Plans for a long-dreamed-of arts and heritage waterfront development in Ladysmith have been put on hold after bids far surpassed the $2.18-million construction budget.
The town put the project out to bid in August. Six bids met the project criteria, but the average cost exceeded the town’s budget by more than 200 per cent.
It’s a major blow to the town’s vision for a lively mixed-use development rising up from the harbour and incorporating First Nations arts and culture.
The project was mapped out in consultation with the Stz’uminus First Nation as a key component of its extensive phased waterfront-area plan.
Plans call for a 4,500-square-foot studio for local artists that would highlight Coast Salish art, and a boardwalk.
The studio would face Oyster Bay Drive and be in the midst of open spaces encouraging social interaction and a variety of uses.
Ladysmith was planning to use a $3.3-million federal grant from the Canada Infrastructure Program toward art studio construction as well as for other components of the arts and heritage hub.
When the federal money was announced, Mayor Aaron Stone called the arts and heritage hub the “public heart” of the waterfront plan.
Also envisioned are a community meeting place, industrial arts building, café/gift shop and improvements to existing historic buildings.
A development’s budget is typically higher than the construction costs alone, due to additional costs such as consultants’ work and permitting.
Municipal staff are reviewing the situation and talking to funding agencies about what to do next, the Town of Ladysmith said in a statement.
Ladysmith is just one of many governments, organizations and businesses facing rapidly soaring costs for projects amid rising inflation, labour shortages and supply-chain challenges.
The town hired a consultant late last year to prepare a cost estimate before it went to tender on the project.
The Island Coastal Economic Trust’s capital and innovation program contributed $299,200.
The Stz’uminus First Nation is planning to take over the Ladysmith Community Marina in the new year under an agreement with the province, which holds the water leases. The nation has said it anticipates working toward a smaller version of the Vancouver’s Granville Island Market.
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