Prospects dim for new office

Faced with the unpleasant prospect of seeking public support for spending upwards of $20 million on a new office, the Regional District of OkanaganSimilkameen will learn to live with its cramped digs in downtown Penticton.

Elected officials on the RDOS board last week received a consultant’s report that helped sharpen the focus on four options to give the local government more space.

Three of those options contemplate spending $18 to $20 million on a new office on a new lot or at the existing RDOS headquarters at 101 Martin St. The final option considers leasing or purchasing an existing building.

None of the options is particularly palatable from a financing perspective.

“Any sort of future movement on this would require public assent and it is very difficult to get public assent to build office buildings. We can refer to West Kelowna on that one,” said Bill Newell, RDOS chief administrative officer, noting a pair of votes in 2016 that held up construction of a new city hall there.

“So, if we’re looking at $20 to $25 million in present dollars down the road,” continued Newell, “I think this is a long-term plan — like, long-, long-term plan.”

The four options were presented to the board by Gordon Easton, vice-president of Colliers Strategy and Consulting.

Based on a separate 2021 space needs report from a different consultant, Easton’s work was premised on the RDOS growing from its current office space of about 14,000 square feet — including two leased facilities off-site — to 32,000 square feet. His calculations also assumed the RDOS staff complement will rise from 76 in 2021 to 114 by 204.

If the RDOS decides to relocate, Easton suggested picking a location in Penticton or Okanagan Falls, but cautioned there isn’t much available and moving outside Penticton could make it harder to attract and retain employees.

“The challenge here is there really aren’t that many options for a building or lease space of this size. You would be considered a very large user for this market. Most tenants are in that 2,000- to 5,000-square-foot range and we’re talking about something in the 30,000-square-foot range,” said Easton.

The most intriguing option put forward by Colliers would see the RDOS team up with the City of Penticton to develop a new office in the parking lot behind city hall. That would allow the two local governments to share space, such as meeting facilities, and free up the land at 101 Martin St. for sale or parking.

Penticton city hall is also undersized and requires millions of dollars’ worth of renovations and updates, and for years has been pitched as an ideal candidate for a shared replacement project.

“It’s something that should make sense, but there hasn’t been any strong momentum,” said Penticton Mayor Julius Bloomfield in an interview Monday.

For now, he added, the city will continue following recommendations for renovations and improvements contained in a 2021 asset management plan.

The four options presented by Colliers were:

OPTION A

— Expand/renovate existing head office at 101 Martin St.

— Would require staff to move during work

— Cost estimated at $18.2 million to $19.2 million

OPTION B

— Build new office on new site — Consultant recommends looking in Penticton and OK Falls

— Cost estimated at $18.2 million to $19.2 million

OPTION C

— Lease or purchase an existing building

— Would allow staff to stay in existing office during conversion, but there aren’t many options

— Cost estimated at $2.7 million for start-up and $750,000 in annual lease payments for rented space, or $18 million to purchase and renovate an existing building.

OPTION D

— Develop joint facility with City of Penticton in parking area behind city hall

— Would allow for more shared spaces and to potentially convert existing RDOS site to parking

— Cost estimated at $18 million to $20 million