Phase 2 of the Panoway on Wayzata Bay project, which includes the construction of the boardwalk and new docks, will come with a much higher price tag than expected based on the latest estimates.
The cost estimates received in December projected a 37-percent increase in costs due to marketchanges. The new estimate for the boardwalk portion of the project is $9.27 million.
The cost estimate for the new docks experienced an even greater increase, though the scope of that part of the project significantly changed with the decision to remove all of the docks for construction.
The estimate increased 170-percent to about $2.08 million.
The council met on Jan. 10 to approve the construction documents for the boardwalk, docks and Section Foreman House.
It voted 4-1 in favor of approving the documents to move the project toward the bidding phase.
Councilor Cathy Iverson voted against approving the documents but clarified on record that she is in support of approving the Section Foreman House documents.
Construction documents are not a final representation of what will be done on the Panoway. Several aspects of construction included alternates for cost saving purposes, such as alternate proposed materials.
For instance, there is an alternate option for the boardwalk railing that could save $230,000 by using galvanized steel rather than stainless steel.
With the construction documents approved, the various aspects of the project will soon go out to bid, starting with a request for proposals for steel and precast material.
This portion will be bid on first to stay ahead of any possible supply chain delays which Scott Jordan, principal of Civitas, said have largely eased.
Construction for the boardwalk and docks are expected to go out for bids in February.
According to the schedule laid out during the council meeting, construction of the boardwalk would begin in early June and be complete by the end of November.
Likewise installation of the docks would take place throughout the summer.
In late August, the Broadway docks would be removed while dock pilings are installed. The docks would then be open for the full 2024 summer season.
In voting against the approval of the documents, Iverson said her reservations stem from not having the funding secured, as well as the overall cost.
“The overall cost of the project is close to $10 million for a boardwalk that is probably less than a half-mile long,” she said. “We have $4 million I know we’re going to secure. I’m comfortable with that. My concern is with the additional funding of another $6 million.”
Iverson noted that several dates on the project’s schedule are fast approaching and she is worried about paying for the funding gaps with a loan paid through tax increment financing.
City Manager Jeff Dahl said though there is always some risk in taking out a loan, it is not a significant risk. He is optimistic that the city will secure more funding from the state.
“Everything is predicated on getting those plans out now,” he said. “This is a great time to solicit bids, get the best price and keep costs down. If it gets delayed, that potentially pushes us out another year.”