SPECIAL PUBLIC MEETING NOTICE/ AVIS DE SÉANCE EXTRAORDINAIRE PUBLIQUE

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1 To/À : From/De : Mayor & Members of City Council/Maire et membres du Conseil municipal Barbara A. Quigley City Clerk/Greffière municipale Date : October 22, 2013 Re/Sujet : Meeting Notice/ Avis de réunion SPECIAL PUBLIC MEETING NOTICE/ AVIS DE SÉANCE EXTRAORDINAIRE PUBLIQUE READING OF MEETING NOTICE Please be advised that there will be Special Public Meeting of City Council in the Council Chambers City Hall, Moncton, NB on October 25, 11:00 a.m. for the consideration of the following: 1. REPORT FROM CITY MANAGER 1.1 Moncton Garrison Building 66 Gym and Drill Hall 2. ADJOURNMENT LECTURE DE L AVIS DE SÉANCE EXTRAORDINAIRE PUBLIQUE Il y aura une séance extraordinaire publique du conseil municipal dans la salle du conseil, à l hôtel de ville de Moncton (NB) le 25 octobre 11h afin d étudier le point suivant: 1. RAPPORT DU DIRECTEUR MUNICIPAL 1.1 Édiface 66 Moncton Garrison Gymnase et salle d'exercices 2. CLÔTURE DE LA SÉANCE Barbara A. Quigley City Clerk Greffière municipale

2 COUNCIL/COMMITTEE REPORT RAPPORT AU CONSEIL/COMITÉ To Destinataire From Expéditeur Mayor LeBlanc & Moncton City Council Jacques Dube, City Manager Date Oct. 18, 2013 Item Question Meeting Séance 1.1 October 25, 2013 For use by Office of the City Clerk only Réservé à l usage du Bureau de la greffière Subject Objet Presenters (if applicable) Présentateurs (le cas échéant) Length of presentation (if applicable) Durée de l exposé (le cas échéant) Moncton Garrison Building 66 - Gym and Drill Hall Jacques Dube, Don MacLellan 5 minutes Type Public/Publique Private/à huis clos _X RATIONALE FOR PRIVATE DISCUSSION (if necessary)/ JUSTIFICATION POUR LA DISCUSSION PRIVEÉ (s il y a lieu) ISSUE / OBJET As discussed at the Oct. 7, 2013 private session of Council, the Federal Government has put the demolition of Building 66 Gym and Drill Hall Moncton Garrison on hold to allow Moncton City Council time to determine whether Council wishes to purchase the building and land on which the building sits. A letter received from MP Robert Goguen on Oct. 4, 2014 confirms that the City of Moncton has until Oct.31, 2013 to decide if the City wishes to procure the land and building and that Public Works and Government Services Canada (PWGSC) rules require that the City of Moncton pay fair market value should they wish to purchase the building. (Letter attached as annex A) CURRENT STATUS / SITUATION ACTUELLE On Friday, Oct. 18 th staff received a land appraisal conducted by Altus Group Limited which indicates a current market value for the land and building of $2 million. This recent appraisal suggests that fair market value may be in the $1 2 million range. It appears that the Federal Government will expect the City of Moncton to pay fair market value. The PWGSC process will start by offering the land and building to other federal departments, aboriginals and the Provincial Government, at fair market value. Since the Oct. 7 th private session meeting, staff have continued to consider the implications of adding this building as a City asset and to identify municipal uses if the land and building are acquired. At this time the possible uses remain similar to those identified on Oct. 7 th continuing to provide a place for local cadets to gather, use for seniors activities, overflow parking for our existing seniors center, and additional space for Moncton sports groups. There has not been sufficient time to reach out to the community and community groups to determine if there are groups who would be interested in, and have a viable business plan, for using the building for their activities or co-using the building with other groups. The concern at this time is that there are no clear and present municipal needs for the land and building and there is no time, in the Federal Government s timetable, for staff to work with the community to determine if a community business plan exists that would save the building and put the site to a valuable community use. The additional concern is the City indicating that it is prepared to pay fair market value for the land and building. Previously it was hoped that a negotiation would occur that would allow the City to purchase the land and building for much less than fair market value and more in line with the amounts that the Federal Government would save by not owning and operating the land and building nor having to demolish the building (annual expenses of $50,000 - payment in lieu of taxes (PILT) and $80,000 - utilities and maintenance and a one-time demolition cost of $100,000.

