Update: Westhills YW/YMCA Langford Aquatic Centre

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Overview
At the November 4th, 2024, Council Meeting, City of Langford Council was provided with a comprehensive update from Colliers Project Leaders regarding the potential purchase of the Westhills YW/YMCA Langford Aquatic Centre and parking. The briefing detailed the due diligence steps taken to date, and the financial impacts of either continuing under the current arrangement or proceeding with purchasing the building and parking.

The City’s Legal Obligations
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 cover expenses like lifecycle costs. The due diligence indicated that, according to the tripartite agreement, the City is required to cover all building related costs if the YW/YMCA cannot cover building lease and lifecycle expenses.

Estimated Lifecycle Costs
Colliers Project Leaders estimates an expenditure of approximately $14.8 million for lifecycle costs over the next 17-years, regardless of whether the City decides to purchase the building or not. As noted, this obligation arises because the City acts as the financial guarantor under the terms of the 2013 tripartite agreement.

Short-Term Tax Implications/Potential Savings
A purchase will require a tax increase of 1.75% annually from 2025 to 2028.

However, due diligence indicates that purchasing the building is projected to save the City $10.2 million over 17-years, and $121 million over 42-years, instead of continuing with the current arrangement.

In addition to the projected significant 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.

How to Provide Your Input:

Email a Written Submission to Council:
LetsChat@Langford.ca

Attend a Council Meeting In-Person:
Langford City Hall, Council Chambers
3rd Floor, 877 Goldstream Avenue

Attend a Council Meeting On-line:
For dial-in meeting information visit:
Langford.ca/Meetings

Future Council Meeting Dates
Monday, November 18, 7pm
Monday, December 2, 7pm
Monday, December 16, 7pm (if needed)

Overview
At the November 4th, 2024, Council Meeting, City of Langford Council was provided with a comprehensive update from Colliers Project Leaders regarding the potential purchase of the Westhills YW/YMCA Langford Aquatic Centre and parking. The briefing detailed the due diligence steps taken to date, and the financial impacts of either continuing under the current arrangement or proceeding with purchasing the building and parking.

The City’s Legal Obligations
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 cover expenses like lifecycle costs. The due diligence indicated that, according to the tripartite agreement, the City is required to cover all building related costs if the YW/YMCA cannot cover building lease and lifecycle expenses.

Estimated Lifecycle Costs
Colliers Project Leaders estimates an expenditure of approximately $14.8 million for lifecycle costs over the next 17-years, regardless of whether the City decides to purchase the building or not. As noted, this obligation arises because the City acts as the financial guarantor under the terms of the 2013 tripartite agreement.

Short-Term Tax Implications/Potential Savings
A purchase will require a tax increase of 1.75% annually from 2025 to 2028.

However, due diligence indicates that purchasing the building is projected to save the City $10.2 million over 17-years, and $121 million over 42-years, instead of continuing with the current arrangement.

In addition to the projected significant 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.

How to Provide Your Input:

Email a Written Submission to Council:
LetsChat@Langford.ca

Attend a Council Meeting In-Person:
Langford City Hall, Council Chambers
3rd Floor, 877 Goldstream Avenue

Attend a Council Meeting On-line:
For dial-in meeting information visit:
Langford.ca/Meetings

Future Council Meeting Dates
Monday, November 18, 7pm
Monday, December 2, 7pm
Monday, December 16, 7pm (if needed)

Page last updated: 06 Nov 2024, 01:26 PM