Green Infrastructure Partners Inc. (GIP) is hot to trot on its high-speed demolition of the former General Hospital.
But it's been forced to temporarily cool its jets.
GIP's purchase of the hapless structure from the city hasn't closed yet, delayed as land registry office staff dot the necessary 'i's and cross the 't's.
"A sale cannot yet be concluded as the city is still waiting for property to be certified by the local registry office from the purchase transactions, which can take weeks after closing," says Karen Fields, city solicitor.
"We are also still waiting on a plan to denote the easements to be acquired by the city," Fields adds.
As SooToday reported last week, the city has agreed to sell the building for one dollar and other considerations to GIP, which plans a rapid demolition and redevelopment of the property.
"An agreement of purchase and sale is to be concluded between GIP and the city," Fields explains.
"When the sale closes, GIP will own the property and they were then to commence demolition as per their bid.
"GIP requested that if they were the successful bidder, they be allowed to move equipment onto the property, pending the close of the sale. A licence to occupy was approved by council, which stipulated that they could move equipment onto the property, but no demolition was to take place prior to the sale closing."
Last Thursday, with its elite tear-down team raring to to go, GIP asked the city for another agreement, allowing it to start abatement of potential health and safety hazards and to start carting away the old hospital's contents.
City council will hold a special meeting on Tuesday to approve an agreement allowing that, while also shielding the city from potential multi-million-dollar liability if anything goes wrong.
"As the city is still the property owner, and as it was never contemplated that any work would take place while the city still owned it, agreements need to be put in place to protect the city from liability caused by a contractor working on city property," Fields says in a report prepared for Mayor Matthew Shoemaker and city councillors.
"This is not the usual scenario where we have a contract in place for work, so an agreement needed to be drafted.
"If the property were to sit dormant except for city crews doing maintenance and clean-up, no liability for third-party health and safety would be present. Should the city allow GIP to commence work without an agreement, it opens the city to liability," Shields says.
"The city does not require GIP to commence this work, but at GIP’s request to be on-site, this agreement was prepared.
"The agreement prepared for these purposes allows GIP to be the constructor of the work until the sale closes. It then would become the property owner, and the city would not be responsible for what takes place on GIP property.
"The agreement identifies the agreed to roles and obligations for health and safety of the parties during this limited period, and seeks to reduce any health and safety liability to the city.
"Fines under the OHSA for a conviction of a corporation carry a maximum fine of $2 million per conviction," Fields said.
The agreement that councillors are expected to approve on Tuesday is designed to:
- GIP must provide a site-specific safety program satisfactory to the city
- GIP will enforce compliance by its employees with the Occupational Health and Safety Act and its regulations
- GIP agrees it will not take the position that the city is in any way responsible under occupational health and safety law for work done at the old hospital property, whether the work is done by GIP or any other party allowed by GIP to perform work on the property
- it must ensure that no demolition occurs until all asbestos-containing materials are removed to the extent practicable
- it must obtain commercial general liability insurance not less than $10 million per occurrence, including coverage for firefighting expenses and elevator and hoist liability
- it must also have a contractor's pollution liability policy not less than $5 million
Tuesday's city council council meeting will start at 4 p.m. and will be livestreamed on SooToday.