Province provides building at no charge (5 p.m.)
Costs of original proposal called excessive
Gordon Kent, edmontonjournal.com
Published: Friday, December 08, 2006
The soaring cost of Edmonton’s new biotechnology centre is expected to be eased following a move by the provincial government to provide it with a building at virtually no charge.
The centre is intended to make the city a Canadian biotech powerhouse by providing offices and subsidized “wet” labs, with sinks and other equipment, to help small companies get established, Edmonton Economic Development Corp. vice-president Myron Borys said today.
But bids to construct the facility came in around $28 million earlier this year, far more than the revised $19.2 million budget approved by city council last April, he said.
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Font: ****The original price set in 2004 was $14.2 million.
“The costs were really excessive. We turned our minds to some other alternatives,” Borys said.
“Conversion of an existing facility will be much cheaper.”
The EEDC is now negotiating to take over space becoming available at the Edmonton Research Park in a building used by Biomira, which develops vaccines for cancer treatment.
While Borys didn’t want to go into specifics until the proposal is presented to city council on Tuesday, city manager Al Maurer said the province would provide the site for $1 a year.
That increased assistance is in addition to $2.5 million each which the Alberta and federal governments have already agreed to contribute, he said.
Even with renovation expenses, this would cut the total price to $11.5 million, he said.
“It’s a really positive move forward.”
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Civic affairs writer Gordon Kent will have a full report on the biotechnology centre in Saturday’s Journal.