Kerr Street at Lakeshore Rail Corridor - Grade Separation (underpass)

What is the Kerr Street Separation project?

The Kerr Street Grade Separation Project sees the building of an underpass at the Lakeshore West GO Line to improve safety and ease traffic congestion.

Why is this needed?  

It will help enhance public safety by reducing the potential for conflicts between road and rail traffic. In 2025, GO Transit’s planned 15-minute all-day service will see up to eight trains crossing Burloak Drive every hour, in addition to regular VIA and freight trains. This is a critical project for Oakville’s mobility.

What specific enhancements will the project create?

The grade separation project would see the separation of road and rail traffic through the removal of the level rail crossing. The addition of turn lanes, sidewalks, bike lanes and a second lane in each direction crossing the tracks will also be included in this project.

When was this project initiated? What work has been done so far?

The Environmental Assessment was completed in 2009 and design began in 2012. The final completion of project was anticipated for 2027.

What are the funding details?  

In 2016, the project was estimated at $130 million. It is a joint initiative funded equally by Infrastructure Ontario and the town. In 2018, the town’s share was capped at $65 million regardless of the final cost. Financial close was originally expected to occur in 2018, but was delayed multiple times by Metrolinx.

What is the status of this project?

On February 24, 2022, just prior to the February 28, 2022 financial closure date, staff were given the first indication by Metrolinx that the Kerr Grade Separation project was being deferred indefinitely and that project cost was now $234 million, significantly over the $130 million estimated budget. Review the March 2, 2022 news release for more information.

Staff continue to work collaboratively with Metrolinx to find a way to restart the Kerr Street Grade Separation project and deliver this critical mobility project. Updates will be provided to Council and the community as these discussions progress.

How was the town going to pay for this?

Based on the initial $130 million estimate, the town’s 50 per cent share of the project i.e. $65 million would be funded 80 per cent from development charges from developers and 20 per cent from town reserves. Discussions are ongoing regarding the cost of the project for the town and way forward to restart the project.

What are Oakville’s concerns?

Oakville is extremely disappointed with the deferral of this project. Not only has the cost risen significantly, but Oakville was not informed of this earlier in the process.The town is now assessing funding options to bring back this project. We would have liked to see more:

• Financial transparency: In 2016, Metrolinx estimated the cost at $130 million. As of February 24, 2022, the cost is said to have increased significantly to $234 million, and this was not communicated to the town in the past six years since the project was initiated.
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• Timeliness: The town was informed of the latest cost just prior to the February 28, 2022 financial closure date, although staff have been working collaboratively with Metrolinx since 2016. With an earlier engagement, the town could have worked jointly to address the funding and explore all available options.
• Consultation: Oakville’s committed share of the project in 2016 was $65 million (50 per cent of $130 million project cost). Now, to fund this project entirely with no support from higher levels of government poses a financial challenge for the town. 

What is the reason for the cost increase, what is final estimated budget?

Project cost could fluctuate due to many factors such inflation, cost of construction, and the COVID-19 pandemic. Metrolinx had decided to indefinitely defer the project "until construction costs fall." However, Oakville is disappointed that we were not notified of the significant cost increase in a timely manner, so we could have worked collaboratively with Metrolinx to address solutions as this is an important infrastructure project.

How much of the committed $65 million has the town already spent, and when?

So far, the town has spent $6.9 million.

What happens is this project doesn’t proceed?  

It will not only impact the town’s mobility plans, but also the Provincial Growth Plan to accommodate a growing population close to GO transit connections.

What options does the town have now?

We know this public safety project is important for our community. Town Council and staff are going to assess the situation to determine next steps on explore how to all options possible to minimize this unfair burden on our taxpayers. Staff provided an update to Council on June 7, 2022, noting that discussions with Metrolinx are focused on options to establish a solution that will reduce project costs, reducing the length of time required for construction and addressing the planned and potential development and growth in the Kerr Street growth node. 

Can you change the scope of the project to reduce cost?

The scope of the project was based on what Oakville needs to maintain public safety in the area as GO Transit frequency increases in 2025. This is about improving vehicle, pedestrian and cyclist and GO Transit commuter safety.

Will this now be funded entirely by taxpayers?

The Town of Oakville remains in a solid financial position. There will be no change to 2022 property taxes as they have already been finalized in December 2021 when Council approved the 2022 Budget. Council and staff will continue to explore all available options now and future budgets to determine the future of the project.

Are there any grants that the town can apply for to fund this project?

We will examine all options, including if there are other avenues for provincial or federal funding.