CENTRE WELLINGTON – The anticipated cost to construct the first phase of the township's new operations centre is more than double what was initially estimated.
Presented at Centre Wellington's committee of the whole Tuesday afternoon, a new report on the updated cost for Phase 1 of the township's new operations centre at 965 Gartshore St. has put the project at $44.4 million, inclusive of land acquisition, other associated capital budgets and the proposed construction costs, which include costs to project manage, build, furnish and commission Phase 1.
Phase 1 of the project was originally anticipated to cost around 10 million in 2021, with the total costs estimated at $27 million. Since 2021, the project's cost per square foot has increased from $285 to $596.
Staff said there's been an increase in overall costs since the initial estimate in 2021 due to inflation, scope changes like adding a second floor and increases in the Canadian Building Construction Price Index.
Additionally, when the 2021 Space Needs Assessment was completed, a site hadn't been selected and there was "cost uncertainty" for site-specific development cost items.
According to the report, Phase 1 of the project will involve an administrative office, exterior works yard, outdoor operations areas, garage buildings with heated and unheated storage bays, a vehicle wash-off bay and greenhouses.
Phase 2 will provide additions to the heated and unheated garage areas, an enclosed salt storage facility with indoor loading and brine capabilities and additional greenhouses.
Manager of engineering Adam Gilmour said there isn't an updated cost for Phase 2 of the project, although he imagines it's close to the initial 2021 estimate of $10.5 million.
Not anticipated to impact the tax levy, staff said the project will be financed through a combination of growth and non-growth components, with 72 per cent assumed to be growth-related and the remaining 28 per cent to be non-growth-related costs.
Servicing the growth-related debt of approximately $25.9 million will require annual principal and interest payments of $1.97 million and are anticipated to be serviced entirely through future development charges.
The non-growth funding strategy suggests using approximately $2.25 million from the building code reserve fund, $741,000 from the economic development reserve fund and $6.9 million in land sale proceeds.
The estimated operating cost of the new operations centre is $150,000- representing an increase of $31,000.
Outside of costing, when asked whether a Traffic Impact Study (TIS) has been completed for the project area, staff said a TIS from Gartshore Street to St. David Street North found no immediate improvements are needed.
They later elaborated that more turning infrastructure at Gordon Street and Gartshore St will be needed within the next 10-20 years, which will be evaluated during Phase 2 of the project.
An updated construction cost estimate and guaranteed maximum price will come to council in December. Construction is not to begin until the guaranteed maximum price is approved.
Subject to council approval, construction is planned for spring 2025. The project is to be completed and ready for move-in by fall 2026.
The full report is available here.
Isabel Buckmaster is the Local Journalism Initiative reporter for GuelphToday. LJI is a federally-funded program.
