Thank you. We will commence then with a break. Thank you.

---SHORT RECESS

…Works and Services. I would like to ask Minister Abernethy if he would like to bring witnesses into the Chamber.

Yes please, Madam Chair.

Thank you, Mr. Abernethy. Does the committee agree?

Thank you. I’d like to ask the Sergeant-at-Arms if he would please escort the witnesses into the Chamber.

Minister Abernethy, for the record, could you please introduce your witness?

Thank you, Madam Chair. With me today is Paul Guy, the deputy minister of Public Works and Services.

Thank you, Minister Abernethy. Members, if you would please now turn to page 5-2, which is the activity summary, which we will stand down until we’ve dealt with the detail. Department summary, then. Turn, please, to page 5-4, Public Works and Services, activity summary, asset management, infrastructure investment summary, total infrastructure investment summary, $19.2 million.

Agreed. Thank you. No questions? Mr. Dolynny.

Thank you, Madam Chair. Regarding in the assets management, and I’m hoping we’re on 5-5. Are we there, Madam Chair?

We’re on 5-4 right now, oh, and 5-5. Sure.

Yes. Okay. Thank you, Madam Chair. Part of the project listing there includes the 6,000 square metre general purpose office building that’s being constructed in Yellowknife. We know

that work is underway and I believe that this project is being spread out over a number of capital budgets over the next number of years. Could we maybe get an update as to what the total cost is projected upon completion? I’m talking a full, whole asset of this project when this project will come to full completion date. Thank you.

Thank you, Mr. Dolynny. Minister Abernethy.

Thank you, Madam Chair. The completion date is April 2015, and we expect to start moving people in shortly thereafter. The project is gone out for RFP, a contractor has been selected and the contract has been awarded. Total contract construction costs, including all design and tenant improvements, is $25.143 million, which works out to about a square foot cost of about $378.66 per square foot. Keeping in mind that this does include tenant improvements and specific stuff for whichever departments happen to be going in there. If you take out the tenant improvements, the total cost is around $20.019 million, which is $301.49 a square foot.

I appreciate the Minister’s detailed numbers here. The question I have here with, I guess, fair market value for what I believe is a Class A space building. Going rate within the territory capital is in the $450 per square foot range. How is the Minister and department coming in at substantially lower, almost 25 percent below what Class A grade per square foot is being done in today’s market?

I’m not sure where that particular number of the market comes from, or the GNWT’s construction. We build a wide variety of types of buildings. Speciality buildings have different costs than other more generalized buildings. I do have to say that this building is being built to a high standard. We have certain codes within the GNWT that we, as a government, have already accepted as far as building practices, efficiencies. This is going to be a state-of-the-art building. We have gone out for an open competition. We have gone to the market and these are the prices that have come in. We are confident that we are going to get a building that is worth what we pay.

Those numbers are coming from recent construction in the downtown sector from reputable companies for that $450.

I guess the next question I have has to do with remediation or site preparation for that building. There was a demolition. There was a take-down and site preparation. Does this amount of money for that remediation, was that added into the costs of this project or was this separated out as an operational cost? Thank you, Madam Chair.

We got the property where the new building is going to be located. It was an empty lot. We did have to tear down a building in the adjacent lot to make the lot that will take up the entire building. The destruction or demolition of the Tapwe Building, I believe it is called, is included in this entire budget cost. The demolition of the church that was there previously, that wasn’t a government cost. We…(inaudible)…

From what I can gather, a portion of that lot was decommissioned or under remediation, and that amount of money for that demolition will be included in the whole component cost of that project as we move forward for capital depreciation and amortization.

Madam Chair, we own the lot that the Tapwe Building was on previously. We are using that property and the property that we obtained where there used to be an old church. We obtained those properties, so we are responsible for, and the price of taking down the Tapwe Building, decommissioning it, disposing of it, is included in this budget.

Will this demolition, remediation work, site preparation, a portion that the Government of the Northwest Territories was responsible for, will this amount be part of the whole component cost and will be capitalized and amortized accordingly?

Madam Chair, all costs related to the construction of this building, including the demolition of the Tapwe Building and the site remediation, are included in the budget.

I will take that as a yes from the Minister. Thank you. I have no further questions.