City pondering sale of Penmar Theatre assets
Two projectors and 310 seats should be put up for sale to help taxpayers recoup at least some of the nearly $63,000 they lost on the failed Penmar Theatre project, city council will hear at its meeting today.
Staff has put forward a range of options to help dispose of the assets, which were recovered from the Penmar Community Arts Society to help repay money advanced to it by the city.
The projectors were purchased for $10,900 each, while the seats cost $96.31 apiece. They were purchased by the society, which also spent $11,315 on electrical upgrades, before the theatre was sold last year to Time Winery.
The prospect of selling the equipment was raised earlier this month by the Many Hats Theatre Company, which asked for 109 of the chairs for its venue at the Cannery Trade Centre.
Caught off-guard by the request, council then asked staff to explore the matter — including whether the city has the right to sell the assets — and report back.
While the society claims it’s still a going concern, city land administrator Peter Wallace disagrees with that assessment, according to his report, which puts forward several options for disposing of the assets, including asking suppliers for refunds or listing the equipment on the BC Bid website.
The Penticton Lakeside Resort has also expressed an interest in buying some of the seats.
Later in the meeting, council will be asked to authorize spending $140,000 to put a new roof on a shop at the city works yard on Okanagan Avenue East.
The 2,100-square-metre flat top on the shop where fleet vehicles are serviced is in poor shape, according to a November 2016 assessment, which notes pooling water, failing roofing materials and leaks.
“Repairing the roof would be expensive, costing in the range of approximately $20,000, and may provide limited protection against further leaks,” city facilities manager Bregje Kozak wrote in her report.
“Implementing a replacement project would give the roof another 20-plus years of life and would protect the glulam beam structure from deterioration.”
Kozak is recommending the money be withdrawn from an emergency reserve account.
Council will also be asked to sign off on 2017 property tax rates, under which the owner of an average $368,000 home would pay $1,595, up $82 from last year.
The meeting begins at 1 p.m. in council chambers and is open to the public.
Council will reconvene at 6 p.m. to deal with land matters, including applications to put in social housing at the Penticton and District Community Resources Society property at 180 Industrial Avenue West and to construct a 24-unit townhouse project on Eckhardt Avenue just east of Penticton Secondary School.