Toronto's contribution to the 2015 sporting extravaganza is now estimated at $96.5-million - up from $49.5-million in February, 2009 - and construction hasn't even started.
Up to $23-million of the extra cash is for cleaning up the soil at the future home of the Pan Am Aquatic Centre, which will be located partly atop the city's old Morningside dump next to the University of Toronto's Scarborough campus.
Mr. Ford's executive committee was warned on Monday that if Toronto refused to remediate the site, it could lose the coveted swimming venue, likely to the Town of Markham, which is still lobbying for the Pan Am pool.
"It bothers me a lot. I was completely blindsided by this ... we didn't really have a choice," Mr. Ford told reporters after the cabinet-like executive committee voted unanimously to pay the higher costs.
"We had a gun put to our head, as you saw, or Markham would have got it."
Toronto's full council still has to approve the heftier bill.
However, city manager Joe Pennachetti told the committee that taxpayers won't be on the hook for restoring the aquatics site.
The money will come out of a reserve account dedicated exclusively to restoring old landfills, he said.
A partnership with U of T Scarborough means the postsecondary institution will pay the balance of a $52-million cleanup bill that would be the city's alone if it developed the parcel by itself.
"That additional $23-million, that cost, cannot be avoided," Councillor Norm Kelly said. "All you're going to be doing is deferring that cost to a later date."
Ian Troop, chief executive officer of Toronto 2015, said that while it was still theoretically possible to shift the aquatics centre to Markham, it would be difficult considering work is supposed to begin as early as the end of this year.