City council is moving forward with the reimagined Adie Knox Herman Recreation Complex Project.
During Monday's meeting, the council reaffirmed its support for the project despite concerns over inflationary pressures or potential cost increases caused by tariffs being imposed as part of U.S. President Donald Trump's trade war with Canada.
Council will proceed with awarding the construction contract to Fortis Construction Group, which submitted the lowest tender of $19.5 million for the Reimagined Adie Knox Herman Recreation Complex Project.
In July 2022, the council approved the project to redevelop the existing Adie Knox Herman Recreation Complex and Wilson Park parkland to create a community hub that will include building and arena renovations/upgrades, new outdoor amenities in adjacent Wilson Park, along with a new parking lot, landscaping, and lighting.
When asked about potential cost increases, Deputy Chief Administrative Officer Ray Mensour told the council that, similar to any other tender, they have a fixed price and a contract to hold the contractor to it.
"Part of that contract includes a clause regarding tariffs, so out of the $20 million, around $5 million is subject to tariffs. So there's a maximum clause that they can charge us up to 25 per cent of that $5 million. As you can see in the budget, we have room to absorb that within the existing budget," he says.
Mensour also told the council the risk to the municipality is minimal.
"We will have a signed agreement with the contractor; therefore, we do not anticipate any overruns, and we still have a contingency on top of that," he says.
A deal has also been reached with the University of Windsor to have Adie Knox serve as the home arena for the men's and women's Lancer Hockey teams, with the upgrades including dedicated space and locker rooms for the teams.