SGI TO BEGIN REPAIRS TO HEAD OFFICE BUILDING

SGI is beginning a 15-month project at its head office building in Regina to repair severe structural deterioration. The post-tension cables that help support the building have been corroding from water seepage over many years. Without a permanent fix, the building would eventually become unsafe.

The repairs are scheduled to begin in August 2004, and are expected to take 12 to 15 months to complete. The cost is estimated at $3.9 million.

"Without these repairs, the structural problems will continue to deteriorate the building," SGI President Larry Fogg said. "Immediate repairs are necessary, but a long-term fix is also required to ensure the building remains safe in years to come for the public and staff who access the building and the surrounding area."

Over the last 10 years, SGI has spent $1 million on temporary structural repairs dealing with this problem. Approximately $100,000 per year has been spent replacing corroded post-tension cables. Without a permanent solution, this annual cost to the company will escalate. Tackling the problems in one year is also the most cost-effective solution, as doing the project in stages would increase the cost by at least 20 per cent over time.

Water seepage has been an issue since the building was constructed 25 years ago without an effective protective membrane to keep water from entering through the main floor level. Post-tension cable support was standard practice during the 1970's, as the industry was not aware that corrosion of the cables would be such a problem. SGI installed an additional membrane in 1994, but by that time rust and corrosion was too widespread for the effects to be reversed.

The planned repairs will provide a new concourse surface outside the building to properly insulate and waterproof the basement below, preventing further water seepage to extend the life of the building.

"The extent of the necessary repairs also provides us with an opportunity to address a number of issues that have plagued the building for 25 years - namely parking, traffic and wind problems," Fogg said. "These improvements will enable us to better serve our customers and provide a more comfortable and secure environment."

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For More Information, Contact:

Julianne Jack SGI Communications Regina Phone: (306) 775-6907