Ontario Power Generation is not lamenting that it has had to abandon plans for an ultra-modern, low-carbon, mass timber headquarters in Clarington, Ont. in favour of a retrofit of the old GM HQ down the road in Oshawa.
OPG director of issues and information management Neal Kelly said the decision, announced Feb. 13, was for cost reasons and that the energy giant is committed to ensuring the new head offices will incorporate the same level of sustainability that was intended for the Clarington facility.
Bird Construction was announced as the contractor for the Clarington build in October 2021 and in the first two months of 2022 OPG was developing detailed designs and had applied for a site plan application. Groundbreaking and excavations were to begin that year.
But over the course of last year, it was realized the numbers did not add up for a new build.
“As we were getting the contractors in place and working our way through that process, we realized that with inflation pressures, with cost escalation resulting from the pandemic, and the ongoing global supply chain risks, we started looking around saying that the costs were coming in high,” said Kelly.
Then it was determined that the GM building was available and the footprint was similar to the Clarington site — 290,000 square feet proposed for Clarington, 285,000 square feet in Oshawa.
“It made little economic sense to continue the proposed project at the Clarington site, and it just made a lot more sense to look at this GM building and it was a much more economical, sustainable option in repurposing an existing building,” said Kelly.
Besides Bird, Stantec and Two Row Architect were among the firms involved in the Clarington job. Kelly said it is not yet known if they will be involved in the retrofit.
The firms could not be reached for comment.
“Obviously, we’ve talked with Bird and we’ve spoken to our other contractors and other providers that were working on the Clarington project and it’s too early, it’s early days,” said Kelly. “Like I say, we have just made this other announcement.”
Kelly said there had been no practical early works done on the Clarington site, nor site preparation.
A year ago an OPG project manager explained mass timber was the best way for the Clarington project to reach OPG’s carbon goals for the headquarters in light of the firm’s Climate Change Plan launched in 2020. Geothermal wells were to be installed to meet the heating and cooling requirements of the building.
OPG is officially committed to being carbon neutral by 2024. Kelly said the retrofit would match the sustainability goals of the Clarington plan.
“One hundred per cent, this will be a sustainable rebuild or repurposing of an existing building,” he said.
“You think about the technology that has to go in there, the way we work, and how we reimagine that space and what it’ll be in terms of the environment, it’s good news for the environment because we’re repurposing an existing building.”
The new headquarters will bring in workers currently working at 15 different sites in the GTA, mostly in Durham Region, with a headcount of 2,000 expected. The moves are targeted for late 2024.
“That building was built in the 1980s,” said Kelly. “I’m told there’s very good bones in that building. But it needs some upgrades.”
OPG has outlined significant developments for the Clarington site including plans for up to four Small Modular Reactors, an isotope production facility and a future clean energy skills and training centre. The site currently houses the Darlington Energy Centre.
Clarington Mayor Adrian Foster, speaking later, acknowledged OPG is a major spender in his municipality but said those future projects have been planned for some time. The spiking of the headquarters was a major blow, he said.
Foster said that until a couple of weeks ago he and the town were operating on the assumption that the project was still a go.
“We’re obviously very disappointed,” said Foster.
“We fully understand the business decisions. By refurbishing the GM headquarters they will save a lot of money, and ultimately, it is OPG but it’s essentially taxpayers’ money.
“But there was apparently no consideration given to the knock-on effects. As an example, we have spent years working on the secondary plan in that area with OPG headquarters as the key player. The cost to us for that was half a million dollars and between $200,000 and $300,000 of staff time. That plan will have to be redone.”
Foster said he has told OPG in no uncertain terms that he is frustrated and upset that there was no consultation before the decision and no plan announced to mitigate the town’s losses. The Region of Durham will have to redraw its employment plan, and property owners to the immediate west of the Darlington site will also be affected by the scrapping of the secondary plan, which included new servicing and roads.
Replacing the employment will be “nigh to impossible,” Foster said, and the town has no idea what future plans there are for the site that has been abandoned.
“There are a lot of things that could have and should have been dealt with upfront,” said Foster.
The mayor said OPG has been cordial since making its decision and that there will be discussions between the parties.
“It’s at a point where it’s rebuilding the relationship because that has rocked the relationship with OPG,” said Foster.
“If OPG expects the taxpayers of Clarington to eat about $800,000, I would hope that’s not even up for consideration.”
Kelly addressed the loss to Clarington earlier in the day.
“OPG has a long history of being a good neighbour in Durham Region,” he said. “We will continue to generate jobs and economic momentum for the region, and Clarington, through our operations, our projects and our purchase of goods and services.”
Recent Comments
comments for this post are closed