A bid to build the Chatham-Kent Community Hub (CKCH) has come in almost $4 million below the original estimate, but the overall project cost of the project remains the same.
The Municipality of Chatham-Kent said Council will be voting on October 20, 2025, on the recommended $39,280,323 tender awarded to Fortis Construction Group Inc., based in Tecumseh. The original estimate to build the Hub at the former Sears building in downtown Chatham was $42,920,000.
Municipal officials noted the bid includes nearly $4 million in contingency funds to address "the unexpected."
They added that the overall project budget remains at $52.8 million, including more than $7 million of contingency funds that are "best practice" for a project of this size, adding that it aligns with the cost estimate presented to Council in May 2025. The $14 million difference between the construction cost and the overall project budget is allocated for items such as the cost to buy the building, consulting fees, purchasing furniture and equipment, building upgrades, and moving expenses.
The municipality reiterated that if Council approves the project, it will proceed without any related property tax increases, and the budget includes contingencies to deal with tariff impacts.
Administration said the funding for the project will come from a combination of property sales, reserves, development charges, and a debenture, with no additional tax levy increases required.
According to staff, there is also a strong potential for donations and naming rights for this project to further support and reduce the final debenture required.
“We’re committed to ensuring this project proceeds in a financially responsible manner, so seeing the recommended bid come in under budget is extremely exciting,” said Mayor Darrin Canniff. “This project is one of the most significant investments in our community’s future, and it’s something we’ve saving for for many years. We can't afford to not do this; the alternative options are more expensive and don't offer nearly as many benefits to the community. I am committed to seeing this project progress responsibly, sustainably, and for the betterment of all of Chatham-Kent.”
Should Council award the tender, construction is expected to begin in December 2025 with completion anticipated in early 2028.
The Hub will house a new civic centre, a new library, and a new museum.
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