The discovery of new environmental risks at what Canadian officials consider a pioneering planned brownfield redevelopment in Toronto has added some $205 million to the project cost. Boosters say the port site makeover and flood protection effort could generate $4 billion in economic impact but the cost increase to more than $932 million raises the stakes for developers, which must secure pledges from federal, provincial and local governments for the bulk of project funding. Just $48 million has been committed so far.
The 25% cost hike for the 600-acre project came after a new due-diligence report found that “flowing sand” and “compressible peat” beneath the site would require added excavation, soil and groundwater treatment, erosion control and materials handling, said Waterfront Toronto, the quasi-governmental group overseeing the planning. Spokesman Andrew Hilton said project leaders are well aware of public concern over potential cost overruns and wanted to secure as accurate a cost estimate as possible. “We spent a long time digging bore holes and doing all the work necessary to identify all the risks,” he said.