Penticton Hospital

Penticton building image

  • Client

    Interior Health Authority

  • Region

    Vancouver, BC

  • City

    Penticton

  • Budget

    Capital Cost: $232 Million, Construction Contract: $207 Million

  • Year Completed

    2018

  • Size

    281,700 sq. ft.

  • Sectors

    Buildings

    Modular

    Buildings

  • Sub-Sectors

    Modular

    Healthcare & Research

The Story

Penticton Regional Hospital provides secondary and specialized acute care for patients living in the South Okanagan referral area. The hospital is located in an area of Penticton that has become, in essence, an integrated campus of care.

The scope of the project was to design, build, finance, and maintain a new 287,396 sq. ft. six-storey (plus mechanical penthouse) patient care tower, named the David E. Kampe Tower, and five-storey parking structure. This scope is Phase I of the project. The David E. Kampe Tower is connected to the existing hospital on the first three levels. In addition to constructing the new patient care tower and parkade, EllisDon was responsible for building maintenance (of the whole site), lifecycle repair and renewal and a portion of the project financing over the life of the 30-year contract.

The new David E. Kampe Tower includes 84 medical/surgical inpatient beds in single patient rooms, each with its own washroom; a new medical device reprocessing unit; a new ambulatory care centre featuring outpatient services; pre-surgical screening; satellite medical imaging and a laboratory for specimen collections. The tower also has a rooftop helipad and includes space to allow the University of British Columbia’s Faculty of Medicine program to expand.

The new patient care tower was designed to eliminate the challenges the existing hospital is facing. It improves delivery of safe, timely and effective patient care; solves over capacity issues, patient access problems and infectious
control issues; and increases patient confidentiality and standard of visit.

The project includes low volatile organic compounds and sustainable materials, energy-efficient equipment and systems, a high-performance envelope, and an emphasis on natural light.

Challenges And Solutions

The main challenges on this project included an aggressive schedule, constrained site, and availability of trades. In order to overcome these challenges the project required carefully scheduled, just-on-time delivery of materials, due to the lack of lay down space and storage.

Another challenge on this project was working adjacent to the hospital, which remained fully operational during the construction period. To overcome this challenge, there was a need for careful planning and good communication.

This was important to minimize noise, vibrations, as well as disruption to patients. Of course, tying the tower into the existing hospital added another level of complexity to the job.

Development And Equity

EllisDon Capital Inc. (“EDC”) led all negotiations of the key project contracts, including the financing agreements, and ensured that the terms and security packages were financeable and acceptable to lenders. In addition, EDC led all aspects of the Penticton Regional Hospital (“PRH”) project during the development phase, including the following:
• Leading the finance committee, which involved providing strategic direction to the financial advisor to create and evaluate the financial plan and funding options for the debt and equity;
• Providing full service financial advisory services, including financial modelling and arranging debt for the PRH project;

and

• Managing the funding competition to obtain the most competitive terms available in the market at the bid stage. Ultimately, the final lending group was selected on the basis of competitive pricing, strong experience in the Canadian
P3 market and the certainty of execution.

Financial Structure

• Facility A: $127.9 million
• Equity Capital: $15.1 million

The PRH project was financed with a single, long-term, delayed draw credit facility (Facility A) in the amount of $127.9 million. To date, there have been no incidents of default on Facility A. Equity Capital of $15.1 million was provided by EDC and a co-equity Sponsor with equal allocations (50%/50%).

Ellisdon Facilities Services Inc. (“EDFS”)

EllisDon Facilities Services Inc. is responsible for the building maintenance (of the whole site) and lifecycle repair and renewal over a 32+-year term. Maintenance services for the new building started in December 2019, while
maintenance services for the existing buildings started in May 2017. The services for the patient care tower and parkade include the following:

Hard FM Services
• Operation and maintenance of environmental control systems (HVAC, etc.);
• Electrical, mechanical, and security systems preventative and demand maintenance;
• Structural and architectural elements maintenance;
• Providing utility management; and
• Providing lifecycle management.

Soft FM Services
• Help desk;
• Heliport management;
• Fire management;
• Energy and environmental management;
• Landscaping;
• Snow removal/parking maintenance;
• Project management;
• Window washing;
• Pest control;
• Asset management; and
• Space management.

Awards

• Vancouver Regional Construction Association’s 2020 Silver Excellence Awards - Top Prize for General Contractors in the Over $50 million category;
• Vancouver Regional Construction Association’s 2022 Silver Excellence Awards - Top Prize for General Contractors in the Over $50 million category; and
• This project has achieved LEED Gold Certification.