The hub will go at the King and Victoria intersection

CBC News Posted: Feb 26, 2016 1:20 PM ET Last Updated: Feb 26, 2016 1:20 PM ET

An artist conception of what the new transit hub could look like. (1Victoria.com)

A new transit hub at the intersection of King and Victoria in Kitchener will cost about $43 million, regional staff say.

In a report to the Region of Waterloo's planning and works committee this week, staff said the projected cost is $43 million, or $36.7 million in "2016 dollars."

• Grandlinq completes worksite domes at Victoria and King
• Ion LRT construction frustrates Kitchener residents
• King Street to be closed in uptown Waterloo more than twice as long as planned

The hub is "expected to be a focal point for higher order transit service" the region that will connect riders with the ION rapid transit system (which includes both buses and the light rail transit line), GO Transit and Grand River Transit, the staff report said. It would go on a 1.6 hectare parcel of land owned by the region.

Hub could include residential units, offices

The hub would include about 100 parking spaces for transit riders and would be a mixed-use development that would have residences and offices on site. The staff report said the region could expect between $30 million to $41 million in property taxes over 30 years.

The region will also seek funding for the project from other sources, such as VIA Rail, Metrolinx, which runs GO Transit, as well as the provincial and federal governments.

The province has pledged up to $300 million to the LRT project in the region.

A concept map of how a transit hub in downtown Kitchener might look.

"The transit hub will bring together a high volume of transit passengers and improve the convenience of public transportation in Waterloo Region," the staff report says. "The combination of the uses with a mixed-use development is expected to create opportunities for public art, retail shops, offices and residences, all of which contribute to a vibrant downtown Kitchener and a successful ION corridor."

Most project costs will start in 2019

The region's planning and works committee voted Tuesday to move ahead with staff recommendations to move forward with the project. That includes amending the 2016-2025 capital budget and forecast to note the majority of the funding for the project - more than $29.5 million - being paid out in 2019, 2020 and 2021. The region will also host a public information session to update residents and get feedback.