The CP Rail crossing on Hwy 11A at Red Deer's north end originally to receive a new overpass and four lanes by 2023. (Google Maps)

By rdnewsNOW Staff

Pressing Pause

City pauses Red Deer’s Highway 11A project construction

Jul 4, 2022 | 9:41 PM

The City of Red Deer is “temporarily cancelling” the Highway 11A/Northland Drive project, originally scheduled to begin this year.

Presented at Monday’s council meeting, administration said the pause is due to “unforeseen circumstances such as escalating construction and material supply costs, changes in development timing and competing priorities.”

They also state that there has been no interest from developers in proceeding with development in the area and that debt funding should be prioritized for the increased construction costs throughout the city for repair and maintenance.

Construction was originally planned to twin Highway 11A from Highway 2 to Gaetz Avenue this year, while roundabouts were to be added at both Taylor Drive and Gaetz Avenue intersections along 11A in 2023 and 2024, as well as construction of an overpass over the railway.

During deliberations for the 2021/2022 capital budget, council approved $47.4 million of debt funding for the project. In addition, Alberta Transportation committed $15 million in funding, while CP Rail committed $3 million.

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Recently, bids for the project came in more than $25 million over budget, leading The City’s Engineering team to postpone.

“We anticipated costs would be higher due to recent inflation of material supplies, but the quotes we received were substantially higher than our original budget,” said Konrad Dunbar, Engineering Services Manager. “The added cost, compiled with shifting growth patterns in our city, have led us to postpone the project for the time being.”

Approximately $9.8 million of the roughly $47 million budget has been spent on design, land acquisition, utility relocates and other preliminary work. The remaining $37.6 million of unspent budget will be returned to the original funding sources, for future use on capital projects. Specifically, $32.6 million will be returned to Tax Supported Debt and $5 million to Offsite Debt.

The proposed funding from Alberta Transportation and CP Rail are part of Cost Contribution Agreements and will remain available once the project is rescheduled.

“The work that has been completed will be necessary when the project is restarted, so those funds have not gone to waste,” said Dunbar. “The project will be rescheduled in future budget years in alignment with development.”

The City says they will continue to monitor traffic needs as development continues in the area to identify future timing for the project. Council is to reconsider the project during budget deliberations in November.

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