Item - 2014.GM32.10

The purpose of this report is to provide an update on the City of Toronto's Union Station Revitalization Project, including a status report on the construction progress and project budget.

Union Station is a National Historic Site and one of the finest examples of Beaux – Art Architecture in Canada.  As part of the sale in 2000 from the Toronto Terminals Railway Company Limited to the City of Toronto, the City was required to enter into a Heritage Easement Agreement with Parks Canada which governs all the restoration work at the station.  Union Station opened in 1927 and has often been characterised as a grand urban gateway, and was intended to transform the town of York into a world class metropolis.  Today the City of Toronto is setting an example of restoration and revitalization of this historic site, once completed the station will act as a gateway to the waterfront and the City.

The Union Station Revitalization Project is now in its fourth year of a multi-year construction schedule.  It is one of the most complicated projects in the country, "wedged" into one of the most congested parts of the City and being undertaken while the TTC funded subway platform reconstruction is underway as well as two other major Metrolinx funded infrastructure projects:  the GO Transit Atrium & Track Signalling/Repair, and the construction of the Union Pearson Express terminal station. The total re-investment and re-vitalization by all levels of government and organizations is estimated at approximately $1.5 billion.

The Union Station Revitalization Project is on schedule for completion in 2016.  Union Station is by far the largest and busiest transportation hub in the country handling 65 million passengers per year which is expected to grow to 130 million passengers per year by 2021.  Without the revitalization of the Station and the capacity the City is adding through concourse construction, the City would not be able to handle these volumes and arguably would be limiting the City's overall potential to grow.  This project paired with Metrolinx transit projects are an investment in the City's infrastructure that will promote transit oriented growth in the long term.

The next Project milestone is the completion and turnover to Metrolinx of the newly constructed York Concourse scheduled for October 2014.  The General Contractor/Construction Manager (GC/CM) for the work, Carillion Construction Inc., has committed to achieve this milestone date, despite the severe challenge presented to them by the breadth, scope and complexity of the overall project.

As the project has progressed, it is becoming evident from discussions with the Head Lessee that the Station will also act as a destination for culture, entertainment and dining experiences.  Union Station will not just be a place that people pass through on their way to work or back, it will become a destination in itself.  Union Station will also link the communities north of the station to communities now being developed to the south and will in essence act as a City/community gathering place where "the best of Toronto" can be experienced.

With respect to budget and financing, the Federal Government has stated that it will not provide additional grant funding and discussions with Metrolinx and the Province are continuing.

A recommendation follows to enable the City to bolster its defense against construction claims being filed.  Such claims are typically vastly overstated in the first instance, and therefore require careful legal and technical analysis to protect the City's interests during the judicial process.