Contract awarded for the Waterloo Region Consolidated Courthouse project

KITCHENER, ON, March 3 /CNW/ - The Ministry of the Attorney General and Infrastructure Ontario announced today that Integrated Team Solutions (ITS) has signed a contract to design, build, finance and maintain the new Waterloo Region Consolidated Courthouse.

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

The new facility, to be located at Duke and Frederick Streets in downtown Kitchener, will improve courthouse services by consolidating the Superior Court of Justice and Ontario Court of Justice, currently operating in three locations across Waterloo Region.

The construction project will provide a boost to the regional economy by directly and indirectly creating and supporting thousands of jobs. At the peak of construction, it is estimated that 250 workers will be on site daily. Construction of the new courthouse is expected to be completed in early 2013.

The Waterloo Region Consolidated Courthouse project will be delivered using an Alternative Financing and Procurement (AFP) model. ITS will receive annual payments from the province over a 30-year period. Payments cover construction, building maintenance, life-cycle repair and renewal, and project financing. Life-cycle repair and renewal will ensure that heating and cooling systems, windows, floors and roofing structures, for example, 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 ITS is approximately $766 million after 30 years. In today's dollars, this is equivalent to approximately $379 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 managing some of the province's larger and more complex infrastructure renewal projects - ensuring they are built on time and on budget.

Visit www.infrastructureontario.ca for more information.

Quotes:

Hon. John Milloy, MPP Kitchener Centre

"This project is a clear sign of the government's commitment to our community. Once under construction, the Waterloo Region Consolidated Courthouse project will create new jobs and spur economic development that will benefit everyone in the region."

Leeanna Pendergast, MPP Kitchener Conestoga

"Once complete, this new courthouse will provide the people in Waterloo Region with modern courthouse facilities to help meet the growing needs of this community."

Hon. Brad Duguid, Minister of Energy and Infrastructure

"Not only will the Waterloo Region 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

"By consolidating courthouse services in one location, we are maximizing the use of public funds and we will be able to ensure secure, accessible justice services that will meet community needs for the next 25 years."

    
                                 BACKGROUNDER

          CONSTRUCTION SET TO BEGIN ON WATERLOO REGION CONSOLIDATED
                             COURTHOUSE PROJECT
    

Integrated Team Solutions (ITS) has signed a contract with the Ministry of the Attorney General to design, build, finance and maintain the new Waterloo Region Consolidated Courthouse. The ITS team includes Fengate Capital Management/LPF Infrastructure Fund, EllisDon Corporation, NORR Limited/Aecom Services, SNC Lavalin Profac and CIT Group Securities Inc.

Financing for the Waterloo Region Consolidated Courthouse is being provided by Sun Life Assurance Company of Canada and The Canada Life Assurance Company as bond underwriters, together with a banking group consisting of Bank of Montreal, CIBC, Laurentian Bank of Canada and National Bank of Canada. Equity is being provided by Fengate Capital Management/LPF Infrastructure Fund and EllisDon Incorporated.

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

    
    Waterloo Region Consolidated Courthouse Project Highlights include:

    -  A new multi-storey building with space to accommodate 38 judicial
       rooms comprised of 30 courtrooms and 8 conference settlement rooms.
    -  Barrier free design including no courthouse steps, five fully barrier
       free courtrooms, infrared hearing assistance and barrier free witness
       stand, jury box and spectator positions in all courtrooms.
    -  Enhanced accommodation for interpretation including one jury room
       permanently equipped for simultaneous interpretation and three
       portable interpretation booths.
    -  A contemporary design that fits into the downtown context and provides
       a new civic plaza in the heart of downtown Kitchener.
    -  A three-storey glazed atrium which 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 ITS

The Waterloo Region Consolidated Courthouse project will be delivered using an Alternative Financing and Procurement (AFP) model. Under the terms of the project agreement, ITS 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 ITS is for $379 million in net present dollars, to be delivered by a fixed completion date. The project agreement also makes ITS 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 ITS, in this case.

The province's 30-year maintenance agreement with ITS 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 ITS

The annual payments to ITS 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 Waterloo Region Consolidated Courthouse project, while the cost of the contract in net present dollars is equivalent to $379 million, after 30 years, this will total approximately $766 million.

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

Disponible en français

For further information: Jennifer Sclisizzi, Infrastructure Ontario, [phone]; Brendan Crawley, Ministry of the Attorney General, Communications Branch, [phone]