Supply chain pressures, startup delays hike budget for Sault Downtown Plaza to $11.6M
Meeting on Monday, city councillors in Sault Ste. Marie will be asked to approve another budget increase for the Downtown Plaza project.
Originally pegged at $6.6 million in 2019, councillors approved a revised estimate of more than $8.4 million in May 2021. That increased to $10.19 million in May 2022 after bids on the project came in higher than expected.
A staff report at the time cited soaring inflation in the construction industry, with residential construction costs up an estimated 21.7 per cent and non-residential up by 11.2 per cent.
The city was also unsuccessful in its bid to get $2 million in funding from the Northern Ontario Heritage Fund Corp. (NOHFC) for the project.
However, fundraising reached a total of $1.1 million and the project received $500,000 from FedNor and $250,000 from a provincial rural economic development program.
A staff report for Monday’s meeting said global supply pressures are causing delays and driving up costs.
“The most significant delay was the availability of equipment and materials for the outdoor rink feature,” the report said.
“These supply chain issues have delayed the ability to pour the rink until the spring timeframe when the frost is out of the ground. Other delays impacted the project schedule and necessitated pouring of some concrete elements into the winter months which requires additional heating and hoarding costs to be incurred.”
To partially offset the latest cost increase, the report suggests using $660,000 previously earmarked for the Mill Market project. That money is no longer needed because the project successfully applied for funding from upper levels of government.
The remainder of the cost increase would be funded by delaying plans to replace the ‘A’ dock at the Bellevue Marina.
“Staff have reviewed and believe that the ‘A’ dock can be maintained and operated safely for another season,” the report said.
By using these funding sources, the report said no increase to property taxes would be required to move forward with the plaza.
“The request for additional funding for the plaza project at this time is required to continue with project construction and accommodate current change orders and fees,” the report said.
“Should the Mill Market be successful in their other applications, this will further reduce the city share in the project.”
Read the full report here.
CTVNews.ca Top Stories
Quebec nurse had to clean up after husband's death in Montreal hospital
On a night she should have been mourning, a nurse from Quebec's Laurentians region says she was forced to clean up her husband after he died at a hospital in Montreal.
Northern Ont. lawyer who abandoned clients in child protection cases disbarred
A North Bay, Ont., lawyer who abandoned 15 clients – many of them child protection cases – has lost his licence to practise law.
Bank of Canada officials split on when to start cutting interest rates
Members of the Bank of Canada's governing council were split on how long the central bank should wait before it starts cutting interest rates when they met earlier this month.
Maple Leafs fall to Bruins in Game 3, trail series 2-1
Brad Marchand scored twice, including the winner in the third period, and added an assist as the Boston Bruins downed the Toronto Maple Leafs 4-2 to take a 2-1 lead in their first-round playoff series Wednesday
Cuban government apologizes to Montreal-area family after delivering wrong body
Cuba's foreign affairs minister has apologized to a Montreal-area family after they were sent the wrong body following the death of a loved one.
'It was instant karma': Viral video captures failed theft attempt in Nanaimo, B.C.
Mounties in Nanaimo, B.C., say two late-night revellers are lucky their allegedly drunken antics weren't reported to police after security cameras captured the men trying to steal a heavy sign from a downtown business.
What is changing about Canada's capital gains tax and how does it impact me?
The federal government's proposed change to capital gains taxation is expected to increase taxes on investments and mainly affect wealthy Canadians and businesses. Here's what you need to know about the move.
New Indigenous loan guarantee program a 'really big deal,' Freeland says at Toronto conference
Canada's Deputy Prime Minister Chrystia Freeland was among the 1,700 delegates attending the two-day First Nations Major Projects Coalition (FNMPC) conference that concluded Tuesday in Toronto.
'Life was not fair to him': Daughter of N.B. man exonerated of murder remembers him as a kind soul
The daughter of a New Brunswick man recently exonerated from murder, is remembering her father as somebody who, despite a wrongful conviction, never became bitter or angry.