Sidney is packaging its old fire hall and an adjacent parking lot for sale in the hopes of offsetting the rising cost of its new community safety building.
The price of the safety building has climbed to about $14 million from $10 million, largely driven by increasing construction costs and an expanded space for the B.C. Ambulance Service. It is being constructed on property south of the Mary Winspear Centre and is expected to open in fall 2018.
Council decided this week to sell its municipally owned parking lot, with about 39 spaces, at 9821 Third St. , as well as the fire station site. A condition of the sale is that at least 30 town-controlled parking spaces be provided to make up for the loss of existing parking spots.
Today’s hot real estate market might benefit the community, Andrew Hicik, Sidney’s director of corporate services, said in a report to council. Net proceeds of the fire station property alone could top $3.25 million. That’s up from an earlier estimate of $2 million. The assessed value of the parking lot is $2.225 million.
Sidney Mayor Steven Price is optimistic that the capital region’s booming building sector will attract buyers for Sidney’s properties, which combined would create a 42,500-square-foot lot.
“The two properties combined are probably worth three times as much as just one by itself.”
“It is really a prime downtown location and we have so many developers now who are looking to build in Sidney.”
Each carries zoning that allows for ground-floor commercial and residential development of between four and six storeys.
Submissions will be evaluated on their merits and how they fit with the community’s plans and goals.
A call for expressions of interest for the two properties is to go out in mid-November. Price is hoping the sale will be wrapped up in January.
Sidney embarked on the new centre because its existing 1989 fire hall property at 9837 Third St. is too small. It is also unlikely it could survive a mild to medium-strength earthquake. The new building is designed to serve as a post-disaster safety centre with the fire station, ambulances, a training area, and an emergency communications centre.
In an August 2016 vote, council approved borrowing up to $10 million for the new building.
The final cost to taxpayers will depend on proceeds from the sale of the two properties, but if Sidney needs to borrow $6 million for the project, then the annual cost to the average taxpayer would be $39.96. If it is moved up to $8 million, then it would be $53.28, a report to council said.
Ambulance facility costs rose to $2.2 million from $1.1 million as that component of the centre developed, said the report from Hicik.
The report also said that as time passed, the Victoria construction market became busier and tradespeople were harder to find.
“Completing the construction within the shortest possible timeline was seen by both staff and council as the best way to control project costs.” Delaying the project would not guarantee that costs would drop in the future, he said.
Along with income from the higher anticipated revenue from property sales, Sidney is looking at receiving money from gas tax revenues, a surplus fund and infrastructure reserves to help mitigate costs.
