10. CAPITAL FUNDING SUPPORT - ROYAL OTTAWA HEALTH CARE GROUP
(ROHCG) REDEVELOPMENT PROGRAM

SOUTIEN AU FINANCEMENT DES IMMOBILISATIONS, PROGRAMME DE RÉAMÉNAGEMENT DES SERVICES DE SANTÉ ROYAL OTTAWA

 

 

 

Committee Recommendations

 

That Council approve:

 

1. An exemption from planning approval fees, building permit fees, the 5% Parkland fee, cash in lieu of parking payments, and development charges related to the construction of health care facilities components of the proposed redevelopment of the facilities at 1145 Carling Avenue;

 

2. The above exemption effective November 1, 2002.

 

 

Recommandations du comité

 

Que le Conseil approuve :

 

1. l’exemption des droits d’approbation des demandes d’urbanisme, des droits de permis de construire, des droits de 5 % relatifs aux parcs, des paiements du règlement financier des exigences de stationnement et des redevances d’exploitation liées à la construction d’installations de soins de santé dans le cadre du réaménagement proposé des installations du 1145, avenue Carling.

 

2. l’exemption décrite ci-dessus en vigueur à partir du 1er novembre 2002.

 

 

 

 

 

Documentation

 

1. Development Services Department General Manager's report dated 19 March 2003 (ACS2003-DEV-BLD-0018).

 

 

 

Report to/Rapport au :

 

Corporate Services and Economic Development Committee

Comité des services organisationnels et du développement économique

 

and Council/et au Conseil

 

19 March 2003 / le 19 mars 2003

 

Submitted by/Soumis par :  Ned Lathrop, General Manager/Directeur général

Development Services Department / Services d’aménagement

 

Contact/Personne-ressource :  Arlene Gregoire, Director, Building Services

Directrice, Services du bâtiment

580-2424 ext. 41425, Arlene.gregoire@ottawa.ca

 

 

Ref N°:   ACS2003-DEV-BLD-0018

 

 

SUBJECT: CAPITAL FUNDING SUPPORT – ROYAL OTTAWA HEALTH CARE GROUP (ROHCG) REDEVELOPMENT PROGRAM

 

OBJET: SOUTIEN AU FINANCEMENT DES IMMOBILISATIONS, PROGRAMME DE RÉAMÉNAGEMENT DES SERVICES DE SANTÉ ROYAL OTTAWA

 

 

REPORT RECOMMENDATIONS

 

That the Corporate Services and Economic Development Committee recommend Council approve:

 

1. an exemption from planning approval fees, building permit fees, the 5% Parkland fee, cash in lieu of parking payments, and development charges related to the construction of health care facilities components of the proposed redevelopment of the facilities at 1145 Carling Avenue;

 

2. the above exemption effective November 1, 2002.

 

RECOMMANDATIONS DU RAPPORT

 

Que le Comité des services organisationnels et du développement économique recommande au Conseil d’approuver :

 

1. l’exemption des droits d’approbation des demandes d’urbanisme, des droits de permis de construire, des droits de 5 % relatifs aux parcs, des paiements du règlement financier des exigences de stationnement et des redevances d’exploitation liées à la construction d’installations de soins de santé dans le cadre du réaménagement proposé des installations du 1145, avenue Carling.

 

2. l’exemption décrite ci-dessus en vigueur à partir du 1er novembre 2002.

 

 

BACKGROUND

 

As a result of the new policy framework established by the Province to direct a more effective mental health care system, a number of changes to the service delivery of mental health care have been introduced.  These changes have a major impact on the mental health care service delivery and related facilities located in Ottawa. 

 

The ROHCG requires new facilities designed to provide quality specialized tertiary mental health care and a long term care facility.  Construction of the tertiary mental health care facility has commenced as the facilities must be ready next spring to handle the final transfer of all patients from the Brockville Psychiatric Hospital.

 

The new health care facilities at 1145 Carling Avenue are being designed, constructed and will be operated in such a way as to minimize the capital and operating costs by drawing upon the services of a private sector consortium to provide innovative and cost effective facilities, facilities which would foster the networking and integration of health services provided by the ROHCG and mental health service partners. 

