Council balks at increased Gibson Centre expansion price tag
July 21, 2025 at 9:42 PM
Tariff-related inflation and increased scope are being blamed for the Gibson Centre expansion project bids that came in significantly higher than what the municipality had planned.
Councillors at the July 21 council meeting ultimately voted to defer a report that recommended awarding the tender. Instead, they will give staff some time to review the project.
“To get an idea as to what the change in scope is, the cost escalation, and alternatives we can look at to contain costs in (the) project and any alternatives to scale back the project,” said Councillor Ann-Marie Noyes as she made a motion to defer that her council colleagues endorsed.
According to the staff report, councillors approved a budget of just over $4.1 million for the project. Gibson Centre is located on Pettit Road and currently houses Fort Erie’s public works operations, including roads and drainage, water/wastewater services, parks and cemetery services, and fleet maintenance.
The enhancement project includes a new two-storey building totaling 1,182 square metres and expansion of the vehicle bay area by 491 square metres.
“The new administrative space will accommodate modernized offices, workstations, meeting and multipurpose rooms, a server room, and dedicated storage areas,” the report said.
“(It) also encompasses extensive site improvements, including upgrades to site servicing infrastructure, stormwater management systems, site grading, parking capacity (existing and future), landscaping, and provisions for improved public access.”
Five tenders came in for the project, and all five were over the $4.1 million the town had budgeted for. The staff report recommended approving the bid by Niacon Limited, which came in at roughly $7.26 million. It was the lowest bid to come in.
The increases are “due to expanded scope of the project to accommodate engineering staff at Gibson Centre, address inflation that was identified before tariffs and rising construction material prices since the original budgeting,” the report said.
A staff update to the forecast for the Point Abino Road South reinstatement project found the municipality could reduce it by a little over $2 million. The report recommends redirecting that unissued planned debt to the Gibson Centre project. Another $35,000 would come from the facilities maintenance reserve.
Noyes’ deferral motion calls for it to come back in September. CAO Chris McQueen said they have a window for the existing tenders and the delay shouldn’t cause any issues.
“There is an irrevocable 90 days on the tender price so we have the flexibility to go out that far,” he said.
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About The Author
Luke Edwards
Luke Edwards is a longtime Niagara community journalist who has covered a variety of beats, including business, agriculture, the wine industry and politics. When not writing, there's a good chance he can be found at a baseball diamond or curling rink.
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