Ontario Highway Service Centres Project Achieves Financial Close

On March 31, 2010, Infrastructure Ontario, as agent for the Province of Ontario, as represented by the Minister of Energy and Infrastructure, reached financial close with HKSC Developments L.P., Canadian Tire Corporation and EllisDon Corporation for the redevelopment of 23 service centres situated on Highways 400 and 401 in the Province of Ontario. The cost to design and construct the new service centres is approximately $300 million. Over the next three years, 20 of the 23 service centres will be redeveloped and will feature modernized rest areas, increased accessibility and improved food services. The remaining three service centres will be redeveloped at a future date.

Construction of the service centres will occur in a few phases, with the first phase of seven service centres, scheduled to open with fuel, washrooms, parking and a convenience store, to begin redevelopment in July 2010. These seven service centres will be fully operational in September 2010 when travellers will have access to Canadian Tire fuel stations with adjacent convenience stores and a variety of popular food operators. The redeveloped service centres will also feature new staff and tourism centres at the sites closest to the Windsor-Detroit and Québec borders.

The project is an alternative financing and procurement project under the Ontario Ministry of Energy and Infrastructure's ReNew Ontario infrastructure investment plan.

The credit facility for the project was arranged by The Bank of Nova Scotia (also acting as Administrative Agent), with financing provided by The Bank of Nova Scotia and The Toronto-Dominion Bank.

The Province of Ontario was represented by in-house counsel Ross Flowers. Infrastructure Ontario was represented by Graham McLeod, Vice President Project Legal Services. The Province of Ontario and Infrastructure Ontario were supported by a team at Goodmans LLP including Carla Salzman, Ira Berg, Glenn Ernst, Josh Nisker and Daniel Shapira.  

HKSC Developments L.P. was represented by McMillan LLP with a team that included Timothy Murphy, Catherine Doyle, Peter Willis, Ted Scott, Luigi Macchione, Mary-Ann Haney, Stephanie Robinson, Andrea St. Bernard, Robert Antenore, Marie Bruchet, Ken Bursey, Vivian Chan, Mary Flynn-Guglietti, Chris Germanakos, Sharon Groom, Carl Irvine, Shahen Mirakian, Sivan Nisimov, Andrea Onn, Michael Peterson, David Ross, Robert Scavone, Michael Whitcombe and Marty Venalainen. The team representing HKSC Developments L.P. also included Kristen Wittman and Norm Snyder of Taylor McCaffrey LLP. Kilmer Developments Limited was represented by Wayne Carson, Executive Vice President and General Counsel, with support from Ted Scott of McMillan LLP and Dale Lastman, David Matlow, Robert Vaux and Chris Sunstrum of Goodmans LLP. HMSHost was represented by Jon Stentz, Vice President and Chief Counsel, International Development and Brands with support from Scott Conover of Fasken Martineau DuMoulin LLP.

Canadian Tire was represented by Robyn Collver, Senior Vice President and General Counsel; Douglas Nathanson, Vice President and Associate General Counsel and Caroline Khachehtoori, Counsel. Canadian Tire used McCarthy Tétrault LLP, with a team led by David Tennant, with Joel Heard (construction law), Gordon Baird and Vaibhav Sahay (project finance), Jamie Orzech and Andrew Collingwood (real property and planning), and Andrew Armstrong and Beatriz Orrantia (corporate), Douglas Thomson and Joanna Rosengarten (environmental) and Joel Ramsey (IP) assisting.

EllisDon Corporation was represented by General Counsel Jody Becker with support from Geoffrey Gilbert and John Naccarato of Ogilvy Renault LLP.

The project lenders – The Bank of Nova Scotia and The Toronto-Dominion Bank – were represented by Fasken Martineau DuMoulin LLP with a team that included Brian Kelsall, Ella Plotkin, Kevin Clinton, Sean Morley, Mark Brennan, Marc Lefler and Louise Kennedy.