The cost to demolish part of the plaza at 70 Front St. N. is more than expected.
Council committee granted staff’s request Monday to increase the budget by $165,000 — taking it from $300,000 to $465,000.
Staff noted in a report the original budget was established four years ago.
“Since that time, and especially considering the current COVID-19 situation, tender submissions and pricing have increased dramatically within the construction industry,” the report stated.
In August, the city issued a request for tender for the project — the demolition of all of the plaza except the Metro grocery store to extend Coldwater Street to the waterfront. All tenders came in above the original budget, but Tri-Phase Group had the lowest at $367,178.
The additional $165,000 will be funded from reserves — $55,000 from the roads reserve and $110,000 from the land acquisition reserve.
Demolition will begin sometime this fall and is expected to be finished near the end of the year.
