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3. OTTAWA
PARAMEDIC SERVICE 2475 DON REID
DRIVE BAIL DU CENTRE DU SERVICE PARAMEDIC
- 2475, PROMENADE DON REID, OTTAWA |
Committee RecommendationS
That Council:
1.
Approve an agreement between the Province of Ontario,
and the City of Ottawa to relocate the Ottawa Central Ambulance Communications
s Centre (CACC) subject to the Province committing to the total funding for
this project to include all capital expenditures, financing costs, and lease
costs (rental and operating), and
2.
Approve the Lease between the City (Tenant) and an
affiliate of Forum Equity Partners Inc., (Landlord) for the improved industrial
property located at 2475 Don Reid Drive, City of Ottawa, more particularly
shown on Annex “A”, attached; having a term of twenty-six (26) years to house
various programs run by the Province
(Ministry of Health) and the City of Ottawa, and at no cost to the City.
RecommandationS du Comité
Que le Conseil:
1. approuve une entente entre la province
de l’Ontario et la Ville d’Ottawa en vue de déplacer le Centre intégré de
répartition d'ambulances d'Ottawa (CIRAO) sous réserve de l’engagement de la
province à financer complètement ce projet, ce qui comprend toutes les dépenses
d’immobilisations, les coûts de financement et les coûts de location (loyer et
exploitation);
2. approuve l’approbation d’un contrat de
location entre la Ville (locataire) et une société affiliée de Forum Equity Partners Inc. (propriétaire) relativement à une
propriété industrielle améliorée, située au 2475, promenade Don Reid à Ottawa, et plus
particulièrement illustrée sur l’annexe “A” ci-jointe pour une période de vingt‑six (26)
ans afin de loger une gamme de programmes administrés par la Province
(ministère de la Santé) et la Ville d’Ottawa, et sans frais pour la Ville.
Documentation
1. Deputy
City Manager's report City Operations, dated 7 November 2008
(ACS2008-COS-RPM-0065).
2. Extract of Draft Minutes, 20 November 2008.
Report to/Rapport au :
Community and
Protective Services Committee
Comité des services communautaires et de protection
and Council / et au Conseil
7 November 2008 / le 7 Novmbre 2008
Submitted by/Soumis par : Steve Kanellakos, Deputy City Manager/
Directeur municipal adjoint,
City Operations / Opérations
municipales
Contact Person/Personne ressource : Pierre Poirier,
, Deputy Chief,
Ottawa
Paramedic Service/Service paramédic d'Ottawa
(613)
580-2424 x 27833, Pierre.Poirier@ottawa.ca
Contact
Person/Personne ressource : Gordon MacNair, Manager, Real Estate Services
Division
Real
Property Asset Management/Gestion des actifs des biens immobiliers
(613)
580-2424 x 21217, Gordon.MacNair@ottawa.ca
SUBJECT:
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OBJET :
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BAIL DU centre Du Service Paramedic -
2475, promenade DON REID, OTTAWA |
REPORT RECOMMENDATIONS
That the Community and Protective Services Committee recommend to Council:
1.
Approve an agreement between the Province of Ontario,
and the City of Ottawa to relocate the Ottawa Central Ambulance Communications
s Centre (CACC) subject to the Province committing to the total funding for
this project to include all capital expenditures, financing costs, and lease
costs (rental and operating), and
2. Approve the
Lease between the City (Tenant) and an affiliate of Forum Equity Partners Inc.,
(Landlord) for the improved industrial property located at 2475 Don Reid Drive,
City of Ottawa, more particularly shown on Annex “A”, attached; having a term
of twenty-six (26) years to house various programs run by the Province (Ministry of Health) and the City of
Ottawa, and at no cost to the City.
RECOMMANDATION DU RAPPORT
Que le
Comité des services communautaires et de protection recommande au Conseil :
1.
une
entente entre la province de l’Ontario et la Ville d’Ottawa en vue de déplacer
le Centre intégré de répartition d'ambulances
d'Ottawa (CIRAO) sous réserve de l’engagement de la province à financer
complètement ce projet, ce qui comprend toutes les dépenses d’immobilisations,
les coûts de financement et les coûts de location (loyer et exploitation);
2. l’approbation d’un contrat de location entre la
Ville (locataire) et une société affiliée de Forum Equity Partners Inc. (propriétaire) relativement à une
propriété industrielle améliorée, située au 2475, promenade Don Reid à Ottawa, et plus
particulièrement illustrée sur l’annexe “A” ci-jointe pour une période de vingt‑six (26)
ans afin de loger une gamme de programmes administrés par la Province (ministère
de la Santé) et la Ville d’Ottawa, et sans frais pour la Ville.
BACKGROUND
In December 2002, the Ministry of Health (Province) awarded a five-year contract to operate the Ottawa Central Ambulance Communications Centre (CACC) to the City of Ottawa. The Ottawa CACC provides Paramedic dispatch services to the United Counties of Prescott and Russell, Stormont, Dundas, Glengarry, City of Cornwall and the City of Ottawa. The contract was extended in December 2007 for a two-year period.
The Ottawa CACC receives over 250,000 requests for service, and dispatches over 100,000 calls in the City of Ottawa. The Ottawa CACC operation requires additional physical space to continue to deliver optimal service to residents of Eastern Ontario. The existing Communications Centre, leased by the Province and located at 2380 St. Laurent Boulevard, is too small and poorly situated with other provincial government services, which jeopardizes operational readiness. Since 2005, the Ministry of Health has been investigating a new dispatch centre for the Ottawa CACC. The City was requested by the Province to facilitate the search and securing of new rental space to accommodate the relocation of the Ottawa Central Ambulance Communications Centre (CACC) that is to be completely funded by the Province.
