Fiacco frustrated by IPSCO Place project delay
Veronica Rhodes, Leader-Post
Published: Tuesday, May 13, 2008
REGINA -- Just a day after voicing his ire at a one month delay in the IPSCO Place revitalization project, Regina Mayor Pat Fiacco said the federal government has now warned him that necessary funding may not flow until the fall.
"At the rate they're going, we will take out a whole construction season. Unacceptable," a frustrated Fiacco said on Tuesday.
During Monday's city council meeting, Fiacco explained the first phase of construction for the IPSCO Place project, which was to break ground in May, has yet to begin due to a delay in receiving $20 million in funding from the federal government. Through the Building Canada Fund agreement, all three orders of government had committed the same amount to the project. But Fiacco explained that despite the funding announcement from the federal government in September, the money from Ottawa is on hold until it has received approval from the Treasury Board, which could occur in June at the earliest.
In speaking to reporters after Monday night's meeting, Fiacco admitted he may "pay the price" for speaking publicly about the delay but felt he should be honest.On Tuesday, Fiacco said he received word from Transport, Infrastructure and Communities Minister Lawrence Cannon's office that aside from Treasury Board approval, a contribution agreement must also be reached before the funding will flow to Regina. While city administration was aware the agreement was needed, it must be initiated by the federal ministry.
"We were told today by Cannon's office that at best, it will be three to four weeks for it to be approved. At worst, the fall," said Fiacco.
He has asked for a letter of approval so construction work can begin -- which has been given on previous projects such as the Wascana Lake deepening -- but it hasn't been provided by Cannon. Just a month wait would have added another $1 million to the IPSCO Place project's price tag, which will undoubtedly grow with further delays.
But a spokesperson in Cannon's office stated no time has been lost on the project because the construction was always set to begin in June.
Cannon wasn't available for comment on Tuesday but in a letter to the editor sent to the Leader-Post, he explained waiting for approval from the Treasury Board is not an unexpected postponement.
"The mayor was made aware of all the conditions attached to that funding. Since the announcement, the Government of Canada has not delayed funding for this project. Every step is following its course without delay to make sure Canadian taxpayers' money is well invested," reads the letter.
Cannon's spokesperson said his office has been in nearly daily contact with IPSCO Place staff regarding the project, who are able to incur "soft costs" for which they'll be reimbursed, such as non-capital expenses. However, a letter of approval for the project can not be sent from the minister's office until it has received Treasury Board approval.In February, the city was asked to complete its portion of the Treasury Board submission, which Fiacco said was completed immediately and sent back to Ottawa. Recently, the city administration was notified that the ministry had completed due diligence on Regina's submission and work would now begin on the federal portion of the Treasury Board submission.
Fiacco said all along, May 1 was the start date for construction.
"May 1 is what we told them back in February when the application was filed. The announcement was made in September, we were given the application in February, we filled it out immediately. The ball was in their court. Now they tell us," he said.
Fiacco is waiting to speak to Cannon and has also called Regina-Lumsden-Lake Centre MP Tom Lukiwski, who has been supportive of the project. Meanwhile, work cannot begin on the project or else all federal funding will be lost.
"I feel that we've been misled, plain and simple. This is not how we should be conducting business ... I think I've been quite diplomatic about it and I continue to be diplomatic but this time, the citizens of Regina need to know that there is an order of government here that has delayed this way longer than it needs to be," said Fiacco.
"It ought not to work this way.