A major project in Winnipeg has a big new price tag.
Mayor Scott Gillingham campaigned on the promise of getting the Chief Peguis Trail extended.
There is a plan for a 10-kilometer extension from Main Street to Brookside Boulevard, but the project’s price has skyrocketed.
It’s now estimated at $902.3 million, including interest—up from a 2019 estimate of $486.6 million.
“We know that construction inflation continues to impact our capital projects,” said Mayor Scott Gillingham.
These numbers are based on the city paying for this alone, but Gillingham says this needs to be cost shared with the other levels of government.
“We’re going to make sure that the premier’s office has a copy of this report,” he said.
Gillingham says the pros of the project would outweigh the cons.
A report says building the road would open up three big parcels of land for housing and business developments, including 15,000 units for 38,000 people, adding 5,600 jobs.
Not to mention the extra property tax and utility revenues that would flow.
“This project is about our competitiveness as a city; it’s about our competitiveness as a provincial economy as well, so this project is really important,” Gillingham said.
With potential U.S. tariffs looming and the push to move goods more easily within Canada, Chief Peguis is viewed as a trade corridor.
“Whether it happens in the States or not, I think this is something that we seriously need to consider,” said Coun. Janice Lukes.
But the $900 million hit has some questioning if this is worth it.
“When you see a pool being demolished or a community centre that has to close, those are the choices that we’re making when we endorse a large project like this one,” said Coun. Matt Allard.
The report says the project could potentially be done by 2031, but that’s based on a 2025 start date, which is not likely at this point.
Council will now be asked to vote for an independent value for money study on the project and look at how to pay for it.
