Stadium concept design released Sept. 19, 2012 at City Hall. Photo courtesy of City of Regina.
Regina's mayor is adamant that the rising cost of the City's new wastewater treatment plant isn't a sign of doom and gloom for the future stadium development.
On Wednesday, the City revealed that cost projections for the treatment plant have jumped from $150 million to $207 million (plus or minus 15 per cent). Documents before Regina's Executive Committee explained that the planning has progressed on the treatment plant project with a fifth of the design work now having been completed. A new estimate on cost was done based on the planning so far, resulting in the new figure.
Mayor Michael Fougere admits the City didn't factor inflation projections into its original estimates a few years ago when talk of replacing the existing plant began.
"A few years ago it was $150 million at present value," he explained in an interview Thursday afternoon. "That was exclusive of having inflationary costs, construction costs going up. So that's why it's being broken out a big differently."
He insists the stadium is a different situation altogether.
"The inflationary cost factor is already in the price. We will not exceed the $278 million (funding agreement). We know that."
He believes part of the reason why the two were looked at differently is because the City is pursuing a public/private partnership or P3 model. That would see the City finding a company to fund the project up-front and construct it over the course of a few years with the city paying back the cost over time, with interest.
Fougere says the City expected to do all the work on the treatment plant and had only considered what the price would be at that time.