The troubled revitalization of Union Station has hit another setback, with the city now projecting its completion will be delayed by up to a year and will cost an additional $22.8 million.

The renovation project was already two years behind schedule and $160 million over the budget the city approved in 2009. It was initially supposed to be done in 2015 and cost $640 million.

The timeline was subsequently pushed back to early 2018, and its budget increased to $800.7 million.

But a draft city report obtained by the Star warns that the renovation of the station’s Bay Concourse and lower retail level won’t be done for another eight to twelve months, or late 2018, and the total project cost will be $823.5 million.

The report blames the delay on “additional project requirements” for Metrolinx’s work at track level. The provincial transit agency is reconfiguring the track and platforms at Union to accommodate its Regional Express Rail (RER) expansion of GO Transit service. The RER program will also facilitate Mayor John Tory’s SmartTrack plan.

The city claims the “resequencing and additional project requirements” of the Metrolinx work has hampered the city’s ability to complete renovations on the concourse below.

The cost increase also includes legal fees for “actively managing” claims made against the city by contractors.

“City staff have made clear in their report that the increased costs and further delays at Union Station are largely due to changes triggered by Metrolinx,” said Mayor John Tory in a statement.

“While I agree that these changes are necessary and will ultimately enable RER and SmartTrack, I won't accept Toronto taxpayers footing the bill for the resulting cost increases.”

The renovation project is jointly funded by all three levels of government, with the province and federal government together contributing nearly $360 million.

The report is recommending council approve using a city reserve fund for the additional $22.8 million, but notes the city is in discussions with Metrolinx to have the agency “reimburse or fund a portion of these incremental costs.”

In a statement, Metrolinx president and chief executive officer Phil Verster said the cost overruns in the city report “have not yet been scrutinized by Metrolinx for accuracy, are probably overstated, and do not compare with the huge benefits transit customers will enjoy from these improvements in the years to come.”

“The improvements to the Bay Concourse by the City of Toronto are fantastic and will help to transform Union Station to give transit customers a much improved experience and many more retail services. This is what our communities expect from modern transit,” he said.

Ontario’s newly minted Transportation Minister Kathryn McGarry also issued a statement, in which she called the revitalization “an incredibly important project for both economic development and connecting commuters across Ontario.”

“We are currently reviewing the City of Toronto's report, and remain committed to working with them on a positive, collaborative path forward,” she said.

Union opened in 1927, and according to the city is the busiest transit hub in Canada, handling 65 million passengers a year. With that number expected to grow to 130 million by 2031, council approved the revitalization plan nine years ago in order to expand the station’s capacity, restore its historic features, and add retail space to create a new commercial hub downtown.

In addition to the city-led renovation, other agencies have carried out additional work around the site including the TTC’s expansion of its Union subway station, and Metrolinx’s construction of the Union Pearson Express terminal and upgrade to the GO Transit train shed.

While significant parts of the city-led renovation have been completed, including renovations to Via Rail’s properties and the York West concourse, the project has been plagued by delays, budget overruns, and contractor disputes.

Carillion Canada Inc. was initially hired to perform all of the work, but the company only completed the first phase and was replaced by Bondfield Construction Inc.

According to the report Carillion, whose British parent company collapsed earlier this week, has filed an “unsubstantiated construction claim against the city.”

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The $22.8-million budget increase doesn’t include the cost of any future claim settlements from Carillion or other companies.

In addition to the project delays, a June 2017 report from the city’s auditor general determined the municipal government had failed to collect on $10 million owed to it by commercial tenants at the station.

Once the concourse renovation is complete, commuters will still facing be a lengthy period of disruption at the station. The Metrolinx work at track level to accommodate increased GO transit service is expected to last for years.

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