| CJSW’s move to a new office is in jeopardy because the non-profit campus and community radio station has been unable to reach an agreement with the University of Calgary’s Students’ Union (SU) on costs.
CJSW was supposed to be moving into a newly renovated space on the third floor of the old Mac Hall. The renovations were expected to include space for CJSW, NUTV, a new multi-faith prayer room, and new public bathrooms. However, the SU has decided to move ahead with construction without including CJSW. The SU is the project manager for the renovations.
CJSW station manager Chad Saunders says negotiations with the SU hit a major snag in October 2005, when the SU presented CJSW with a projected cost of about $850,000 for the new office. Saunders says the SU wanted CJSW to sign off on the deal, but CJSW had concerns about the estimated costs and asked for a more detailed breakdown. After CJSW mentioned its concerns to the university, the university commissioned an independent audit. Saunders says the audit found that the SU’s projected costs were 10 per cent higher than necessary.
Saunders says CJSW also had concerns about the fact that the SU was planning to charge a 10 per cent project management fee as well as make a 10 per cent "profit" on the CJSW project.
In early January, Saunders says the SU came back to CJSW with a new projected cost of $1 million, but once again didn’t provide a detailed breakdown of costs, ,so CJSW again refused to sign a contract.
"Maybe we got deemed a pain in the ass, but there’s due diligence here," says Saunders. "I’m just trying to do the most financially responsible thing. We don’t have a blank cheque."
Even if CJSW agreed to the project, it doesn’t have $1 million. The non-profit group has spent the last five years fundraising and has tried to access all the government funding it can, but currently only has $700,000, says Saunders. He says the relocation is necessary because the current office in the MacEwan Student Centre has poor ventilation, needs infrastructure upgrades and is too small.
"We’ve outgrown the space. Our membership is the biggest it’s ever been – probably around 250 people. The library is maxed out. We have some programs like the German show and the Greek show, that actually have the library for their shows at home because we can’t put it in the office," says Saunders.
Joel Lockwood, vice-president of operations and finance at the SU, says construction on the CJSW office could have begun already if the station had signed a deal with the SU.
He says the most recent cost projection for the CJSW office was so much higher than the previous estimate because construction costs have gone up dramatically in Calgary.
"There’s less and less supply and more and more demand so prices are going up," says Lockwood.
The CJSW project was expected to cost $850 in October, 2005 because the plan was to tender it out along with the NUTV office, the multi-faith prayer space and the new public washrooms, which would’ve resulted in more "economies of scale." If the CJSW project is tendered out on its own, those savings would no longer exist.
Lockwood says the SU is hopeful it can come up with a deal with CJSW to complete the project.
"I’ll admit things from both sides haven’t been perfect on the communications front. I’m not going to say that everything is the fault of CJSW. In retrospect, there’s always things you can do a little better," he says.
Saunders says CJSW now has to figure out how to come up with additional funding or it will have to scale down the project.
"We’re just trying to figure out how to make this thing go," he adds. "Obviously there will be a campaign of sorts to see if anyone in the community is interested in helping out with this project. We’re just trying to get the damn thing built."
Saunders says the SU just provided a breakdown of the costs associated with the $1 million estimate on January 30 and he says CJSW still has questions and concerns. He says he’s hoping to sit down with the SU and work something out. |
Copyright ©2006 FFWD. All rights reserved.