Cost of new Fredericton performing arts centre soars to $111.2M
Inflation on construction materials, labour shortages blamed for increase
The estimated price tag for a new performing arts centre in Fredericton has climbed again, this time hitting $111.2 million, prompting city council to vote in favour of borrowing more money to keep the project going.
It's a move Coun. Steven Hicks openly opposed and was the only one to vote against.
"So now we have a $100,000-a-seat theatre here … in Fredericton," he said at council this week.
"[The cost] has escalated out of control and I don't know where it's going to end."
Hicks questioned the need to move forward on the increasingly expensive project amid other needs the city has, such as a new fire station and a recreational field house.
Latest in series of cost increases
Monday's updated cost estimate was the latest in a series of increases to the construction.
The Fredericton Playhouse was built 60 years ago, and in recent years, the building has been plagued by issues with its roof and mechanical systems.
In 2018, council committed to building a new performing arts centre at an estimated cost of $45 million.
That estimate increased to $58 million in 2022 and to $81.7 million in 2023.
Like the previous increase, inflation on building materials and a shortage of skilled labour are being blamed for driving up the cost of the project once again.
"As you know, we've seen construction costs ballooning in the past few years," said Tim Yerxa, executive director at the Fredericton Playhouse Inc., which is overseeing the construction.
"What we are seeing in the market is that it has been very difficult to get competitive pricing from trades as they continue to experience labour shortages, rising material costs and supply chain issues. And that's coupled with a very active [construction] market."
Ground was broken last April at the corner of Regent and King streets to build the centre, which will house two theatres with a combined capacity of 1,150 people.
Yerxa said underground work for the building is complete and form work on the upper levels is now beginning. The building is expected to be completed in early 2027, he said.
City could borrow additional $25.8M
The resolution that passed means the city will be able to borrow up to $48.4 million from the Municipal Capital Borrowing Board, up from the $22.6 million limit that council previously agreed on.
Sara DeGrace, the deputy chief administrative officer, said the city has applied for a $25-million federal grant, which would cover much of the cost increase.
If that doesn't come through, DeGrace said the city would be able to borrow $48.4 million while still keeping the portion of revenue that goes toward servicing its debt below its eight per cent limit.
"We're currently at 4.2 per cent of our eight per cent debt cap," DeGrace said. "With this increase, we would be at 5.6 per cent, which would still leave a respectable and responsible amount to invest in one-time projects."
As it stands, the performing arts centre is expected to be paid for using $47.6 million from provincial and federal funds, $8 million from a public fundraising campaign, $2.3 million from the sale of the current playhouse property, and $53.3 million from capital fund spending and borrowing by the city.
Of the $111.2 million price tag, $6.4 million are contingency costs.
Project still worthwhile investment, says mayor
Despite the cost increases, Fredericton Mayor Kate Rogers sees the new centre as a generational investment in the city's arts and culture scene.
"It's an investment in the creative sector, and Fredericton has a significant creative sector, and it deserved the investment that we have been giving in other sectors and in other areas," Rogers said.
Rogers said aside on top of the benefit to the arts scene, she thinks the new centre will attract more visitors and generate more business for the city's downtown.
"To me, we're a capital city, and every urban centre, every capital city needs to have a performing arts centre that delivers live performance to the residents."
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