Prince George city council wants answers about why the city parkade under construction at George Street and Sixth Avenue is $5.3 million over budget.
City council approved the 351-space parkade in 2017 with a budget of $12.6 million, as a partnership with A&T Project Development. The public parkade serves as the foundation of, and provides underground parking for, a 151-unit Park House apartment condo complex under construction at the location.
As of the end of 2019, the city had spent $17.9 million on the project, according to information released in the city's annual report.
"I'm so unhappy with these cost overruns," Coun. Brian Skakun said. "This can't keep happening."
Skakun put forward a motion, which was supported by council, calling on city staff to prepare a report explaining why the project is so much over budget.
City general manager of planning and development Ian Wells said major structural changes were required, because of the groundwater conditions on the site. In addition, U.S. tariffs increased the price of steel construction materials.
Construction of the project is expected to be complete later this year, Wells added.
"This council approved a parkade for $12.6 million and to get notified in the annual report that it is at $17.9 (million), it doesn't sit well," Coun. Cori Ramsay said.
City manager Kathleen Soltis said members of the city's finance and audit committee were informed of the overruns in November.
In June, city council was informed that the new fire hall under construction on Massey Drive was expected to be $2 million over budget.
"This is a significant overrun – again," Coun. Teri McConnachie said. "I know we've discussed this in the past. We're here to provide oversight. Moving forward, there has to be more communication."
Coun. Kyle Sampson said these major cost overruns put future city projects in question.
"How can I believe, when we get these reports, that it will be done on budget?" he said.
