After some uncertainty last week, Airdrie's library and multi-use facility project is moving forward, albeit with a slightly increased cost.
City council voted in favour of increasing the budget for the much-anticipated library and multi-use facility to $65 million from last year’s budget of $62.7 million during its regular meeting on Nov. 7.
The decision followed more than an hour and a half of deliberation among council members on Monday, culminating in a 6-1 vote in favour of increasing the budget. Mayor Peter Brown provided the only vote in opposition to the budget increase.
Meanwhile, councillors voted 5-2 in favour of maintaining the proposed underground parkade with 125 stalls, with Brown and Coun. Heather Spearman the sole two in opposition.
Last year, council approved a $12 million increased scope and budget for the library project, the budget for which had risen from just under $50.7 million to approximately $62.7 million. The increase was necessary, according to a presentation to council in October 2021, to increase the scope of the project from a 60,000-square-foot facility to a 75,000-square-foot facility that included both a full-scale library and other multi-uses.
As per the approval, the venue was to be distributed over three floors, and include two levels of underground parking.
But a more recent estimate, presented to council on Oct. 24, suggested the projected cost for the library project as originally approved had risen as high as $83,314,550 – more than $20 million above the previous estimate, and more than $30 million more than the estimate before last year's increase.
"The increase in cost is due to the global trend of construction market escalation over the last 16 months," stated a City press release. "This is the reality in the construction industry right now: like most other goods and services, costs are escalating for construction materials and labour."
Options presented to council for consideration during the Nov. 7 meeting included adjusting the scope of the library and capping its budget at the previously accepted $62.7 million, increasing the budget to $68 million, or postponing the project altogether until construction costs stabilize.
Changes to scope and design elements considered on Monday included reducing the size of the building by 12,000 square feet, reducing sustainability or landscaping features, or modifying the size of the underground parkade, among others.
“The current volatile environment of inflation and cost escalation is impacting every one of us from buying groceries to filling our vehicles with gas to heating our home,” said Michelle Lock, director of community services during the council meeting.
“Given this reality, combined with the size and scale of the library multi-use project, [it] reinforces the critical task at hand, which is to manage the project budget as design progresses for all of our community and within our means.”
Work has been ongoing on the project for over a year, and the library is expected to open in 2025 at the site of the decommissioned fire hall on Main Street. The site is currently being demolished, with the the expectation it would house the new library and multi-use facility.
The facility is among city council's current strategic priorities, and the project is seen as a catalyst for the gradual revitalization of Airdrie's downtown as a whole.
In September, council endorsed the proposed library's schematic design.
According to Luna Velez, project manager at Colliers – the contractor hired to undertake the project – following the approval of the schematic design, pricing could be reviewed in detail in partnership with the design team and be validated through a third-party consultant. That resulted in a more accurate budget presented to council on Oct. 24.
“We’ll go through a similar process again at the end of the design development to … keep the project on track,” Velez said during the meeting.
“It’s important to go through these exercises now as a design is just lines on paper and there’s no construction commitments made which allows us to provide the information back to council that’s up to date and can facilitate decision making.”
She said the latest projected cost estimate of $83.3 million aligns with the most accurate estimate based on newly gathered design information for the facility.
“We have a more thorough understanding of site conditions,” she said. “We’ve conducted geo-technical investigations and environmental analysis for the site and have an anticipated program for the entire facility, including the multi-use spaces.”
With regards to the approximately $20 million budget increase, Velez said it comes down to “unprecedented inflation and market escalation” as a result of the ongoing Russian-Ukrainian conflict and fallout from the COVID-19 pandemic.
Additionally, the aforementioned geo-technical investigations discovered shallow bedrock and a high water table at the site of the library, resulting in more expensive construction methods to excavate the proposed underground parkade.
“The parkade has also grown in size as we understand the city’s desire to minimize surface parking along the creek in order to provide year-round community gathering spaces,” Velez said of the 125 stall parkade.
“And while we don’t have a crystal ball, we are planning for additional [inflation] for 2023.”
According to Lock, considering the new cost estimate and with no further grant funding available, the municipality would face an increase in debt financing from $25 million to $45 million. She added as the budget currently stands, the municipality would reach 91 per cent of its debt limit by 2026.
“If we add $20 million in debt to fund the updated cost of the library, we will reach 97 per cent of our debt limit,” she said. “These are dangerously high levels as any increase pricing in any of our 10-year capital projects could cause us to exceed the provincially mandated debt limits.”
In order to remain at the original budget of $62.7 million, Lock said a reduction in the size of the site and certain scope elements would be required.
In response, Brown stated increasing the budget and subsequent debt limits is something that should concern each member of council.
"That should be concerning to everyone, respectfully, adding $5 million, adding $2 million – no thanks," Mayor Brown stated. "I'm not interested in any of that.
"Whatever we decide tonight, we have a lot to explain to the community."
Following the presentation, Brown recalled more than 60 letters he received from concerned citizens voicing their desire to see the project move forward, and a few voicing opposition to any budget increase for the library and multi-use facility – an increase that would ultimately fall on the taxpayers.
Coun. Candice Kolson remarked that council was in a “really tough” position determining how to move forward with the project.
“I think we need to understand this is a tough position our taxpayers are in,” she said during the meeting. “This is not just about the size of the library, this is about sustainability and moving forward and meeting the needs of everyone, not just people who use the library, it’s for everyone.”
Kolson stated she does not consent to reducing the size of the parkade to mitigate the increased budget, because of the potential need for more downtown parking in the future.
“I think that foresight is everything,” Kolson said. “Yes, costs have increased, but we don’t know where that’s going to be 20 years from now when all of a sudden we’re [in need of parking downtown].
“My personal thought is keep the parkade the same, set the budget, and figure out how to work within it.”
Coun. Al Jones said he is still coming to terms with the budget increase.
“I’m still trying to wrap my head around the cost – we're building a bridge now over train tracks and a highway that doesn’t cost anywhere near that and I would argue requires a significant amount more engineering,” Jones said, referring to the ongoing 40th Avenue overpass project. “This just seems obscene to me.”
Coun. Tina Petrow said it is a very challenging decision to cut aspects of the project design including square footage without knowing the portions that will be cut.
“We could be cutting something that is a return on investment in a financial way or a social benefit, so it’s really challenging to make that decision,” she said.
Additionally, Petrow echoed Kolson’s sentiments, stating that downsizing the parkade is not something she is willing to consider.
“When we look at some other facilities that we built in the community, I think we made concessions at some point in time and we can see parking issues at a lot of our facilities during peak times,” Petrow said.
“If this facility is going to be something that is going to be driving people into our downtown, they’re going to need somewhere to park."
Following the vote, council is preparing to have further conversations with various committees and boards to determine next steps and how to keep the project within the new budget. They will also determine whether or not they will revise the proposed square footage of the project to remain within budget.
“Delaying or cancelling this project is not really an option,” Petrow stated. “This project is very overdue and it’s very necessary for this community.”
