Region of Waterloo Transportation and Environmental Services Rapid Transit
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1 Region of Waterloo Transportation and Environmental Services Rapid Transit To: Chair Jim Wideman and Members of the Planning and Works Committee Date: September 30, 2014 File Code: A02-30/PW Subject: ION Construction - Progress Update Recommendation: For Information Summary: Nil Report: This report provides an update on the progress of ION construction and related development along the Central Transit Corridor. Background In June 2011, Regional Council approved Light Rail Transit (LRT) from Waterloo to Cambridge as the preferred rapid transit solution for the Region. Council also approved constructing LRT in stages, to best match technology with projected ridership and development, and to ensure the project could be built affordably. Stage 1 includes LRT from north Waterloo to south Kitchener, and adapted Bus Rapid Transit (abrt) from south Kitchener to downtown Cambridge (Galt). Also in 2011, Council approved a capital budget of $818 million for the project, and a funding strategy to fund the operating, maintenance and financing costs of the system (Report ER ). In February 2012, Regional Council approved developing the project through a Design-Build-Finance-Operate-Maintain (DBFOM) approach with a private-sector partner. This approach was selected because it provided the best balance of Regional control and ownership, while transferring appropriate risks to the private sector, and taking advantage of private sector innovation. It also provided the greatest assurance of completing the project on time and within budget. In March 2013, the Region identified a short-list of 3 DBFOM teams, and issued a request for proposals (RFP) to these 3 teams. In December 2013, the Region received proposals from the 3 short-listed teams Page 1 of 12
2 Since mid 2013 there has been significant ongoing construction to support the implementation of Stage 1 LRT and abrt. A brief summary on the status of the construction is noted below: LRT overpass along Huron Park Spur at Hwy. 7/8 construction of the overpass structure is underway and is being effectively managed by MTO. The overpass is required to accommodate two new LRT tracks on the Huron Park Spur. This work is expected to be completed by the end of The approved budget for this work is $11.2 million. Hydro One Corridor the burying of transmission lines from Courtland Drive to Fairview Park Mall is on schedule and is expected to be completed by late summer / early fall of This work will make way for new LRT tracks to be constructed along the Hydro corridor in 2015/2016. The approved budget for this work is $26.3 million. Early utility relocation a number of private/public utility partners (e.g. Bell, Rogers, Union/Kitchener Gas, Kitchener Wilmot Hydro, and Waterloo North Hydro) continue to relocate their infrastructure ahead of the construction work to be completed by GrandLinq. This work is currently on schedule and will help expedite the LRT construction. The budget allocated for these early works is $29.3 million. Bombardier Vehicle Design/Production the design effort on the vehicles is progressing. A strike at the Bombardier Thunder Bay facility occurred in August of this year and is now over. Regional staff monitored this situation closely and are currently working with Bombardier and Metrolinx to assess any impacts to future production timelines for Regional vehicles. The approved budget for this task is $95.5 million. In March 2014, the Region approved entering into a contract with GrandLinq GP for the construction of Stage 1 LRT, together with financing, operations, maintenance and lifecycle rehabilitation for a term of up to 30 years. In June 2014, the Region approved entering into a contract with Steed and Evans for the construction of Stage 1 abrt. Stage 1 Light Rail Transit Financial Close for the LRT contract occurred on May 9, 2014 (three business days following Commercial Close) when all Lending Agreements were in place and funding was available to GrandLinq from its lenders and investors (i.e. the flow of funds, in the form of debt from the lenders and equity from the partners, to GrandLinq has occurred). The project commenced immediately following Financial Close, Since project commencement GrandLinq has mobilized its resources, is in the process of enhancing the design, performing data gathering and has completed enough final design to start construction on some sections. GrandLinq continues to perform design, scheduling and material procurement for construction activities scheduled for next year and preparation for eventual testing and commissioning. Construction has started on some sections of the LRT as described below Page 2 of 12
3 Construction by GrandLinq A brief chronology of the works to be completed in 2014 is as follows. It should be noted that the timing of all construction is subject to approvals, weather conditions and construction constraints and therefore may be modified as the project progresses. 1. ION Operations, Maintenance and Storage Facility at 518 Dutton Drive - Initial work started in August including clearing of vegetation (i.e. limited tree removal); hauling and excavation of on-site materials in order to lay the site foundation, which is expected to occur in late September / early October. 