Item - 2014.EX43.14

This report provides an update on the status of the City’s ten 2015 Pan/Parapan American Games (“2015 Games”) capital projects, and advises Council that there is a budget shortfall for the Pan Am Bicycle Motocross Track construction project at Centennial Park ("BMX Track Project").  Authority is sought to pay for the City’s 44 percent share of the shortfall by redirecting $1.260 million in City debt funding from Toronto Pan Am Sports Centre (“TPASC”) capital sub-project which is projected to be almost $10 million under budget.

The BMX Track Project was originally estimated by TO2015 at $1.547 million.  The City agreed to include the project in its 2015 Games capital projects, with the City contributing $0.678 million or 44 percent  of total project costs.   In May 2014, the Request for Proposals (RFP) process for this project closed and the preferred, low-cost, proponent was identified. Based on the preferred proponent’s submission, the total cost for the BMX Track Project cost is now anticipated to be $4.410 million.  Should this project proceed, the City's contribution would be $1.940 million or $1.262 million more than the City’s current budgeted contribution of $0.678 million. In addition, the Government of Canada's contribution would be required to increase from $0.866 million to $2.469 million.

In 2011, City Council approved a capital project called Pan Am Aquatic Centre/Canadian Sport Institute for Ontario now named the Toronto Pan Am Sports Centre (“TPASC”).  The approved TPASC project cost was $248.93 million, $54.765 million of which represented the City's contribution.  As a result of lower tenders, the guaranteed price of the Infrastructure Ontario (“IO”) managed TPASC contract is $205 million and the City’s contribution has been reduced to $45.10 million, resulting in budget savings of $9.67 million (the “TPASC Budget Savings”).  In July 2013, Council approved the reallocation of $2.42 million of the Toronto Pan Am Sports Centre Budget Savings to fund the West Channel, a new Pan Am Games project.  Council’s authority is now sought to redirect up to $1.262 million of the remaining TPASC Budget Savings to fund the additional BMX Track Project costs.

This matter is urgent in nature because, in order to complete the BMX Track venue in time for adequate testing prior to the 2015 Games, project construction must commence before the end of July 2014.