Correction: A previous version of the headline of this story read “Cost of finding new location for Prescott and Russell Residence doubles; current location runs multi-million dollar deficit”. A previous version of this story also quoted Mayor Guy Desjardins as saying the facility is running a $3.2 million deficit, which proved to be erroneous. Here’s a full explanation.
The costs of finding a new location for the Prescott-Russell Residence have doubled to about $71,000 as of the United Counties of Prescott-Russell’s (UCPR) latest council meeting.
At its meeting in late June, UCPR hired Colliers Project Leaders to lead the charge in finding a suitable site for the new residence.
That project has since incurred additional costs: hiring an architect a “consultant specializing in cost estimates,” according to the council resolution, which will cost $30,370 and $5,900 (plus HST), respectively.
That’s an extra $36,000 on top of the $35,000 it cost to hire Colliers in June.
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The resolution adds, “savings have been found in the budget of the Prescott and Russell Residence to cover these additional expenses.”
Stéphane Parisien, the Counties’ CAO, also assured council that “most of these extraordinary expenses” could be recouped through the Ministry of Health and Long-Term Care’s Construction Funding Subsidy Policy for Long-Term Care Homes.
Earlier in the meeting, Guy Desjardins, mayor of Clarence-Rockland, took issue with the high cost of running the residence.
Desjardins suggested hiring a third party to do an operations review to find the problem.
“We have to take steps to stop this,” he said. The issue will be brought back to the next Committee of the Whole meeting later in October.
The final location for the residence has not yet been chosen. On October 11, Colliers will be presenting a recommendation to council in a closed session so as to avoid any increase in land price if the result of the location was to be made public.
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