Building permit fees for new Acute Care Tower will go towards hospital furnishings after council approves LOU with province

Herald file photo. Local and provincial dignitaries pose for a photo at the official groundbreaking for the new Acute Care Tower in May.

Emokhare Paul Anthony

Millions in permit fees owed by the provincial government will go towards furnishings for the new Acute Care Tower under construction at Victoria Hospital instead of the City of Prince Albert.

Construction on the tower began in February. On Monday, council approved a Letter of Understanding between the City and the provincial government that would see building permit fees used on furnishings once the project is completed.

“This is exciting progress for us,” Mayor Greg Dionne said during Monday’s meeting.

“What it boils down to is it (building permits) were never part of our budget because we didn’t think they add to pay, but then our director looked up the act. We double-checked, and they have to get development permits and construction permits from us.”

Dionne said the City has been in negotiations with the provincial government for the last seven months. They have calculated the building permit cost at around $7.1 million, but Dionne said the true total could be higher before construction ends.

According to documents included in Monday’s agenda package, the City charged a building permit fee of $7.50 per $1,000 of construction value. Because of that, the final cost will not be available until the project is finished.

Dionne said Prince Albert and other northern communities still have to raise an estimated $26 million for the new tower, but the total hasn’t been finalized. Despite that, Dionne said they still wanted to move ahead with the agreement, even though there is no confirmed number.

“We all know costs are going to go up, so we will not agree to $7 million,” Dionne said. “It could be $8.5 (million). It could be $9 (million), especially if it (the total cost) hits over $1 billion.”

In February, the province awarded PCL Construction with the $898 million contract to build the tower. The expansion is expected to increase the hospital’s capacity by approximately 40 per cent, from 173 to 242 beds, with room within the overall facility to expand up to an additional 40 beds, the Ministry of Health said in a news release.

Dionne said the province will track their expenses, and forward them to the City.

“We’re just fine-tuning the agreement … and then they’re going to sign it,” Dionne said. “I wanted to make sure that we were onside and signed it first to let them know this is the agreement we want.”

There were also questions at Monday’s meeting about naming rights. Coun. Dawn Kilmer said the new hospital is a regional facility, and that should be reflected in its name.

“Words matter,” she said.

Dionne said he agrees with that sentiment, but said the government isn’t sure what it’s going to name the hospital. However, he said the City is asking for regional representation in the name.

editorial@paherald.sk.ca

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