VICTORIA – Taxpayers in Saanich live in interesting times, which are about to get a whole lot more interesting.
While still smarting from the latest lottery-like payout to a departing executive, taxpayers are worried about a substantial property tax increase council is trying to tame.
Now the district plans to release a feasibility study and business case to the public and council in April. A mammoth $212 million capital project is being planned during a time of rising prices, interest rates and inflation.
Critics charge it’s the latest lost opportunity to break the mold and discuss overlapping duplication and general dysfunction of services across the region. Even more taxpayer costs will be added by not harmonizing this facility with neighbouring communities.
The redevelopment of the Saanich Operations Centre (formerly known as the parks and public works yard) is the most critical capital project to come along in several generations. It will dwarf any project tackled by an individual municipality in the history of the region.
Initial cost estimates, compiled in January include a 20 per cent contingency, put it at as much as $212 M. But, if its’ like most megaprojects, the costs will likely balloon to $250 M by the time it’s completed in 2029.
To put this megaproject in perspective, the infamous Blue Bridge replacement cost Victoria taxpayers a little over $100 M.
If you think inflation is high now, you may want to hang on to your purse strings. You can only make educated guesses as to the impact of wage increases, hikes in commodity prices caused by a major conflict in Europe, or change in project scope.
Make no mistake, a new operations centre is long overdue – the facility has reached its end of life – and must be done to service its residents and growing community for the next 80 years. Many residents are unaware the 13-acre tree-lined site even exists.
Its shortcomings have been flagged for years and has reached a critical stage after decades of making do. An 18-month search failed to turn up any suitable alternate sites for the facility, according to the district.
The district released a ‘report card’ and gave it failing grades on pretty much everything including vermin infestations. Initial environmental studies conclude contamination is low risk with remediation costs about $8 million.
Essential services are coordinated from this hub for water, the street grid, parks and open spaces, garbage pickup and disposal, the municipal fleet, and the storm water and sewer system.
It’s the nerve centre to provide services for about 118,000 people surrounded by 12 municipal neighbourhoods of 300,000. The workplace will be safer, more efficient and better for the morale of 300 staff.
It’s also a vital link in the response to a major disaster, emergency or weather-related event. With more weather events a modern hub is increasingly important.
So how will taxpayers finance the $250 M project in this inflationary cycle?
There will still be a substantial draw-down and need for more tax dollars, even though reserve funds will continue to be fattened up over the next five years. The public will be told soon how this substantial redevelopment will be financed and if possible within provincial borrowing guidelines.
It’s hoped some commercial and business opportunities will offset costs. Some sort of major housing component is likely, along with greater building height and density adjacent to the Quadra-McKenzie neighbourhood. The challenge will be to operate a light industrial yard within proximity of any housing and keep everyone happy.
The district says it will likely require resident approval to finance the project which could be done through the so-called alternative approvals process. This allows electors to indicate whether they are against a local government proposal or supportive of the impact on taxation.
At the same time, Saanich taxpayers know the council has been muttering bafflegab about critical infrastructure needs for years.
Other substandard facilities also need urgent attention: The $26 M replacement of overcrowded Firehall No. 2 is at the planning stage and it’s hoped construction may start as early as 2023. After that, the substandard Saanich Police Department headquarters needs rejuvenating.
While bracing themselves before they open their wallet for a redeveloped operations yard, taxpayers need to ask pointed questions during this pre-election year.
Why not develop a public-private partnership similar to the model being used by Victoria with its new firehall?
Have efforts been made to harmonize services, equipment and labour across the region for efficiencies and economy of scale?
How much longer are we expected to fund 13 different views and duplication of what’s necessary for essential infrastructure?
Stan Bartlett is vice-chair of Grumpy Taxpayer$ of Greater Victoria, a citizens’ advocacy group for municipal taxpayers.
