Development

Minimizing the impact Trump’s tariffs could have on the $130 million REC-reate Strathcona Garden project

It is only two weeks until President Donald Trump decides whether to impose 25% tariffs on Canada and Mexico. There is some question whether he will follow through. Trump was initially going to impose the tariffs on February 4, but the previous day Wall Street’s three main indices fell sharply over concerns about the global economy. The stock market recovered that afternoon, after Trump announced he would postpone the tariffs for a month. However Canadians are preparing for the worst and, on the local level, one of the topics discussed at yesterday’s Strathcona Gardens Commission meeting is the impact Trump’s proposed tariffs could have on Campbell River’s $130 million REC-reate Strathcona Gardens project. 

Image Credit: Screenshot from Wolfgang Parada’s Feb 19 Progress of Work presentation

(The REC-REATE Strathcona Gardens website needs to be updated. As you can see in the illustrations above and below, the estimated cost is now close to $130 million. The debt portion is below)

Commissioner Cal Grunerud raised the question: “ What’s happening with America.”

Commissioner Ron Kerr stressed,  “This is a tariff that is definitely going to raise our costs.” 

Wolfgang Parada, Senior Engineering Manager with the Strathcona Regional District,  assured the Commissioners that steps are already being taken to minimize any impact. 

 “The first thing is looking at the contracts, what type of contract the General Contractor has with the trades. It’s under the duties and taxes, basically the trades are only responsible for those duties and taxes when they bid for the project. Anything extra will be billed to the General Contractor. The General Contractor will pass it to us.” 

Forming colums, technical corridor and change room area

“We need to work carefully  to minimize the impact to the project and the first thing that we have done is we asked the General Contractor to compile a list of materials and equipment coming from the States.” 

“This is very preliminary right now because if the tariffs are implemented to Canada, that doesn’t affect the project. It will only affect the project when Canada retaliates and put tariffs on the States,  if those tariffs are related to some of the  materials that are coming for this project. That list is being  developed at this point. We need to understand what suppliers we have here in Canada, if there are alternatives. We need to look at  the status of the solutions.”

“This is not an easy process. When we hire a trade, that trade needs to submit shop drawings. Those shop drawings are approved. They need to procure the equipment. Once they buy the equipment, they ship the equipment from the States. Once they cross the border, that’s when they pay the tax.” 

Parada explained they are still trying to assess which materials can be brought into Canada before the tariffs are implemented. They are also trying to identify Canadian alternatives for some products.

“I’m happy to provide an update as soon as I have more information, but we know it’s critical. We’re ahead of the game and we’re hoping that the project budget and as well as the schedule doesn’t get impacted by the tariffs.” 

David Leitch, CAO of the SRD, added, “If there’s going to be a negative impact, we’re going to let our MP, MLA and the province know because they will be hurting us.”

Finishing the exterior of the south concrete wall

Links of Interest:

All photos taken from Wolfgang Parada’s Feb 19 Progress of Work presentation in the meeting Youtube.

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