Costs of RCMP Building Through the Roof
By 250 News
Monday, May 11, 2009 09:49 PM
South east corner at 5th and Victoria
Prince George, B.C.- The cost of the new RCMP building is much higher than initially expected and it split Council with Councillors Stolz, Munoz, Wilbur and Frizzell voting against "the scope of the project." Councillors Bassermann, Green, Krause, Skakun and the Mayor voted in favour of "affirming the scope of the project."
The main problem for those who opposed is the cost which is now estimated to be in the $46 million dollar range.
"I have an interest in following that path" says Councilor Don Bassermann, who says continuing forward will provide them with more information to make an informed decision in September when the design components are complete.
One of the items in this project had Councilor Stolz asking questions, the underground parking lot alone would cost about $5 million, for 87 stalls. Councilor Stolz wanted to know why if the Gaming Centre underground stalls (147 stalls) could be built for about the same amount, why would the RCMP underground lot, with fewer stalls, cost the same? Part of the answer is that the stalls are large and will not be built for “compact” or small cars. Councilor Stolz says while he can appreciate the desire to have a better working environment, he is concerned about the costs. The cost was first said to be $21 million, then when he was first elected it was said to be $43 million, and four months later it is now $46 million. “I have a hard time understanding why when other communities in Northern B.C. are seeing a drop in construction costs why this project is costing more.” He says he hesitates sending the project along when there is such a disconnect between estimates and construction realities of the day.
Councilor Dave Wilbur says this project is wrong in cost, wrong in design and wrong in location "Spending $46 million dollars on a project of this magnitude will negatively impact funding for other infrastructure projects." He wants his Council colleagues to say no to the project now rather than wait until September.
Mayor Dan Rogers says he is not eager to start searching for savings when the tender process on the project has not yet been entered. The actual estimated price tag won’t be known until the tender documents have been developed and that won’t happen till this fall.
In 2004, when the project was first presented it was estimated to cost $246 per sq. ft. Five years later and the estimate is $442 per sq ft.
Councilor Brian Skakun says this has been on the go for more than 5 years and he doesn’t want to piece meal it “I don’t want to take this out or that out, and that could cost us more in the end. The Federal Government kinds of ticks me off, we’re covering all the costs here and I wish the Federal government would come forward and pick up some of the costs. I am in favour of moving forward and finding out what its going to cost us in the end.”
Councilor Sherri Green wanted to know if the building had to be built to LEED standards, the answer is no, but Council has asked for buildings to be constructed in a manner that would reduce energy consumption by at least 25% which puts them in the realm of LEED standards.
Councilor Murry Krause says this project is long overdue “We’ve been talking about this project for as long as I’ve been on Council. I think it is about proceeding, I look forward to seeing the construction estimates so we have a better idea of what it’s going to cost.” He says this would provide a good working environment downtown.
The design costs so far are just over $1 million dollars, with the total design cost said to be about $3 million.
The construction estimates are coming in just shy of $46 million, which includes the money the city has already spent:
$2. 7 million for the property at 4th and Victoria
$825,000. For the purchase of an offsite parking lot
$1.2 million for consultant fees
$109,000 ( approx) wages, travel and legal fees.
It is now estimated the project will cost a further $41.8 million to complete. The City planned on borrowing that money.
So what do you get for 46 million? According to the images presented to council, the design will create a two 1/2 storey building which uses salvaged lumber, it has an atrium, a winter garden, a summer garden, a man made water way in the front, a roof line on the Emergency Operations centre which the architect says “ is reminiscent of the ice jams”, walkways that are designed with “the confluence of the two rivers” in mind, a multi coloured veneered wall that is “reminiscent of a DNA chart” used in the investigative process.
Photo below, one example of the architectural "visioning" a colour panel veneered wall that is reminiscent of a DNA chart.

The panels on the DNA wall, could also store heat
Although there are already two loan authorization bylaws on the books for this project, a third would need to be approved in the amount of $21.883 million. Staff proposed a loan over 30 years for that amount.
Under the Community Charter, if a municipality wants to borrow money for a term longer than 5 years, there must public consent. Usually that is done through an alternate approval process, where a petition is put forward and those who oppose the matter are asked to come forward to sign their name. The petition requires signatures from 10% of the eligible voters. That would force a referendum on the issue, or City Council could forgo the petition and go straight to a referendum.
Right now, the City is paying $221 thousand a year in debt servicing for money already borrowed for this project. Once all the money has been borrowed, the City will be paying $3.4 million a year (for 15 years) just to service the debt on this project which will cost the City just over $80 million dollars by the time the bills have been paid off.
This does not include the debt incurred for the Cameron Street Bridge, Terasen gas, or ongoing debt for a number of other projects.
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That means, when added to the debt already being carried for many other projects ( not including Terasen) the City will be spending more than $9 million a year for about 3 years just to cover the loans on various projects:

According to staff, the cost of the project will translate into a 2.5% increase in your taxes next year, a further 3% hike in 2011 and half a percent more in 2012. Those increases do not include any increases to cover the costs of inflation, or future program enhancements which may be approved.

above, landscaping plan, while below, the north east corner at 4th and Victoria:

The building is being designed to meet LEED (Leadership in Energy and Environmental Design) Silver requirements, it may actually achieve Gold standard.
The building could be tied into the Community energy plan and is designed to use 45% less energy than conventional buildings.
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Proceeding with this project, given what it has become, could set an all new milestone for PG when it comes to bonehead planning and spending decisions.