A new complex-care facility to replace Olive Devaud residence will be funded by the community.
Powell River Regional Hospital District (RHD) will finance the construction of the building by borrowing the estimated $24 million, explained Colin Palmer, RHD chair. Then Vancouver Coastal Health will lease the building from RHD, as well as operate and maintain it.
After years of working on the project, it became clear that there was no capital available, Palmer said. While a public-private partnership had been explored, there were issues with it and it never proceeded, he added. Frances Ladret, former Powell River Regional District administrator, determined that there was a possibility the RHD could borrow the money, because the debt for the Powell River General Hospital had started to reach the end, Palmer said. That required negotiations with the province and VCH. “The big problem was, no one had ever done it before, for a complex-care facility, or it was rare,” he said. “The province had to insist that if anything appeared on their books, then we couldn’t do it.”
In the end, RHD negotiated a lease agreement with VCH. RHD will finance the building through a loan from the Municipal Finance Authority and lease the building to VCH. The facility will be built on property owned by RHD and the land value is part of the agreement. As well as making lease payments, VCH will be maintaining and operating the building, Palmer said, and RHD will own the building in 20 years.
Because the debt for the hospital is decreasing and because VCH is paying for a lease, the end result for taxpayers is that the tax requisition will decrease, Palmer said. “At this point, we think we could get the requisition down by 40 per cent,” he said. “If the numbers come in the way we want, it could be 50 per cent.”
The reduction in regional hospital district taxes will apply to all Powell River property owners, both within the City of Powell River and the rural areas, Palmer added.
Officials are working on the assumption that the public wants the facility replaced, Palmer said, and regional hospital districts don’t have to hold a referendum to borrow money. “[Taxpayers] are prepared to pay for it and now we can tell them that you’re going to pay less on your requisition in order to get it, because Vancouver Coastal Health is going to share in it.”
Currently, the $24 million is an estimate, Palmer pointed out. “The worry now is, what will the bids come in at?” he said. “If the bids come in far higher than anybody even wants to talk about, we’d say forget it. We just can’t handle that kind of thing.”
The RHD has about $2 million in reserves, Palmer said, so it doesn’t have to borrow the money right away. That money will be used for designs and to set up project management. VCH will contribute half the money used from the reserves.
Over the years, many people have been involved with finding a solution for the community. Olive Devaud Residence is an 81-bed facility that was constructed in 1966. It was never designed to meet the needs of today’s residential care clients. The replacement facility will have 102 beds and will be built adjacent to the hospital, which will make operations more efficient.
Representatives from the Powell River Medical Society have been involved in finding a solution. Chris Morwood, president, said the society is “extremely pleased the project has finally been approved. We expect the new facility will improve the quality of life for residents living there, as well as the nursing and support staff caring for them.”
Morwood pointed out that while physicians and local administrators actively lobbied VCH and the ministry, it was the RHD board that pioneered the agreement. “Without their determined and progressive leadership, this project would not have happened,” he said.
City of Powell River officials have also been involved in lobbying. Mayor Stewart Alsgard said the news is “indeed splendid. I think it reflects the work and dedication of many, many people.”
Powell River Sunset Homes Society owns Olive Devaud Residence. President Myrna Leishman, who worked on replacing the facility for 11 years, including when she was on city council, said she was delighted with the announcement. “I think it’s a step forward,” she said.
VCH has to turn the building back to the society, once it has a new facility, in the condition it was when it took it over, Leishman said. The society will be working with other community groups to explore the possibility of turning it into affordable housing, she said, adding there is a need in town for affordable housing, not only for seniors, but for people with disabilities and mental illness. “They are the hardest to house,” she said. “Initial thoughts are that maybe we can work out a plan to house those in need.”
Brenda Langevin, VCH director for Powell River and Sunshine Coast health services, said Olive Devaud was designed for individual care for people who were independent and mobile. As time evolved, the people in the facility had more complex needs, but the building wasn’t designed to even accommodate a wheelchair. “Everybody is working at a bit of a disadvantage, everywhere,” she said. “Everything is too small.”
Langevin also had praise for local politicians. “Our regional district, our mayor and council, the physicians, everybody has just been working so hard,” she said. “It’s just fantastic to get that news finally.”
MLA Nicholas Simons, Powell River-Sunshine Coast, has lobbied the government as well over the years for a replacement facility, writing numerous letters and raising the issue in the legislature. “I’m very pleased that the government has announced this project is going ahead,” he said. “It’s the result of really strong advocacy from the Powell River Regional Hospital District and Vancouver Coastal Health. It’s a really good announcement for people in Powell River.”
Project planning and design is expected to begin this month. Project construction will likely begin in February 2012 with completion possibly by mid-2013.
