Saskatoon's new downtown shelter is running $360K over budget

Saskatoon council debates fate of downtown shelter WATCH: On Wednesday speakers at city council shared their thoughts and concerns about the proposed downtown shelter.

The emergency shelter planned for downtown Saskatoon has come in over budget.

City council approved the former Saskatchewan Transit Company building at 210 Pacific Avenue as the site for a 35-bed shelter in September.

The province has committed $250,000 toward the renovations. But now, a report from city administration says the cost to get the building in “usable condition” is now more than double that amount.

The report says the current state of the building has “limited heat and no ventilation.” It notes there have been some “cost saving measures,” such as reusing fixtures and salvaging doors from other buildings.

The new estimated construction cost is $535,000. City administration says there is also an additional $75,000 in costs related to the project, such as project management and site preparation, that the province has “indicated” are ineligible for its funding.

That brings the total projected cost to $610,000, leaving a funding gap of $360,000.

City administrators are recommending the extra costs be covered with funding from the Reserve for Capital Expenditures.

It’s also recommending the city continues to negotiate with the provincial and federal governments for reimbursement.

The report is expected to be presented to city council on Thursday.

In a statement to CTV News, the Ministry of Social Services says it is working closely with the City of Saskatoon and other partners to support the opening of the shelter. It says the city is responsible for project managing the renovations since it owns the facility.

The shelter is scheduled to open March 2025.