Downtown Vancouver Updates II

[jollyburger]

The value of the land contributed is around $33 of the $91 million (2023)

Approximately $27.8 million from the provincial government, through BC Housing, including approximately $17.33 million through the Building BC: Community Housing Fund and $10.47 million in Cost Pressure Grant funding.
Approximately $48.05 million in land value and in-kind contributions, from the City of Vancouver.
$15.4 million from the federal government, through the National Housing Co- Investment Fund (NHCF).

https://news.bchousing.org/154-unit-building-breaks-ground-in-vancouvers-west-end/

In recent years, many City projects have been impacted by construction cost escalation. Factors
driving cost escalation include labour shortages, cost of building materials, and supply chain
disruption. The cost estimate (Class B) shared by CLT in early 2022 was within the budget
range for the project. Construction bids were finalized in April 2023. The lowest tender price was
higher than the approved budget. After value engineering, the overall project cost remained over
the approved budget, with $2.5M constituting the City’s proportionate share of the cost increase.
The primary drivers of the cost increase are:
• Mass timber design – supply chain issues resulting from demand for mass timber
• Contractor’s risk premium – due to new materials and methodologies including the
combination of mass timber and Passive House
• Passive House – limited supply of certified building products
The City is obligated to pay its proportionate share of cost increases as specified in the
Development Agreement between the City and CLT. Approval of additional funds is time
sensitive since the tender price can only be held for 60 days. Timely commitment of additional
funds is needed to avoid further scheduling delays and potential further cost escalation.

https://council.vancouver.ca/20230628/documents/pspc3.pdf