2. Waterloo Park Spur from Northfield Drive to Erb Street - Initial work started in August including clearing and grubbing of vegetation and soil to prepare the area for new light rail tracks scheduled to be constructed in 2015/ UpTown Waterloo Southbound light rail route on Caroline Street from Erb Street to Allen Street - Construction is currently scheduled for late September - The work will involve road closures for replacement and relocation of major municipal/private utility services (i.e. water, sewer, storm, hydro) 4. Borden Avenue from Charles Street to the Huron Park Spur - Construction is currently scheduled for early to mid October - The work will involve road closures for replacement and relocation of major municipal/private utility services (i.e. water, sewer, storm, hydro) 5. Huron Park Spur from Borden Avenue to Hayward Avenue - Initial work is scheduled to start in late October / early November that will include building an access road and some preliminary work on the Schneider Creek Bridge (in advance of the construction for new light rail tracks and relocated freight tracks). Attachment A provides maps together with a high level schedule for construction work to be completed along the ION corridor. Up-to-date construction information is available on the ION Construction Website Stage 1 Adapted Bus Rapid Transit abrt includes buses travelling in mixed traffic, but given special features enabling faster, consistent and more convenient service. These features include: frequent service, limited stops, signal priority, queue jumping, bus bypass shoulders, enhanced stop design, cycling amenities and passenger information systems. The following destinations will be served by abrt: Fairview Park Mall (where LRT and abrt meet. This stop will, however, be constructed under the LRT contract) Sportsworld Hespeler Road at Eagle Street Page 3 of 12
4 Cambridge Centre Mall Can-Amera Parkway The Delta Intersection (Hespeler Road at Coronation Boulevard) The Ainslie Street Terminal Construction of abrt Work began August 18, The scheduling and staging of the work has been laid out, traffic signage is in place, construction barrels have been set up and infrastructure locates are almost complete. All works as part of this tender are expected to be completed by late 2014 / early A brief chronology of the works to be completed is as follows: 1. Hespeler Road at Pinebush/Eagle Street - Construction started early August and is expected to be completed in November - Work in this area involves installation of ION abrt stops; civil road works and other infrastructure 2. Hespeler Road at Can-Amera Parkway - Construction started in September with completion scheduled for November - Work in this area will involve installation of ION abrt stops; civil road works and other infrastructure 3. Ainslie Street transit terminal - Construction started in September with completion scheduled for October - Work at this location will involve installation of ION abrt stops and restoration works within the existing terminal 4. Hespeler Road at Dundas/Coronation Boulevard - Construction will start in October with completion scheduled for December - Work in this area will include installation of ION abrt stops; civil road works and other infrastructure 5. Hespeler Road at Munch Avenue - Construction will start in October and be completed by December - Work at this location involves civil road works and other infrastructure abrt Stops The Fairview Park Mall and Sportsworld stops have not been included in the abrt tender process. This is because the Fairview Park Mall stop is already included in the LRT contract and the Sportsworld stop was recently built by the Ministry of Transportation (MTO) with a park n ride facility and will accommodate the abrt stop. Bus Bypass Shoulders In addition to the construction contract for the abrt stops and queue jumps, the Ministry of Transportation (MTO) will be implementing bus bypass shoulders on Highway Page 4 of 12
5 Bus bypass shoulders are paved shoulders on the highway that only buses are permitted to use to bypass other traffic during times of heavy congestion. Construction of the bus bypass shoulders is expected to begin in 2015 with the MTO widening of Highway 401. Previously, the Region collaborated with MTO to accommodate bus bypass shoulders on Highway 8. Cost sharing for the bus bypass shoulders on Highway 401 will follow a similar process as that of Highway 8 (Report P ). Public Consultation Community engagement and public input is, and will continue to be, a critical part of ION implementation. To date, feedback from residents has played a key role in every ION decision. In 2014, from January to June, staff reached 3,637 residents through community engagement events and activities. This includes presentations to neighbourhood associations, schools, universities, businesses and community groups as well as participation at community events such as ECOFest and the Kitchener-Waterloo Association of Realtors Expo. Numerous one-on-one meetings with residents have also taken place. In July 2014, the ION vehicle returned to Waterloo Region. Over four days in Downtown Kitchener, 4,297 people visited the vehicle. Later in July, an ION booth was staffed at the Sun Life Financial UpTown Waterloo Jazz Festival, and answered questions from a further 515 people As plans proceed, staff will continue to meet with affected stakeholders, including residents, business owners and community groups, to inform them of upcoming construction details and how road restrictions and/or road closures will impact them. Once details are finalized, each resident and business owner within 100 metres of the construction area will receive a written notification prior to construction starting. Road signage, including detour information and way-finding for businesses (where customers can park, how customers can access stores, etc.) will go up before the work commences. Advertisements have been and will continue to be placed in the local newspapers and detailed information, including news releases, will be uploaded to the new ION website dedicated to construction. Staff will also utilize the ION social media channels that are accessed daily by thousands of residents. On a monthly basis, the community will continue to be informed of progress through the ION Update. Finally, every six months, the Region will inform the community of all upcoming construction activities through a technical media briefing. The first briefing occurred on Friday, August 15 at Regional headquarters. Development along the Central Transit Corridor: Progress on Shaping the Community Waterloo Region continues to see investment within Urban Areas. For the last 4 years, the Region has surpassed the Province s 40% target for new residential development within the built boundary. The ION route falls within the Central Transit Corridor which also continues to attract significant private investment Page 5 of 12
