FOR IMMEDIATE RELEASE December 20, 2007
CAO Leon Gous' answers to the Vernon and Districts Taxpayers' Association's questions concerning the Civic Complex confirm the following:
1. There is "NO PURCHASE AGREEMENT" between the City of Vernon and the Okanagan Regional Library Board (ORL).
2. There is NO DECISION on whether the ORL will lease or buy the new library.
3. There is NO VALUE DETERMINED on the land and building proposed for the library--such value will be determined "AFTER completion" of the complex.
4. There is SILENCE concerning the overrun costs--in the case of the library, we are told any overruns will be paid by Citizens of Vernon!
5. There is NO CONTRACT between the City and ORL concerning the future sale of the library by ORL--only a 'position' by the City.
6. The Citizens of Vernon will be shelling out the FULL CAPITAL COSTS OF $4.8 million for the Art Gallery.
7. There is NO LEASE AGREEMENT with GVSC for the increase in rent from $11 sq.ft. to $25 sq.ft.
8. The only documentation concerning the Art Gallery is a letter supporting a 'concept plan of 11,000 - 12,000 sq.ft.'
9. There was NO RESPONSE to our question--why has there been no public input opportunities for the Citizens of Vernon? Mr. Gous' response was a blank.
The consultants' fees to date starting with the Cultural Centre white elephant to the present Civic Complex proposal?? Over $450,000! What have the citizens of Vernon received for it!?
Finally, this Mayor, Council and City Administration are asking us to sign a blank cheque without any solid contract in place.
Contact: Antony Stamboulieh 260-1082
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Original List of Questions Post
1 comment:
Please see responses as add-in text to your e-mail below.
Please do not hesitate to call me for clarification or if you require additional information.
Leon A. Gous, PEng, MBA
Chief Administrative Officer
City of Vernon
www.vernon.ca
550-3515
Subject
Vernon Civic Complex
Mr. Leon Gous
Chief Administrative Officer
City of Vernon
For your immediate attention:
Your stated date of December 15, 2007 for information concerning the
new City Complex has passed and still there is insufficient
information. At this time only design information is available. The
only financial information was given by you to Coldstream Council on
December 17, 2007 and that information concerned just the Art Gallery.
As the referendum date of January 26, 2008 is looming, this lack of
information begs your immediate response to the following questions:
1. Is the Okanagan Regional Library (ORL) going to contribute $9
million to the Library/Civic Complex or is the City of Vernon going to
borrow $9 million on their behalf? Is the borrowing limit $30 million
or $39 million for the project?
Answer: The ORL has committed to contribute $9 million. The borrowing authority that is being sought is up to $30 million. However the ORL decides to finance their $9 million, the cost to the City of Vernon will be TOTAL COST less $9 million. Currently the TOTAL COST is estimated at $32.4 million (this includes all hard and soft costs - of these costs $1.1 million represents non-cash items such as City staff time, DCC's and Building Permit fees).
2. Will the ORL be buying the existing library and land from us for
approximately $1 million +?
Answer: The value of the land will be determined at the completion of construction. The proposed agreement is for an independent third party (such as a Quantity Surveyor and Land Appraiser) to determine the fair share cost of the completed Library Strata (including Land and existing building). This will represent the Total Library Cost. The ORL and City will own shares of the Library Strata representing the same ratio as $9 million to Total Library Cost (eg. if Total Library Cost were to be $10 million then the ORL would own 90% of the Library Strata and the City would own 10%).
3. Will $8 million be enough to renovate the old library space and
build the new library space + parking+ additional land footprint and
will the Citizens of Vernon be paying the overrun costs on the entire
building?
Answer: I am not sure what the $8 million represents. As discussed above, all costs for the Library Strata above $9 million is proposed to be carried by the City in exchange for proportional retention of ownership of the Strata.
4. If, in the future, the ORL decides to sell the library and we can't
afford to buy it back, can the ORL sell part of our Civic Complex to
anyone they decide?
Answer: The Purchase Agreement between the City and the ORL has not been finalized. The City's position to date has been that the ORL will not be able to sell their share of the Strata on the open market.
5. Will the Citizens of Vernon be paying 70% or 100% of the Art
Gallery building cost of $5 million and the increased rental charge of
$25/sq.ft. from $11/sq.ft. plus additional subsidies?
Answer: The City will be funding the estimated $4.8 million Art Gallery capital cost. The City will be looking to collect a lease rate of some $25/sq.ft. from GVSC for the Art Gallery.
Finally, why is it that to date there have been no opportunities for
public input on this issue? The public has been given only design
displays and a 'workshop' of design options with no public dialogue.
Yours truly
Kay Stamboulieh
on behalf of The Vernon and Districts Taxpayers Association
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