Cone of silence over cost estimates for Broadway subway, Surrey LRT
A week after its Mayors¡¯ Council endorsed a plan to raise property taxes and hike transit fares to begin its expansion, TransLink is refusing to provide the latest cost estimates for the biggest items on its long-term wish list.
The Broadway subway and Surrey light rail were estimated in 2014 to cost $1.98 billion and $2.14 billion, respectively. Last March, City of Surrey rapid transit project manager Paul Lee admitted rising real estate prices had pushed the Surrey proposal¡¯s estimated budget to $2.6 billion.
The public portion of the Sept. 23 quarterly meeting contained no mention about either project. Business in Vancouver asked TransLink CEO Kevin Desmond at a post-meeting news conference for an update and whether the cost estimates had increased by a billion dollars each.
¡°We¡¯re not prepared to talk about what the estimates are,¡± Desmond said. ¡°It¡¯s during that period of time in the months ahead that we [will] further will pin down the cost estimates going forward. By the time we¡¯re ready to proceed with the investment plan on phase two, we¡¯ll be in a much better position to have more accurate estimates associated.¡±
On March 30, TransLink CFO Cathy McClay admitted the cost estimates had gone up, but she wouldn¡¯t provide numbers. She said consultants were given extra time, until June 30, to deliver their reports. She blamed the high cost of real estate and the decrease in the loonie¡¯s buying power for materials.
In early 2015, Steer Davies Gleave and Hatch Mott MacDonald were hired on a $1.56 million conceptual design and cost estimate study for the Surrey proposal. They subcontracted Stantec (TSX:STN), Via Architecture, Anthony Steadman and Associates and the Stewart Group. Stantec is leading the $1.4 million study on the Broadway proposal with subcontractors Jacobs Associates, Golder Associates, Allen Parker Consulting, Site Economics, Westco Consulting, Edward LeFlufy Urban Design & Architecture, Locke & Locke, Dessau, BTY Group and Anthony Steadman and Associates.
¡°These are both very, very complicated projects and you go thorough a design process that is highly iterative,¡± Desmond said. ¡°During a prolonged design and engineering process for very complicated public works projects you go through eventually value engineering exercise as well, and we¡¯re not there yet.¡±
Meanwhile, Desmond declined to comment on the impending sale of the Oakridge Transit Centre to Intergulf Development Group. BIV sources say the transaction for the 13.8 acre, mixed-use residential building opportunity could be worth as much as $400 million.
¡°We have no further information on that property transaction at this point in time,¡± Desmond said.