The new Kenmount Terrace Community Park will have entrances off Messenger Drive and Ariel Place.
The site will include a multi-purpose community centre building, splash pad, dog park, skate park, playground and games court (for basketball, tennis, etc.).
The Telegram was told the project is expected to break ground later this summer.
The park went through a round of public consultation in March and April 2015 and the city brought a detailed concept to area residents during public meetings in February.
The bid by Bird Construction Group was $9.7 million, taxes in.
It was the lowest qualifying bid out of 10 entries, with proposals topping out at about $10.5 million. Only one bid came in lower, by about $122,000, but it was ultimately disqualified, for reasons not disclosed.