N.L. spent millions renovating old college for future courthouse — now it's slated for demolition

After pausing work at the Martin Gallant Building in Stephenville Crossing this past summer, the Newfoundland and Labrador government says the building needs to be demolished, axing plans for it to become the new courthouse and provincial government services building. Mayor Lisa Lucas is now worried about what it means for her community.

Stephenville Crossing mayor says she's worried about future of her community

Elizabeth Whitten · CBC News

· Posted: Oct 06, 2026 9:47 AM EDT | Last Updated: 1 hour ago

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The Mayor of Stephenville Crossing worries about her community's future after the government decided to tear down what would have been the new courthouse. First, renovations paused; now the whole structure has to be torn down. Government says the proposed site for the new courthouse and government services building in Stephenville Crossing is a no-go. Now the mayor fears for her town's future. The CBC’s Colleen Connors reports.

After millions of dollars were spent redeveloping an old college building on Newfoundland’s west coast, the Newfoundland and Labrador government says it’s now set to be torn down.

In June, the province announced it was pausing work at the Martin Gallant building in Stephenville Crossing after spending $5.6 million. It was once home to the College of the North Atlantic and was planned to be the new courthouse and provincial government services building in the community.

On Monday, the provincial Department of Transportation and Infrastructure said following additional environmental and structural assessments, it had been determined the building needed to be demolished.

Stephenville Crossing Mayor Lisa Lucas says the decision has her worried about the future of her community.

"The current premier wants to go down in history as being the person that signed our community's death warrant," Lucas told CBC Radio’s Newfoundland Morning.

"I'm not going to be surprised if six months from now or seven months from now the PC government announces the new courthouse is going up in Stephenville."

In its statement, the department said further investigation showed the project would be significantly more complex and expensive than previously anticipated. It also pointed to the presence of contaminated soil, lead paint and structural deficiencies.

Lucas said she wants the province to act quickly to demolish the site, citing safety concerns.

"We want that down, and we want it down now if they're deeming it — this— unsafe."

She called the site a "prime piece of real estate" and wonders what will happen to it now.

Residents were previously excited when plans to redevelop the building for government services were announced by the previous Liberal government — which has now turned to fear, she said.

In the past, Lucas said the town has had a good relationship with the region's MHA, regardless of political party, but it seems there’s a lack of transparency and communication with the PC government.

The previous Liberal government had started renovating the Martin Gallant Building after concerns were raised about the accessibility of the provincial building in nearby Stephenville.  

In a previous statement to Radio-Canada, a Department of Transportation spokesperson said the government had previously estimated the redevelopment would only cost $8 million. But after work started, the price tag went up, and in May 2025 a $28.6-million contract was awarded.

The statement went on to say the most recent cost projections went up to $40 million, and the contractor raised concerns about "significant challenges" due to only having a "partial design" at the time of tender.

'A fiasco'

Speaking at an unrelated announcement in Corner Brook Tuesday morning, Wakeham called the project “a fiasco,” pointing to how the project's price tag ballooned.

“And then we now find out that there were structural issues with it and the grounds contaminated,” Wakeham told reporters.

He said they have to figure out if the site can be used for any other purpose in the future.

“My minister will be reaching out to communities and we’ll look at where we go in terms of future developments,” said Wakeham.

Premier Tony Wakeham says given the state of the site, they have to figure out if it can be used for any other purpose in the future. (Amy Feehan/CBC)

'Serious concerns'

Minister of Transportation and Infrastructure Barry Petten is expected to speak with CBC News Wednesday in an interview.

• After spending $5.6M, N.L. hits pause on Stephenville Crossing courthouse development

• Roughly $2.6M spent on Cartwright school before N.L. government halted project

In Monday’s statement, Petten said upon review of the redevelopment, there were "serious concerns" over its feasibility and cost, adding further review has highlighted problems with the project that should have been known before it was undertaken.

"Had these conditions been identified and assessed earlier in the process, the scope, cost and viability of the project could have been more accurately evaluated from the outset," Petten said in the statement.

"While this is disappointing news, it would not be responsible to continue pursuing a project that no longer represents a sound investment of public funds."

The government is assessing other available spaces in the region for government services.

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Corrections

• This story previously contained a reference to Lisa Lucas being the mayor to Stephenville. In fact, she is mayor of Stephenville Crossing.

  Oct 06, 2026 1:11 PM EDT

ABOUT THE AUTHOR

Elizabeth Whitten is a journalist with CBC News, based in St. John's.