Monday, December 11, 2017

Construction costs rise 40% for Sidney’s new community safety building

The Town of Sidney is anticipating a nearly 40 per cent increase in the construction cost of its new community safety building — with the potential for even more increases.

An information report scheduled to go before town council tonight shows the original projection for a $10 million building that will house the community’s fire department and BC Ambulance Service, is now expected to hit $13.9 million.

In his report, Sidney’s Director of Corporate Services Andrew Hicik states rising construction costs, worker shortages and a change in the BC Ambulance space in the new building have driven the overall project cost estimate up. Hicik does add there are some cost offsets — such as the BC Ambulance Service’s responsibility for the overage caused by a change in scope to their space — that lowers the overall impact to the Town to around $12.7 million over two years.

Even with that higher-than-anticipated cost, Hicik stated this does not mean the Town’s borrowing will need to increase by that amount. Total borrowing by the Town has been capped at $10 million via bylaw, and staff have said they had only projected to borrow between $5 to $8 million. He said the most recent budget estimate on the building had Sidney borrowing $6.3 million and this change could increase that to $7.2 million — still within that initial borrowing range.