If it truly is cheaper to buy and build than it is to rent, county councillors will support Wellington Dufferin Guelph Public Health in its quest for a new headquarters.
Chief Executive Officer and Medical Officer of Health Dr. Nicola Mercer came to county council on June 25 to explain the case for a new building for the organization.
She told how Public Health lost its home on Delhi Street from 1969 when asbestos in it caused health concerns.
It has been renting a building in Guelph on Southgate Drive that she said is too small and is shared with a trucking company. That location has no sidewalks, and is “not a good area” for Public Health, which stores millions of dollars worth of vaccines in case of a pandemic.
Mercer told council Public Health needs a building that has about 45,000 square feet, so it can consolidate its three Guelph locations into one place.
That place would need 160 to 180 parking spaces, and be located close to public transit. There is some urgency, too, because the current lease runs out in 2011.
Mercer presented options of leasing for 20 years with an option of five more years of renting – or buying land and building its own building.
She said for Wellington County, an outright purchase would be cheaper by $1-million over the course of the 20 years, with even more savings in the extra five years of renting.
She noted that Public Health is a clinical facility, and it would also need refrigeration units and generator back-up in addition to office space.
Councillor Lynda White asked where the building would be.
Mercer said there was no suggestion yet about where to build, and Wellington is the first of its municipal partners she had approached. She was planning to meet with Dufferin council and Guelph councils early in July.
White asked her if the building would be located in Guelph.
Mercer said that is the most likely place because many people who use Public Health services are high school students and low income residents. She added that those seeking subsidized dental care would come from as far away as Fergus and south of there.
Councillor Rod Finnie asked if a new building means moving from other locations outside of Guelph.
Mercer said it does not, and the three merged sites are all from Guelph. Offices and satellites would be maintained in Aboyne, Mount Forest, Palmerston Orangeville, and Shelburne.
Councillor Jean Innes asked if the county would be asked to pay its one-third share, and if that share would be weighted heavily at the start of the 25 year term.
Mercer said the first few years would be the most costly “by far” and ease later. She said by the tenth year, the costs could be lower, but she also noted the county might have to renegotiate a mortgage at that point, too. Currently, mortgage rates are low.
Councillor Gord Tosh asked if the Shelldale Centre in Guelph would be closed.
Mercer said it would remain as a teaching centre.
She asked council to pass a motion giving the health unit permission to begin a search for a permanent site.
Councillor Lou Maieron asked if a leased building would be more costly.
Mercer said it would, and very often, the owner would want a premium for the final five years. “It’s probably more expensive than to buy at the start,” she said.
Councillor Bob Wilson wondered why the health unit did not take out its own debentures.
Mercer said municipalities have access to cheaper borrowing than the health unit.
She added that a downpayment of 25 per cent might be needed for a start, and the building could cost between $11- and $12-million, but interest costs over 25 years could mean costs of up to $30-million in total.
She said without unanimous permission of the three councils, the health unit simply is not allowed to consider a purchase option.
Maieron moved to support the group in principle” until the costs are learned, so Public Health can at least obtain costs of buying.
Ross-Zuj said the report would be scrutinized by the county treasurer.
Council then unanimously supported investigating a purchase of a new building.
