Saturday November 9, 2024 | LANGFORD, BC [Posted at 11:36 am | Updated 12:10 pm]
by Mary P Brooke | Island Social Trends
The potential purchase of the Westhills YW/YMCA Langford Aquatic Centre and parking lot at 1319 Westhills Drive was the topic of a consultant’s presentation to City of Langford council on Monday night, November 4.
Colliers Project Leaders provided a presentation about the situation that the City finds itself in… whether to continue leasing or proceed to a purchase.
The City in their next-day news release says Colliers provided a “comprehensive update” which included “the due diligence steps undertaken to date, and the financial impacts of either continuing under the current arrangement or proceeding with purchasing the building”.
Political pressure:
City of Langford council is in a bit of a pickle… take on the cost of purchasing the Westhills YW/YMCA with tax implications now, for a building they’d fully own 17 years later. Recreation facilities are not big money-makers but serve the community.
To what degree do Langford taxpayers want to underwrite the cost of a local Y facility?
This scenario has been a topic of considerable political pressure for this council (elected two years ago in October 2022). The previous council (same mayor and essentially the same council for nearly 30 years) somehow in 2013 managed to find itself in a tripartite deal with Westhills Land Corporation and the YW/YMCA.
Westhills built and has owned the recreation facility since 2013 while the Y team operates it without municipal input, which rather limits accountability while the city takes on risk.
Recreational facilities are obviously intended to be a community amenity that contributes to the health and well-being of individuals, families and community.
The Westhills Y aquatic facility has a hot tub, steam room and sauna as well as a pool for lane swimming, leisure pool and therapy pool.
November 4 council meeting:
On Monday night, Colliers provided details on an offer to sell as received from Westhills, a financial analysis, and funding options for Council to consider.
The discussion did not include a review of facility operations/programming, which is independent from a decision to purchase the building or not and can be considered at a later date.
Council deliberations are reserved until December 2, 2024, in order to provide an opportunity for public input at future Council Meetings (November 18, December 2, December 16 – if needed), or via email to LetsChat@Langford.ca.
Public engagement is also available online where Langford residents can provide feedback on the YW/YMCA purchase option.
The deal in a nutshell:
According to the tripartite agreement, in the event of a default by the YW/YMCA, the City is required to cover the building lease and lifecycle expenses.
One of the major operational expenses is the swimming pool; pools at most rec centres in Canada do not turn a profit.
But to date, the City has to date had no input or control of marketing or operations.
Operations and programming by the Y team will have had considerable impact on popularity and level of use of the Y facility. Some residents may use it frequently while others are barely aware of its presence within the spectrum of Langford community offerings.
Westhills sees itself as a developer not a recreational facility manager, and seems entirely fine with parting ways with its responsibility for the building.
Dilemma for the City:
The dilemma for the City of Langford to make this purchase that the tax impact is immediate (already in the 2023 and 2024 budgets and five-year financial plan) and that if a purchase happens, the eventual payoff after 17 years will include much-aged infrastructure (constructed in 2013) that will have already required maintenance over the years.
This is probably one of the major financial pickles that the City of Langford finds itself in, taking on a scenario created by the previous council.
Mayor Scott Goodmanson and council seem to be taking a positive methodical approach to the YMCA purchase decision, very likely aware of the political landmine it could bring in the next municipal election in October 2026.
The surrounding area:
The Westhills YW/YMCA is in a residential area near Langford Lake in a region where industrial, retail and team sport infrastructure has also been developing. The Heritage Branch of the Greater Victoria Public Library is immediately adjacent as is a Victoria Conservatory of Music location. A BC provincial office building is close by as well.
There are three SD62 schools in the immediate Westhills vicinity (Belmont Secondary School, Centre Mountain Lellum Middle School, and PEXSISEN Elementary School) which have many of their own recreational facilities shared use of sport fields, and/or activities.
BC Transit operates their Langford bus depot nearby, and there is bus service to/near the Westhills Y.
Competition from Westshore Parks and Recreation:
Among some demographic groups, the YW/YMCA in Langford likely meets with considerable regional competition from Westshore Parks and Recreation facilities in Colwood (of which Langford is a major financial contributor).
