Winnipeg police HQ cost overruns hit $45M

Cost overruns on the new police headquarters in Winnipeghaverisen to $45 million, pushing the total construction price to more than$177 million.

Councillors learned on Friday that the project is now $17.2 million over budget,on top of the $28 million in cost overruns that were announced in 2011.

"The total cost to redo this building and make it the Winnipeg police headquarters would be $177.4 million," Mayor Sam Katz told reporters.

Katzsaidincomplete building plans are to blame for rising mechanical and electrical costs.Construction began with only 30 per cent of thearchitectural drawings completed.

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In addition, unforeseen mechanical and electrical issues as well asa number of design changes ordered by the policeservice for safetyand security reasons pushed up the cost.

More contingenciesneeded, says councillor

Going into Friday, sources hadtold CBC News the cost of refurbishingthe old Canada Post building on Graham Avenue was expected to be as low as $10 million and as high as$17 million above the previously reported overruns of $28 million.

Katzsaid it is always a challenge tackling a renovation project versus building new.

"Anytime you have cost overruns, it's not a good thing. I can also tell you if you are building something from the ground up it's a much different situation than tackling something of that ilk," he said.

About $3 million in contingencies werebudgeted for the project,butCoun. Scott Fielding (St.James-Brooklands) says that amountshould have been more like $16 million.

"I'm concerned about how this project has gone over budget, and I've got concerns about the fire hall and you look at things like the stadium. So I'm going to leave it at that," he said.

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But the mayor insisted the city can handle the cost overruns.

"I am of the opinion right now that contrary to what some people have thought,we can address this without having any negative impact on anything else we are doing," said Katz.

The cost to purchase the building was$29.25 millionwhile the original estimated cost to redevelop it to meet the needs of the police service was$105 million.

That redevelopment cost was later increased to$127 million, blamed on bad preliminaryestimates. Then it jumped to $155 million and theincrease was blamed on rising construction costs.

Read the city report

Below is the latest financial statusreport by city officialson theWinnipeg Police Service Headquarters Redevelopment Project: