The scale of Phase I of the York Colony housing development is being doubled.
The first phase had previously been approved by Yorkton Council and was to consist of 10-lots.
"The lots are to be smaller widths than those normally found in the city. The intent is to create lots in the $30,000 to $40,000 range so that the homes can be affordable," detailed a report to the regular meeting of Yorkton Council Monday.
The builder has now found that to make this project achieve an economy of scale, it would be preferable to have twenty lots rather than ten, said Gord Shaw, Director of Planning & Engineering with the City.
The tender was awarded in August 2011, to Wyonzek Brothers Construction Ltd., to undertake site work and install services. This work was based on ten lots. The cost for this phase of construction was $808,480.
The cost to double the project size was estimated at an additional $351,000, however Shaw noted, the builder's proposal has not been forwarded to the contractor.
"There are some economies of scale since the contractor is already there," said Shaw.
"The additions to the contract would include additional site work and installation of additional services. The contractor would be constructing the road so there is no charge with this work. There would be additional road and lane constructed to provide access to the additional ten lots," detailed the report.
"The benefit of undertaking this work now is that the contractor will already be on the site and there will be efficiencies gained by doing these additional lots this year rather than waiting for the first ten lots to be occupied. The city may also gain by having the work completed this year rather than in future years when prices will have escalated."
In making the motion to approve expanding the project Councillor Les Arnelien said he could appreciate it was more cost effective to do twice the number of lots, adding he believes there will be demand for the affordable lots.
Coun. Chris Wyatt was not opposed to the expansion but wanted the project re-tendered rather than handled through a change order for the existing tender.
"I don't feel comfortable just adding a change order on a project of this scale," he said.
Arnelien said since the initial tender was accepted, the City had to obligate it.
Council voted to expand the project through a change order, with Wyatt opposed to the motion.