FORT ST. JOHN -- The next phase of the 89th Avenue construction project in Fort St. John has been delayed until 2025.

The city halting the upgrades due to cost concerns that saw the only tender presented for the project over budget by $1.4 million.

Terus Construction Ltd submitted the tender, providing a cost quote for the work totalling just over $8 million, which included construction, contingency, and engineering.

The city has allocated just shy of $6.6 million for the two year project that would see paving, water main, storm sewer, and street light enhancements east of 81st to 86th streets.

City council deciding in a special meeting held on May 6th, 2024, to reject approving the contract.

Councillor Trevor Bolin said that although the work needs to be done, awarding the contract could raise tax rates in order to offset costs.

“I hope you understand why this decision was made, and I wanted those of you who have asked the city to act to hear directly from me why it’s not getting done this year,” said Bolin in a Facebook post.

The city will delay the project unitl next year to allow more companies to place bids.

Upgrade projects around the city are funded through non-property tax revenues, including the Peace River Agreement, water, and sewer reserves.

The first phase of construction on the 89th Avenue project began on August 1st, 2023, with sidewalk and paving work expected to wrap up later this month.