Emokhare Paul Anthony
Daily Herald
Prince Albert City Council will debate whether to approve a Letter of Understanding between the City and SaskBuilds and Procurement at their regular council meeting on Monday.
Item 10.11 on Monday’s agenda calls for the council to consider and approve the LOU after it was discussed at the most recent Executive Committee Meeting. Ward 5 Coun. Dennis Ogrodnick said it’s a great idea and he’s supporting it.
“It’s a good development between the city and the provincial government if
everybody follows through on it,” Ogrodnick said. “If the city is given a certain amount of dollars for the equipment and for furnishing, what we will do is take this money from the building permit and put it towards our cost for the building. I think its a great deal for the city.”
The Province of Saskatchewan is currently constructing a new acute care tower at the Victoria Hospital. The Province has committed funds for the construction of the
hospital, but the City is responsible for providing money for the furnishings, among other items.
Per City Bylaws, the City of Prince Albert is obligated to charge development and permit fees in relation to the construction of new projects within the City. These charges are based on construction value, with the City charging a building permit fee at a rate of $7.50 per $1,000 of construction value.
The cost of the permit will only be realized once all permits have been applied for an obtained. The City of Prince Albert will formally track these costs and upon project completion and provide SaskBuilds with a summary of all charges and fees associated with this project.
It is understood through the Letter of Understanding, that SaskBuilds will acknowledge this value as the City’s contribution to the furnishings of fixtures and equipment.
The City estimates the financial implications of the terms stipulated in the attached Letter of Understanding will total millions of dollars.
Ogrodnick said charging the province building permit fees is no different than when the City has to pay PST on some items. He said it’s good to have the province chipping in more money because the new tower will benefit more than just Prince Albert.
“It’s a regional hospital,” Orgrodnick said.
Monday’s city council meeting is scheduled to begin at 2 p.m. in Council Chamber of the City Hall.
