Future of hospital site part of budget discussions

Plans for the old hospital site in Niagara-on-the-Lake continues to be the subject of debate, as council and staff discussed the financial implications its $3.6 million debt on the building will have on the operating budget this year.

The former hospital on 176 Wellington St. was one of several topics discussed during the town’s latest budget review committee meeting on Monday, during which town treasurer Kyle Freeborn reported the town will incur a deficit of $67,820 in parks, recreation and facilities, largely as a result of debentures at the site.

Currently, three tenants are left in the building — a not-for-profit school, a massage therapist, and the local palliative care service. The family health team doctors who occupied offices downstairs have moved to a new home at the Village Medical Centre, which opened in February.

During the budget discussion, CAO Marnie Cluckie and director of operations Rome D’Angelo explained that while the building is safe for occupancy, it is rated as poor on the Facility Condition Index — the lowest rating on the FCI scale is critical.

“The roof needs to be redone in short order and there are other significant investments that need to be put into that building, from a capital perspective,” Cluckie said.

Currently, the town pays a little more than $61,000 every year in interest on its long-term debt of $3.6 million for this site. The town has borrowed the funds to pay this interest every year from development charges.

According to Freeborn, this interest rate is based on its 2019 background study on development charges, but once the study is redone for 2024, the rate will increase significantly. “I would expect that to go up in 2024, and certainly to go up if we turn that into a real debenture,” he said.

The town is still seeking ways to fund the capital investments needed and to give the hospital site a new purpose. As for the planned $67,820 impact to the net levy, “it’ll be a council decision what to do with that building going forward,” said Coun. Erwin Wiens, chair of the meeting, which will then impact this budget.

During its Feb. 28 council meeting, councillors heard a proposal to turn the site into the Niagara Creative, Cultural and Community Hub, presented by Robin Ridesic, representing a number of non-profit organizations, along with Tim Jennings, executive director of the Shaw Festival, and Tim Johnson, an advisor and activist on Indigenous education.

At the group’s request, Cluckie said the town is looking at the potential of extending its short-term leases for the current occupants of the building, and a usage case for the site, including the finances involved.

D’Angelo said he would be meeting with the group proposing the hub on Tuesday, March 21 to discuss their vision for the site.

“From our end, it’s really the capital needs that are required in that building to make it sustainable,” he said.