 

The following are characteristics of the proposed redevelopment of ROHCG’s facilities:

 

<      Redevelopment via the Province’s SuperBuild program (Public-Partnership (P3) approach)

<      The new facilities will be designed, constructed, owned and operated by the private partnership

<      The facilities will revert back to the ROHCG upon retirement of the financial obligations

<      ROHCG continues to own the lands at 1145 Carling Avenue

<      ROHCG will lease the facilities and can sublet parts of the facilities to other organizations.

 

At the City Council meeting of January 23, 2002, City Council confirmed its commitment to the quality of life of the community by partnering with Ottawa’s hospitals to tackle the financial challenge of raising $232 million locally to fund the 10 year capital requirements identified by the hospitals.  Specifically, Council considered and approved the following recommendations from the Corporate Services and Economic Development Committee:

 

1.    Council will waive development charges on hospital capital projects, on a case-by-case basis, subject to a city staff report confirming that the projects fall within the scope of this 10-year program;

2.    Council will remit permit fees paid to the City on hospital capital projects, on a case-by-case basis, subject to a city staff report confirming that the projects fall within the scope of this 10-year program;

3.     Council will re-institute a development charge on new growth to help hospitals cover the health care costs incurred by growth, subject to provincial government approval;

4.    If all hospitals agree to participate, Council will agree to administer and promote a program to allow Ottawa residents to make a voluntary, tax-deductible contribution to the local hospitals for capital projects; and

5.     Council will continue to work with the hospitals to identify other possible sources of hospital capital outside of the normal City revenues.

 

As the ROHCG’s redevelopment plans, as approved by the Province, differ from the approach adopted by the Ottawa hospitals, the ROHCG is seeking a different combination of assistance.

 

 

DISCUSSION

 

Recommendation 1

 

The Council approved program assists the Ottawa hospitals and maximizes the potential funding they can obtain from the Province.  While the ROHCG is proposing to finance the redevelopment of the health care facilities at 1145 Carling Avenue in an innovative manner involving private sector partnership rather than the more traditional route of accessing provincial funding to cover capital costs, the same principles which led City Council to approve the above noted program can be applied to the ROHCG’s request for support.

 

Specifically, the ROHCG is seeking an up front waiver of fees and charges rather than incurring the costs and applying for provincial subsidies to defray these costs.  The waiver of fees and charges will reduce the initial capital outlay of the redevelopment and thus hasten the retirement of the financing obligations.  Retirement of the financing obligations will expedite ROHCG’s resumption of the ownership of the facilities.

 

The waiver of fees and charges will only apply to the health care components of the redevelopment of the facilities.  If the construction project also includes private sector development (offices, retail, for example), this portion will be excluded from the waiver calculations.

 

Recommendation 2

 

To meet the timelines necessary to handle the transfer of the patients from the Brockville Psychiatric Hospital early 2004, construction must commence shortly.  Thus building permit applications for the new facility were submitted early November 2002, however without the payment of fees.  The ROHCG had hoped the exemption from fees would have been approved prior to the permit submission, but staff workload was such that this report could not be prepared earlier.  To date, $92,460.24 ($4,460.24 in 2002 and $88,000 in 2003) in building permit fees remain outstanding and would be waived as a result of approval of this report.

 

 

CONSULTATION

 

The ROHCG has been consulted and a copy of this report has been forwarded to the ROHCG for review and information.

 

 

FINANCIAL IMPLICATIONS

 

Approval of this report will result in the waiver of outstanding Building Permit fees in the amount of $92,460.  The amount of the Cash in Lieu of Parking, Cash in Lieu of Parkland and any remaining Building Permit requirement being exempted is not known at this time (applications not yet received). The Non Profit Health Care portion is exempted from the Development Charges By-Law. These exemptions were considered in the establishment of the 2003 Budget.

 

 

ATTACHMENTS

 

N/A

 

 

DISPOSITION

 

The Development Services Department to process the waivers.

 

Office of the City Solicitor to prepare and submit the appropriate by-law amendment to Council.