Esquimalt council is grappling with the rising cost of the township’s new Public Safety Building, which has jumped to $62.2 million from $42 million in February 2021.
The cost of the building, which would house both police and fire services for the next 50 years and include commercial and Capital Regional District tenants, had reached $48 million by June 2022 and continued to rise.
An analysis from Core Project Management said the increase is linked to higher construction costs, with the Island construction market seeing 10 per cent annual escalation of rates of late rather than the typical two to five per cent.
“This is a difficult situation, however the reality is that costs continue to rise and we need to make decisions based on the most recent information available,” said Esquimalt Mayor Barb Desjardins said. “We need to ensure the community’s safety is maintained while balancing prudent spending.”
Desjardins said council is confident in the budgeting work done so far, noting staff have sought expert advice from construction professionals and local industry experts in all phases of the process. Council is set to discuss the issue at its committee of the whole meeting Monday, which could lead to a final decision as soon as the next council meeting on May 15. Council wanted to provide information in advance of the Monday meeting “to be very transparent and invite public comment,” Desjardins said.
Esquimalt residents can send comments to council ahead of time or speak at the meeting — by phone or in person.
Options council could consider include eliminating the new building’s third floor or allowing for it be built in the future, proceeding with the current design or searching for savings of up to five per cent, cancelling or deferring the project, or changing the scope.
Should the current design or a design with five per cent cost savings be chosen, construction could start by July and take about two years.
About $7 million of the project’s budget has already been spent on renovations for a temporary police facility, construction of a temporary firehall, removal of the old Public Safety Building, design work and consultant fees. The plan calls for a three-storey building on Park Place to replace the previous one that was built in 1979.
A new facility was identified as a top priority in public feedback on how to spend $17 million in amenity funds Esquimalt received in 2017 after McLoughlin Point was selected for the region’s sewage-treatment plant.
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