Rising costs are delaying construction for the planned $40-million development on the site of the old Woolworth’s building.
The planned multi-use development at 99 King Street is now facing an $8-million increase to its initial price tag due to inflation and interest rates, according to the project developer.
“You just can’t budget for a contingency of 30 to 40 per cent, so yeah, we’ve seen a drastic increase in the cost of materials in particular, but also labour,” Percy Wilbur said in an interview Tuesday.
Wilbur mentioned the instability of global markets and supply chains are also factors that are causing increases.
“For example, in the past, when you did a construction job of this nature the contractors would hold their pricing, such as plumbing and electrical supplies for three or four months. Now they will hold it for seven days.”
The initial design of the 12-storey development showed three floors of commercial space, including ground-floor retail, and around 93 residential units on the top nine floors.
However, to address the increased cost, Wilbur mentioned a redesign is underway.
“We are redesigning it to accommodate those costs, and to get our costs back down. What that most likely involves is that the apartments would be smaller, while at the same time keeping the amenities and the classic look of the building.”
With construction delayed, Wilbur added he is working to reopen sidewalks on King and Charlotte streets, as well as access to South Market Street next to the City Market.
