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Cost of reopening Portage and Main expected to jump by $8M

Price tag for intersection now pegged at $21.3M

https://www.winnipegfreepress.com/breakingnews/2024/11/01/cost-of-reopening-...

REOPENING Portage and Main to pedestrians is set to cost the city $8 million more than expected, a new report says.

In March, city council voted to open the pedestrian crossing at the intersection in 2025, budgeting $13 million for the work. However, the city has since received just one bid on the project, which will raise the overall price to $21.3 million.

“The additional budget is attributed to an aggressive schedule requiring significant labour and risk to complete it on time, the requirements of sub-contractor works requiring significant oversight, complex interaction between public right-of-way and private properties, and that construction will primarily occur over the winter months, which brings several logistical challenges,” Brad Neirinck, manager of engineering for public works, wrote in the report.

Neirinck notes the intersection “must be opened” to pedestrians by the time Winnipeg Transit begins to overhaul its network, which is expected to begin on June 29.

The report calls for the public works committee to award the contract to M.D. Steele Construction Ltd.

It also notes a consultant warned it would be difficult to pin down the project’s price.

“Due to the unique nature of the project, it was challenging to calculate an estimate for it as there were no comparable projects to refer to,” wrote Neirinck.

Mayor Scott Gillingham said he supports a staff proposal to cover the significant cost hikes through transfers from the road renewal and downtown streets budgets, so the work can be done on time.

“It will be an aggressive timeline with construction in the dead of winter — which doesn’t always happen — at the corner of Portage and Main. There are obviously increased costs associated with the type of very unique project that it is,” said Gillingham.

The mayor said he isn’t concerned taking money out of the roads budget will lead other projects to be cancelled.

“My understanding is the projects wouldn’t be lost but simply deferred,” he said.

Reopening Portage and Main to pedestrians has proven divisive for years. While 65 per cent of Winnipeggers voted against the idea in a 2018 plebiscite, Gillingham said the option is better than spending $73 million to repair a membrane to renovate the site’s underground concourse.

“What we’ve got here is short-term pain for longer-term gain,” he said.

The mayor has called for the underground concourse to close. The city is set to commission a study on how that could occur, which council will then consider.

Pedestrian traffic has not been allowed at the intersection since 1979. The mayor stressed it is essential that access is restored in time for Winnipeg Transit’s route overhaul.

“With the change of the transit network, all major lines are going to go through Portage and Main. If we delayed this project … we would do the changeover to the new network and then immediately slow the network down with construction at Portage and Main,” said Gillingham.

Coun. Janice Lukes, chairwoman of public works, said she also supports covering the rising cost of the project.

“When you’re (building) something … in the winter and, when you’re doing it in a shortened timeline, there’s a risk element in it,” said Lukes (Waverley West). “It’s also a high-profile project. I know companies that didn’t want to bid on it because it was a high-profile project (and) because it was (in) the winter.”

Not all councillors think the project is worth its rising price.

Coun. Jeff Browaty, who serves as finance chairman, said he remains opposed to the change because he thinks adding foot traffic will create significant traffic delays. Browaty (North Kildonan) said he is also concerned about the increased cost.

“It’s pretty (concerning) how much over the budget it is. And it would be interesting (to see) if there’s any good estimates as to what it would cost to do regular-season construction (instead),” he said.

Coun. Russ Wyatt said he opposes covering the cost hike, arguing the cash strapped city has much more pressing priorities to fund.

“The city should reverse the decision (to reopen). We have better things to do in this city than talk about Portage and Main. We’ve got a whole mental-health and addictions crisis … we have our infrastructure crumbling, we’ve got Arlington Bridge closed,” said Wyatt (Transcona).

The cost hike requires only the approval of the standing policy committee on public works, not a full council vote.

After a Nov. 6 meeting to determine the latest round of standing policy committee members, Lukes expects to continue to chair the committee, alongside councillors Devi Sharma, Ross Eadie and Markus Chambers as its other members.

Coun. Evan Duncan said he hasn’t decided if he supports covering the cost hike.

“This sends some pretty big red flags up in the air that, potentially, the folks that are ballparking these costs for us are not doing a great job at it,” said Duncan (Charleswood-Tuxedo-Westwood).

He also criticized the project’s timing.

“The timing on it is obviously garbage. Going through winter months is going to be extremely expensive,” said Duncan.

A request to interview city staff about the cost hike was not granted Friday. In an email, communications director Felicia Wiltshire noted the same rationale for the hike that was noted in the staff report, including the desire to support the Transit overhaul in June.

“Retendering the work for summer construction only would result in earliest completion in late Fall 2025,” wrote Wiltshire.

The public works committee is expected to vote on the matter Thursday.

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