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B.C. reduces district costs by over $36 million for Cariboo Memorial Hospital upgrade

The CRD is responsible for 30 per cent of the total project costs up to $109.96 million
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Cariboo Chilcotin Regional Hospital District (CCRHD) have reached a revised cost-sharing agreement expected to save the district more than $36 million on the upgrade of Cariboo Memorial Hospital.

Upgrades to the facility are set to begin this spring, with the hope a new facility in six years may help attract more health care workers to the area.

The CRD made the announcement March 24 the agreement will see the total contribution for the hospital upgrades from the CCRHD substantially reduced from 40 per cent to 30 per cent of total project costs to a maximum of $109.96 Million out of the total $366.5 million forecasted completion cost.

This will result in savings for the CCRHD of $36.65 million which were previously committed to this project.

Al Richmond, CCRHD chair and director, Electoral Area G (Lac La Hache / 108 Mile) said it was gracious of Minister Dix to reduce the district’s contribution and said he gives full credit to Dix and his staff for initiating the conversation. He said this shows the commitment the minister has towards this project.

“We would have been putting our financial plan at risk,” said Richmond, noting it is not the only facility in our region in need of upgrades.

“This will allow us to continue to build reserves,” he said, adding the board will now begin work on looking at a long term care facility for Quesnel and the plan for the hospital there.

The CCRHD is using savings combined with increased taxes to fund the CMH upgrade project without going into debt.

The district explained it will use approximately $52.3 million in capital reserves to finance a substantial portion of project costs. The reserves that are available were generated over the course of ten years in anticipation of this project. The remaining costs will be generated through an increase to property tax rates of $5 per $100,000 assessed value, for a total rate of $75 per $100,000 assessed property value.

This increase will generate $82.96 million in revenue over the next six years, resulting in a net increase of $17 to$20 for the average homeowner excluding changes to assessed values. This revenue will support the CMH redevelopment project and provide funds for any future capital requirements.

The CMH redevelopment project includes an addition to the existing hospital as well as renovations to the existing facility. The addition will be three storeys, plus a basement, and approximately 9,300 square metres (100,100 square feet). The redevelopment will add 25 in-patient beds for a total of 53.

Work on the CMH redevelopment project is being performed through Graham Design Builders LP, and will be completed in two phases. Phase 1, which includes the addition, will begin in spring 2023 and is expected to finish in fall 2026. Phase 2, which includes renovations to the existing hospital, will begin in fall 2026 and is scheduled to be complete in early 2029.

READ MORE: Cariboo Memorial Hospital redevelopment construction contract signed, $366M project budget

READ MORE: Williams Lake doctor honoured by First Nations community



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