Amid funding cuts, McGill says $870M New Vic expansion continues ‘for now’

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Will McGill University suspend or cancel its $870-million expansion?

Known as the New Vic, the project would significantly enlarge the university’s downtown campus, providing state-of-the-art research laboratories and other facilities at the former Royal Victoria Hospital.

But the major renovations — now in full swing and set to be completed in 2028 — come as McGill grapples with a change in how Quebec funds such projects.

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The university this month said it will have to cut overall spending on construction and renovations by about half.

In recent years, McGill has spent about $130 million annually on building and refurbishment.

Asked this week if work on the New Vic could be suspended or cancelled, McGill spokesperson Michel Proulx told The Gazette: “The New Vic is a top priority project for McGill and it will continue. We are not suspending it in any way for now.”

The university is still reviewing its options.

“It’s too early to say which projects will be affected by the funding cuts,” Proulx said.

“We anticipate having to re-examine, and possibly cancel, many projects, with a view to prioritize those that are critical to maintaining the health and safety of our community and the continuity of university activities.”

The New Vic would add 23,000 square metres to McGill’s campus. The new complex, immediately north of the current campus, will be a research and teaching centre dedicated to sustainability systems and public policy.

The facility is to be used by about 3,000 people daily, with classrooms for about 760 students and space for 1,000 researchers.

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Adding “the New Vic site to McGill’s downtown footprint will be a critical step toward reducing the university’s current space deficit of more than 55,396 square metres, as recognized by the Higher Education Ministry,” the university said in January.

The Quebec government is allocating $620 million in funding for the New Vic project.

The project has been controversial in some circles.

In 2022, the opposition Parti Québécois chastised Premier François Legault’s government for helping bankroll the expansion. The PQ called the New Vic “an insane project” that would “further contribute to the anglicization of Montreal.”

Quebec’s new capital-works funding mechanism imposes “a yearly cap on the amounts the provincial government will fund, with the projected cap for the current year being much lower than the amount we had planned to spend,” two senior McGill administrators announced on Aug. 8.

The changes “severely affect McGill’s financial capacity to proceed” with renovation and construction projects since most are funded in part or completely by Quebec, Christopher Manfredi and Fabrice Labeau said.

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Pending an assessment, McGill has said it will not start on any new projects and will suspend all calls for tender for construction. The university also put the planning and design of new projects on hold.

Founded in 1821, McGill is one of Canada’s oldest universities. About 13 per cent of its buildings are more than 100 years old.

McGill’s facilities-management department has estimated it would cost about $925 million to pay for the repairs, upgrades or maintenance work required due to a long period of limited investments.

“Some 200 projects are underway on our campuses, from relatively small classroom or lab upgrades to transformative projects such as the New Vic,” the department said in June.

In a July 2023 document, McGill noted Quebec had recently confirmed $890 million in “new and previously committed capital funding for authorized projects valued at $20 million or more.”

Apart from the New Vic, the list included several projects set to receive some Quebec funding.

$100.5 million for the Stewart Biology Building.$48.6 million for the Raymond agricultural and environmental sciences building on the Macdonald campus on the West Island.$45.1 million for Wilson Hall, a nursing and social work building.$26.4 million for the Ferrier Building, which houses a power plant.$14.7 million for the Strathcona Music Building.

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A spokesperson for Higher Education Minister Pascale Déry said she had no comment on the situation.

McGill is working on the New Vic project with the Société québécoise des infrastructures, the provincial government’s real estate arm.

The SQI is also working on a neighbouring project. It’s studying the idea of turning six former Royal Vic buildings, next to and behind the main structures, into a “cité universitaire.”

The inter-university hub would be mainly residences, with lodgings for up to 1,200 students from post-secondary institutions around Montreal, and shops and services tailored to students. The proposed private-public initiative would help alleviate a shortage of student housing.

The two projects are linked because all the buildings on the site share electrical, water, heating and fire-protection infrastructure. As part of the redevelopment, those services are being separated to create distinct entities.

A spokesperson for the SQI did not respond to a request for comment.

The reduction in capital works spending comes as McGill and Concordia, Montreal’s other English university, face other funding challenges.

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Enrolment has dropped due to the Legault government’s decision to hike tuition fees for students from the rest of Canada who attend the two universities. Quebec also changed the funding formula for international students, leading to a drop in revenue.

The two universities say new French proficiency requirements for students from outside Quebec could also hurt enrolment.

McGill and Concordia say the changes could lead to tens of millions of dollars in budget cuts.

They could face another blow when Legault introduces legislation this fall to cut down on international students. It’s unclear how that will affect McGill and Concordia. Among Quebec universities, the two institutions have the highest number of international students.

The tuition and French proficiency changes are part of the CAQ government’s effort to increase funding for French universities and reduce the number of non-French speakers in Montreal post-secondary institutions.

ariga@postmedia.com

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