While councillors approved the $4.5 million budget overrun last month, there is still no word on who will pay what for the series of expensive construction hiccups that have delayed the Bloor Street Transformation Project more than a year past deadline.
“What has to be determined is who’s responsible for the delays,” said Adam Giambrone, vice-chair of the public works and infrastructure committee.
According to Giambrone, a number of parties may be partially responsible for overrun costs, including: the Bloor-Street BIA, the City of Toronto, Four Season’s Development Ltd. (company conducting the project), Toronto Hydro, property owners and some utility companies.
Currently, the Bloor Street BIA is paying nearly $20 million of project costs. Regarding budget overruns, several unforeseen events contributed, including the discovery of asbestos pipes and Toronto Hydro’s $2.1 million need to sink hydro chambers.
Tanya Bruckmueller, spokesperson for Toronto Hydro, said the need arose when project plans changed, requiring the modification of ground elevation, which affected the elevation of the chambers. “It wasn’t our choice,” said Bruckmueller.
Gord MacMillan, the director of design and construction for City of Toronto, said large-scale projects, such as the Bloor Street project, tend to involve cost escalation. Toronto budget chief Shelley Carroll said this is why the city set aside a “$25 million envelope” for the project, though that money must eventually be accounted for.
While some retailers admit frustration at the cost overrun and delays, others see it as temporary pain for a greater result.
“Yes there have been inconveniences, but sometimes you don’t have a choice,” said David Markowitz, the president of Davids, a store that fronts the street construction. “The alternative is to leave Bloor Street antiquated and out of style.”
