Yellowknife suspends fire hall expansion after all contractor bids exceed $35M—far beyond the city’s $21M budget. Officials now weigh alternative options.
Expansion Project Faces Unexpected Cost Surge
The City of Yellowknife is reassessing plans to expand its 36-year-old fire hall after all contractor bids came in drastically over budget. While the city earmarked $21 million for the renovation and expansion, the three bids received in the latest tender process ranged from $35 million to more than $39 million.
Revisiting a Long-Needed Upgrade
Originally built in 1989 when Yellowknife’s population was around 15,000, the current fire hall no longer meets the needs of a city now exceeding 20,000 residents. A 2021 report to city council identified several critical deficiencies, including inadequate HVAC systems, no air locks to contain exhaust emissions, and insufficient space for expanded staff and equipment.
Budget Planning vs. Market Reality
City manager Stephen Van Dine said the bids were unexpectedly high, especially given that the original 2020 cost estimate ranged between $3 million and $7 million. “We didn’t expect it to be this much higher, but as it turned out, the study in 2020 didn’t think so either,” he remarked. “Now we’re faced with an inflated price, so the question today is—where to from here?”
Next Steps Under Consideration
With $10 million set aside for this year and an additional $5 million planned for 2026 and 2027, city staff are pausing the tender process to evaluate other paths forward. One option being discussed is constructing a new facility altogether. Van Dine stated the decision may be revisited during the 2026 budget cycle—or brought to council sooner.
Operations Continue, But Concerns Remain
For now, the fire hall remains operational, although not ideal. Van Dine emphasized there are no immediate health or safety threats but acknowledged the urgency of addressing the building’s deficiencies. “If there was an imminent health and safety risk, we’d take whatever measures necessary to make it a safe place to work,” he said.
No Federal or Territorial Aid Available
Unlike other capital projects, the fire hall expansion does not qualify for federal or territorial funding. The full cost would fall on the city’s capital budget. Van Dine noted, “This isn’t one of those projects where we’re eligible for offsets from higher levels of government. It comes down to decisions with council.”
Project Scope Was Ambitious
The tender documents exceeded 1,000 pages and proposed a full overhaul, including structural renovations, new HVAC and plumbing systems, updated roofing, exterior upgrades, and modern furnishings. With bids far surpassing expectations, city officials must now weigh whether to scale back, rebuild, or postpone the project entirely.
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