Environmentally friendly facility to boost local economy during construction
TORONTO - Infrastructure Ontario and the Ministry of Community Safety and Correctional Services today announced the province has reached financial close with Integrated Team Solutions (ITS) to design, build, finance and maintain the Toronto South Detention Centre. Financial close signals that all contractual steps have been completed, the financing set and construction can begin.
The project will help provide economic stimulus by creating and supporting thousands of jobs. Construction will begin in October 2009 and will be completed in fall 2012. At the peak of construction, it is estimated that 500 to 550 workers will be on site daily. Labour will largely be drawn from the Greater Toronto Area.
The project includes a 1,650-bed maximum security facility for adult inmates, including those with special needs. This new and modern facility will replace the Toronto Jail.
The Toronto South Detention Centre project also includes the construction of the Toronto Intermittent Centre (TIC), which is a facility to accommodate those serving primarily weekend sentences.
The Toronto South Detention Centre will be located on the south portion of the Mimico Correctional Centre property in Etobicoke and will target Leadership in Energy and Environmental Design (LEED) Silver certification. LEED buildings focus on healthy indoor environments, reduced greenhouse gas emissions and efficient use of energy, water and other resources.
“Once built, the Toronto South Detention Centre will provide our community with an environmentally progressive, state-of-the-art facility crucial to protecting public safety,” said Rick Bartolucci, Minister of Community Safety and Correctional Services.
The ITS consortium represents a joint venture between EllisDon Corporation and Fengate Capital, with EllisDon also providing construction services. The facility was designed by Zeidler Partnership Architects and Johnson Controls LP will provide facilities management. RBC Dominion Securities acted as the financial advisor to ITS and project financing was raised from a consortium of lenders including: Calyon, Norddeutsche Landesbank, Banco Espirito Santo de Investimento, Bank of Montreal, Canada Life Assurance Company, and Sun Life Assurance Company.
ITS will receive annual payments from the province over a 30-year period. Payments cover construction, building maintenance, lifecycle repair and renewal and project financing. Lifecycle refers to ensuring that heating and cooling systems, windows, floors and roofing structures, for example, are kept in excellent working condition over the 30 year period. The payments are like a fixed-rate mortgage with maintenance and repair expenses included. The total value of the payments to ITS spread over 30 years is approximately $1.1 billion. In present value dollars this is equivalent to approximately $593.9 million.
Infrastructure Ontario is working with the Ministry of Community Safety and Correctional Services to develop the facility which will remain publicly owned, publicly controlled and publicly accountable. 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.
Contacts:
Stuart McGetrick
Communications Branch
Ministry of Community Safety and Correctional Services
416-325-9686
Terence Foran
Infrastructure Ontario
416-325-2939
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