Clearview Township is borrowing $428,078 to pay for the expansion of the Creemore Medical Centre, $100,000 more than originally approved by council.
The municipality will be applying for a loan for an amount not to exceed $445,000 with an annual servicing cost not to exceed $22,000.
In 2013, council approved the expansion and funding of the project through a 30-year debenture of up to $330,000 to be funded by increases in the rental revenue of the facility.
The total cost of the renovation came in at $987,829.
Community donations received to date, needed to support the estimated project costs, exceeded the fundraising goal of $350,000 by $186,615. The current balance in the donations account is $526,614 with a $10,000 pledged amount outstanding and expected to be received in 2015.
The increased cost can be attributed in part to “29 approved contract change orders amounting to $158,676 in additions to the final construction costs”. (Additional costs were incurred by basement renovations not in the original design ($32,066), dental suite renovations not in the original design ($78,537) and unforeseen work in progress additions ($48,073).
Recruitment of new health care providers is ongoing to establish a practice in the 875 square feet of new space now available to lease, providing close-to-home primary care services to the 75 per cent of those in the Creemore Medical Centre catchment area that are currently served elsewhere. In addition, the project provides 800 square feet of additional unfinished new space for future health care service growth.
The project as completed will remain financially self-supporting, requiring no tax supported funding.
The medical centre board is in the process of identifying the area as underserviced to assist with attracting newly graduated doctors.
The board is also pursuing the possibility of a nurse practitioner for the centre. With the addition of alternate medical/wellness services, lease revenues will offset our operating costs and replenish reserves.