The Full Story: Was There Really a $5 Million Overrun at the Dundas Street Shelter?

One of my top priorities is better communication on Town Hall decisions. I believe it’s a local councillor’s responsibility to give Ward 4 residents the full picture on important issues – based on facts, not headlines or rumours.

Going door to door, several Ward 4 residents have asked me a fair question: did the shelter at 1635 Dundas Street East go $5 million over budget?

The short answer is: that isn’t exactly what the public record shows. But residents have every right to ask some fair questions.

The $5.7 million figure is the difference between what the former Sunnycrest property sold for in 2022 and what Durham Region later paid to buy it. That’s a real and important question about tax dollars. But it isn’t the same thing as a proven $5 million construction overrun.

Here’s what the public records show.

The key numbers

Durham Region’s 2023 report says the property at 1635 Dundas Street East sold for $8 million in October 2022.

In June 2023, Regional staff asked Council to approve a purchase of up to $13 million, plus up to $800,000 for furniture and equipment. Staff also asked for up to $4.8 million to prepare the former long-term care home for use.

The final purchase price was later reported as $13.7 million, including the land, furniture, fittings, and equipment.

That means the Region paid $5.7 million more than the property’s 2022 sale price.

So, was it an “overspend”?

I don’t think it’s fair to call the $5.7 million a proven construction overrun. It was a purchase-price difference.

Durham Region said it got an independent appraisal – a professional estimate of what the property was worth – that put the value between $9.3 million and $13 million. The Region also said the $13.7 million purchase price included furniture and equipment that could help the shelter open more quickly.

That explains the Region’s position. But it doesn’t end the conversation.

When a property sells for $8 million and taxpayers buy it a short time later for $13.7 million, residents have every right to ask: Why did the price rise so much? What other options were considered? Did taxpayers get good value?

What Council approved

This was a Durham Regional Council decision, not a Town of Whitby Council decision. A Ward 4 Local Councillor doesn’t sit on Regional Council or vote there.

On June 14, 2023, Durham’s Committee of the Whole approved the acquisition recommendations on a recorded vote, with no vote against among the members present. Regional Council adopted the report on June 28, 2023, also on a recorded vote.

The purchase and early work were discussed while the land deal was private. The law allows that while a government is trying to buy property. But once the deal was done, residents deserved clear information about the price, the appraisal, and the work needed at the building.

What the shelter provides

The building opened as a 45-bed emergency shelter in March 2024. It provides shelter and support to people experiencing homelessness.

People in crisis need a safe place to sleep, food, support, and a path toward stable housing. Supporting vulnerable neighbours and protecting tax dollars aren’t opposite ideas. A caring community has to do both.

What nearby residents are telling me

Residents living near the shelter have told me they’ve noticed more people experiencing homelessness in the area. They’ve also raised concerns about safety and neighbourhood conditions. Those concerns deserve a respectful, fact-based response.

That doesn’t mean blaming people experiencing homelessness for crime. It means Durham Regional Police, the Region, and the Town should share clear local numbers on crime reported to police, calls for service, cleanup, outreach, and response times. Residents should be able to see what’s changing – and what isn’t.

Don’t mix up Phase 1 and Phase 2

There’s also a later and separate project at 1635 Dundas.

In January 2026, the federal government and Durham Region announced more than $53 million for Phase 2. That includes $40 million from the federal government and $13.7 million from Durham Region. The plan is to create 104 beds with housing and health supports on the second and third floors and upgrade the current 45 emergency beds.

That Phase 2 funding is a new project.

The Phase 1 cost breakdown

Durham Region did publish the promised Phase 1 cost breakdown on November 17, 2023. It was an estimated $4.8 million budget while the work was still underway.

The estimate included:

  • $2.095 million for common building and site work, including repairs, code compliance, site work, and a temporary security system
  • $2.155 million for first-floor shelter work, including repairs, hazardous-material work, computers and equipment, renovations, electrical work, and furniture
  • $550,000 set aside for unexpected costs

That adds up to the $4.8 million approved by Regional Council.

It’s important not to confuse that estimated Phase 1 work budget with the $5.7 million purchase-price difference. They’re separate parts of the project.

The November 2023 memo said the work was still underway, so it gave estimated costs, not the final amount spent. For a major public project, residents should be able to compare the original estimate with the final cost just as easily.

My view

We can’t go back and redo a 2023 Regional Council decision. But I do believe government has a responsibility to explain big spending in plain English.

Residents shouldn’t have to dig through different agendas, reports, and announcements to understand a major project. I believe they should be able to find, in one clear place:

  • The original approved budget
  • The actual final cost
  • A simple explanation of any difference
  • What services and results the spending delivered
  • A clear breakdown between separate phases of the project

If elected, I’ll keep sharing clear Ward 4 updates with you on major decisions that affect our neighbourhood. When the answer is clear, I’ll say so. When a question is still unanswered, I’ll say that too – and I’ll keep researching so I can get you answers.

Read the source documents