Aurora councillors are disagreeing over how to frame the cost overruns for the construction of Aurora Town Square.
The initial budget for the facility was $51,939,700, but the project faced “significant delays” and COVID-19-related cost impacts, according to Robin McDougall, the town’s director of community services, who presented a report on the facility’s finances during the town’s committee of the whole meeting on Tuesday, Feb. 11.
Council also approved $1.8 million in extra spending for the project in two phases — $1.2 million in February 2023 and $600,000 in January 2024. Council also approved a $5,993,700 settlement of claims from the contractor.
“This settlement was important and avoided a protracted and costly dispute process and eliminated the ongoing liability relating to project claims, which could have resulted in considerably higher costs to the town than what was being offered,” added McDougall.
Ultimately, the Aurora Town Square facility, which officially opened in September, cost $59,733,400.
But through the town’s $5-million fundraising campaign, staff put the actual additional costs of building the facility at $2,793,700.
Councillor John Gallo questioned that framing, saying he saw the fundraising money “as an additional mode of revenue.”
“I don't see it as appropriate to subtract that from the total expenses. It’s just under an $8-million cost overage versus our budget. We recuperated $5 million through the donations,” said Gallo. “But we were over budget by just under $8 million; let’s be very clear on that.”
Councillor Harold Kim said he thought the best use of the $5-million fundraising money was to help cover the costs of the Town Square construction.
“I don’t think it really matters whether it’s on this side of the ledger or that side of the ledger; the project did cost $59,733,400, and that’s not something that’s trying to be not shared,” said Kim.
The Town Square project was in the works for several years, with McDougall describing it as one of the largest the town has ever taken on. The groundbreaking ceremony took place on Oct. 8, 2020, with construction being completed ahead of the facility’s grand opening in September 2024.
McDougall said there are some minor works still to be completed, with plans to spend $4,000 to improve the sound system in the Davide De Simone Performance Hall.
Ultimately, the report was received for information.