FORT ST. JOHN, B.C. — Fort St. John City Council has voted in favour of continuing to have NAPP Enterprises Ltd. as its contractor to demolish the Condill Hotel, with work set to resume as soon as possible.
Councillors held a closed-door meeting early Monday afternoon to discuss the legal advice the City had received earlier this month about its tendering process for the demolition. The legal advice was sought after a report from City staff recommended increasing the budget to buy and demolish the hotel from $1.5 million to $2.151 million was put before Council on January 22nd.
After discussing the legal advice during today’s closed-door meeting, councillors voted in favour of approving the demolition of the hotel using NAPP at Monday’s regular meeting, though with no exact dollar amount included. Mayor Lori Ackerman stated that the City’s lawyer found that the contract with NAPP was done properly and that the City would have faced a number of financial implications if Council had decided to reopen the contract to new bids.
During a question period at the end of the meeting, Acting City Manager David Joy explained that the cost to the City of reopening the contract for new bids would likely have seen an additional $500,000 added to the demolition budget. As for the final demolition cost, Joy explained that staff will be negotiating with NAPP on the final cost of the demolition.
He said that the City estimates the final cost, including the land purchase last Summer, would be no higher than $2,199,456. Mayor Ackerman explained that estimate was a ceiling and that the final cost could be lower.
Ackerman added that the City did not hear from any of the other proponents in the bidding process, and also explained that the cost of the Condill’s demolition will be covered by the 2018 Land Purchases budget in the Capital Budget. Though the City’s Capital Budget is partly covered by money from the Peace River Agreement, property tax revenues are allocated to the City’s Operating Budget, meaning that no residential tax money will be spent on the demolition.