Calgary faces $75 million cost overrun on Werklund Centre renovation downtown

Calgary's renovation of the downtown Werklund Centre—the multi-venue performance facility formerly known as Arts Commons—has grown significantly more expensive. City administration told councillors on Monday, July 20, that the project budget has jumped from a January estimate of $270 million to $345 million, a $75 million increase.

Kate Thompson, president and CEO of the Calgary Municipal Land Corporation, said the higher cost reflects a deeper understanding of the more than 40-year-old building's condition and what's needed to bring it up to code. The increased cost stems from seismic upgrades, an expanded scope for operations, and alignment with a construction timeline that would begin in 2029 if funding is secured.

"The more detailed understanding you have of the project, the more detailed you get in the budget, and that's where we are today," Thompson said.

Roughly $75 million has been committed to the existing centre's modernization, leaving a $270 million funding gap. The city is requesting council commit to doubling its contribution to $125 million in the next budget cycle. Administration is also asking Ottawa to match the province's $103 million contribution.

The renovation includes exterior work, redeveloping the Jack Singer concert hall lobby, improved accessibility, expanded connectivity between theatres, and more office and arts education space. The project is part of the larger Werklund Centre Campus, which also includes Olympic Plaza's renovation and construction of a new performing arts centre.

Construction is already underway on the new downtown arts centre and Olympic Plaza renovation, both on schedule.

City council will decide how much to commit toward the Werklund Centre renovation during budget deliberations this fall. Ward 6 Councillor John Pantazopoulos said the city needs to move the project forward despite cost escalation concerns.