Cost soars on new Winnipeg police HQ

The cost to redevelop Winnipeg's new police headquarters has soared by about $28 million.

A report released on Thursday states the price is now $155 million and a downtown development committee at City Hall had to schedule a special meetingto vote onthe extra spending.

The committee recommended it be approved, but not without reservations. Coun. Justin Swandel said he is troubled by the mounting expenses and laments the poor initial estimates.

Preliminaryestimates provided by consultants are often low, he said, andas time goes by the figures always seem to climb.

"That's the world we live in," Swandel told CBC News. "We've had years where things have gone up because we've experienced double-digit inflation just in construction inflation.We've had years when our budgets have been out of whack just because of the cost of concrete."

Now that the true costs are becoming clear,he said, the city has to borrow more money to cover the gap.

The committee's recommendation must now go to city council for a final decision.

Winnipeg city council in November 2009 voted to approve the purchase of the Canada Post sorting plant at 266 Graham Ave. and convert it into the new police HQ.

Thebuilding cost$29.25 millionwhile annother $105 million was estimated to redevelop it to meet the needs of the Winnipeg Police Service (WPS). That redevelopment cost was later increased to$127 million.

The latest increase is beingblamedon construction costs that are about $80 a square foot higher than the initial budget.

The Graham Avenue location will allow police to consolidate its various departments,currently scattered around the city in various buildings, under a single roof.

The new site also provides a greater presence downtown, is more accessible to the nearby Law Courts complex and leaves room for future expansion inside the building.