Thunder Bay – Government Funded Projects – A World Where Final Costs Just Don’t Matter

Thunder Bay Art Gallery opening changed to 2027

If the sign posted at the construction site of the new Thunder Bay Art Gallery – “Opening 2025” – was accurate, the work still left to be done would have be conducted at warp speed.

In fact, the sign is badly out-of-date, as the project is now expected to be completed in 2027.

Lesley Bell, interim chair of the gallery’s board since the end of January, told Newswatch “We don’t 100 per cent have it nailed down, but we’re hoping for early 2027.”

She cited multiple reasons for the longer timeline, but said construction is ongoing.

“It’s moving forward. If you come down to the site, which I do a couple times a week, you’ll see there are construction workers on the site, the foundation is finished, the roof is finished, there’s work going on inside, so the construction is moving along.”

Less than a year ago, the gallery’s executive director, Matthew Hills, was expressing confidence the new building would open in early 2026.

Bell has also confirmed the cost of the project has increased.

In 2022, the estimated cost was $50 million, but when construction began in the summer of 2023, it had escalated to $57 million.

“It will definitely be higher than 57 million, absolutely, but I can’t give you the exact figure,” Bell said in an interview.

“We started construction in July 2023, and that was right in the middle of COVID. And yes, there have been a lot of challenges. Prices have gone up because of COVID, supply-chain issues, the availability of trades…And one of the things that we don’t even know anything about is how the tariffs are going to affect us.”

She also noted that federal funding from the Infrastructure Canada’s green and inclusive community buildings program required significant changes to the building’s design, “because it’s now a carbon-neutral building, and that has extended the construction time for sure.”

To date, the federal government has contributed nearly $36 million, while the province and the City of Thunder Bay have provided almost $6 million each.

The gallery has also been raising funds in the community, with a goal of $5 million.

But Bell said additional money will be needed to complete the project because of rising costs, and that requires going farther afield for contributions.

“We had a target for raising funds in the community, but we’ve actually put a lot of work into developing a very fulsome fundraising plan, and we are going to be looking Canada-wide. Because, as you know, we have some significant artists in our collection. For example, Norval Morrisseau.”

Bell said the gallery will also be reaching out to previous donors as well as to groups that have not been approached yet.

She declined to discuss details of the expanded appeal but said the gallery will make an announcement soon.

“As a board, we’ve spent a lot of time talking about this project. It is our number one priority. We are extremely focused on it and we are absolutely committed to making this happen.”

Bell said when the new gallery opens it will be the jewel of the city’s waterfront, and – in combination with a planned Science North building and the cruise ship facilities – will become “an incredible destination” for local residents and visitors. – tbnewswatch.com

article website here

I am sure that the people backing the construction of the ‘mistake-on-the-lake’ are hoping for a Liberal victory in the federal election.  Patty has to come through with another pile of cash.  The project does not have enough public support to raise that amount of cash without the government stepping in.

I remember a conversation with an administrative employee of a local construction firm.  That person told me that they love government contracts.  Why? Because no matter what the cost overrun is, they always get paid. That project will be funded to the full amount no matter the cost.  Am example of this is the local hospital.   It ended up costing over double the original estimate.

My understanding is that originally the Ontario government wanted to upgrade Port Arthur General Hospital.  The cost of that was close to $93 million.  McKellar hospital would be closed.

Then, coming from somewhere, it was estimated that for another $40 million, we could have a brand new hospital.  City of Thunder Bay came up with $25 million. Hospital Foundation came up with $15 million.  It was then decided to build a brand new hospital.  Total cost estimated to be around $130 million.  The final cost came in at around $250 million.  Close to a 100% cost overrun.

You see, when it comes to paying with taxpayers’ cash or even future taxpayers’  which we are now doing, there is no limit to the final cost of a project.

Lesson learned: always low ball the original estimate. Get government committing cash.  Then just keep sucking up that sweet, sweet taxpayer cash for as long as you can. That is the way of government contracts.

The city’s waterfront development was/is no different.  Phase 1, which is basically what there is now was estimated to cost $40 million. Phase 2 which was moving the marina to a location at the south end of the park was estimated at $20 million.

The Phase 2 funds ended up being spent on Phase 1. Phase 1 costs exceeded the original estimate by at least 50%.  Maybe more. Who knows what the final cost of Phase 1 was.   Does not matter as it was all government funded.

I won’t set foot in the ‘mistake-on-the-lake’.  It should have been built in the old Eaton’s Building at the corner of Red River Road and Court Street.  Would have cost less as a  building already existed. Better location.  Better for the local businesses.  Get people to go there and patronize them. Especially cruise ship passengers.

Building the ‘mistake-on-the-lake’ in the park only a short walk from the cruise ship terminal means that nobody has to leave the park to visit the ‘Jewel of the North’.

Plus the lack of public transit access makes it hard for locals, who have no access to cars, to get there, especially with kids, especially in the winter.