3 Based on these two concerns, staff have reviewed the City s options in pursuing the acquisition of the land and building. The key options are as follows: Option 1: Indicate to the Federal Government that the City of Moncton is not interested in acquiring the land at fair market value and instead wants the land for future community use for $1. The arguments for this position include: the Federal Government will save $50,000 PILT and $80,000 in utilities and operating expenses annually for the next 10 years and beyond and will also save the one-time cost of $100,000 for demolition, an approximate saving to the Federal Government of $1.4 million. This is equivalent to fair market value; and Taxpayers have already paid for this land and building and to demolish the building, if there is a community use, is wasteful. Pros: If accepted, this offer would see the City acquire the land and building for $1. This would allow the City to look for a community partner who would have a viable business plan for the building. All three levels of government could argue that the taxpayers have already paid for this building and now that the military no longer has a use for it, it is being given back to the local government and community for community use. Cons: The City would lose the payment in lieu of taxes for the land and building and would immediately assume an $80,000 annual operating liability. If no community partner, with a viable business plan is found, the City would need to carry the annual operating costs. The additional operating costs, for an additional facility asset, will put further stress on the operating and maintenance budgets for City facilities. Option 2: Indicate to the Federal Government that the City of Moncton is not interested in the land and building. Pros: This ends any further investment of municipal resources in pursuing the acquisition. Cons: The Federal Government will likely move to demolish Building 66 in the very near future and any value to the community will be lost. Some community members and groups will blame the City for allowing the building to be demolished. Option 3: Indicate to the Federal Government that the City of Moncton will pay fair market value for the land and building. Pros: This position will be the most likely to start the PWGSC process and provide the best chance that Moncton will have an opportunity to bid when the disposal process allows. This offer will ensure demolition does not occur. Cons: This offer will likely cost the City between $1 2 million. This funding is not budgeted in the 5 year capital budget and will add additional stress to the capital budget. The City would lose the payment in lieu of taxes for the land and building and would immediately assume an $80,000 annual operating liability. If no community partner, with a viable business plan, is found, the City would need to carry the annual operating costs. The additional operating costs, for another facility asset, will put further stress on the City s facility operating and maintenance budgets. This acquisition is not on the current list of Council s priorities. Council Report Form Page 2 Formulaire de rapport au conseil

4 RECOMMENDATION / RECOMMANDATION That the Mayor be authorized to formally reply to the Federal Government that the City of Moncton is interested in: acquiring the land and building for $1 given that taxpayers have already paid for the land and building; that the Federal Government consider fair market value to be equivalent to the savings they will experience from not having to pay $50,000 PILT and $80,000 in utilities and operating expenses for the next 10 years and beyond and the one-time cost of $100,000 for demolition, an approximate saving to the Federal Government of $1.4 million; and, that the City will immediately begin to work with the community to identify community groups, with viable business plans, who can use the building for community benefit. OTHER OPTIONS / AUTRES OPTIONS The other options, other than the recommendation, are outlined in the current status segment of this Council Report Form. RISK ANALYSIS / ANALYSE DE RISQUES The risk is that the City will not find a community group with a viable business plan to operate the building for a community benefit or that a community group will not be able to afford the annual operating and maintenance cost of the building and ask the City to share in those costs. As indicated above, any additional operating costs, for an additional facility asset, will put further stress on the operating and maintenance budgets for City facilities. CONSIDERATIONS / ENJEUX Legal juridiques Financial financiers Environmental environnementaux Policy en matière de politiques Communication en matière de communication Stakeholders Intervenants Community Sensitivities Sensibilités communautaires Strategic Plan Plan stratégique Documents, Maps or photos attached Documents, cartes ou photos cijointes Interdepartmental Consultation Consultations interdépartementales Intergovernmental considerations Considérations intergouvernementales Legal will be involved in any negotiation or agreement if Council indicates an desire to pursue the building. There are no funds identified for acquisition of this property in Operating or Capital budgets at this time. Any additional operating costs, for an additional facility asset, will put further stress on the operating and maintenance budgets for City facilities Any potential environmental issues that could come with the land and building will need to be considered in the City s due diligence. N/A If accepted by Council this recommendation will be reported publicly. The City of Moncton, the Federal Government (DND and PWGSC), citizens. The public may become interested in saving the building once the issue becomes public and/or concerned that the Federal Government would consider demolishing the building instead of trying to first find a local use. Attachments: Letter from MP Robert Goguen, previous CRF package and site plan. City Manager s Office, Engineering and Environmental Services, Parks and Leisure Services. All levels of government may garner some negative publicity in demolishing a building that is in good condition, has been well maintained and may have a future community value. Council Report Form Page 3 Formulaire de rapport au conseil

