An early progress report on the Kamloops Centre for the Arts indicates the project is currently $5 million under budget.
Matt Kachel, the city’s infrastructure delivery divisional manager, provided an update on two major projects to council on Sept . 1.
Kachel said the under-budget report stems from tender results coming in under budget, certain risks being retired as work progresses and moving past the higher risk elements of construction.
“There’s potential for further savings or mitigation as we work through the rest of the risks of the project,” Kachel said.
Excavation and shoring at the downtown site is nearly complete, with foundation work, crane rental and concrete pumping expected next.
Kachel said tariffs continue to impact project costs, but have been planned for.
“Did we know they were going to be where they are right now? No, I don’t think anybody did. It’s still a pretty good amount to be able to deal with uncertainty in the market,” Kachel said.
Corporate services director David Hallinan said tariff impacts only concern orders from the United States — something he said the city will avoid whenever possible, opting to pay shipping charges for materials from Europe or Asia when opportune.
Hallinan said Canadian materials are being sourced primarily or initially, and that most tariffs on relevant materials are around 25 to 50 percent at the moment.
“There’s a certain amount of cushion built into our agreement, but it does have its limits, as well,” Kachel said.
The arena multiplex project in Dufferin, meanwhile, is currently in the project cost validation phase.
Kachel said earthworks are expected to begin this year, with 300,000 cubic metres of dirt on the move and 12,000 cubic metres of blasting work to be done — some in close proximity to a nearby Fortis gas line, which Kachel acknowledged as a challenge.
At one point, Mayor Reid Hamer-Jackson interrupted Kachel’s presentation to ask who picked the site for the arena multiplex, drawing on an anecdote that recently “some guys coming in from Alberta” had questioned the location.
Bepple then attempted to answer the mayor.
“Your worship, you would remember that council actually voted on this. Council chose the site,” she said.
Kachel responded and said the site does have some challenges, like all sites, but it has advantages, as well.
“I hear that a lot, where somebody knows somebody that said something, and I would encourage them to come talk to me. I would love to hear from them about their experience building on these sites,” Kachel said.
The building’s validated cost ranges from $161.1 million for three sheets of NHL-size ice, $168.1 million for three sheets plus a mini rink, and between $182.5 million and $188.2 million if a fifth sheet of ice is included, depending on if it is indoor or outdoor.
Council has authorized up to $125 million in borrowing to fund the project. Its funding will also include $20 million in donations, $4.5 million for the TNRL library portion and $4 million from city reserves.