London's rapid transit project faces $174M cost overrun
It’s one of the most loved and loathed projects the City of London has ever undertaken — and now the bus rapid transit (BRT) project is about to become even more controversial.
“It was never an easy sell to taxpayers,” conceded City Budget Chair, Coun. Elizabeth Peloza.
She added, “Some people just don’t use transit, never pictured themselves using it. But we also have Londoners who rely on transit every day for basic needs, and also a lot of people coming from other municipalities who have a really good transit system, and they’re wondering ‘London where are you?’”
City councillors are being asked to cover a $174.2 million budget overrun on the rapid transit project. Peloza said she’s not surprised.
“We knew it was coming…just this is a large number,” she said.
According to Jennie Dann, the city’s director of construction and infrastructure, pre-pandemic pricing models didn’t age well.
“This budget request reflects a number of factors that have been impacting all construction projects, such as inflation, rising interest costs and construction costs,” she explained. “We’ve seen supply chain issues continuing, new legislation. As well, we’re also dealing with the changing real estate market that’s had a big impact on the project’s original budget.”
The multi-million dollar ask leaves council in an unenviable position. The BRT project is now half finished, and funding from senior governments could be in jeopardy if it doesn’t proceed.
The Downtown Loop, East London Link, and the Wellington Gateway have all been approved for funding under the Canada Infrastructure Program.
Dann said of the $174.2 million, $148.9 million — or 85.5 per cent — is covered by development charges. City staff proposes the remaining $23.9 million be debt financed over a number of years, with the impact to taxpayers $4.8 million in this budget cycle.
“There’s $167 million in funding from our federal and provincial partners, and that could be at risk if London doesn’t deliver on the higher order of transit infrastructure that we’ve committed to,” said Dann. “The risks of not approving this budget. There’s financial, social and economic risks, and Londoners could be on the hook for the sunk costs to date.”
The overall draft budget calls for a 5.4 per cent tax hike in 2024.
Public consultations on the budget take place throughout January, with final approval expected in March.
CTVNews.ca Top Stories
AS IT HAPPENED Wildfire reaches Jasper Wednesday night, causes 'significant loss'
One of two wildfires threatening Jasper National Park reached the townsite Wednesday night and caused 'significant loss.'
Alberta calls in army to assist with wildfire situation
Alberta has called in the Canadian Armed Forces to help assist with the worsening wildfire situation in the province.
Biden explains why he ended re-election bid in Oval Office address
U.S. President Joe Biden on Wednesday delivered a solemn call to voters to defend the country's democracy as he laid out in an Oval Office address his decision to drop his bid for reelection and throw his support behind Vice President Kamala Harris.
Barrie-Innisfil MPP 'blacked-out' and crashed car into window of child care centre
Staff at a Barrie child care centre say they are frustrated by what they call a local MPP's inadequate response after a car crashed through a window in one of the toddler rooms.
Norad intercepts Russian and Chinese bombers operating together near Alaska in apparent first
The North American Aerospace Defence Command (Norad) intercepted two Russian and two Chinese bombers flying near Alaska Wednesday in what appears to be the first time the two countries have been intercepted while operating together.
2 Canadians being 'sent home immediately,' removed from Olympic team after drone incident
An analyst and an assistant coach with Canada Soccer are being removed from the Canadian Olympic Team and 'sent home immediately,' according to the Canadian Olympic Committee.
An unwelcome attendee has joined the Paris Olympic Games: COVID-19
After a handful of Australian water polo players tested positive for COVID-19 this week, questions have emerged around how the spread of the disease will be mitigated at the Summer Olympic Games in Paris.
Vacations, meals, booze: Contractor used $100K of charity's money for personal expenses, B.C. court finds
A B.C. man who was hired to help a non-profit build a food hub but instead spent the money on personal expenses – including travel, restaurants, booze and cannabis – has been ordered to pay more than $120,000 in damages.
Male, female killed, 2 others injured in 'gun battle' outside Toronto plaza: police
Two people are dead and two others suffered serious injuries following a shooting that police have described as a 'gun battle' outside a plaza in Scarborough, Ont. early Wednesday morning.