Prince Arthur’s Landing Project Goes Over Budget
by Scott A. Sumner
The faces of City Manager Tim Commisso and Mayor Keith Hobbs seemed pretty glum when they met the media recently to announce the overall project costs for phase 1 of Prince Arthur’s Landing are going up by 17% or $8.6 million.
“ That number is a large number and I take full responsibility for having to bring it to council. I have to take full responsibility to complete this project by Oct 31, 2011. This isn't the type of news they will like to hear but it is the reality of it. The project is complex and made more complex with the time frame of completion being 18 and now 24 months. There are higher costs for contract administration. The additional financing will come from the provincial
and federal governments and we are asking council to use some of the monies, some $ 4 million, from Phase 2 of the project already allocated.” said Tim Commisso. “ This is a great project we are looking to and have an obligation to complete. As City Manager I take full responsibity. It is the second largest project in Ontario for funding under the program. We got $29.3 million and have to be complete by Oct 31 to get the full funding. We are looking at moving forward with Phase 2 but it will require substantial addition provincial and federal government funds,” said Commisso. “ Our city percentage of the project, even after the
increases costs, will be 38% so 62 % of the project is being funded by upper levels of government. Without the upper level funding the project wouldn’t have happened.”
Commisso doesn’t want to diminish the quality of the project with cut backs and his recommendation is to move forward with the project. The first 5 tenders came in below estimates and the next 5 were higher. “ We are budgeting higher for the last 5 tenders based on the current market. The complexity of Prince Arthur’s Landing made us break it into 15 tenders. A fixed deadline means the pricing may be higher with a built in for contingencies.” said Commisso.
When asked about the progress of the private sector hotel development Commisso was positive. “ I talk to the hotel people regularly and the hotel plans are done. The hotel brand is the franchise and ultimately an ownership group owns and operates the hoteland they have to make the announcement. Currently they are forming a limited partnership for that and I am hoping to be able to provide a date to announce them shortly. There are no issues with the hotel, just the ownership group being able to make the announcement. I can’t say whether it is a local group.” said Commisso.
Also on hand to talk about the cost overrun was mayor Keith Hobbs. “ I am not very pleased with the report and additional costs. Having said that I campaigned on development of the water front. There are two boulders around my neck coming into this office, the waterfront and the wind farm is another. Having said that we have to move on with this project or we will lose the infrastructure funds. For example I would like to see a winter carnival in Thunder Bay similar to the one in Quebec City. That would be a great venue for part of that project,” said Keith Hobbs. “ As mayor I have to take a leadership role and make sure this project is done. In my mind right now Phase 2 is right out of the question. The public will be upset with this but everyone went into with their eyes wide open. There is no one person to blame here. I have
instructed the City Manager to micro manage this project to the end to complete it and move forward.”
Mayor Hobbs seemed positive about the private sector investment in the project. “ I have met with the hotel group as well and am a lot more confident now than I was coming in as mayor because the date kept being put off. I understand we are close to getting an announcement. I
am a lot more optimistic but I wish it would hurry up and come.” said Hobbs.
