Queens Quay revitalization budget jumps nearly 40 per cent

Construction is shown at Queens Quay and York Street in Toronto in May 2013. (Google Street View)

The budget for Toronto's Queens Quay revitalization project has ballooned nearly 40 per cent, from approximately $93 million in 2011 to just over $128 million this year.

In a statement released on Thursday, Waterfront Toronto says the project has encountered a series of challenges since construction began in 2012 and as a result, the budget has been increased in order to remain on schedule for the June 2015 completion date.

"Waterfront Toronto has encountered challenges related to soil and groundwater conditions, aging infrastructure, unforeseeable underground obstacles, harsh winter weather and other issues," the organization said in the statement.

The final cost of the project is not yet known, but Waterfront Toronto says it is "confident that the current budget estimate will not change significantly."

In response to the newly released project cost, Toronto Mayor John Tory says he is "concerned" about the budget overruns. He has asked Deputy Mayor Denzil Minnan-Wong to look into the matter.

"We need to invest our waterfront, but we need to do so carefully and in a transparent manner that respects the tax dollar we are investing," Tory said.

The Queens Quay revitalization project is scheduled to be complete in time for the 2015 Pan Am and Parapan American Games.

It will transform a section of the Queen Quay into a pedestrian-friendly waterfront boulevard.

Some of the improvements include: