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Overpass cost balloons

AN overpass at Kenaston and Bishop Grandin boulevards will cost an additional $10 million, says a city report that explains why major road construction in Waverley West is over budget.

The City of Winnipeg released a report Friday that said the cost of new roads into the subdivision has increased by $20 million to $78 million. Council's executive policy committee was initially warned in October the project cost has ballooned.

Part of the reason for the shortfall, the report said, is the cost of building an overpass at Kenaston and Bishop Grandin is projected to be an additional $10 million, and connecting Kenaston to the south Perimeter Highway could cost an additional $5 million, since the design and engineering must be approved by the province.

The report said costs associated with a late construction start due to a longer-than-anticipated environmental-approval process will cost another $5 million.

All three levels of government agreed to share the cost of the $54.7-million project in 2009.

Regional offices merged

THE province is consolidating some of its regional offices in a bid to cut costs.

The moves, which include merging the Conservation Department library services with the Manitoba Legislative Library, are expected to save $350,000 a year.

Mapping expertise within the Local Government Department will be consolidated in Brandon and Selkirk. The department's Thompson planning office will be downsized.

Grandview, Mafeking and Deloraine are losing Conservation and Water Stewardship offices.

Finance Minister Stan Struthers said in a statement there are no layoffs in connection with the moves. In some cases, offices will be consolidated with those in other communities.

"We'll make these changes in the coming weeks and months," he said.

Parkade loan an issue

WINNIPEG wants additional protection on a $5-million loan for a parkade on Hargrave Street.

Last year, the city signed an agreement with Longboat Development Corp. to lend them $5 million to build a 464-stall downtown parkade at 309 and 323 Hargrave St. The city's contribution comes from proceeds of the Winnipeg Square Parkade sale in 2009.

Now, the city wants to obtain additional security for the loan with a guarantee of $5-million plus interest from Longboat Development Corp.

The report said Longboat Development Corp. informed the city a related corporation, 310 Donald Inc., is the owner of the parkade property and will be constructing the parkade. The city needs to clarify terms of the mortgage story, the report said, as 310 Donald Inc. is the appropriate loan recipient.

 

Republished from the Winnipeg Free Press print edition December 1, 2012 A17

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