U.S. tariffs bump up cost of Dieppe community centre to $30.5M

As trade officials in Canada and the United Stateshurry toreach a new NAFTAagreement, one New Brunswick city is already feeling the pressure ofhigh tariffs.

On Sept.10, Dieppe city council awarded a $30.5 million contract to construction company, Pomerleau Inc.,to start buildingthe IntergenerationalCommunityComplex, a community sports complex set to open in the fall of 2020. The city was hoping it would initially be ready to open in2019.

The initial cost estimate for the project was $29 million, which the city later had to reviewwhen the U.S. slapped increased tariffs on steel, aluminum and wood this spring.

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"The construction price came in about [$1.5 million]over our projected cost," saidDieppe MayorYvon Lapierre.

The mayor saidprojected costs were completed about 18 months ago.

"Since then of course, the imposition of tariffs on steel, aluminum and wood products has had a very negative impact on us."

Time to reassess

Lapierre saidthe imposition blindsided Dieppe council, and they had to take an extra month to reassess the cost of the project.

"Between the time when we made our business plan and today, the tariff on iron increased by 30 per centand the tariff on wood between 25 per centand 28 per cent," he said.

The increase in prices of material to build the centre caused the price to go way over what was initially budgetedby Lapierre and his Council.

"We had to resign ourselves to making some changes to our initial plan."

The proposed Intergenerational Community Complex will replacethe Centennial Arena, whichwas built in 1967.

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The complex will feature anindoor walking track, a community kitchen, community rooms that can accommodate up to 150 people, a primary ice surface with about 1,000 seats, a secondary ice surface with about 300 seats, and an intergenerational greenhouse.

But Lapierre saidcouncilhad to modify the centre's construction plan in orderto meet the budget, such as emergency generating services, which would cost more than $1 million.

"Considering that we already have three sites where we have emergency generators we thought that this was something we could cut back and perhaps at a later point in time, reintroduce in that building," he said.

The project will be funded by all three levels of government and people in the community.

Mayor remains cautious

Lapierre saideverything else appears to be going according to plan, barring any other tariffs, but he'sexercising a certain level of caution.

"If you're going to want to build a project, you're going to have to pay the price," saidLapierre.

Canadian Foreign Affairs Minister Chrystia Freelandisreturning to Washington this week for another round of high level talks with her American counterparts.

After weeks of talks, she is hoping to conclude negotiations to revamp NAFTA.

Freeland returns to Washington

6 years ago

Duration 0:35

Foreign Affairs Minister Chrystia Freeland said she will return to Washington this week to meet face to face with U.S.T.R. Robert Lighthizer on the future of NAFTA.

The negotiations are still looking for resolutions onissues such as,protection for Canada's cultural industries and the retention of a dispute resolution mechanism used to challenge punitive anti-dumping and countervailing duty measures.

Both the U.S. and Mexico have already reached an agreement in principle and are threatening to move on without Canada if Ottawa does reach a deal by Oct. 1.