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After a year of supporting the Qualicum Commons (744 Primrose Ave) to continue operations, Council has made the very difficult decision to not renew the Lease Agreement due to the failing building systems, associated costs of repairs, and potential impact to the Qualicum Beach taxpayers.
The Town understands the value of the Qualicum Commons to the community and came into an Agreement last June to help keep the building open for a one-year period. The goal of this Agreement was to allow the tenants to continue providing important community services, while the Town undertook due diligence to understand the state of the building and associated cost implications.
During the past year, the Town has faced many challenges with the deteriorating condition of the building, including significant floods in three areas. Major systems, like HVAC exchange units have been identified as failing, or at end-of-life, and replacements are required for the roof, windows, doors, plumbing, electrical, and fire suppression systems. To address only the immediate, short-term needs, including roof replacement and other major repairs, the Town has received cost estimates in the range of $1.5 - $2 million. The revenue from the Commons’ tenants would not come close to covering these required capital cost replacements.
As the Town does not own this property, multi-million-dollar investments would not make financial sense. The difference between investing in a leased asset versus one you own is key to understanding the business case. Continuing to operate and maintain the Qualicum Commons would result in an increase in property taxation. Investment in the Commons is very different than the purchase of the Eaglecrest Golf Course lands which is now a significant Town owned asset. This purchase is being funded without impact to the taxpayer through the sale of Town-owned and Golf Course Properties, and a $2.125 million private donation.
The Lease Agreement with the Commons ends June 30, 2026. The Town is grateful for the opportunity to have worked with the Qualicum School District to undertake the past months of due diligence necessary to understand the financial viability of required repairs to the Commons. Should the Commons property become available to purchase at some point in the future, the Town will revisit the business case to determine the viability of purchase and associated opportunities.
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