City hall faces the prospect of picking up a bigger share of the Plessis Road project than it can afford.
Public works director Brad Sacher told the finance committee this morning that work on the project will likely continue past the March 2015 deadline, which could result in the city’s share increasing another $5.6 million.
The Plessis project, which involves twinning and a railroad underpass, has a budget of $77 million, with the city covering $27 million and the remaining $50 million split between the province and Ottawa.
Sacher said the funding rules state the city’s share will jump $5.6 million if the work isn’t completed by March 2015.
Sacher said two lanes of traffic will be open by the end of 2014 but the project likely won’t be completed until the fall of 2015.
A report to the committee states part of the delay is attributed to CN Rail, which has been slow to participate in the project and twice evicted workers from its property.
Finance chairman Russ Wyatt said railroads usually contributed 15 per cent of the cost of underpass construction but added the city and railroad can’t agree on the amount the railroad should pick up.
Wyatt (Transcona) said the city had to take CN Rail to arbitration on another underpass construction, which the city won, and it may have to go to arbitration to resolve issues on Plessis.