Rising cost estimates for the first phase of a long-wanted downtown revitalization project have forced the District of Houston to scale it down.
Council last fall approved of a work plan to replace aging underground civic infrastructure and redo roads and sidewalks as a beautification element carrying a projected cost of $4.359 million.
But that figure could vary by as much as 20 per cent and with indications of rising prices, council was presented with a suite of options to either carry through with the original design at a projected $4.928 million or reduce the scope of the work to come as close to the original financing package as possible.
“While [project planner] Urban Systems has taken great effort to ensure the cost estimates are accurate, real pricing for this project will depend on the per unit cost charged to the District by any selected contractors,” warned District of Houston chief administrative officer Gerald Pinchbeck in a multi-page assessment presented to council.
“Final costs will therefore only be known following the tendering of the construction contract for this project, and could be higher or lower depending on various factors.”
The project now approved by council takes out elements of the original plan and with allowances for estimate variances, approaches the original financing package.
And that financing gap will be closed by taking $190,700 out of the 2020 capital road works budget, reducing it to approximately $441,000.
Pinchbeck noted that the $190,700 will come from an infusion of a portion of a provincial grant received from the province in 2019 for infrastructure or other capital works.
“The trade-off in doing so will be deferring capital work in other areas of the community in future years, particularly work for failing rural roads,” he said in the project options package presented to council.
But overall, Pinchbeck said, the downtown revitalization project and its approved financing retains the integrity of the project and of other works council wishes to accomplish.
One of the factors affecting the financing is now having to add approximately $250,000 in costs incurred last year as the project moved through various designs and considerations.
Being cut from this first phase of the project is a Butler Ave. watermain replacement, a fountain in Poulton Plaza leaving sidewalks and grassy area ony, and a design feature called a hammock orchard. Cosmetic improvements to the Hwy16 boulevard would be retained, including a main downtown entrance sign.
Despite the cuts, there will still be a pedestrian-friendly and welcoming downtown core, paying particular attention to improving the age-friendliness of the area.
Crucial underground water and other civic infrastructure work will take place as original concrete piping has aged and is approaching the end of its life-cycle much faster than anticipated. PVC piping will be installed instead.
Pinchbeck said other municipalities have had the same issue of concrete eroding at a quicker pace than forecast.
“Instead of a life-cycle of 100 years, it’s been 60 or 70,” he said.
With the new scope of Phase 1 and its financing approved, staffers will now prepare tendering documents looking first for qualified contractors and then selecting a final one.
Pinchbeck placed a timeline of up to 11 weeks for that to take place with the anticipation of work starting in May.