Update!!!
Wed, June 24, 2009
The last piece of the Hale-Trafalgar overpass puzzle appears to be in place with CN bringing nearly $2 million to the table for the project.
But London taxpayers may be on the hook for more than that if the project goes over budget.
In a report to board of control, city staff noted that construction costs are still going up and the project isn't expected to begin until next year.
But Coun. Roger Caranci, who has pushed the project for nine years, said he's confident with the city's numbers.
"It's a difficult thing to do any type of estimate on the bridge but the city has done their best on trying to get a final costing," he said. "CN has to know what they're limited to."
The $16.3-million overpass was one of the most costly projects approved for stimulus funding from senior governments.
Caranci said this is the only project with four partners at the table, making it a great deal for the city.
Board of control will vote on a staff recommendation today to approve the shared cost with CN, with the railway's share capped at $1.975 million.
It then goes to city council next Monday.
Caranci said he's confident the overpass at the rail crossing at Hale and Trafalgar streets will be built.
"To back down from something we put in for stimulus funding is not the right thing to do. CN is at the table," said Caranci. "The residents of east London deserve this. The residents of east London deserve good traffic flows and deserve to have industry remain in London and be serviced by CN."
The city and CN have already put in $1.25 million each in the project's first phase. The federal and provincial governments have each committed $3.95 million to the second phase, with the city and CN chipping in another $1.975 million each.
While the overpass would benefit Londoners, it would also reduce costs for CN by allowing the railway to form and disassemble trains more quickly, because its rail yard is just to the west of the crossing.
The overpass, at a crossing where long train tie-ups have infuriated drivers for years, has been controversial, with some on council saying the money earmarked for the bridge could have been used for other projects that would have had a greater benefit to all Londoners.
Caranci said council deserves credit for advancing the project after talking about it for several years.
"Council has finally understood it's a good thing," he said.