In October 2008, the City of
Ottawa received a $3.5M grant from the Province, specifically earmarked for the
creation of the new dispatch centre for the Ottawa CACC. The transfer of funds ($3.5M) from the
Province to the City of Ottawa is required to be completed by 31 March 2009 and
cannot be accrued for future use.
The purpose of this report
is to advise Council of an agreement between the Province of Ontario (MOH) and
the City of Ottawa to relocate the Ottawa Central Ambulance Communications Centre (CACC) from it’s present location at
2380 St. Laurent Boulevard to a new location and further to recommend approval
of a long-term lease for a facility located at 2475 Don Reid Drive for the
Ottawa CACC.
DISCUSSION
In the summer of 2008, the Ottawa Paramedic Service (OPS) engaged Real Estate Services Division (RESD) in the investigation of two possible locations that were situated in close proximity to the existing Ottawa CACC and the adjacent Ottawa Paramedic Service Headquarters facility. The two properties are located at 2455 Don Reid Drive and 2475 Don Reid Drive.
The lease requirement for the dispatch centre is 28,500 sq.ft. After a preliminary review it was determined that the property at 2455 Don Reid Drive would not meet the proposed requirement since it was 35% larger than required.
The building at 2475 Don Reid Drive, containing an area of 20,000 sq.ft. more particularly shown on Annex “A”, attached is smaller but has the ability to construct an additional 8,500 sq.ft. to satisfy the necessary requirement of 28,500 sq.ft. The new construction is the optimal choice for the new Ottawa CACC (actual dispatch area) due to National Building Code and Ontario Building Code requirements for a facility that meets ‘post-disaster’ construction standards. Furthermore, due to the close proximity of this building to the Ottawa Paramedic Service Headquarters there exists an opportunity to create a campus environment by removing existing fencing that would allow closer links between the two facilities.
The City of Ottawa has negotiated a lease proposal with Forum Equity Partners Inc. (Forum) who is in the process of acquiring this property. This lease proposal will be totally funded by a capital grant and ongoing operating commitments from the Province. The terms of the lease are as follows:
- site area is 1.808 acres;
- base building is 20,000 sq.ft.;
- addition to the base building will be 8,500 sq.ft.;
- term of the proposed Lease is for approximately twenty-six (26) years as the termination date is to coincide with the lease expiry at the existing Ottawa Paramedic Service Headquarters in November 2035 and
- the City will also have four (4) options to extend the Lease for a term of five (5) years each for a total lease extension of twenty (20) years.
The improvements to the base building (fit-up) and the construction of the extension will be carried out by the Landlord. The fit-up will comprise of substantial renovations including the construction of an 8,500 sq.ft. addition. This extension will be constructed to “post disaster specifications” in accordance with current Provincial Regulations. The estimated cost of the entire fit-up, which will be funded by the Province, has been capped at $6.4M. The Landlord has guaranteed that the costs will not exceed this amount. The work will be based upon the final approved design plans and specifications submitted by the Landlord to the Tenant.
The base rental rate for the original structure will be $7.25 per square
foot. This rate will only be paid on
the 20,000 sq.ft. No Base Rent will be
paid on the 8,500 sq. ft. extension, for the entire term as the Province will
be paying the construction costs. In
addition, the Tenant is responsible for paying the Landlord for all ongoing
operating costs for the leased premises for the term of the Lease with the
entire cost funded by the Province. A
further component of the rent will be the cost of the balance of the fit-up
costs including financing over the term of the lease which will also be paid by
the Province.
Due to the length of the proposed Lease, twenty-six (26) years, the
option to purchase the property versus lease the property was considered
however it was not pursued since the Province had capital funds only sufficient
to entertain a lease agreement.
The relocated Ottawa CACC will
also accommodate the Ottawa Central Ambulance Communications s Centre (dispatch
operation), the Emergency Health Services (EHS) Sub-Field Office, the EHS
Ambulance Communications Officer Training Centre and the Ottawa Base Hospital
Program. As these programs are
primarily based on Ministry of Health operations and 100% funded by the
Ministry of Health, the City has no financial impact or obligation.
The Province has
agreed to the terms of the lease and will be responsible for all costs related
to the lease proposal. A separate agreement will be completed between the City
and the Province to confirm this arrangement. The lease agreement with Forum is
subject to this agreement being in place prior to execution of final lease
documentation.
A financial review of
the lease proposal by RESD staff and an independent consultant, Altus Group
confirms that the lease proposal is market based.
ENVIRONMENTAL IMPLICATIONS
A Phase I & II Environmental Site Assessment will be
completed as part of the City’s due diligence.
CONSULTATION
As this Lease is for property required to
facilitate the Ottawa Central Ambulance Communications Center there was no consultation
required. The Ward Councilor is aware
of and has been briefed on this project.
FINANCIAL IMPLICATIONS
The proposed agreement with the Province
results in no net costs to the City.
The City will be responsible for the flow of costs related to the new
CACC building but will be reimbursed for all such costs by the Ministry of
Health and Long-Term Care (MOH<C).
Once all the annual costs (lease, utilities, etc.) have been determined
as part of this agreement, the Paramedic CACC base budget will be adjusted to
reflect the increased expenditure with the corresponding offsetting revenue.
SUPPORTING DOCUMENTATION
Attached as Document 1 is a sketch outlining the area to
be leased.
DISPOSITION
Following approval Ottawa Paramedic Service and
Legal Services staff will finalize an agreement with the Province to secure the
necessary financial commitment for this lease.
Real Estate Services and Legal Services staff
will finalize the Lease documentation once the financial commitment is in place
with the Province.
Document 1
