Tuesday December 17, 2024 | LANGFORD, BC [Posted at 7:33 pm]
by Mary P Brooke | Island Social Trends
After a intense number of weeks of public input both at meetings an online, City of Langford council last night decided to purchase the Westhills Langford Aquatic Centre and associated 186-space parking lot.
That decision at the December 16, 2024 Special Meeting of Council was by unanimous vote of Mayor and Council after receiving another round of public input that lasted about an hour: Langford Mayor Scott Goodmanson, and Councillors Kimberly Guiry, Colby Harder, Mark Morley, Lillian Szpak, Mary Wagner, and Keith Yacucha.
- Councillor Yacucha said he felt that council has “fully explored the risks and benefits” of the option to purchase the building.
- Councillor Szpak said “we want to support all forms of recreation” and that the building purchase is “an investment of well-being of the community”.
- Councillor Wagner said that “hundreds of emails” had been received as part of the input about the Y, describing the overall public engagement process as “robust”. The building is “a good opportunity for a public space”. She pointed out that the City is “already financially obligated to this facility”.
- Councillor Harder said the facility is about “recreation for all”, being aware that “pools do not make money” but noted that the pool is “not running at its capacity”.
- Councillor Guiry emphasized how welcoming the Y aquatic facility can be for young families. She recognizes “how important recreation and sport is to our residents” and that “we need to put this asset in the hands of the public”.
- Mayor Goodmanson said he felt that the extensive range of opportunities for public engagement on this issue would help people “feel listened to, understood and respected”.
Multi-purpose building:
The building at 1319 Westhills Drive is home to the YW/YMCA Aquatic Centre, a day care service, the Heritage Branch of the Greater Victoria Public Library, a branch of the Victoria Conservatory of Music, and Paradigm Orthodontics.
Public input:
The City says the decision was made after a thorough due diligence process and several opportunities for public input. An online platform at LetsChatLangford.ca/YMCA has been added to along the way, with associated Council meeting recordings, reports, and frequently asked questions.
Last night’s long line up of residents and others with public input included people who attended the meeting in person — Mike Morton, Dianna Seaton, Wendy Hobbs, Mike Wignall, David Aylott, Brian White, Vic McDaniels, Nirmal Johal, Harold Blumenfeld, Raymond Glen, Ian Taylor, Al Grainger, Glen Willing, Brian Qualco, Renee Armstrong, Steve Rossander, Lisa Foxall; and people who attended remotely — Wendy Bowers, Laurie Plomp, Sandy Sifert, Yasmin, B Armstrong, and Bev Sahlstrom.
Some of the public input emphasized not rushing into a deal with Westhills Land Corp but to ask for an extension, as well as suggesting a longer amortization period for the loan (longer than five years).
Sports and recreation tack:
In the earlier input sessions public input seemed to focus on the financial aspects of buying the building. Last night’s input was heavily loaded with the importance of team sports — as if one is more important than the other.
During deliberations Council emphasized the importance of offering a variety of recreational services for residents of all ages and stages of life. Aquatic facilities are used by seniors, young families and people requiring the therapeutic use of water facilities.
Council noted that while recreation centres are not profitable, they are a fundamental part of local government services for residents.
Much of the public input last night was about how team sports facility space is increasingly overwhelmed in Langford, as the population of the city continues to grow. The Y facility is more about personal fitness and well-being — a realm of wellness apart from team sport activities, and is a benefit to the full neighbourhood.
Additionally, the building has space leased to other services which help flesh out a range of lifestyle options in the community.
Westshore Parks and Recreation:
A major recreational facility in the nearby City of Colwood is paid into by the City of Langford to the tune of about 50% of that facility’s overall operating costs (revenues are also received from the District of Metchosin, the Town of View Royal, and the District of Highlands).
A regional approach is being taken to development of the Westshore Parks and Recreation facility, a process that Langford is also taking part in.
Real estate investment:
The purchase price of the Langford Aquatic Centre property at 1319 Westhills Drive is $35 million. The property’s 2024 assessed value is $35,146,000 and the facility’s insured value is over $44 million, both of which affirm its fair market value.
Neither valuation includes the parking lot with 186 spaces, which is included in the transaction. That aspect of the property could prove to have increasing value as the years roll on — not just as property but as a community amenity.
Cost savings:
The decision of Council was heavily based on the significant cost savings to the Langford taxpayer of approximately $10.2 million over the next 17 years, and $121 million over the lifespan of the building, compared to continuing under the current arrangement.
The decision of Council was also driven by the desire to secure the recreation asset beyond the remaining 17 years of the existing agreements.
Under the existing agreements, the City is responsible for covering any financial lease obligations above and beyond the originally committed $950,000 in additional financial supports to the YW/YMCA.
Today, this results in $1.9 million in total annual supports, closely aligning with the YW/YMCA’s current annual rent. In addition to anticipated rent increases built into the lease, there are an anticipated $14.8 million in lifecycle costs over the same period, both of which remain unbudgeted for by the YW/YMCA and represent potential future financial implications to the City based on the terms of the tripartite agreement.
Funding for a municipal asset:
$9.5 million of the purchase price will be funded by the Growing Communities Fund (a portion of the $16.4 million Provincial grant received by the City in March 2023), $20 million of the purchase price will be financed through a five-year loan through the Municipal Finance Authority of BC, and the remainder will be funded through property taxes collected/to be collected in 2023, 2024 and 2025. The five-year short-term loan is projected to save taxpayers approximately $7.5 million in interest compared to a longer-term, 20-year loan.
Additionally, after the short-term loan is repaid, the additional taxes enable the City to build financial capacity for asset management or other initiatives, with approximately $7.6 million available annually after 2029. The repayment of the short-term loan requires annual tax increases of approximately 1.75% from 2025 to 2028.
While Council’s decision focused on the building purchase rather than the operations of the aquatic centre, they acknowledged the need for ongoing discussions to enhance recreational services for residents. Langford will take possession of the building and parking lot on April 1, 2025, subject to the due diligence period.
Over the past weeks, there was mention of possibly having input to the YW/YMCA business plan so that the facility generates more revenue — as a matter of good business, not to necessarily reach the point of achieving profit.
===== RELATED:
- Langford seeks public input on purchasing the Westhills YW/YMCA (November 9, 2024)
- Recreation master plan in the works for Westshore Parks & Rec (October 28, 2024)
- NEWS SECTIONS: LANGFORD | WELLNESS & PREVENTION | SPORTS & RECREATION