Brock Mission rebuild tab soars to $10.7M

City considers dipping into reserves to cover $3.2M cost overrun

The cost to build the new city-owned Brock Mission homeless shelter has increased by $3.2 million to $10.7 million — and city council may have to dip into reserves to help cover it.

The ramshackle Brock Mission was torn down earlier this year on Murray St. A new $7.5-million emergency shelter for men was planned to replace it on the same site.

The facility was designed to include 30 beds for homeless men, plus 15 small rental rooms (for men to occupy as they search for permanent housing).

But now the cost for that same facility has increased to $10.7 million; the staff report attributes it to the rising cost of both labour and building materials.

On Monday at City Hall, councillors are going to be asked to dip into reserves to come up with $3.2 million to lend to the project during construction.

Although the property and building will be municipally owned, the city has partnered with two other organizations to build the shelter: Peterborough Housing Corporation (a social housing provider) and Brock Mission (a Christian charity).

Under the partnership, Peterborough Housing Corporation will oversee construction and then manage and maintain the new facility

for the city, while Brock Mission will then lease the building to provide programs.

To pay its share, Brock Mission is fundraising $1 million and also plans to take out a mortgage when the building’s done.

The project has also secured $1.5 million in grants. Meanwhile the city was prepared to pitch in: last year council voted to borrow $3.8 million to help construction get underway, plus give $1.65 million in cash and waived fees.

But now council’s being asked to lend an additional $3.2 million – mostly from municipal reserve funds – to help cover construction (Brock Mission will secure a mortgage thereafter).

Councillors will be sitting as the general committee at a meeting on Monday when they consider this plan, which has been recommended by city staff.

The staff report to councillors explains that the cost overrun became evident in April, when competitive bids from construction companies all came in overbudget by at least $2 million.

PHC then reviewed the building design – by Toronto firm LGA Architectural Partners – to see whether the plans could be scaled back to save money.

But no savings were identified, the report states. “There are no high-cost features or finishes included that could be removed or replaced with lower-cost components without impacting the durability and functionality of the project,” it states.

The only other option left for the city, states the report, would be to cancel the request for tenders, do a redesign and then ask for competitive bids from construction firms all over again.

But that wouldn’t necessarily save the city money, Peterborough Housing Corporation advises, because then construction would be delayed until winter (which costs extra).

Although the staff report doesn’t mention it, Brock Mission is being housed temporarily at St. Paul’s Presbyterian Church up the street.

That church was recently sold to developer Clear Global Capital. Although the firm hasn’t announced its plans for the church, it has said Brock Mission can stay until the new facility is built.