In October, the department published plans to demolish the aged seven-storey Lorne Building, formerly home to the National Gallery of Canada, and build a new 489,000-square-foot office tower on the site and adjacent surface parking lot.
Using a "lease-purchase approach," the federal government will retain a private-sector proponent to design, construct, finance and manage the building, located between Slater and Albert streets.
Public Works will continue to own the site and will lease it to the proponent for 25 years, plus the allotted time for demolition and construction. The developer will then, in turn, sublease the space back to Public Works.
The $124.2-million figure, contained in Public Works's 2008-09 departmental performance report, does not appear to include the sublease rents as the sum is budgeted for 2009 to 2015.
When asked for details on how the $124.2 million would be spent, a Public Works spokesperson said it includes:
- Fit-up costs (interior work to suit tenant requirements);
- Soft costs (all fees and disbursements), and
- Risk contingencies, such as delays and financial risks.
A request for qualifications from interested developers closed in late November. The government plans to release a full request for proposals to qualified bidders in mid-January and approve a deal by fall 2010.
Construction would begin by the end of October and wrap up by March 2014.
Along with housing the Department of Finance and Treasury Board Secretariat, the new building is slated to include ground-level retail.