On August 15, 2007, the Sault Area Hospital, with its co-sponsor Infrastructure Ontario, reached financial close with Hospital Infrastructure Partners (Sault) Partnership (HIP), their lenders, SunLife Assurance Company of Canada, the Manufacturers Life Insurance Company, the Great West Life Assurance Company and CIT Financial Ltd., and the Lender's Agent, CIT Financial Ltd. for the build-finance-maintain of a new state of the art hospital.
The contract value for the construction of the facility, building maintenance, lifecycle repair and renewal and project financing is equivalent to $408 million in today's dollars. Over the 30 year service period, HIP will provide building facilities services to the hospital and non-patient food services. After construction is completed, the Hospital will pay HIP monthly service payments for 30 years for the cost to build the hospital, maintain it for 30 years and pay for building lifecycle repairs during the period. Payments are performance-based and subject to deductions if the facilities or services do not meet established performance standards (including the availability of the facility and delivery of services) set by the Hospital. The project is structured as a build-finance-maintain project and is guided by principles outlined in the Province's Building a Better Tomorrow framework, which ensures public ownership of core assets such as hospitals, schools, and water and wastewater facilities.
Infrastructure Ontario's legal team was led in-house by Graham McLeod. McCarthy Tétrault LLP acted as counsel to Infrastructure Ontario and the Sault Area Hospital in the structuring, procurement, negotiation and settlement of the project documents, with a team that included Gordon Willcocks, Godyne Sibay, Gord Sato, Vernita Tsang, Paul Jachymek and Tristan Musgrave (real estate), Paul Boniferro and Joanna Carvalho (labour) and Shanon Grauer and Victoria Everett (corporate).
Hospital Infrastructure Partners (Sault) Partnership was represented by Blake, Cassels & Graydon LLP with a team that included Ian MacIntosh, Anne Stewart, David MacLachlan, Rich McDerby and Peter Morley (corporate and financial services) and Gowling Lafleur Henderson LLP with a team that included Paul Harricks, Alan James (corporate) and Lilly Wong and Hilda Wong (financial services). The HIP team also included David Rosenberg, general counsel, and Cecile Chung, in-house counsel, at Carillion Canada Inc.
The lenders' agent and arranger were represented by McMillan Binch Mendelsohn LLP with a team led by Chris Bennett, Peter Willis and Catherine Doyle (financial services).