New and increased price tag approved for Ottawa super library

Ottawa's finance and economic development committeeunanimouslyagreed to allocate an extra $65million for the city portion of a new central libraryafter bids came in far higher than original estimates.

A city report released last week, and reviewed by councillors on Tuesday, revealed how tight pandemic supply chains and construction inflation led to a much higher budget to build the new central branch, a partnership with Library and Archives Canada (LAC).

Ottawa Mayor Jim Watson told the committee city building projects are "costly and they're not always easy," adding the increased budget was not due to cost overruns, butfactorscity staff and professionals would not have predicted when they crafted the original estimates.

PCL Construction Ltd.submitted the lowest bid on Sept. 9, which would leave the City of Ottawa on the hook fornearly 60 per centmore than the $104 million estimatefrom June2018.

The facility is now projected to open in the summer of 2026 at a total cost of $334 million, up from $193 million, which includes the portion paid for by the federal government and a parking garage.

City staff, LAC make their case

At committee on Tuesday, city staff and the Librarian and Archivist of Canada, Leslie Weir,spoke to how the facility coulddraw tourists, as well as 1.5 million visitors overall each year, with its architecture and a collectionthat includes John McCrae's handwritten original of the poem In Flanders Fields and the first edition L.M. Montgomery's Anne of Green Gables.

It would also be an important piece to bridge the downtown withfuture LeBreton Flatsdevelopment, they said.

Anita Tenasco, director of education for the Kitigan Zibi Anishinabeg community, has taken part in the design, and said the facility's art and gathering spaces will also increaseunderstanding of Canada's Indigenous peoples.

"We so need this at this time," she said.

There are also plans for both libraries'current buildings. The City of Ottawahas sold its Main branch on Metcalfe Street and that lease will expire in 2026, while the LAC building on Wellington Street beside the Supreme Courtis set to become part of the judicial precinct.

The City considered halting the project, but it has already spent $20 million, in addition to the $10 million from LAC, on excavation, site remediation and design.

Councillor questions

Councillors diddrill city staff with questions about debt costs, finding efficiencies and fundraising.

Coun. Tim Tierney, a formerlibrary board chair, asked if the2016 estimate for the city's portion revised from $99 millionto $104 million in 2018 had built in enough contingency to deal with escalating prices.

City staff explained they allowed fora 10-per-cent increase, reflecting the market at the time, but could never have anticipated construction inflation to be revised to65 per cent because of thepandemic's continent-wide supply chain issues. Special materials and highly skilled labour needed for the library are a "double whammy,"added Steve Willis, the city's general manager of planning, infrastructure and economic development.

Coun. Diane Deans said she worriedcouncillorsoften find themselves rushing tomakeimportant decisions.The bid is only valid for 60 days after Sept. 9, staff explained.

"We acknowledge council is put in a difficult position to make a commitment to continue with this project, but we see no path where this becomes a cheaper project by waiting," said Willis.

As for the debt increase caused by the library project, deputy city treasurer Isabel Jasmin explained servicing would be extended over 40 years instead of 20.

"Overall it's costing us less by extending it out when you look at the time value of money," she said.

The Ottawa Public Library board was set to meetat 5 p.m. Tuesdayand one of its members, Coun. Riley Brockington, expressed frustration the library's $16 million in reserves were being allocated before the board had a chance to debate tradeoffs and competing priorities.

Once the updated funding is approved by council on Oct. 27, city staff already have the authority to execute a contract with PCL.

The Treasury Board has already approved the increased costs for the federal part of the project.