A planned sod-turning ceremony to launch construction on phase one of the Bonnylodge and Villa Ouimet expansion announced in February was cancelled last week as contract negotiations and budget concerns have cast doubts on the project.
Ray Prevost, town councillor and chairman of the Lakeland Lodge and Housing Board, announced the cancellation of the ceremony at town council on Sept. 11, explaining the contract had yet to be awarded and the projected budget was about $3 million over the province's promised $10 million dollars.
“They gave us $10 million and this thing is leaning more towards $13 million now, so you can pretty well say it's about 30 per cent over budget,” Prevost explained, adding he didn't know where possible cuts could be made to lower the proposed construction costs.
“When we started this project, there was no money for furniture, we knew that,” he said, explaining Genia Leskiw, MLA for Bonnyville – Cold Lake, had promised to work on getting funding for furniture. There was no budget for appliances either and the Lakeland Lodge and Housing Board had planned to get funding for that as well.
“In my view, there's nothing to cut in those lodges,” said Prevost. “There's nothing to cut. You can't cut in the kitchen, you certainly can't cut in the lighting. What are you going to cut? It's just rooms and hallways. The kitchen is the big part but you can't add that many rooms without an addition to the kitchen and the dining facilities.”
He said Leskiw had been working tirelessly to resolve the issue so the project could move towards the construction phase, but even the tenders that had been received to date stand the chance of increasing in price as time goes on. Subcontractors' prices are only held for 30 days after the date they are received, so in about two more weeks, it is possible that the plumbers, electricians and heating companies involved in the tenders will come at a higher cost, throwing the budget even more off balance.
“From this day forward, I think we have another 15 or 16 days,” said Prevost on Wednesday. “The government will have to make a decision as to how we proceed. It's their project, it's their money, it's their lodge. They have the titles to the buildings, so we're somewhat limited as to what the next step is. We can make some suggestions.”
As of Monday, Leskiw reported she had not heard back from Doug Griffiths, minister of Municipal Affairs, but that the government was working on it.
“I'm sure it's going to be resolved shortly,” she said. “It's just a matter now that all the information has been given to the minister, of the minister looking at it and making a decision on the funding and on the contracts. They're not going to have a sod turning until they decide who the contractor is going to be.
“It's going to happen. I know people will feel a lot more comfortable if they knew the exact date of the sod turning. It will occur, it's just a matter of things falling into place. I have full confidence.”
Phase one of the project, announced on Feb. 15, would see an additional 52 units and a modernized kitchen and dining area for the Bonnylodge, the first project announced as part of the Government of Alberta's commitment to creating 1,000 new seniors' housing spaces each year.
