Inflation hits Lewis Farms project mid-construction despite deep cuts in years past

The Lewis Farms Rec Centre is going to cost more than expected due to inflation and factors outside the city's control, say staff.

Ongoing work to a park and recreation facility in west Edmonton has seen deep cost-saving cuts in the years since being resurrected, but inflation appears to have rendered some of those savings moot – by how much, the city has yet to reveal.

A report to city council on Wednesday noted the inflation value of the Lewis Farms Facility and Park Project has culminated to 47.9 per cent, well above the originally forecasted inflation of 23.3 per cent over a four-year construction schedule.

Mayor Andrew Knack told reporters Wednesday the cost increases were a result of inflationary pressures and material shortages as development plans were being finalized.

“It’s the financial reality. We are constantly having to make trade-off conversations like this,” he said.

Lewis Farms has been the topic of trade-offs for years now, with schematic design work initially approved in 2014 and construction first slated to begin in the 2019-2022 city budget.

But the dream of a new facility was shelved during the pandemic, then re-imagined to reduce the $427-million project to about $310 million after some provincial funding fell through.

This resulted in complete cuts, like a once-planned academic centre, as well as significant shrinking of the aquatics area and fitness/arena space.

“We went from a high elite competitive facility that would host these things, to more of a community focus,” Jesse Banford, the city’s director for facility infrastructure delivery, told reporters on Wednesday.

Construction began on the project in 2023, three years after the project’s design was reworked and ready for new construction approval. Since then, crews have made significant dents in structural work like steel installation, decking, roofing and interior concrete slab work.

And while council has approved a funding top-up to finish the project, Knack says the new budget will remain private until a borrowing bylaw has been finalized in the next month or two.

“If you say you need to spend X million dollars on something, you can better believe that every bid that comes forward, because I’ve said this to a camera, will come forward at exactly that price,” he explained. “That is always the tension point. It’s hard. We don’t love to do that.”

Ward Nakota Isga Coun. Reed Clarke said the shift in the project’s focus shouldn’t make for a disappointing final product – and the spending will be “justified.”

“When you see where (the project) is at, it’s pretty cool … Some of the things that they’ve scaled back a little bit, but I don’t think that’s really ruined the intent of it all. It’s still going to be an amazing facility.”

Construction is set to finish next year with a tentative grand opening scheduled for late 2028.

With files from CTV News Edmonton’s Jeremy Thompson