Town finalizes $130 million contribution to new Oakville hospital

Tuesday, January 27, 2015 – for immediate release

Town finalizes $130 million contribution to new Oakville hospital

Old hospital site will transfer to the town

Council pre-approved $130 million in the town’s 2015 capital budget for its local share commitment to the new Oakville hospital at its meeting last night. Council also approved the terms for the transfer of the Oakville-Trafalgar Memorial Hospital site to the town. The Local Share Master Legal Agreement with Halton Healthcare Services (HHS) that sets out the precise amount and timing of the contribution will also go to the HHS Board of Directors in February for approval.

“Council’s vision to support a new state-of-the-art hospital will come to life in December 2015, providing our community with new and improved healthcare services,” said Mayor Rob Burton. “Additionally, this facility will create opportunities for jobs, development of an adjacent new life sciences park and new community facilities on old hospital lands.”

The town’s $130 million contribution needs to be made to HHS three weeks prior to the substantial completion of the new hospital, scheduled for July 2015. The town expects to raise up to $90 million of the contribution through debt debenture financing and to transfer the remaining $40 million from a reserve that was established from Oakville Hydro’s sale of Blink Communications in 2010.

Debt financing charges from the debenture will be funded from revenues earned by Oakville Hydro’s energy projects and will have no impact on Oakville Hydro electricity rates or town taxes.

“The town’s $130 million contribution will not raise property taxes — Council has delivered on its commitment,” said Mayor Burton.

The Region of Halton will issue the debt debenture on behalf of the town this spring. The town will receive title to the old hospital site at the same time that the local share contribution is made, however vacant possession of the site is not expected until March 2016, to provide HHS with sufficient time to decommission the old hospital building.

According to HHS officials, construction of the new Oakville hospital at Third Line and Dundas is now more than 90 per cent complete and the hospital is on schedule to open in December 2015.

The 1.6 million square foot hospital will set a new standard for inpatient care design in Canada, combining innovative architecture and the latest in technology to deliver high quality patient and family centered care efficiently. The HHS single patient room design is leading edge in terms of patient accommodation and infection prevention and control with hand wash stations located within the sightline of the patient. Dropped sill windows will enhance the patient view and dedicated staff, patient and family areas will enrich the patient experience.

“Building a new hospital for Oakville is a once-in-a-lifetime opportunity,” said Denise Hardenne, HHS President & CEO. “We have benefited from the tremendous support we received from the Town of Oakville both in terms of financial support and through their contributions at the Board level and as a member of the Capital Planning Advisory Committee. With the support of the Town of Oakville, Halton Healthcare Services will be successfully delivering on its April 2010 promise to make the new Oakville hospital a reality.”

For more information on the new Oakville hospital visit the Halton Healthcare Services website.

Review the report “Financial and Legal Agreements Related to the Town’s Contribution to the new Oakville Hospital” on the January 26, 2015, Council agenda.

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Town finalizes $130 million contribution to new Oakville hospital