May 21, 2026

Council Sets June 1 Deadline for Sublease Agreement With 

Oceanside Commons Society

Council has passed a resolution setting out the Town’s next steps regarding the future operation of the Qualicum Commons at 744 Primrose Street.


Following discussions with the Oceanside Commons Society (the Society) and the Qualicum School District, Town Council has given the Society until June 1, 2026, to sign a sublease to operate the Qualicum Commons. If the sublease is not signed, the Town will extend their management of the property for one additional year to allow tenants the opportunity to find a new location.


The Town undertook a due diligence period after entering into one-year licence agreements with tenants, which expire on June 30, 2026. The Town’s due diligence was intended to assess the operational, financial, and facility-related implications of assuming responsibility for the Commons, while recognizing that the building remains an asset owned by the Qualicum School District.


Council determined that the Town does not have the necessary funding, or staff capacity for the long-term management of the facility, given the operational demands, failing building systems, and required capital repairs. Based on options provided by the Society, it was indicated that the Society could assume responsibility for the Commons, with the Town retaining the head lease. On May 14, 2026, the Town responded to the options put forward and outlined the requirements the Society would need to meet in order to enter into a sublease and assume responsibility for the Commons.


On May 18, 2026, the Town received a response from the Society stating that, as a relatively new organization it does not yet have the operating history, funding reserve capacity, or administrative infrastructure to take on the full range of responsibilities for the Commons. Rather than committing to the terms of a sublease, the Society has now asked the Town to enter into a short-form Memorandum of Understanding and a six-month planning and review period.


Council recognizes that a six-month interim arrangement would not adequately address the Town’s identified risks and obligations under the head lease. Given that the Society has been provided with the information collected during the Town’s one-year due diligence period, and in light of the Society advising that it does not currently have the capacity to assume responsibility for the Commons, and recognizing that the Town must renew the head lease with the Qualicum School District by June 30, 2026, Council requires the Society to make a decision prior to June 1, 2026.


“We’ve been committed to working with the Society to find a solution and we remain hopeful they will move forward with the sublease. The Town simply cannot absorb the long-term capital and operational costs of the Commons given the potential burden on taxpayers, but we also know how vital this space is for the entire Oceanside area. The Society had signalled it was ready to take on those responsibilities. If they’re unable to do so, the Town will agree to managing the property for another year to give the tenants the time they’ve requested to relocate,” says Mayor Westbroek.


If the Society cannot meet the terms outlined in the Town’s May 14, 2026, correspondence and agree to the terms of a sublease, the Town will renew its head lease with the Qualicum School District and issue a one-year notice clause, ending the Town’s obligations on June 30, 2027. This approach, if required, would provide current tenants of the Commons with an additional year to find alternative space for their operations.


Council’s decisions are intended to provide clarity in the immediate short-term for tenants, the Society, the Qualicum School District, and the community regarding the Town’s position and the timelines for potential next steps.


If a sublease with the Society is not forthcoming by June 1, 2026, the Town will remain solely responsible for the operation of the Commons between July 1, 2026, and June 30, 2027. Unless urgent capital repairs are required, the Town’s intention is to maintain current operations and undertake minor repairs with the revenue generated by the tenants.


Council has confirmed this as an interim measure undertaken only to ensure clear accountability to the terms of the head lease and appropriate management of financial, legal, and facility-related risks. Tenants will be offered the option to renew their licences for another year, to allow time to secure alternate space for their operations.


Council also directed staff to advise the Qualicum School District of its wish to further explore the potential acquisition of the Commons property as a long-term community hub.

 


Background Information:

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