The board of directors with the RDOS approved a plan Thursday to borrow $10 million to purchase a building on Skaha Lake Road. The plan also includes selling its longtime downtown headquarters on Martin Street.

Image Credit: Keith Lacey, Local Journalism Initiative

The board of directors of the Regional District of Okanagan-Similkameen has approved a plan to borrow $10 million to purchase a new building in the south end of the City of Penticton.

This move would allow the corporation to relocate all 120 of its full-time employees into one facility, rather than having them spread across three separate downtown locations.

At Thursday’s regular meeting, the RDOS board approved borrowing the funds to acquire the building and property at 3547 Skaha Lake Road, the former home of Woodwinds Software Systems Inc.

The borrowing must proceed through the Alternate Approval Process (AAP), whereby 10 percent of registered voters across the RDOS — about 7,500 of the region’s 75,000 residents — would need to oppose the proposal to stop it, said Chief Administrative Officer Jim Zaffino.

A substantial portion of the borrowed funds is expected to be recovered through the sale of the current RDOS head office, located at 101 Martin Street in downtown Penticton, Zaffino noted.

That building, constructed in 1981, underwent structural and geotechnical assessments and received renovations in 2015 and 2016. However, senior RDOS staff have long made it clear that the existing space is inadequate for the organization’s needs.

“The boardroom is too small for members, staff, the public, delegations, and the media,” stated an RDOS report from early 2021. “The public reception area and common spaces are limited, storage capacity has been exceeded, the need for meeting space has surpassed availability, and work areas are too cramped to be efficient or welcoming.”

There were discussions three years ago about the RDOS and the City of Penticton sharing a large space, but those talks have not progressed in recent years.

The estimated cost to repay the $10 million loan over 30 years would amount to $1.23 per $100,000 of assessed property value. For a property assessed at $1 million, this equates to a tax increase of just over $12 per year, or $1 per month, the board was told.

Currently, the RDOS is leasing office space at two down-town locations: 176 Main Street (shared with Valley First Credit Union, housing finance and IT staff) and a smaller office on Estabrook Avenue, just a stone’s throw from the head office.

Purchasing the Skaha Lake Road property would allow RDOS to consolidate all 120 staff under one roof, sell its current head office, and terminate the two long-term leases, said Zaffino.

“That’s correct,” Zaffino confirmed. “The two leases we have now… the amount of money we’re spending there will help offset the debt servicing costs.”

Proceeds from the sale of the current office would also be applied directly to the debt servicing on the new building, he added.

Senior administrators had considered building a new facility from the ground up at locations outside the City of Penticton, but the costs were prohibitive, Zaffino said.

“In this case, we’ve got a pre-existing building,” he ex-plained. “In 2023, a report showed that constructing a new facility would cost upwards of $20 million. So, the financial risk to taxpayers is reduced because we’re dealing with a fixed cost.”

There are options to exit the existing leases as quickly as possible, Zaffino added.

“One of them has less than two years left,” he said.

Director George Bush jokingly expressed enthusiasm for the move.

“When can we move?” he asked with a smile.

Zaffino said the AAP would be completed by the end of July. If the borrowing is approved, RDOS would take possession of the building by August.

It will take a couple of months to construct a new board-room, renovate office spaces, and complete other upgrades. Zaffino estimated the full move could be finalized by late October or early November.

“Because we have to keep the government running" moving all staff, equipment, and furniture will take some time once we take possession,” he said. “But by the end of this year, my goal is for all of us to be moved in.”

Director Bob Coyne pointed out that a BC Transit bus stop directly outside the Skaha Lake building would pro-vide convenient public access to the new location.

“That’s a really big deal, actually,” he said.

Zaffino also noted the property includes a large parking lot with secure space for up to 150 vehicles.

The $10 million loan would cover not just the purchase of the new building, but also the renovations and upgrades needed to accommodate all staff in one place, he said.

Before Windward Systems acquired it, the building was previously owned by the provincial government, Zaffino added.

— This article was originally published by the Penticton Herald

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