Edmonton's 50th Street rail crossing overpass to cost extra $34 million
City report cites inflation as reason for cost increase
Inflation pressures have jacked up the cost of building an overpass at the 50th Street and CP rail crossing by over $34 million, according to a new report by Edmonton city staff.
Plans to create a grade separation at the crossing in southeast Edmonton have been in the works for years.
Traffic delays caused by trains rolling across the busy street have long frustrated motorists, and the intersection has been marked as one of the top three priorities for grade separation in the city.
The project includes plans to build an overpass for cars at the Canadian Pacific Rail crossing at 50th street north of the Sherwood Park freeway, and to widen 50th Street from four to six lanes between Sherwood Park Freeway and 90th Avenue.
The expected cost was about $145 million, and a tender was put out earlier this year. But after receiving bids, city staff say the bid they're recommending council accept came in at over $179 million and that the budget is going to need to be increased.
According to the report going before council Monday, a number of inflation factors played into the 23 per cent hike, including geopolitical trade conflicts, disruptions in the construction industry due to COVID-19 and climate change, and significant increases in commodity prices – such as a 300 per cent increase in the price of nickel.
City staff are recommending council forge ahead and approve the extra money. The report notes that some work has already been completed, all the necessary land has nearly been acquired, market prices aren't expected to improve any time soon and it's not feasible to change the plan at this point.
It's a concerning situation for Ward Métis Coun. Ashley Salvador, who has the crossing in her ward.
She said that the climbing price is worrying given that the city has already approved previous increases for the project.
"I do know that many Edmontonians and residents of Ward Métis want to see this project go ahead. At the same time, I know how important it is to Edmontians that their council is responsible stewards with their tax dollars," she said in an interview Friday.
Salvador said she wants to hear more from administration about how grant funding from other levels of government will be affected depending on what council decides to do.
City hopes for more federal funds
The city has already received funding from the federal and provincial governments, as well as a contribution from CP.
To cover the extra $34 million, CP has kicked in an additional $1 million. City staff are asking council to approve $33 million in taxpayer-supported debt so that construction can get underway, but are hopeful a request for more grant funding from the federal government will be approved so much of that can be recouped.
Ward Karhiio Coun. Keren Tang said she and her council colleagues have been bracing for the effects of inflation costs on city projects so it's not a surprise that this has happened.
"It's always very challenging when you actually see the numbers and knowing the impact it will have," she said Friday.
Tang added that delaying promised projects has its own set of consequences: grant money could be lost, prices could go up more, and residents expecting a complicated project get frustrated.
Council will consider the budget increase as part of a package of infrastructure spending requests that also includes asks for sign-offs on moving ahead with 124th Street renewal and the Edmonton-Strathcona County pedestrian bridge.