CONTRACT AWARDED FOR ST. JOSEPH'S HEALTHCARE HAMILTON WEST 5TH CAMPUS
Environmentally friendly facility to boost local economy during construction
HAMILTON, ON, Dec. 7 /CNW/ - St. Joseph's Healthcare Hamilton and Infrastructure Ontario announced today Plenary Health has signed a contract to design, build, finance and maintain the new West 5th Campus project. Today's announcement signals that all contractual steps are complete, the financing set and construction can begin.
Construction will begin in January 2011 and is expected be completed in summer 2014. The construction project will provide stimulus to the regional and Ontario economies by directly and indirectly creating and supporting thousands of jobs. Labour will be drawn largely from Hamilton and the surrounding communities and it is expected at the peak of construction more than 650 workers will be on site daily.
The new hospital will provide larger, state-of-the-art facilities in order to better support people and families struggling with mental illness and addiction.
Highlights of the redevelopment include:
- Approximately 800,000 square feet of new construction;
- Increased capacity of up to 305 inpatient beds and all associated support services;
- Expanded outpatient clinics for psychiatry, diagnostic imaging and medical services; and
- Innovative research and academic spaces.
Plenary Health will receive annual payments from the province over a 30-year period. Payments cover construction, building maintenance, lifecycle repair and renewal and project financing. Lifecycle refers to ensuring that heating and cooling systems, windows, floors and roofing structures, for example, are kept in excellent working condition over the 30 year period. The payments are like a fixed-rate mortgage with maintenance and repair expenses included. The total value of the payments to Plenary Health spread over 30 years is approximately $1.196 billion. In present value dollars this is equivalent to approximately $581 million.
Infrastructure Ontario and the Ministry of Health and Long-Term Care are working with St. Joseph's Healthcare Hamilton to develop the new hospital, which will remain publicly owned, publicly controlled and publicly accountable.
Infrastructure Ontario is a Crown corporation dedicated to delivering some of the province's larger and more complex infrastructure renewal projects - ensuring they are built on time and on budget; as well, it is dedicated to providing the public sector and not-for-profit organizations with long-term financing to renew their infrastructure.
Visit www.infrastructureontario.ca for more information.
Quotes:
The Honourable Sophia Aggelonitis, Minister Responsible for Seniors and Minister of Revenue and MPP, Hamilton Mountain
"This new hospital will provide our community better access to care for those struggling with mental illness and addiction. By investing in our health care infrastructure, we are stimulating the local economy, creating jobs and building a stronger and healthier Hamilton."
Ted McMeekin, MPP, Ancaster-Dundas-Flamborough-Westdale
"This is a significant project for the people of Hamilton. We can be assured that residents in our region will have continued access to great health care for many years to come."
Dr. David Higgins, President of St. Joseph's Healthcare Hamilton
"This is a momentous occasion for healthcare in our community and our province as we officially begin the construction of a brand new West 5th Campus of St. Joseph's Healthcare. Through this project, we will continue to enhance our role as the leader in mental health and addiction services in this region."
Dr. Bob Zipursky, VP Mental Health & Addiction Services of St. Joseph's Healthcare Hamilton and Chief of Psychiatry at SJHH and HHS
"This state-of-the-art healthcare centre reflects and supports the exemplary care our team delivers to patients and the community. Our new West 5th Campus is designed to be inclusive and integrated, where people can access a wide range of groundbreaking healthcare services while we break down stigmas to support a new era of mental health."
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| Backgrounder |
CONSTRUCTION SET TO BEGIN ON
ST. JOSEPH'S HEALTHCARE HAMILTON, WEST 5TH CAMPUS
Plenary Health has signed a contract with St. Joseph's Healthcare Hamilton to design, build, finance and maintain the hospital's new West 5th Campus project. The Plenary Health team includes:
Developer: Plenary Group, Innisfree
Design: Cannon Design
Construction: PCL Construction Canada
Facilities Management: Honeywell
Financial Advisor: Royal Bank of Canada
Plenary Group and Innisfree PFI Secondary Fund will be providing the equity funding for the West 5th Campus project. Construction and long-term debt financing was arranged by RBC Capital Markets.
