Following up from my note late last night (linked below) regarding what is becoming known as the “Bus Barn Ventilation” Issue, City of Hamilton staff provided their first written update to city councillors this afternoon.
I’m scheduled to speak with City staff at 4:00 p.m. regarding this matter.
Below is the full text of the written memo, signed by Rob Gatto, Acting Director of Corporate Facilities:
The purpose of this communication is to provide an update regarding the project schedule for the completion of the new Transit Maintenance and Storage Facility (MSF) located at 281 Birch Avenue.
Background
In late 2023, construction started for the new MSF. The facility will increase the Transit Division’s operations, maintenance and storage capacity to accommodate its existing and growing fleet as the City continues to improve transit service. This new facility represents a significant investment in Hamilton and supports the City’s ongoing commitment to transit expansion, as outlined in the Ten-Year Local Transit Strategy and HSR Next. Once completed, the new facility will include storage for up to 200 buses (with the capacity to add an additional 100), a maintenance garage with the capacity to repair 300 buses, a four-level parking structure and additional administrative space.
The facility will be the first in Ontario, and second in Canada, to include compress natural gas indoor fuelling.
The total project budget of approximately $396 M is partially funded by the Investing in Canada Infrastructure Program which includes contributions from the Governments of Canada and Ontario, in the total amount of approximately $203.9 M. The balance of the project is being covered by the City of Hamilton.
The project team includes City staff providing oversight, Arcadis, the prime design consultant responsible for the design of the facility and the general contractor, Pomerleau, overseeing the construction.
Update
To date, the construction is approximately 89% complete. Pomerleau recently informed the City and Arcadis that a delay in the schedule by approximately two months has been forecasted.
Revised key dates are as follows:
- Partial occupancy: April 1, 2026
- Occupancy: May 29, 2026
- Substantial Completion: June 29, 2026
Partial occupancy in April 2026 will allow Transit to begin transitioning administrative staff to the new facility.
The delay is due to ventilation system design issues related to CSA (Canadian Standards Association) code compliance, which requires special order parts to correct. Efforts to mitigate the impact to the schedule, such as expediting the issuance of construction shop drawings, have been implemented; however the project schedule is still affected.
Addressing the ventilation issue is critical to obtain the Occupancy permit. The schedule delay represents a relatively minor deviation from the original 30-month construction schedule. The total costs related to the delay are still being finalized and are anticipated to be within the project contingency allowance remaining. Therefore, no additional funding is required.
Next steps
A comprehensive review is being undertaken to clearly determine accountabilities for the ventilation system design issues. The City project team is actively consulting with Legal Services and, where external responsibility is confirmed, the City will pursue cost recovery options. In addition, the project team will document lessons learned and apply them to ensure high standards of accountability in the delivery of capital projects.
Accountability is a critical priority for the City in managing projects.
Finally, Arcadis, Pomerleau and City staff will continue working in close partnership to complete the project within the approved budget available and updated schedule outlook.
Production Details
v. 1.0.0
Published: September 25, 2025
Last updated: September 25, 2025
Author: Joey Coleman
Update Record
v. 1.0.0 original version