An artist's rendering of the proposed new West Kelowna Firehall #32.
Image Credit: Submitted/City of West Kelowna
January 23, 2024 - 7:00 PM
Thomas Lovell is all in favour of West Kelowna building a new firehall in Lakeview Heights.
What he is not in favour of is being saddled with an $8 million loan to help pay for it.
Instead, at a minimum, he wants the city to sell two properties on Harmon Road that it bought in 2019 for the firehall before deciding, last year, to build it on Anders Road instead.
“Those two properties are now worth approximately $2 million,” Lovell said in an email to iNFOnews.ca. “It would seem logical that the city sell the taxpayer funded Harmon Road New Firehall #32 properties and apply those funds to the construction costs of the new location on Anders Road, thus reducing borrowing to $6 million or less.”
He later added the suggestion that, when the Olalla Road property where the existing firehall sits is sold, that money also be used to decrease the amount of the loan.
Lovell has sent a number of emails to City Hall campaigning for that change (along with numerous other financial concerns).
He’s not satisfied with the emailed response he got from CAO Paul Gipps that says “the funds from the eventual sale would be reassigned back to the fire service needs.”
“Fire service cost is equipment not long-term borrowing," Lovell wrote in his email to iNFOnews.ca. “All the City has to do is simply state that the sale of the three properties will go directly to the new firehall borrowing, but they will not so state.”
The city will not say if the properties are even for sale since land transactions are considered confidential.
He’s also convinced that the actual cost of the firehall will end up higher than the budgeted amount of $14,3145,900.
READ MORE: West Kelowna wants to continue building despite legacy cost overruns
To pay for it, $3.8 million will be taken from reserves, almost $1.9 million from parks development cost charges (contributed by developers), $1.8 million from a BC government Growing Communities Fund and a $150,000 developer contribution, according to a report going to city council today, Jan. 23.
The loan will be up to $8 million but won’t actually be taken out until 2025 or 2026, the city said in an email to iNFOnews.ca.
“The current annual transfer to reserves, that is the funds the city transfers into the reserve account to save up for the project, will pay for the loan of up to $8 million,” the email said. “This method offsets any new tax increases to the public, and keeps the project moving forward in a timely manner as land disposal is considered by Council. And, yes indeed, should Council dispose of land with the funds to(be) directed to the project, then substantial lump-sum payments may be made in accordance with long-term loan conditions.”
It’s that “may be made” comment that Lovell bridles at. He wants assurances that the money will be used to pay down the loan.
By doing that, Lovell argues, money can be put into a fire department reserve fund rather than being spent on interest charges.
But in order to force the city to reconsider, he will need the backing of 2,809 other West Kelowna voters.
That’s the 10% of electors who have to petition against the loan using the Alternative Approval Process that council is being asked to launch tonight.
Under that process, voters have until March 15 to send in their no votes or the $8 million loan will be authorized.
Voters rarely reject Alternative Approval Processes.
READ MORE: How Kelowna expects to pay a $241 million loan at only $100 per household per year
Last fall, for example, the City of Kelowna got approval for a $241.3 million loan to rebuild the Parkinson Recreation Centre and build some other recreation facilities.
In that case, only about 4% of voters (4,153) sent in petitions opposed to the borrowing out of the 12,160 needed to defeat it.
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