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News

Fate of 54 Plus Club construction on the table as bids over budget

Posted May 20, 2014

Plans to expand the New Tecumseth Recreation Centre (NTRC) to accommodate the 54 Plus Club in time for an October 31st opening, have hit a financial wall that not only threatens its timing, but the project itself, if a funding source isn't tapped.

A special council meeting tonight has been scheduled to deal with the fact the lowest of five qualified tenders received, - Citycore Construction Inc - even after a series of revisions to the plans were made that reduced the costs by 13.5 percent, remains approximately $309,000 over budget . This includes project planning, design, and supervision ($146k), and five per cent contingency ($49k). The original tender, excluding HST, was $1.15 mllion.

The 54 Plus Club would be the primary tenant of the proposed 4,000 sq. ft facility. It would include a multi-use room, lounge, storage, kitchenette, and washrooms. It would also be available for public rentals and other program uses.

New Tecumseth has allocated $630,106 from parks and recreation development charges, and the 54 Plus Club has committed $256,000, putting the budget at $886,106.

Two options will be tabled tonight including drawing the $309,616 from the parks and recreation development, raising the Town's commitment to approximately $940,000. While the other is meeting with 54 Plus Club representatives to determine whether further changes can be made to the plans that reduce its construction costs.

So far, parking lot expansion has been eliminated and landscape plans scaled back, roof construction changes in "the manufacturer's processes" are proposed, and the contractor has offered a further reduction of $5,000.

Under proposed terms of the revised agreement that increases the Town's contribution, the 54 Plus Club would have until Dec. 31, 2015 to contribute its full share, $256,000, or would be in default of the agreement. They would be required to have $5 million in liability insurance, and serve one year notice of termination.

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