5 Staff recommendation Recommandation du personnel City Manager Directeur général General Manager, Legal and Legislative Services Directeur général, Services juridiques et législatifs Committee Chair (if required) Président(e) du comité Chief Financial Officer Directeur général, finances et services administratifs Council Report Form Page 4 Formulaire de rapport au conseil

6 October 23, 12:00 p.m./ le 12 octobre à 12h SPECIAL PUBLIC MEETING SÉANCE EXTRAORDINAIRE PUBLIQUE CALL TO ORDER OUVERTURE DE LA SÉANCE ADOPTION OF AGENDA APPROBATION DE L ORDRE DU JOUR READING OF MEETING NOTICE LECTURE DE L AVIS DE RÉUNION 1. REPORTS FROM PRIVATE SESSION 1.1 Continuation - Deliberation of the City of Moncton Capital Works budget for the year 2014 RAPPORT DU RÉUNION À HUIS CLOS 1.1 Suite- Délibération du budget des travaux d immobilisations de la Ville de Moncton pour ADJOURNMENT CLÔTURE DE LA SÉANCE

7 Locality Sketch Vaughan Harvey John CFB Moncton Ë Legend St George P a r k Dispose Retain Meters C o r n h i l l While this map may not be free from error or omission, care has been taken to ensure the best possible quality. This map is a graphical representation of the surrounding area, which approximates the size, configuration and location of land features. C a p i t o l Bien que cette carte puisse contenir des erreurs ou des omissions, elle a été soigneusement préparée, afin d'assurer la meilleure qualité possible. Cette représentation graphique des régions avoisinantes offre une approximation de la taille, de la configuration et de la situation des caractéristiques des terrains. DATE: 09 / 2013 PROJECT LOCATION / LIEU DU PROJET: \\Vmfp\gis\Projects\Legal\ John\CFB\CFB_Beaver PREPARED BY / PRÉPARÉ PAR: Randy Mollins GIS Technician / Technicien de SIG Information Systems / Systèmes informatiques City of Moncton / Ville de Moncton COMMENTS / COMMENTAIRES: S t G e o r g e S t G e o r g e

8 Locality Sketch John J o h n Y o r k CFB Moncton Ë Legend Vaughan Harvey St George D o m i n i o n Dispose Retain Meters V a u g h a n H a r v e y While this map may not be free from error or omission, care has been taken to ensure the best possible quality. This map is a graphical representation of the surrounding area, which approximates the size, configuration and location of land features. P a r k Bien que cette carte puisse contenir des erreurs ou des omissions, elle a été soigneusement préparée, afin d'assurer la meilleure qualité possible. Cette représentation graphique des régions avoisinantes offre une approximation de la taille, de la configuration et de la situation des caractéristiques des terrains. DATE: 09 / 2013 C o r n h i l l PROJECT LOCATION / LIEU DU PROJET: \\Vmfp\gis\Projects\Legal\ John\CFB\CFB D o u g l a s C a p i t o l S t G e o r g e PREPARED BY / PRÉPARÉ PAR: Randy Mollins GIS Technician / Technicien de SIG Information Systems / Systèmes informatiques City of Moncton / Ville de Moncton COMMENTS / COMMENTAIRES: F o u r t h F i f t h T h i r d P a c i f i c