6 In 2013: 55% of residential units and 52% of non-residential square footage (industrial, commercial and institutional) was constructed inside the built boundary; 30% of residential units and 32% of non-residential square footage was constructed within the Central Transit Corridor; 22% of residential units and 25% of non-residential floor area was constructed within 800 metres of an ION stop; $253 million in construction value took place within the CTC, representing approximately 33% of the value of all construction within the Region; and Up to $2.17 million could be generated in annual future Regional tax revenue as a result of construction activity within the CTC. Over $1 billion in residential units and non-residential square footage was constructed from along the Central Transit Corridor (CTC). The increase in annual Regional tax revenue associated with this construction is estimated to be in the range of $6 to $8 million. Several projects that have been recently completed or are underway in the CTC include 1 Victoria (Kitchener), Waterscape Phase 1 (Cambridge), Breithaupt Block (Kitchener), Lang Tannery (Kitchener) and The 42 (Waterloo). Combined these projects could result in an estimated assessment increase of up to $160 million, resulting in increased Regional taxes up to $1.5 million annually. Many of the developments around ION are high quality, award winning projects. A map highlighting some of these developments is attached as Attachment B and can also be viewed on the Region s Big Shift Website located at: A number of these developments have received financial assistance through the Region s Brownfield Financial Incentive Program (BFIP). Since 2006, the Region has approved 36 applications as part of the BFIP assisting with the investigation or remediation of 22 properties along the CTC. Of these applications, 5 Tax Increment Grant (TIG) applications were approved in the CTC with a combined Regional investment of $8.3 million resulting in: an anticipated assessment increase of $146 million; a Return on Investment (ROI) of $18.60 in assessment increase for every Regional dollar of investment; and the creation of at least 541 new residential units and 538,000 square feet of nonresidential floor area within the CTC. It is anticipated that land values and assessment within 800 m of an ION stop will increase. Numerous studies have been conducted in North America showing increases ranging up to 120% (Metrolinx LVC Discussion Paper, August 2013) with more local examples ranging from 15%-30% (Ottawa). Corporate Strategic Plan: This report supports Focus Area 3 Sustainable Transportation of the Region s Corporate Strategic Plan to implement a light rail transit system in the central transit corridor, fully integrated with an expanded conventional transit system Page 6 of 12
7 Financial Implications: Table 1 (below) outlines the costs incurred and/or accrued (that is, incurred but not paid) for the project to the end of August 31, It also includes the costs committed to by the Region, through contractual arrangements for work underway. The costs for the DBFOM contract with GrandLinq presented are accrued expenses to date for construction, however, as described in previous reports, no payment will be made to GrandLinq GP until the first $130.7 million of project costs are incurred, which is the amount that Grandlinq GP will hold as debt and equity, with repayment over the next 30 years. At August 31, 2014, approximately 18% of the total budget has been incurred or accrued, and over 90% of the project budget has been committed. The project remains on budget Page 7 of 12
8 Table 1 ($ in millions) Project Component Project Budget as of 2014 Financial Close Cost incurred / accrued to August 31, 2014 * Further Commitments** Total Costs Incurred or Committed LRT Project DBFOM LRT Intersecting projects, utilities, and betterments Total DBFOM construction Recoveries (area municipalities and Roads and Water capital budgets) $529.7 $61.6 $591.3 ($61.6) $62.1 $467.6 $61.6 $62.1 $529.2 ($61.6) $529.7 $ ($61.6) Net DBFOM Total $529.7 $62.1 $467.6 $529.7 Non-DBFOM Vehicles Land Project Office & Consulting MTO Underpass construction Hydro One Transmission line relocation Early Works and Other Infrastructure $95.5 $42.3 $51.8 $11.2 $26.3 $29.3 $256.4 $26.7 $17.3 $23.8 $ 3.6 $ 8.1 $ 4.7 $84.2 $64.6 $ 0.3 $ 9.6 $ 6.8 $18.2 $ 17.8 $117.3 $91.3 $17.6 $33.4 $10.4 $26.3 $22.5 $201.5 Non-DBFOM Total LRT Total $786.1 $146.3 $584.9 $731.2 abrt Vehicles and Construction $19.5 $6.0 $6.0 Contingency allowance $12.4 $2.1 $2.1 Total $818.0 $146.3 $593.0 $739.3 *- This column totals actual dollars that have been spent and dollars where work has been completed but the Region has not been billed or paid for it. ** - This column totals the amount for which there are firm commitments (ie signed contracts). Other Department Consultations/Concurrence: This report was prepared with input from Finance, Corporate Resources (Legal Services), and Planning, Housing and Community Services. Attachment A: LRT Construction Map and Schedule Page 8 of 12
9 Attachment B: Look What s Happening Around ION Map Highlighting CTC Development Prepared By: Darshpreet Bhatti, Director, Rapid Transit Calvin Barrett, Director, Financial Services and Development Financing Amanda Kutler, Director, Community Planning Approved By: Thomas Schmidt, Commissioner, Transportation and Environmental Services Rob Horne, Commissioner, Planning, Housing and Community Services Craig Dyer, Chief Financial Officer Page 9 of 12
10 Attachment A Page 10 of 12
11 Page 11 of 12
12 Attachment B Page 12 of 12
TRANSPORTATION AND ENVIRONMENTAL SERVICES Rapid Transit
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