Halifax Regional Municipality hasn’t even broken ground on the redevelopment of the Cogswell interchange but is already pumping more money into the project.
On Tuesday, Halifax regional council heard Dexter Construction’s bid of $95.7 million — the lowest bid on the project’s construction tender — is higher than the project’s budget previously set by the municipality. The other bidder, Miller Paving and Construction, put in an offer of $104 million.
“The tender price is higher than we initially anticipated, which seems to be a recurring theme now,” John Spinelli, project director of the Cogswell redevelopment program, told council.
Spinelli said construction costs have increased for numerous reasons, including inflation, current market conditions and the impact of COVID-19.
With the higher cost for construction, Spinelli said the Cogswell budget would need an increase of $27.4 million if the municipality went with Dexter Construction as recommended by staff.The increased budget would fully cover construction costs, as well as other estimated costs, such as professional services, land acquisitions, fees and permits.
While cost sharing from Halifax Water, Bell Aliant, Heritage Gas and Nova Scotia Power is expected to offset the cost, those amounts have yet to be determined.
Spinelli said while the project will require millions more, it’s a strategic investment in the downtown area as it will create a new mixed-use neighbourhood as most of the developments within the redevelopment are expected to be residential.
“It is also further expected to act as a catalyst for new investments in and around the Cogswell, Gottingen Street areas,” he said.
Coun. Patty Cuttell said the redevelopment is an opportunity for the city to provide affordable housing opportunities in the future.
And HRM needs the units that will come with the Cogswell redevelopment, Coun. Waye Mason said.
“We want to heal this gap between north end and downtown. We want to fill back in that empty 16 acres of life,” the Halifax South Downtown councillor said.
“This is about green space. It’s about the parks. It’s about active transportation. It’s about having a real connection up and down Cogswell linear park. It’s about actually being able to bike to the bridge from downtown without having to take your life into your hands.”
Council unanimously voted in favour of awarding the tender to Dexter Construction, officially putting the project in the pre-construction phase, which is expected to take about three months.
As for the project’s start date, construction which was hoped to start this fall has been pushed back to at least winter 2022.
Donna Davis, project manager for the Cogswell redevelopment program, said most of the major land acquisitions are complete, while several minor land acquisitions are in progress.
Davis said there have also been social benefit provisions included in the construction contract, as well as an agreement to hire a community liaison to see out the development and implementation of those plans.
There will also be an advisory committee made up of African Nova Scotian and Mi’kmaw communities and other equity seeking groups to work with staff and the contractor and monitor the success of the plans.
The project is expected to be finished by 2025.
