River Landing project faces flood of rising costs
Danielle Mario, The StarPhoenix
Published: Wednesday, April 16, 2008
Soaring construction costs have changed benchmarks for the completion of River Landing.
According to Meewasin Valley Authority and the city, the inflation of costs since the planning for the river's side development have caused them to re-evaluate the finishing dates on some of the construction, as well as the projected budgets.
"It's really been a perfect storm," said Lloyd Isaak, manager of design and development with Meewasin Valley Authority.
"With the fact that it's really unique work with high construction costs, and the limited number of labourers and contractors, it's had a fairly major impact."
Meewasin's chair, Richard Nieman, sent a letter to the provincial government, outlining the difficulties regarding costs for the project. He explained some of the bids for tender were 50 to 100 per cent over original estimates and the result will be a need for more money and time.
Isaak added building on a riverfront, where erosion and flooding must be kept in mind, can add to the difficulties.
"A lot of the work that's happening here is unique," he said. "It involves water channel work, a lot of regulatory requirements and permits . . . it has resulted in a premium of some of the bid costs."
Gwen Charman, director of operations for Meewasin, said they will wait a year before tabling any proposals to the provincial government for additional funding, when "everything is up and running." She said there is no urgency at this point because they are still under construction.
Meewasin is responsible for Phase 1 of River Landing -- which had its budget skyrocket by 20 per cent since 2003 -- now sitting at $14.82 million.
Despite the financial crunch, only the proposed boat dock will see a delayed construction date, with the pavilion and children's water features still slated to open this spring.
The city expected the dock to cost about $200,000.
"The dock is where we were seeing some really high prices when we first opened to tenders a year ago," said Charman. "Now we're looking to possibly scale down the design and make it less elaborate for a better price."
The dock will be re-tendered this year or next, she said.
A proposed north-south linkage for the riverfront trail along Buckwold Bridge has been also been delayed until 2009 to allow access for crews to other projects during construction in the area.
Chris Dekker, special projects manager for the City of Saskatoon, said the construction woes were taken to city council late last year, with the total cost of both River Landing phases now set at $43 million.
"It's a real issue out there, and as much as you try to change your estimates from the get-go and try to budget for things, there's always a surprise that comes around," he said.
Though still at early stages of completion, the city spent $174,600 from general property tax revenues towards the maintenance and operations of the development last year, with another $234,400 budgeted this year with the opening of the pavilion, water park, Isinger Park and new streets and streetscapes.
The city's contribution totals about $23.8 million. Contributions from the federal and provincial governments and private donations will make up the rest.
Charman said Meewasin Valley Authority has raised $1.6 million of the $2 million goal for donated Phase 1 funding, and have already had nearly 200,000 people enjoying the riverside trail, despite the fact that the second part of the path is not finished.
"It's going to take a little longer to get done now," said Charman. "But it's not stopping people from using the site. It's fully functional."
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LANDING PROJECTS
RIVERGREEN ECOVILLAGE:
Status: Preliminary design
Construction: Begins spring, 2009
ISLINGER PARK:
Status: Mobilizing construction
Construction: Completed this fall
LIVE/WORK HOUSING:
Status: Proposals
Construction: Begins in 2009
PUB/RESTAURANT AND APARTMENTS:
Status: Proposals
Construction: Begins in 2009
PHASE I RIVERFRONT:
Status: Construction
Construction: Pavilion and water park completed this spring; boat dock tendered again in late 2008, early 2009.
PHASE II RIVERFRONT:
Status: Construction this summer
Construction: Summer completion.
URBAN VILLAGE:
Status: Re-design and permits
Construction: Begins in Fall, 2008
DESTINATION COMPLEX:
Status: Concept proposals
Construction: Completed in 2012
© The StarPhoenix (Saskatoon) 2008
Hopefully the city learns from this, get there asses in motion and approve things before everything has to be redone b/c of rising costs.