THUNDER BAY — The cost of the new Thunder Bay Art Gallery has escalated to the point there is now a funding shortfall of almost $23 million, meaning construction may have to be halted, and leaving organizers to consider a phased approach to the facility's eventual opening.
While it seeks additional funding sources, TBAG is looking to the City of Thunder Bay to immediately release the $5 million the city agreed to contribute in 2017.
According to a report prepared by city administration for city council, the gallery currently has funding commitments totalling $52 million, but the cost of the waterfront facility has now ballooned from a 2023 forecast of $57 million to about $75 million.
That's a 50 per cent increase from a projected cost of only $50 million in 2022.
In March of this year, the interim chair of the gallery's board conceded the cost would "definitely be higher than $57 million," but said the exact figure wasn't available yet.
At the time, Lesley Bell cited a variety of factors for the rising costs, including the impact of the COVID-19 pandemic, supply-chain issues, the availability of trades, and design changes to meet carbon-neutral requirements for federal funding.
She also revealed the completion of the project had been moved back from 2025 to 2027.
In fact, city administration's report to council indicates the gallery is considering the possibility of completing only part of the building while it pursues funds to finish the rest.
A partially-completed structure would still cost $64 million.
"Without the City's contribution, the Art Gallery has indicated that construction could be halted as early as October 2025 due to cashflow shortfalls, leaving the asset incomplete and not weather-tight," the report cautions.
"While release of the $5 million would not guarantee partial opening or full project completion, it would significantly advance construction to a weather-tight and protected stage, providing the Art Gallery with additional time to pursue further fundraising efforts and apply for additional Federal and Provincial funding opportunities."
Administration is recommending council approve the release of the funds in two instalments, subject to the execution of a funding agreement and completion of land lease amendments.
To date, the federal and Ontario governments have committed $41.4 million to the project, and TBAG fundraising has brought in $5 million.
