Horton High School Lease Signed

The agreement to lease and maintain Horton High School is now signed. School construction costs came in on budget at $25.4 million, and maintenance and repair costs are covered for at least 20 years.

Education and Culture Minister Wayne Gaudet said he is pleased to reach an agreement for another of the province's original eight schools built with private partners.

"We said from the beginning we would only sign an agreement that provides good value," Mr. Gaudet said. "This lease passes the tests. We have a solid lease for a great school that the students, teachers and community will enjoy for many years to come."

The minister, who recently toured the Annapolis Valley school, said anyone who visits the school can see the high cleaning and maintenance standards. As well, teachers and students alike are proud of their long-awaited school, which they helped plan.

"You can see how the advice of teachers has influenced the classrooms and other educational areas," Mr. Gaudet said. "This is how we're building all our new schools -- resulting in schools where teachers can deliver the kinds of programs that students need to succeed in the new economy."

The 20-year lease covers costs for construction, furniture, equipment and financing. Access Technologies is responsible for 11 per cent of these costs. The province pays about $196,667 per month, or $2.3 million annually. Accountants calculate an approximate savings of $2.9 million if the school is no longer needed at the end of the lease. Assuming the school is needed, the province pays about $430,000 more than if the school was purchased today.

"A lease gives us more choice in 20 years' time," Mr. Gaudet said. "More significantly, paying over time enables us to build more than 30 schools across the province, without delay."

The management agreement covers regular cleaning, air quality control, supplies (cleaners, toilet paper, light fixtures, etc.), systems control (water, sewer, heating, security, etc.), and snow, ice and garbage removal. The $1.14-million annual management agreement also covers all capital repairs. If the need for capital repairs exceeds the budget, the private partner pays.

Mr. Gaudet said the maintenance agreement means the province and the board don't have to worry about unexpected repairs. "Over the years, we've had a lot of problems with air quality and other unexpected costs. This will not be the case with Horton, or any of our new schools now being planned."

The provincial government now has development agreements signed for the 31 schools announced in December 1997. Those agreements build on what was learned with the original eight schools, transferring additional risk to the private partners.

NOTE: The following is intended for broadcast media.

An agreement to lease and maintain Horton High School

in Nova Scotia's Annapolis Valley is now signed.

Construction costs came in on budget at just over

25-million dollars, and maintenance and repair costs are

covered for at least 20 years.

Education Minister Wayne Gaudet says it's a solid

lease that provides good value.

Under the lease, the province pays almost 200-thousand

dollars a month for use of the school.

Accountants calculate the province will save about

two-point-nine million dollars if it no longer needs the

school after 20 years.

If the school is needed, and the province buys it,

it will pay about 430-thousand dollars more than if the

school was bought today.

NOTE TO EDITORS: A fact sheet is available by calling Communications Nova Scotia at 902-424-4492 or e-mailing CNSrelease@gov.ns.ca .