Strategic Group pauses work on Barron Building transformation

Photos show artist renderings of the Barron Building. (Strategic Group)

Work to transform Calgary's first skyscraper into a mixture of rental suites and retail space has been halted amid rising costs, resulting in reports construction workers are not being paid.

In a statement to CTV News, Strategic Group, the Barron Building’s owner, said once work to convert the historic building was underway, they learned costs were "much higher" than had been anticipated.

"To address this, we have paused construction as we undergo a value engineering process to this important project," said Strategic Group.

The company said it hopes the value engineering will be complete within 45 to 60 days, at which point they will resume construction.

"As construction resumes, all our construction partners will be fully compensated for the delay," said Strategic Group.

"We look forward to the completion of this special project and welcoming Calgarians to new homes in the Barron Building."

The Barron Building, located at 610 Eighth Ave. S.W., was built in 1951.

When it reopens, it will have 118 new, modern rental residential suites and a number of street-level retail spaces.

The project is expected to be completed later this year.