CONTRACT AWARDED FOR THE THUNDER BAY CONSOLIDATED COURTHOUSE PROJECT

THUNDER BAY, ON, Nov. 19 /CNW/ - Infrastructure Ontario and the Ministry of the Attorney General announced today that Plenary Justice Thunder Bay LP has signed a contract to design, build, finance and maintain the new Thunder Bay Consolidated Courthouse.

Today's announcement signifies that all contractual steps have been completed and construction can begin. Plenary Justice will begin mobilizing equipment on site over the next few weeks, with an official groundbreaking ceremony to follow.

The future courthouse will consolidate Thunder Bay's two existing courthouses: the courts of the Superior Court of Justice, located on Camelot Street, and the courts of the Ontario Court of Justice, on East Arthur Street. The new courthouse, to be located in Thunder Bay's downtown south core, will improve access to justice in the city by consolidating the services of the existing courthouses within one modern facility, increasing the number of courtrooms available and providing better public access and security.

The construction project will boost the regional economy by creating and supporting thousands of jobs. At the peak of construction, it is estimated that 225 workers will be on site daily. Construction of the new courthouse is expected to be completed in late 2013.

The Thunder Bay Consolidated Courthouse project will be delivered using an Alternative Financing and Procurement (AFP) model. Plenary Justice will receive annual payments from the Province over a 30-year period to cover construction, building maintenance, life-cycle repair and renewal, and project financing. Life-cycle repair and renewal will ensure that the courthouse building and surrounding landscape (such as the heating and cooling systems, windows, floors and roofing structures, and hard landscape) are kept in excellent working condition over the 30-year period. The annual payments are comparable to a fixed-rate mortgage, with maintenance and repair expenses included. The total cost of the contract with Plenary Justice is approximately $473.5 million after 30 years. In today's dollars, this is equivalent to approximately $247.7 million.

Infrastructure Ontario is working with the Ministry of the Attorney General to develop the new courthouse. 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:

Hon. Bob Chiarelli, Minister of Infrastructure
"Not only will the Thunder Bay Consolidated Courthouse improve access to justice services in the region, but it will also be a green building, meeting rigorous requirements for energy management and conservation."

Hon. Chris Bentley, Attorney General
"We are working closely with the community and our justice partners in the area to build a courthouse that will meet the needs of this diverse community for years to come. By consolidating justice services into one location we are ensuring better access to justice for everyone in this growing northern community."

Bill Mauro, MPP for Thunder Bay-Atikokan
"I'm pleased to see the courthouse moving forward. This is a significant project. It's expected to result in more than 200 construction jobs and that will provide a welcome boost to our local economy. The new courthouse will also provide Thunder Bay with modern court facilities and help to revitalize the downtown South Core."

Hon. Michael Gravelle, MPP for Thunder Bay - Superior North
"This project is a clear sign of the government's commitment to our community. Once under construction, the Thunder Bay Consolidated Courthouse project will create new jobs and spur economic development that will benefit everyone in the region."

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Backgrounder

THUNDER BAY CONSOLIDATED COURTHOUSE PROJECT

Plenary Justice Thunder Bay LP has signed a contract with the Province to design, build, finance and maintain the new Thunder Bay Consolidated Courthouse on behalf of the Ministry of the Attorney General. The Plenary Justice team includes Plenary Group, Bird Design-Build Construction Inc., Johnson Controls LP, Adamson Associates Architects, Ricci Green Associates and TD Securities.

Construction financing for the Thunder Bay Consolidated Courthouse is being provided by The Toronto-Dominion Bank (TD Bank) and The Manufacturers Life Insurance Company (Manulife) with TD Securities as the hedge provider. Long-term financing is being arranged by OPB Investments Inc. ("Ontario Pension Board"), BCE Master Trust Fund (BIMCOR) and Canada Life Assurance Company (Canada Life). Equity is being provided by Plenary Group.

Plenary Justice participated in an open, fair and competitive procurement process and submitted the proposal with the best value for Ontario taxpayers.

Thunder Bay Consolidated Courthouse project highlights include:

• A new seven storey building with space to accommodate 15 courtrooms including a Multiple Accused High Security courtroom and four conference/settlement suites.
• Barrier-free design including no courthouse steps, fully barrier-free courtrooms for the public, infrared hearing assistance and barrier-free witness stand and jury box.
• Enhanced accommodation for interpretation including one jury room permanently equipped for simultaneous interpretation and two portable interpretation booths.
• A glazed atrium that will bring natural light deep into the building.
• A commitment to meet the Leadership in Energy and Environmental Design (LEED) Silver standard, including focus on energy efficiency, a high quality indoor environment through building material selections and green housekeeping practices.
• Designed with capacity for expansion and internal flexibility to ensure maximum usefulness throughout its lifetime.

The contract with Plenary Justice
The Thunder Bay Consolidated Courthouse project will be delivered using an Alternative Financing and Procurement (AFP) model. Under the terms of the project agreement, Plenary Justice 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 Justice is for $247.7 million in net present dollars, to be delivered by a fixed completion date. The project agreement also makes Plenary Justice 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 Justice, in this case.

The province's 30-year maintenance agreement with Plenary Justice will ensure that the physical components of its new facilities — 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 Justice
The annual payments to Plenary Justice 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 Thunder Bay Consolidated Courthouse project, while the cost of the contract in net present dollars is equivalent to $247.7 million, after 30 years, this will total approximately $473.5 million.

Annual payments to Plenary Justice are performance-based. Payments can be withheld if Plenary Justice does not meet the agreed-upon performance standards.

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For further information:

Brendan Crawley Communications Branch Ministry of the Attorney General      [phone]

Tom Boreskie Infrastructure Ontario [phone]