolinx will deliver track modifications, platforms and amenities, and station underpasses,” the report to regional council reads.

In order for the work to be complete, Metrolinx would need access to regionally owned land where an unsanctioned encampment is currently located.

This could pose a problem as last month a judge ruled that the region cannot evict people from the property.

But that wasn't debated Tuesday morning.

The region only stated if they aren't able to access the property, it may result in increased costs to the project or project delays.

In 2020, the region released renderings of what the hub could look like. 

The hub will include a Go Train and VIA Rail station and will also connect with the LRT, Grand River Transit buses and nearby multi-use trails.

At the Tuesday meeting, Dyer called the proposed hub a “landmark facility” in Kitchener and claimed it could lead to additional development along Victoria Street.