{"id":138292,"date":"2023-05-18T09:44:27","date_gmt":"2023-05-18T13:44:27","guid":{"rendered":"https:\/\/doppleronline.ca\/rwddev\/?p=138292"},"modified":"2023-05-18T09:44:29","modified_gmt":"2023-05-18T13:44:29","slug":"fairvern-redevelopment-will-now-cost-94-million","status":"publish","type":"post","link":"https:\/\/doppleronline.ca\/huntsville\/fairvern-redevelopment-will-now-cost-94-million\/","title":{"rendered":"Fairvern redevelopment will now cost $94 million"},"content":{"rendered":"\n<p>By Thomas Goyer<\/p>\n\n\n\n<p>Muskoka District Council has approved a motion to move forward with the new Fairvern Nursing Home construction despite the large price tag.\u00a0<\/p>\n\n\n<div style=\"float: left; margin-right: 14px;\"><strong><broadstreet-zone zone-id=\"45658\" keywords=\"\" soft-keywords=\"true\" zone-alias=\"\"><\/broadstreet-zone><\/strong><\/div>\n\n\n\n<p>District Council approved a motion on Monday which directed staff to formalize capital funding allocations and to move forward with the provincial construction approval process. The development of the Fairvern facility will cost $94 million dollars, with $87.9 million dollars being provided by the provincial government. The provincial funding is from a new government construction subsidy which was unveiled in the fall for municipalities to create new long-term care beds.\u00a0<\/p>\n\n\n\n<p>A key part of the subsidy is that the municipality will have to pay the full sum upfront, and the government will reimburse it over the next 25 years. This means that the municipality will face increased borrowing costs.\u00a0<\/p>\n\n\n\n<p>Councillor Guy Burry highlighted that despite the large sums from the provincial government, the District was still on the hook for significant payments. According to Burry, the home, which would have 160 beds, would cost an extra $2.4 million dollars per year. Burry stated that he wanted to ensure that this extra cost on local taxpayers was understood by councillors.&nbsp;<\/p>\n\n\n\n<p>\u201cNo matter how we spend this $94 million the home will cost more to build and operate than the government funding model provides,\u201d Burry said.&nbsp;<\/p>\n\n\n\n<p>The District is under time constraints to begin construction on Fairvern. Further delays could result in the District losing the provincial subsidy and being on the hook for up to $51.1 million dollars. Burry also reminded council that this was another key concern.&nbsp;<\/p>\n\n\n\n<p>\u201cIf we don\u2019t deliver on time, we\u2019re probably putting the district at risk of about $51 million,\u201d Burry said.&nbsp;<\/p>\n\n\n\n<p>Councillor Peter Kelley agreed with Burry that the extra costs were significant but wanted to ensure that council remembered who the real stakeholders were in this case.&nbsp;<\/p>\n\n\n\n<p>\u201cThe stakeholders here are 900 some-odd people who are on what I heard is a seven-year waiting list to get into long-term care. Those are the stakeholders here,\u201d Kelley said.&nbsp;<\/p>\n\n\n\n<p>However, Kelley did highlight that design decisions made by council had contributed to the large costs of the project and limited the amount of potential new beds.<\/p>\n\n\n\n<p>\u201cWe\u2019ve made some design decisions, which essentially means that we are spending $94 million to house 160 residents. Had we stuck to the more modest standard approach as I understand it is the standard across the rest of Ontario, that money would have housed another 50 or 60 people beds,\u201d Kelley said.&nbsp;<\/p>\n\n\n\n<p>District Chair Jeff Lehman highlighted that a reason for the increased costs is that the Fairvern design is a result of lessons learned from the Coronavirus pandemic. Lehman also stated that the larger costs on the taxpayer were a result of the abnormal funding system used for the provincial subsidy.&nbsp;<\/p>\n\n\n\n<p>Councillor Ruth-Ellen Nishikawa criticized the funding scheme which put the debt and interest payment burdens on the municipality as opposed to the province.&nbsp;<\/p>\n\n\n\n<p>\u201cI think this is quite a hardship to municipalities,\u201d Nishikawa said.&nbsp;<\/p>\n\n\n\n<p>District staff acknowledged that the $2.4 million figure used by Burry is a result of recent increases in interest rates. According to staff, a combination of large reserves as well as internal debt financing will allow for changes in interest rate in the future to potentially bring down borrowing costs for the project.<\/p>\n\n\n\n<p>District council passed the motion, clearing a hurdle for the Fairvern project to move forward.\u00a0\u00a0<\/p>\n\n\n<h5 style=\"text-align: center;\">Don\u2019t miss out on Doppler!<\/h5>\n<p style=\"text-align: center;\"><strong>Sign up <a href=\"https:\/\/doppleronline.ca\/huntsville\/dont-miss-out-on-doppler\/\"><u>here<\/u><\/a> to receive our email digest with links to our most recent stories.<br \/>\nLocal news in your inbox so you don&#8217;t miss anything!<\/strong><\/p>\n<p style=\"text-align: center;\"><a style=\"background: #5cb85c url('https:\/\/d1iczxrky3cnb2.cloudfront.net\/red_logo.png') no-repeat 37px; color: #fff; text-decoration: none; font-family: Verdana,sans-serif; display: inline-block; font-size: 16px; padding: 15px 38px; padding-left: 75px; -webkit-border-radius: 2px; -moz-border-radius: 2px; border-radius: 2px; box-shadow: 0 1px 0 0 #1f5a89; text-shadow: 0 1px rgba(0, 0, 0, 0.3);\" href=\"https:\/\/donorbox.org\/support-huntsville-doppler\">Click here to support local news<\/a><\/p>\n<p style=\"text-align: center;\"><broadstreet-zone zone-id=\"45657\" keywords=\"\" soft-keywords=\"true\" zone-alias=\"\"><\/broadstreet-zone>\n","protected":false},"excerpt":{"rendered":"<p>By Thomas Goyer Muskoka District Council has approved a motion to move forward with the new Fairvern Nursing Home construction despite the large price tag.\u00a0 District Council approved a motion [&#8230;]<\/p>\n","protected":false},"author":1904,"featured_media":138294,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[10],"tags":[],"class_list":["post-138292","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.8 - 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