Mega-projects in the works for Sault.

A stable Sault Ste. Marie economy is being reflected in a broad range of construction projects either underway or in the queue.

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The most anticipated and biggest capital project is the new hospital on Great Northern Road in the city's north end.

With the City preparing the ground with two driveways to access the site, the successful contractor was expected to be named by May.

Potential bidders were narrowed down to the consortia groups of Hospital Infrastructure Partners, SNC-Lavalin and Plenary Health.

The latter, Plenary Health and their consortium of Deutsche Bank, PCL Constructors and Johnson Controls International, were recently awarded the contract to build the $551 million North Bay Regional Health Centre.

Queen's Park is paying 90 per cent of the hospital project's costs under the province's new Alternative Financing and Procurement model.

Sault MPP David Orazietti has promised the proposed 289-bed hospital will start construction this summer.

Hospital project manager Harry Koskenoja says it's "so far, so good" with the new bidding process.

"We had the advantage of going after North Bay. They had the most bugs to work out and we had the advantage of working from their template. We're not working from the ground up with the government and bidders."

The existing Plummer and General Hospitals, situated on the Sault's waterfront property, no doubt a prized piece of property, will be demolished and eventually put up for sale.

"We have a real big interest (to ensure) the property doesn't sit vacant for very long," says City planner Don McConnell, who expects all the land's environmental work and an advertising package to be complete by year's end.

Waterfront condos are a possibility under the current zoning but both hospital and city officials want to shortlist some possible uses for any interested private developers.

Another big mega-project is the $54 million Borealis project slated for the waterfront.

Lead developer Philip Garforth's design team were finishing final renderings on the extravagant tropical rainforest and entertainment centre. PCL Construction are standing by to mobilize the earthmovers this spring once city permits were in place.

Under the banner of Garforth's Legacy Quest Developments, the opening of Borealis, which includes a hotel, performing arts theatre and new retail, will occur in stages between 2008 and 2009.

Further down the St. Mary's River, government forestry and aquatic researchers are planning for a proposed Alien Invasive Species Centre involving both major renovations at the Great Lakes Forestry Centre along with new construction.

Algoma Steel, the city's main private employer has a slew of upcoming capital projects.

Local contractors and tradespeople were awaiting news on a blast furnace rebuild scheduled for July.

The company also plans to build a 70-megawatt co-generation plant having signed a 20-year power purchase agreement with the Ontario Power Authority.

The $135 million project will be in the plant's former round caster building.

Fueled by blast furnace and coke oven gases, the plant should reduce NOx (nitrogen oxides) air emissions by 15 per cent and cut in half Algoma's reliance on the provincial power grid.

Also in the works is a future wind tower manufacturing facility. An earlier joint venture deal with a German company fell through but Algoma continues to search for another partner. Algoma spokesperson Brenda Stenta says there's other value-added steel projects being investigated including a galvanizing operation.

Galvanized steel is coated with zinc to provide corrosion resistance in underbody auto parts, garbage cans, storage tanks and fencing wire.

More commercial development is cropping up in the city's north end.

As expected, the arrival of Wal-Mart and Home Depot on Great Northern Road has attracted a cluster of new retail last year including Payless Shoes, Future Shop and an expanded Mark's Work Wearhouse. Boston Pizza has bought property across from Great Northern Road with construction expected this spring.

"We get a lot of inquiries on property in that part of town," says McConnell. "It wouldn't surprise me to see more stuff going in there."

To alleviate traffic pressure off the busy Great Northern-Second Line intersection, the City is extending Third Line across the city's north end to People's Road.

"That road will be constructed and open for when the hospital opens," says McConnell.

New institutional building has also made headlines.

A new $5.6 million Ontario Provincial Police (OPP) Forensic Identification Unit is being built by Mike Moore & Sons Construction.

The 12,000-square-foot building, located next to the OPP detachment on Great Northern Road, will be responsible for processing evidence used in criminal investigations.

Another contractor, George Stone and Sons Ltd. won a contract to build a $7.8 million youth custody facility. Groundbreaking began in late February.

The 20,000-square-foot centre will create 30 full-time jobs and 130 construction jobs.

Algoma Public Health is pushing for a new headquarters on the Sault College campus to amalgamate their five offices under one roof.

Jeff Holmes, the agency's business manager, was hopeful detailed drawings would be into the Ministry of Health and Long Term Care before the government's summer break.

Tentative design plans call for a 70,000-square-foot facility in the college's present-day south parking lot.

Holmes says the $15.6 million project would pose tremendous opportunities for the college's nursing, graphic design, food services and social work programs.

"The program directors and college faculty see tremendous opportunity to get community health burned into the health sciences curricula."

Near Sault College, a former Ministry of Transportation building is being converted into an Emergency Measures Centre to house a new fire hall and ambulance dispatch. The land, valued at $4.3 million, was purchased by the City of Sault Ste. Marie for $800,000 with government agencies being approached for funding help.

Rick Thomas, Sault Ste. Marie Construction Association president, says there's also some smaller projects planned for the city including more upper deck entertainment suites at the Steelback Centre and about $4.5 million worth of area school board work replacing boilers, roofs and windows.

The Sault's French Catholic students will be moving into new digs sometime soon after the province earmarked $8.8 million to expand an elementary school to include a high school and acquire another school property.

While the number and value of City-issued building permits declined in the 2006 from the previous year with 115 permits (with values of $74.9 million) from 125 permits (valued at $74.9 million), a buoyant home construction market has given home builders reasons to smile.

The city recorded 138 single and semi-detached home starts in 2006, compared to 124 single and semi-detached with three triplexes.

Thomas, says 2006 was a solid year for home builders and forecasts 2007 is shaping up to be even better.

Many of his members are busy building waterfront homes east of the city in the outlying townships of Macdonald, Meredith, Aberdeen, St. Joseph Island and along the North Channel.

No one from the Sault & District Home Builders Association responded to interview requests.

www.ssmca.com

www.city.sault-ste-marie.on.ca

By IAN ROSS

Northern Ontario Business