Werklund Centre modernization faces higher costs as funding gap remains

The Werklund Centre is doubling its funding request to the City of Calgary as renovations are expected to reach up to $345 million.

Construction is already underway on Olympic Plaza—one of three projects that make up the Werklund Centre transformation in downtown Calgary.

The city says work on Olympic Plaza and the new Werklund expansion is on time and on budget.

But the third project, which will modernize the existing Werklund Centre building, is now expected to cost more than originally planned.

The latest estimate puts the project at $345 million, up from an earlier estimate of $270 million.

“We got a little bit further on. We’re up to a Class B estimate now, so we have a more accurate estimate in terms of what the cost of the building might be,” Coun. DJ Kelly said.

The higher cost has led the Werklund Centre to double its funding request to the City of Calgary.

It is now asking the city for $125 million.

Officials say the increase is due to inflation, updated building code requirements and work needed to extend the life of the more-than-40-year-old building.

“It’s not only just a cost escalation, but there’s also a scope increase as well, just to make that project that much better,” Coun. John Pantazopoulos said.

So far, the Province of Alberta has committed $103 million toward the three projects.

Another $74.5 million has been raised through private donations.

“We are very hopeful and optimistic about that,” said Alex Sarian, president and CEO of the Werklund Centre.

“Calgary individuals and donors and families have stepped up and exceeded all expectations.”

Construction on the Werklund Centre modernization will not begin until the remaining funding is in place.

“I think what everyone should want is a project that’s fully funded when you start,” said Kate Thompson, president and CEO of Calgary Municipal Land Corporation.

“You can manage the costs, you can manage the project and you can really understand where you’re going.”

The federal government has invited the organization to apply for infrastructure funding, which could help cover some of the remaining costs.

Sarian said upgrading the existing building is key to the future of the entire Werklund Centre campus.

“The modernization of the Werklund Centre is pivotal for this larger campus to be successful,” he said.

“Our current facility is over 40 years old, and lifecycle maintenance becomes increasingly a challenge.”

The rising cost is expected to be part of city council’s budget discussions later this year.

“I think it’s something very important as we look forward,” Pantazopoulos said.

“Plus or minus 10 per cent is great, but let’s get that down even tighter because a 10 per cent increase on $340 million is still a very material amount of money.”

Kelly said council will discuss the project along with other city priorities during budget talks in November.