Economic Development Officer Recommended Sale of Publicly Owned Heritage Fire Hall

UPDATE
This agenda item has been removed as of sometime in the am of March 20.

https://cranbrook.civicweb.net/Documents/DocumentList.aspx?ID=4651

Cranbrook Report Recommendation

TITLE/SUBJECT, Options for the future use of Fire Hall #1

DEPARTMENT, Economic Development

COUNCIL DATE, March 23, 2015

SUBMITTED BY, Kevin Weaver

Options for the future use of Fire Hall #1

Economic Development

March 23, 2015

APPROVED BY CAO,

PURPOSE,

To seek Council's direction regarding the future use of Fire Hall #1 located at 37_11 th Avenue South(the "Property") and the proposal from the Cranbrook and District Arts Council (CDAC) for repurposing the property as the future home of CDAC and an arts centre for Cranbrook.

RECOMMENDATION BY, Staff

That Council direct Administration to have Fire Hall #1 , located at 37-11th Avenue South (the property), listed by the City's realtor for sale at fair market value on the MLS system.

ALTERNATIVE,

1) That Council direct Administration to issue a call for proposals to determine the level of

interest from organizations in addition to the Cranbrook & District Arts Council, including the private sector, for redevelopment and repurposing of Fire Hall #1 .

2) That Council direct Administration to draft, for Council's consideration, a new Memorandum of Understanding with the Cranbrook & District Arts Council (CDAC) to allow for a comprehensive assessment of the requirements for restoration and repurposing of Fire Hall #1 (including detailed costings) and refinement of the CDAC's proposed business plan.

3) That Council direct Administration to draft, for Council's consideration, a lease agreement

with the Cranbrook & District Arts Council (CDAC) for the leasing of Fire Hall #1 to CDAC at market rates based on:

a. 25 year term,

b. Lessee will pay market rental rates staring one year after the lease is signed

(estimated at between $16,000 to $20,000 annually) plus utility fees and annual

taxes,

c. Lessee will be responsible for all funds required for property restoration, repurposing

and operating costs of the proposed Arts Centre,

d. Restoration and repurposing of the property must be completed within two years of

signing the lease.

4) That Council direct Administration to draft, for Council's consideration, a lease agreement

with the Cranbrook & District Arts Council (CDAC) for leasing of Fire Hall #1 to CDAC at FIVE DOLLARS ($5 .00) per year based on:

a. 25 year term,

b. Lessee will pay $5.00 plus utility fees and annual taxes,

c. Lessee will be responsible for all funds required for property restoration, repurposing

and operating costs of the proposed Arts Centre,

d. Restoration and repurposing of the property must be completed within two years of

signing the lease.

5) That Council direct Administration to explore options for repurposing of the Property for

municipal use, for Council's consideration.

BUDGETARY IMPACT,

The budgetary impact of the Recommendation (sale of the property at market value) may generate revenues of approximately +/- $350,000 (less costs for relocation of the City's network data centre located in Fire Hall #1) plus annual taxes.

Alternative 3 (Leasing the property to CDAC at market rates) is estimated to have a net positive budgetary impact to the City of between $1,400 - $2,000/month ($16,800-$24,000 annually), plusannual taxes and utility fees.

Alternatives 1, 2, 4 and 5 are estimated to have no net positive budgetary impact and may have small administrative costs for the City to varying degrees depending on the Alternative.

Note: in the alternatives associated with restoration of Fire Hall #1 for CDAC's purposes

(Alternatives 2, 3 and 4) it is assumed that the City will bear no costs for restoration, repurposing and ongoing operations by CDAC of the property.