Whitehorse city hall renovation to begin this spring, and be done by 2024

The City of Whitehorse is on a deadline to finish a major upgrade project to city hall, or risk losing out on some funding to help cover the $26.2-million price tag.

"Basically, $15.7 million, the bulk of this project, is coming from [the] Small Communities Fund, and that program is designed to end by March 31st, 2024," said Peter O'Blenes, the City's property manager.

"To delay this program any longer is putting this funding at risk."

He said a main concern is the availability of contractors to do the work and more importantly, the supply chain.

"What are they able to get and what are they not able to get? And are they able to get it in the right time frame that we need it in?"

Inflation has affected cost

The goal, O'Blenes said on Thursday, is to clear out of the existing city hall building by May 7 so that renovation work can begin. A tender for the project is open to bids until early next month.

City Hall upgrades have been in the books for years but the project morphed over time. The current plan was unveiled last summer with an estimated price tag of about $25-million.

Inflation has since driven up the price, O'Blenes said. City council approved the new price in its latest capital budget.

In all, the city will chip in about $8.7-million, all from reserves. Acting city manager Jeff O'Farrell said the city is in good financial shape with about $55-million in reserves, and so it won't need to borrow money to cover its portion.

"The city is very capable of managing the costs of this project," O'Farrell said on Thursday.

"Especially given the fact that the majority of the costs for this project are covered by federal and territorial infrastructure funding sources." 

'We just don't know'

O'Blenes said the aim is to have the project done by January 2024. He said that may depend on some things beyond the city's control, though.

"We are hoping things are normalizing across Canada, supply chains and everything else, so we are anticipating and being very optimistic that things will go smoothly. We think that we do have a good estimate here, but again, we just don't know," he said.

"And things changed in the market from when this estimate was done, to now."

Ted Laking, the only councillor to vote against the city's capital budget last month, has argued against the city hall renovation. But now that it's going forward he wants to ensure there's a solid management plan in place for the project to avoid cost overruns. 

"I've been clear all along with respect to this project, that I don't think taxpayers want us to go forward with this," he said.

"However, we're now moving forward with this project and I have the philosophy that when life gives you lemons, you make lemonade."