Plenary Health participated in an open, fair and competitive procurement process and submitted the proposal with the best value for Ontario taxpayers.
St. Joseph's Healthcare Hamilton West 5th Campus Project Highlights:
With approximately 800,000 square feet of new construction and increased capacity of up to 305 inpatient beds, inpatient and outpatient services provided in the new facility will include:
| Mental Health and Addictions Program - Acute mental health - Geriatric psychiatry - Mood and anxiety disorders - Schizophrenia and Community Integration - Forensic Psychiatry - Intensive rehabilitation unit - Outpatient clinics |
Clinical Support Services - Anxiety Disorders Program - Treatment and assessment services - Patient and family services - Pharmacy - Medical outpatient clinic - Diagnostic imaging outpatient clinic - Health records - Clinical lab |
| Education, Learning and Research - Department of Psychiatry - Library - Education/training facilities - Centralized and decentralized research space |
Corporate services - Administration - Food services - Central stores |
The design and construction of the new hospital will adhere to the guidelines and sustainability principles of the Leadership in Energy and Environmental Design (LEED®) rating system, with a goal of achieving LEED® Silver certification. LEED buildings focus on healthy indoor environments, reduced greenhouse gas emissions and efficient use of energy, water and other resources. Highlights include:
- using building materials with recycled and locally sourced products and divert 90 per cent of construction waste from the landfill;
- preserving the mature grove of trees on the central and west portions of the site and new landscaping will be planted with native, drought resistant species;
- reducing the facility's indoor water use by over 20 per cent through the use of highly efficient plumbing fixtures including low-flush toilets, faucets and showers;
- providing space for secure bicycle storage, shower facilities for staff and public transportation routes in close proximity to the facility's front entrance;
- minimizing solar heat gain through a predominant east-west orientation and a PVC roof to reduce the heat island effect; and
- limiting the amount of light pollution by designing the site lighting layout with no light spillage to adjacent properties.
The contract with Plenary Health
The new West 5th Campus project will be delivered using an Alternative Financing and Procurement (AFP) model. Under the terms of the project agreement, Plenary Health will receive annual payments from the province over a 30-year period. These payments cover design, construction, project financing and building maintenance for 30 years after construction.
The contract with Plenary Health is for $581 million in net present dollars, to be delivered by a fixed completion date. The project agreement also makes Plenary Health responsible for any design issues, project management and sub-contractor coordination, increases in construction material prices and labour costs, schedule and project completion delays, and other related construction risks. In the past, the public sector assumed these risks; however, the AFP model now transfers these risks to the private sector - to Plenary Health, in this case.
The province's 30-year maintenance agreement with Plenary Health will ensure that the physical components of this new facility - roofing structure, windows, floors, elevators, heating and cooling systems and other components - are kept in excellent working condition over the term of the agreement. Under the project agreement, if the building requires a new roof or a new boiler, the private sector replaces and pays for it.
Annual payments to Plenary Health
The annual payments to Plenary Health are comparable to a fixed-rate mortgage with maintenance and repair expenses included. For example, if a homeowner signs a mortgage agreement today, the homeowner commits to the cost of the house in today's dollars (this is known as the "net present value"). However, over the lifetime of the mortgage, the homeowner pays monthly mortgage payments plus the costs of updating and maintaining the house during that period. In the case of the St. Joseph's Healthcare Hamilton West 5th Campus, while the cost of the contract in net present dollars is equivalent to $581 million, after 30 years, this will total approximately $1.196 billion.
Annual payments to Plenary Health are performance-based. Payments can be withheld if Plenary Health does not meet the agreed-upon performance standards.
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For further information:
| Debbie Silva | Terence Foran |
| St. Joseph's Healthcare Hamilton | Infrastructure Ontario |
| 905-522-1155, Ext. 33037 | 416-325-2939 |
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