The Town of Ladysmith is cancelling the tender to build a new art studio on the waterfront due to bids exceeding the project’s $4.1-million budget.
In December 2022, the town retained a consultant to prepare a cost estimate, and in August, interested parties were invited to review tender documents for the studio project and submit a competitive bid.
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The studio, which is part of the arts and heritage hub outlined in the waterfront area plan, received six bids for construction and the average cost exceeded the town’s budget by more than 200 per cent according to a news release from the town.
“Most recently, local governments have faced significant inflationary cost increases for similar projects of this scale,” noted the release.
The project was to be mostly funded by a $3.3-million federal infrastructure grant the town received in 2020, and a contribution of $299,000 from the Island Coastal Economic Trust.
Despite the bids exceeding the budget, the release noted, council is proud of the design and value in the work done so far in collaboration among the project steering committee members and Stz’uminus elders. Council has since directed staff to discuss next steps with the parties that were to provide the grant funding.
bailey.seymour@nanaimobulletin.com
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