- The city statement notes inflation as the basis for the price increase.
- The cost of making an overpass for traffic at the rail crossing on 50th Street has ballooned by $34 million in recent months due to inflation.
According to a new statement by Edmonton city staff, inflation pressures have jacked up the price of making an overpass at the 50th Street and CP rail crossing by over $34 million. Plans to build a grade separation at the crossing in southeast Edmonton have been in the works for years.
Traffic uncertainties induced by trains moving across the busy street have long frustrated drivers. The intersection has been marked as one of the city’s top three preferences for grade separation.
The project aims to create an overpass for vehicles at the Canadian Pacific Rail crossing at 50th street north of the Sherwood Park freeway and broaden 50th Street from four to six lanes between Sherwood Park Freeway and 90th Avenue.
The anticipated cost was around $145 million, and a tender was put out before this year. But after getting bids, the city team says the offer they’re recommending the council accept came in at over $179 million and that the budget will require an increase.
According to the statement going before council Monday, several inflation factors played into the 23 percent climb, including geopolitical trade wars, disorders in the building industry due to COVID-19 and weather change, and substantial increases in commodity costs – such as a 300 percent upsurge in the price of nickel.
The city staff urges the council to forge ahead and back the additional funds. The report cites that some work has already been completed, all the required land has almost been acquired, market prices aren’t anticipated to improve soon, and it’s impossible to change the plan.
Source – cbc.ca