A contract has finally been awarded for the City of Duncan’s long-anticipated place-making initiative on Station Street, but the project will be more expensive than originally planned.
Council awarded the contract to Nanaimo-based Echelon Creative Inc. at a meeting on Sept. 23 for $969,890, plus a 10 per cent contingency.
Council also approved an increase in the project budget from $1,240,000 to $1,527,000, with the additional funds to be allocated from the city’s Housing Accelerator Fund Reserve.
The city decided in April to re-tender the project, which was originally scheduled to be completed during the summer, after all the bids from construction companies to take on the project were over budget by at least $500,000.
Kyle Young, Duncan’s director of planning and sustainability, told council at its meeting on Sept. 23 that the costs of certain elements of the project, including some site fixtures, the stage structure and the weather protection to cover it, were adjusted to bring down the costs, and the lowest bid based on these adjustments came from Echelon Creative Inc.
But Young said the lowest bid with contingency would still exceed the available project budget by $286,539.
“Following the tender review, and given that they were the lowest bidder, staff have had initial discussions with Echelon regarding value engineering and cost saving opportunities, specifically in relation to the stage and stage cover, which are some of the more expensive elements of the project,” he said.
“While it is anticipated that these savings could be in the range of $64,500 to $118,000, the final amount is unknown at this point without further design revisions. Based on the tender review, staff recommend awarding the contract to Echelon for an amount up to the bid price, with the understanding that staff and the city’s engineering consultant intend to pursue cost savings with Echelon before finalizing the contract price.”
The Station Street project would see significant improvements to Station Street Park, enhancements to the Station Street/Craig Street intersection and immediate surrounding area, and the installation of public washrooms.
This project intends to transform Station Street Park into a dynamic public space that will serve as a hub for community events, festivals, and other activities.
It is an essential component of the city’s efforts to support the downtown businesses and attract more visitors to the area.
The city received a $1 million grant from B.C.’s Rural Economic Diversification and Infrastructure Program for the project in 2023, and the municipality intended to kick in an additional $200,000, but the city’s investment could come to more than double that if the full budget allocated to the project is used.
Coun. Garry Bruce noted that the plans for the stage and its weather cover will cost almost $300,000, and wondered if those elements could be removed which would bring the spending back under budget.
“We already have a stage just down the street in City Square, so maybe this stage should come right out,” he said.
Young responded that, theoretically, the stage component could be taken out, but he has concerns about removing it because it’s a major component of the project and it’s wanted by the Downtown Duncan BIA.
He also said the change could impact the grant from the Rural Economic Diversification and Infrastructure Program.
“The overall intent of that grant is economic development, so it’s considered an integral part of the economic opportunities that would be provided in the park,” Young said.
“I think that if council did want to go down that route, we would probably want to have a conversation with the province first.”
Coun. Jenni Capps said she’s wary of risking the grant money from the province by removing the stage.
“I also think the stage adds something special to this space,” she said.
“It’s a lot of money, but this is an important project and will be special for downtown and beyond for decades.”
Mayor Michelle Staples said there were a lot of conversations about the cost of City Square when it was constructed, but it added to the value of the area, drew more activity downtown and added to the area’s economic vibrancy.
"I believe it’s worth the investment,” she said. “There are costs that are higher, but that’s the same everywhere. I believe the economic spin-offs for decades to come will be beneficial for the downtown core.”
Bruce was the only council member to oppose the contract being awarded.
Work on the project is expected to begin this fall and be completed by April 30.
