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The Liberals are willing to fork over an additional $86 million to prove theres life on MaRS.

One day after auditor general Bonnie Lysyk upbraided Premier Kathleen Wynnes government for a high-risk $224-million bailout loan to MaRS, the Grits are doubling down on the medical and related sciences hub.

This is not a failed project, said Michael Nobrega, former CEO of the OMERS pension plan and chair of the Ontario Centre of Excellence, who co-chaired an expert panel on the future of the 20-storey tower at the corner of College Street and University Avenue across from Queens Park.

This is a project that has not been completed, Nobrega said Wednesday after recommending the government lend MaRS up to $86 million more to do upgrades that will make it easier to lease.

MaRS is only 31 per cent occupied, meaning it would not be worth immediately selling in order to recoup the provinces investment.

The new repayable line of credit is atop the $309 million already committed to MaRS, which includes the controversial $224-million loan in 2011, $65 million to buy out the buildings U.S. developer, Alexandria Real Estate (ARE), $4 million in debt-service payments, and $16 million used to buy the land.

In total, the Liberals will have sunk $395 million into the MaRS project.

Infrastructure Minister Brad Duguid conceded that this project had some significant difficulties along the way.

This is the best path forward. It will ensure that the governments loan is fully repaid with interest while also continuing our support for Ontarios innovation economy, Duguid said at an announcement attended by scores of MaRS employees.

Many people believe that the easiest ways out of the challenges we faced would be to sell the building outright and walk away from this project.

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Liberals ready to float MaRS an additional $86 million loan