Police HQ $17.2M over budget

WINNIPEG – The bill for the city’s new police headquarters will be higher than expected.

City councillors found out Friday that construction on the new home of the Winnipeg Police Service on Graham Avenue is over budget by $17.2 million.

The Canada Post warehouse on Graham Street is being converted converted into the new headquarters, replacing the Public Safety Building on Princess Street.

“The police station has to be built,” said Coun. Jenny Gerbasi (Fort Rouge-East Fort Garry). “Those costs are going to have to be covered through borrowing and that’s money we will have to borrow that isn’t available for other projects.”

Winnipeg Mayor Sam Katz blamed project manager Oussama Abouzeid for the cost overruns. Abouzeid was also involved in the construction of Investors Group Field. In total, the police headquarters project will cost $194 million.

“There were definitely increased costs of about $12.5 million just on mechanical and electrical alone,” said Katz. “That would be as a result of having incomplete drawings.”

“When the contract was signed, which didn’t come to council, only 30 per cent of the drawings (were done),” said St. James-Brooklands Coun. Scott Fielding. “You ask anyone in the construction industry, they’d say that’s an insane number, only having 30 per cent of the drawings done.”

The mayor said the extra expense won’t affect the city’s bottom line dramatically because the interest on the money borrowed for the project was much lower than expected.

Some councillors are now calling for an audit similar to the one that uncovered mismanagement and unfair contracts in the building of four new fire halls.

“I have concerns that we get to the bottom of how we got into this state,” said Gerbasi. “Obviously with projects things happen, costs go up and all these other issues happen.”

The new police headquarters is expected to open in June 2014.