By Dan Jones LJI
Northumberland 89.7 FM
Port Hope town staff presented a report to council detailing options to add office space while saving taxpayers’ money and preserving a heritage building.
Port Hope council considered a staff report Tuesday evening to borrow up to $8 million to purchase and renovate 39 Pine Street North, the former Central Public School building. But staff presented a second “hybrid” option as an alternative.
“We’re proposing this option here of reducing the debenture to $4.9 million. That will cover the initial acquisition costs and set up an initial capital cost of $1.5 million to get us going and to get us off the ground,” Port Hope Chief Administrative Officer Mike Melinyshyn said.
Municipal officials identified the structure as important to meet staffing demands in the immediate and short-term compared to a new build, which could cost double and take five years to complete.
In a report to council, it stated: “The new build option was rejected for two reasons: first, the estimated cost of building a new building, of comparative size, would be $12-$17 million, more than double that of purchasing 39 Pine Street.
“Second, the new build option would take approximately five years to deliver, which is a significant time gap given urgent space needs,” the report said.
“Investment in 39 Pine Street allows Port Hope to generate rental income to offset purchase, capital, and operating costs. Approximately one-third of the building will be used for revenue-generating, leasable space for other community service providers,” the report said.
Potential tenants for 39 Pine Street would be the Port Hope Police Service screening office, as the police have maximized their current facility and are seeking additional space. The Canadian Nuclear Laboratories and the Fair Share Food Bank are also other possible tenant considerations.
If the loan is secured, renovations would commence this winter, including an elevator, parking, and driveway improvements. The building purchase cost would be $3.25 million, with further renovations of $4 million and a $1.1 million contingency. Yearly operating expenses would total $177, 000.
“A portion of the building is suitable for occupancy by staff. The plan is to locate 15 staff into the building over the coming year, commensurate with construction scheduling. Ultimately, 30 municipal staff will occupy the upper two floors of the building. Much-needed boardrooms and meeting spaces will be included in the space allocations,” stated the staff report.
The 114-year-old former school will provide 28,000 square feet of space and has a 50-year life cycle. Council is directing staff to secure offsetting grants and revenue streams to reduce the capital, operating, and budget costs. A bylaw to confirm the purchase of 39 Pine Street will be again before council on August 11.
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