The city is dipping into its reserved funds in order to pay for the first phase of the Golf Links Road Junot Avenue improvement project.
Council voted at Monday’s meeting to move ahead with the multi-million dollar project and awarded the contract to Taranis Contracting Group.
The company came in with the lowest bid of about $6.8 million although the amount is considered an estimate and final payment will be based on the finished work.
The first phase will be funded through the Renew Thunder Bay reserve fund.
About $3.5 million was committed in the 2012 budget for the first phase and $3.2 million will be available by the end of 2013. The city also received more than $10 million from the province in 2008, which was being recommended to be used for the entire first portion of the project.
Northwood Coun. Mark Bentz said they would ideally like to see higher levels of government but that wasn’t possible. He pointed out the province and federal governments have already previously contributed to the reserve fund.
“It’s not like we’re coming up empty handed,” Bentz said. “It’s a project we need to move forward with and administration recognized that. I’m not sure if it sets a precedence but [the reserve fund] is always an option though for this community to dip into. It’s reserve funds for whatever priorities the community has.”
At-large Coun. Rebecca Johnson wanted reassurance from administration that the project would stand the test of time. She said she didn’t want to spent millions on the corridor only to have fill in potholes within a few years.
City manager Tim Commisso said the Renew Thunder Bay fund is for projects like the corridor and there’s no strings attached.
Mayor Keith Hobbs asked how many jobs the project would create but administration couldn’t provide an answer.
Council also heard the next stage of the project could begin as early as 2014.
Pat Mauro, manager of engineering for the city, said they have nearly completed the plans for the second and third phase of the project. The plan is to have the second phase start in 2014 and the third in 2015.
Mauro added those plans can only go ahead if approved in the budgets.
