Tory MPP Donna Skelly says she believes the city would be on the hook for any budget overruns on the construction of Hamilton's planned $1-billion LRT.

Her comments in a radio interview Wednesday come after The Spectator revealed briefing notes for a new Progressive Conservative transportation minister, which estimated capital costs to build the 14-kilometre light rail transit line in Hamilton now exceed the provincial commitment of $1 billion.

The news also spurred Coun. Brad Clark to circulate a proposed motion that would call on Transportation Minister Jeff Yurek to clarify in writing who is responsible for extra costs if the multi-year building project does go overbudget.

A spokesperson for the minister did not answer that question when asked Tuesday by The Spectator.

But Skelly, Hamilton's lone Progressive Conservative MPP, told the Bill Kelly Show on Wednesday morning it would not be "prudent" for the province to pay anything beyond the $1 billion, given Ontario's ballooning deficit, recently pegged at around $12 billion.

"It is a billion and only a billion. If it does happen to exceed the billion dollars, the city will be responsible for finding out how to cover any additional costs," she said.

Her comments quickly filtered through to council members discussing Clark's motion via email, including Mayor Fred Eisenberger, who is awaiting a promised meeting with Premier Doug Ford to talk about LRT and whether the government will lift a freeze on land purchases for the project.

"I am beyond confident that MPP Skelly does not set provincial policy on this matter," he said in response to a councillor email exchange, noting Metrolinx is the project owner and that the transit line was originally estimated at closer to $850 million. "Speculating now on project costs prior to the close of the RFP is premature!"

City LRT staff lead Kris Jacobson previously told The Spectator that he understands three shortlisted construction bidders are still working toward meeting the $1-billion budget.

Metrolinx, the project manager, has not commented on the MTO estimates in the briefing notes. But last year, the agency said the scope of the transit project could be reduced if budget costs become a concern.

Clark said his motion simply seeks clarity from the province about an outstanding question about project funding that has never been settled.

"Given all the rumours and more recently the media attention about projected costs, my motion is reasonable, prudent, respectful and does not prejudice the RFP process."

The MTO briefing notes obtained via a freedom of information request said the 2018 decision to extend the LRT line to Eastgate Square, beyond the original funded end point of the Queenston traffic circle, "led to an increase in the base capital costs above the previously committed $1 billion."

At the time the decision was made, the then-Liberal government agreed to try to shoehorn the three-kilometre extension in under the existing budget — but did not offer additional cash or even clarify about who would be on the hook for overages.

Planners expressed hope the extension would be affordable, in part, because council and the province agreed to kill an earlier planned spur line to the James Street GO station.

Savings from that change were estimated at between $100 million to $125 million, while the Eastgate extension was pegged to cost anywhere from $150 million to $225 million. Clark's motion won't go to council until Feb. 13.

mvandongen@thespec.com

905-526-3241 | @Mattatthespec

Loading... Loading... Loading... Loading... Loading... Loading...

- The Spectator's view: Another wild ride aboard LRT is just around the corner

- Will Hamilton's LRT exceed $1 billion budget?

- DRESCHEL: Promised LRT meeting with Ford still in limbo but mayor says provincial officials want to tour route