Nanaimo councillors are on board with replacing the aging seismically unsound # 1 fire hall on Fitzwilliam St., despite a rising price tag. (City of Nanaimo)

By Ian Holmes

heated issue

Cost of new Nanaimo fire hall rises significantly to $20 million

Jun 17, 2020 | 10:43 AM

NANAIMO — COVID-19 and vastly underestimated size requirements are factors substantially driving up the cost of replacing the #1 fire hall in downtown Nanaimo.

A City staff reported the lowest tender price for the $17 million project on Fitzwilliam St. would increase the budget by $3 million, or about 18 per cent.

Council unanimously endorsed advancing the project during the finance and audit committee meeting on Wednesday, June 17, which still requires formal approval.

The additional money will come from the General Capital and General Asset Reserves.

Consultant Mark Bullen told councillors COVID-19 hindering construction firms drove up the cost of the project.

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“Had the pandemic not occurred, we would still likely have been on target to deliver the project within the $17 million budget.”

Bullen also noted preliminary floor plans from a prior consultant were reviewed by an architect with experience in fire halls, who determined a 37 per cent larger hall would be required to ensure a functional and safe facility.

While Coun. Erin Hemmens supports the project, she voiced reservations in the planning process for the new building, which she noted was on budget earlier this year.

Hemmens asked Bullen about potential repercussions if stiffer COVID-19 restrictions are enforced.

Bullen said contractual obligations of the fire hall project are based on conditions when tenders were submitted on May 12.

“If the restrictions are tightened then yes we will need to talk about that and figure out a mechanism for addressing the additional cost and time impact to the contractor,” Bullen said.

Mayor Leonord Krog said it’s important to advance this important project, noting interest rates are low and seismic concerns at the aging fire hall are high.

“If we don’t have a functional system to dispatch emergency vehicles etcetera, fighting over $3 million dollars and considering delaying this project is going to look like real small potatoes,” Krog said.

Numerous efficiences are planned to offset the project’s elevated price tag, resulting in construction costs being 10 per cent less per square metre than anticipated in the original business case.

Replacing the aging # 1 fire hall on Fitzwilliam at Milton streets was endorsed by council in 2017 and also passed an alternative approval process the following year.

A business case analysis completed in 2017 weighing replacing the fire hall or tearing it down and building a new one highlighted numerous physical shortcomings in the now 54-year-old building.

A new two-and-a-half bay facility also housing staff dispatchers, loss prevention officers, and administration is scheduled to be open beside the current fire hall in 2022.

Late last year councillors elected not to require the project to meet LEED environmental certification requirements in order to save money.

ian@nanaimonewsnow.com

On Twitter: @reporterholmes