The projected cost of a proposed new park and ride in St. Albert has jumped approximately $7 million and could grow even more, leaving city council to wonder if the project might need to be scaled back.
On Monday night council received an update on the cost for the Campbell Park Transit Station and Park and Ride. While it had been submitted to the province for grant funding in 2010 with an estimate of $30 million, the cost in 2013 dollars works out to $37 million.
If inflation continues at current levels, the cost could reach $42 million if the project isn’t built until 2015.
Inflation isn’t the only factor at work.
The original estimate did not account for some “soft costs” like the cost of permits in Edmonton – where the park and ride will technically be built – as well as off-site levies, said Tracy Allen, St. Albert’s director of engineering.
“It is pretty difficult to predict what costs are going to be out further than one or two years,” she said.
The city is waiting on GreenTRIP funding from the province that would cover two-thirds the cost of the project, and has been waiting since it applied in 2010. The grant is conditional on Edmonton successfully negotiating the lease of land from the province, and St. Albert then negotiating a sub-lease from Edmonton.
Mayor Nolan Crouse said his understanding is the province will cover two-thirds the cost, whatever that cost is, not two-thirds of the original $30-million estimate.
“I think the province will meet their commitment and we need to be planning,” Crouse said.
But even if the province covers two-thirds of $42 million, that would leave the city on the hook for approximately $14 million. That number had both administration and council suggesting the project might need to be scaled back or phased in to reduce costs.
“I think you have to find ways to make it doable and affordable,” said Crouse. “I just think we have to scale back the scope of it.”
The proposed park and ride, meant to replace the facility at Village Landing, is to have almost 2,000 parking stalls. Edmonton also wants its northwest LRT line to end at that location.
But phasing in or scaling back the project could lead to funding problems. GreenTRIP funds will only cover what will be built immediately. Any additions, even if it is to phase in more parking stalls, would have to be submitted as a new project.
“My understanding is the province will pay what it’s committed to so far, but if we reduce the size of the project and go back later, it would be an entirely new project,” said transit director Bob McDonald.
Councillors did vote to retain an engineering firm to draw up more detailed plans for the facility.
“The sooner we get a design firm on board … the faster we advance the design and get out on the streets, so to speak, the less inflation we have to pay,” Allen said.
