An ambitious plan to naturalize and reroute the Don River and protect the surrounding Port Lands from flooding could cost the city $275 million more than initially thought.
According to a due diligence report completed by Waterfront Toronto, the estimated cost of the entire Don River naturalization plan is now $1.25 billion. That number is significantly higher than a $975 million figure which had previously been attached to the project.
Waterfront Toronto says that the revised estimate is due to the discovery of sand and peat that will result in “additional excavation, soil and groundwater treatment, erosion control and material handling costs.” As well, Waterfront Toronto said that the need for “additional environmental risk management measures” contributed to some of the cost increase.
Despite the significant price tag, though, the city agency stressed that the project continues to be invaluable as it has the potential to unlock 240 hectares of real estate for development. The development of that land, Waterfront Toronto said, could add $5.1 billion to the Canadian economy and result in the creation of 51,900 person years of employment over a 10-year period. Governments would also benefit to the tune of $1.9 billion in additional tax revenue.
"The Port Lands Flood Protection project addresses the fundamental challenge of transforming the underused Port Lands into a long-term asset that will support Toronto's competitiveness," Waterfront Toronto CEO Will Fleissig said in a press release. "Excavating a new river mouth in an urban post-industrial brownfield is a pioneering project for Toronto. The opportunity here is immense - no other North American city has such an asset on the doorstep of downtown that can support the creation of new communities and new economic opportunities."
As part of the project, the Don River would be rerouted to the middle of the Port Lands between Keating Chanel and Ship Chanel and two new outlets would be created to carry flood waters from the river into the Lake Ontario.
A total of 29 hectares of naturalized area in the river valley would also be developed along with 14 hectares of aquatic habitat. Two parks would also be built.
All told, Waterfront Toronto says that the project would take seven years to complete.
It should, however, be noted that only $50 million in provincial and federal funding has been secured for flood protecting the Port Lands so far. That funding, which was announced last month, will go towards the $65 million cost of remaking the area around the old Essroc quay at the western end of the Keating Chanel. Construction on that project will begin in mid-2017.
“This is only a first step,” Mayor Tory said in announcing the funding on Sept. 14. “There is much more to be done and that will require continued partnership and quite frankly more money.”
The City of Toronto spent $5 million on the due diligence report completed by Waterfront Toronto.
