Saskatchewan’s new downtown skyscraper is expected to cost about $5.5 billion, but a $1.2-billion contract for the tower’s construction will cost an extra $1 billion.
That’s according to a new analysis by the Saskatoon Economic Development Corporation (SDEC).
The $1-billion estimate includes an additional $300 million for an existing tower and a $200 million loan to the City of Saskaton.
It also includes a $150-million payment for the City’s contribution toward the project.
“We’re just going to make sure that we’re paying for what we’re going to get out of it, and if there’s any question about whether or not it’s fair to taxpayers, we’re just not going to do it,” SDEC president Dave Poulsen said Monday.
The tower is being built on the city’s site at the intersection of Main and Dixie streets.
Its first phase will be completed in 2022.
Poulsen was unable to say how much the city paid for the building.
He said that’s not yet known because the city has not completed any public hearings on the project yet.
The project is being financed by a $50-million bond issue from the city.
The SDEC estimates that the project will cost about 15 percent of the city budget.
The SDEC said it received the $1 million estimate Monday from a source close to the project and that the agency did not provide any details about the source.