Toronto debt climbs, raising questions of Union Station project

Citycouncil's latest budget, approved Tuesday night, adds $145 million to Toronto's debt, which will grow to $2.6 billion in 2008, and some councillors are raising questions about further costs that might result from the Union Station restoration project.

Council approvedthe $1.6-billion capital budget in a 34-10 vote, with much of the money going to TTC, road repairs and park maintenance.

Coun. Joe Mihevc, a member of the budget committee, said that in spite of growing costs, financial experts say the city is in good shape.

"It is important to note that the credit rating agencies do rate us still very high in terms of our credit rating worthiness.So we've had to find that fine line between keeping the city in shape, at the same time not spending too much in putting our credit rating at risk," he said.

Duringthe budget debate, some councillors questioned the cost estimates for the Union Station restoration project. Council is considering a plan to restore and refurbish the transit hub at a total cost of $388 million.

Two years ago a deal fell through in which a private consortium would have rebuilt the station at a cost of about $150 million.

Now with an estimate more than double the previous figure, Coun. Case Ootes asked the mayor if that number might rise.

"I want to know what it's going to cost us ultimately for Union Station, to bring it up to scratch," said Ootes. "We heard $85 million at this point [for the heritage restoration]. Is that the final figure or is it going to be bigger than that?"

Ootes went on to ask, "Are those the final numbers on Union Station? That's what I want to know."

But Miller wouldn't answer the question.

The Union Stationproject iscomplicated, requiring expensive restoration work.Since the private deal was shelved, the station has deteriorated further, which has also pushed up the cost.

The city is also planning a much more ambitious renovation project, including the excavation of another floor below the current GO Transit area to be used as retail space.