It appears that the previous Langford council had hoped for a prominent drop-in recreational presence for residents by having the known YW/YMCA brand in its community, all the while knowing that facilities which include a pool are not profit-generating operations. For about 10 years leading up to the pandemic the City of Langford focussed on attracting high profile team sports and competitive sporting communities through the development of infrastructure within the city’s boundaries.
But the WSPR facility is heavily used by Langford residents as well as residents from the other four WSPR Society owner municipalities, i.e. Colwood, View Royal, Metchosin and Highlands. WSPR is located on Island Highway (Highway 14) that would be a handy stop for Langford residents on their way to or from employment in downtown Victoria or Saanich.
The YW/YMCA has swimming pool services at Westhills as well as in downtown Victoria. Other services included licenced child care, community health, camping and outdoor education, and employment services; that is open to competition from a range of other services in the west shore area including through SD62, Island Health, scouts, and WorkLink/WorkBC.
WSPR governance:
The Westshore Parks and Recreation Society board is chaired by Damian Kowalewich (View Royal councillor); other municipalities are represented by councillors Kimberley Guiry (Langford), Dean Jantzen (Colwood), Shelly Donaldson (Metchosin), Leslie Anderson (Highlands).
As one of the five owners, the City of Langford pays about 50 percent of the operating costs at Westshore Parks & Recreation as the funding model is based on the population of each member municipality. WSPR revenues are on target, according to the minutes of their September 12, 2024 board meeting. WSPR staff continues to “explore ways to adapt programs and increase capacity” though the minutes also state that “operating costs are not of concern”.
Lifecycle costs:
The YW/YMCA has indicated that it has already lost over $10 million to date operating the facility, and that its business model does not include coverage for lifecycle costs.
“Given the City’s obligations and the YW/YMCA’s financial constraints, due diligence conducted estimates an expenditure of approximately $14.8 million on lifecycle costs over the next 17-years, regardless of whether the City decides to purchase the building or not,” the City said in a news release following the council meeting.
“This obligation arises because the City acts as the financial guarantor under the terms of the tripartite agreement,” the City explained.
Purchase cost:
In addition to funds collected in 2023 and 2024, a purchase will require an annual tax increase of approximately 1.75% from 2025 to 2028.
The approved City of Langford 2024-2028 Five Year Financial Plan includes the projection of these increases through 2027, meaning the decision to purchase will also require a tax increase in 2028. Tax increases have a knock-on effect to the cost of housing and the level of rents charged by property owners in the city.
Purchasing the building is projected to save the City $10.2 million over 17-years, and $121 million over 42-years, when compared to continuing with the current arrangement.
In addition to the projected long-term savings, the purchase of the building and associated parking lot would secure the asset for Langford residents, providing more certainty around the facility operations after the current arrangement expires in 17-years.
But in the meantime residents are paying higher taxes to cover the transitional period of the Y deal. A purchase will require a tax increase of 1.75% annually from 2025 to 2028.
Municipal election cycle:
While it may seem far away, the next municipal election in Langford (coming up October 17, 2026) is likely to be impacted by the cost of the YW/YWCA purchase decision that Langford council makes in 2024 and the budget implications to follow from that.
Public input about the YW/YMCA purchase:
The public is invited to share their thoughts with Council through public participation at an upcoming Council meeting (in-person or online), or by sending written submissions to LetsChat@Langford.ca.
Alternatively, submissions can be mailed or delivered to City Hall at Unit 117, 877 Goldstream Avenue. For meeting dates, agendas, and dial-in details, visit Langford.ca/Meetings.
- A copy of the November 4 Colliers presentation is available online at LetsChatLangford.ca/YMCA.
- Further information will be made available at the November 18, 2024, regular Council Meeting.
- Council deliberations are reserved until December 2, 2024, in order to provide an opportunity for public input at future Council Meetings (November 18, December 2, December 16 – if needed), or via email to LetsChat@Langford.ca.
===== RELATED:
- Langford Council meeting Nov 4 included Westhills YW/YMCA presentation (Nov 4, 2024)
- Post-season analysis: Langford budget debate ignores key city problems (July 6, 2024)
- Westhills staff celebrate 1,000 homes & 1,000 more to come (April 30, 2024)
- YMCA youth mental health support program gets BC funding (September 8, 2023)
- City of Langford budget season off to a running start (March 28, 2023)
NEWS SECTIONS: LANGFORD | HEALTH & WELL-BEING | SPORT & RECREATION