St. James Civic Centre expansion price tag faces $3-M bump

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This article was published 28/09/2023 (738 days ago), so information in it may no longer be current.

The expansion of the St. James Civic Centre is now expected to cost an additional $3 million, years after a tri-government deal was reached to cover its original price.

City of Winnipeg staff are now seeking council approval to take on more debt, since the tab has risen to $17 million (from $14 million).

“The increase in the estimated construction cost is attributable to ongoing volatility in the construction market. Deferring the work until a future date may result in further construction cost escalation,” Sandra Sawatzky, an asset management official with the community services department, writes in a public service report.

The expansion is slated to add 15,000 square feet, a community kitchen, multi-purpose spaces, meeting rooms and a dedicated space for the St. James Assiniboine 55+ Senior Centre. Renovations will also improve the auditorium, main building entrance and parking lot.

The 2055 Ness Ave. centre was built in 1967, and is one of the city’s largest recreation facilities, with an indoor arena, swimming pool, 350-seat auditorium and fitness room.

The staff report says the project can’t be scaled back, due to the terms of the previous tri-government Investing in Canada Infrastructure Program agreement, and suggests the city should expect to cover the entire cost overrun.

“The city has exhausted all third-party opportunities to fund the $3-million shortfall,” writes Sawatzky.

Mayor Scott Gillingham said he expects to support the budget hike.

“The reality is, across many of our construction projects, we’re seeing cost increases related to inflationary pressures, the cost of materials, the cost of labour,” Gillingham said Thursday.

The mayor has formally asked the province and feds to contribute to the price increase, noting the two senior governments approved a combined $9.7 million for the project in 2021 (based on its original budget).

Gillingham also sent letters to the leaders of Manitoba’s three main political parties, who are now competing to become the province’s next premier, to ask for a funding increase on this and other ICIP projects.

“Whoever the new premier is, I’m looking forward to working with that individual and their government to really focus on the priorities that are shared,” the mayor said.

He expects a response will likely come after the Oct. 3 provincial election.

A separate $10.5-million project was recently completed at the St. James Civic Centre, which suffered from delays and is now the subject of a lawsuit. That work included a building systems upgrade, as well as repairs and updates to the indoor rink slab and crawlspace.

The centre closed for construction for more than two years, before reopening in September 2022, long after it was originally expected (June 2021).

Last year, Gillingham (then-councillor for St. James) and some city officials blamed the delays on alleged contractor errors, stating silica dust was released throughout the facility twice.

A contractor is now suing the city, claiming no silica dust was actually released. The contractor is seeking about $2.6 million in damages and to have $940,000 in city fines rescinded.

Gillingham declined comment on the legal matter.

joyanne.pursaga@freepress.mb.ca

Twitter: @joyanne_pursaga