A project to add 29 long-term care beds to a home in Guelph is facing a two-month delay, and an extra $300,000 is needed to remedy the issue.
A quarterly report brought to a Committee of the Whole meeting Wednesday confirmed the cost increase and the Oct. 4 completion date.
A letter posted on The Elliott website earlier this summer stated the project was experiencing “supply management issues for some newly required materials” and the project would be slightly delayed.
On Aug. 15, another letter on the website stated the completion date would be Oct. 4 with resident admissions tentatively scheduled for late October or early November.
Preparations began in late 2021 to renovate The Elliott, when an urgent need for more beds was recognized.
An application to add 29 beds to the home was approved to bring the total complement at the home to 114 beds.
The retirement rooms on the third floor are being redeveloped as part of the project.
The $6.9 million project will now run to $7.2 million because of the issues.
“This will require $2.5 million in long-term financing from the city, an increase from the previously estimated amount included in the council approval from February 2023 of $1.9 million,” staff stated in the quarterly report.
“The per diem construction funding subsidy from the Ministry of Long-Term Care will be sufficient to service the revised long-term debt, and there is no city ongoing operating subsidy impact is expected from this change.”
Officials have been meeting monthly to discuss cash flow and the financing requirements.
