Kitchener transit hub now expected to cost $130M, Phase 1 to start later this year

The cost for the new transit hub in downtown Kitchener has risen by $23.9 million dollars from the last estimate, as staff say work is set to begin later this year.

Ellen McGaghey, the region's director of facilities and fleet management, told regional councillors on Tuesday that Phase 1 of the project will include work by Metrolinx this fall. The provincial agency has to move services, realign tracks and build platforms. The region also has work to do in the area for the project.

The region has long planned a new transit hub at the corner of King and Victoria streets. It would link walking and cycling trails, Grand River Transit, ION light rail and inter-city rail at the corner of King Street and Victoria Street. Work was supposed to begin in 2020, then pushed back to start in 2021.

McGaghey said Tuesday the region's construction is now anticipated to start in spring 2024 and be completed by the end of 2027.

The cost estimate increase, which now puts both Phase 1 and Phase 2 at a total of $130 million, is "fully attributed to cost escalation in the current environment," McGaghey said.

The additional costs have been included as part of an application to the provincial and federal government for funding for Phase 2 of the project, she added.

Access to 100 Victoria

McGaghey said Metrolinx will need access to the regionally owned land at 100 Victoria St. to begin construction work.

That could be a problem because there is currently an unsanctioned encampment of people experiencing homelessness on that lot and a judge has ruled the region cannot evict people from the property until it has enough space within its shelter system to offer everyone who needs one a room.

"If we are not able to provide a commitment to access that property as requested, it may result in increased costs to the project and/or project delays," McGaghey said.

Hub will spur development, staff say

Wilmot Mayor Natasha Salonen asked what kind of return on investment the region as a whole can expect from the transit hub.

Craig Dyer, the region's chief financial officer, said the hub would be "a landmark facility" in Kitchener.

"We anticipate that this would spur on additional development in that area and along Victoria Street in particular," Dyer said.

Rod Regier, the region's commissioner of planning, development and legislative services, said the hub is just one part of a larger transit plan.

"This is a key project inside an integrated transit system which includes the ION LRT, complete reorganization of the GRT system to use the ION as a hub, as a spine to the system, and as a result of the investment in that system,we've seen in excess of $3.2 billion in intensification, which is ongoing as we speak," he said.

Regier added he's recently heard of new, additional projects in the immediate area of the hub "at a scale which we haven't seen in the region up to this point."

"So it's actually working extremely effectively as a catalyst for new investment," said Regier.