Canfor Leisure Pool construction overbudget by $2.8 million

$2,876,000 is being added to the $36.25 million downtown pool in Prince George.

Prince George City Council discussed the topic during tonight’s (Monday) meeting, but many councillors felt the increase in costs wasn’t as bad as it could have been.

Councillor Garth Frizzell said that the $1.1 million in overages specific to labour cost escalations is lower than the inflation rates we are seeing elsewhere in the country.

Councillor Cori Ramsay said that cost estimates for the project were submitted back in 2017, and they couldn’t have predicted a global pandemic, as well as a labour and material shortage.

“I do also want to point out that under the old delegated authority, this increase would not be coming to us at this stage in the project, and would have been approved by the City Manager without Council seeing it until it came back under the sustainable finance guidelines.”

It was also noted that $10 million in grant funding was pumped into this project from the Provincial and Federal Governments, so the City was still under the borrowing limit for the pool.

But Councillor Brian Skakun noted that this is still taxpayer money.

“Part of what’s going on in the community is that there’s been a number of cost overruns, and even though we can say this one’s only $2.8 million or $3 million overbudget, I think you take that in an accumulated effect.”

“We get a grant, so we only have to borrow $25 million, and it turns out to maybe $28 million now. It doesn’t mean the local taxpayers are necessarily off the hook, because we’re all paying for that tax on the $10 million grant,” added Skakun.

Prince George has seen overages on a number of city projects, with one of the most infamous ones being the George Street Parkade, but also more recently with the $760,000 park washroom refurbishment happening at Carrie Jane Grey Park.

Councillor Kyle Sampson wasn’t too pleased about the $1.7 million of the project increase that related to deficiencies in the steel that was to be used for the pool.

He put forward a motion to only green light the $1.1 million, but it was noted that the project wouldn’t be able to continue unless all the required funds were available, and that motion was defeated.

The City of Prince George is looking to get reimbursed the $1.7 million from contractors, but details on the steps being taken couldn’t be shared during the public meeting.

At the end of the night, the money was greenlit for the new pool, with only Councillors Sampson and Skakun in opposition.

Council also rubber stamped the Naming Rights Agreement, so the building will be called the Canfor Leisure Pool.

Councillors also discussed a new project that will potentially bring in funds from renewable natural gas, and a long discussion was had about Land Use Contract Discharges.