A majority of Chamber of Commerce members attending a meeting at the Sports complex here on May 15 voted in favour of selling the chamber’s information centre at the north end of the community.
Thirty seven members voted in favour of the sale and three voted against it. The developer, who has put forward a proposal to purchase the property, was not named at the meeting.
Chamber past president and building, repair and maintenance chairman Marty Young presented members with the plan to sell the land and building to a local developer. If the deal is struck, the developer would tear down the existing building, construct a new building divided with a 1,150 square foot section for the chamber and tourist information offices.
“Last July we were approached by a developer to buy our property and building to build a new building,” Young told members at the May 15 meeting. “In that building there would be a new home for the chamber.”
Young said the developer plans to bring in a trailer for use by the chamber while the new building is under construction. It was suggested the chamber could attempt to sell its current building with a potential purchaser moving it off-site.
“The developer will cover all of our expenses (and) there will be no interruption with chamber business. We would just carry on,” said Young.
The chamber would see a 30-year lease divided into two 10-year leases with the option for two five-year extensions in the final 10 years of the lease.
In the first 10 years the chamber would lease its space for $600 a month with the rent going up to $800 in the second 10 years. The selling price would be around $150,000 which would be paid at the end of the first 10 years.
The chamber would retain ownership of the property until the sale is finalized in 10 years.
Young said the business planned for the other half of the building would not interfere with other businesses in the community.
“Taxes for the first 10 years are picked up by the developer; after that it’s pro-rated based on what we pay in rent,” he said.
The developer would pay $1,000 a month to lease the land until ownership is transferred.
Member Gord Trecartin asked whether the chamber faced any potential liability if the business failed.
“If something failed we have the building and the deed to the property,” Young responded.
Realtor and developer Brian Padfield assured members the unnamed developer has a “triple ‘A’” rating.
“There is not a possibility of bankruptcy,” Padfield assured chamber members.
A question of whether the chamber should hold on to the property to see whether its value increased in the future was answered by realtor Bill Nelson who said the property, which is triangular in shape, did not lend itself to any larger development.
“It will be a small operation,” Nelson said. “The increase in value would be nominal.” It was noted the development will not impede access to a nearby walking trail. Young said the current building is too small and requires considerable repair. For the chamber to keep the building and expand it would cost each of its roughly 150 members about $2,000 each, he added. The members were also told the chamber has about $30,000 in its bank account, but Young said failure of the annual Fireworks Festival, a major fundraiser for the business group, due to inclement weather could “wipe out” $20,000 from the account.
Mayor Ray Tout said the Chamber currently pays about $40,000 each year to operate the building.
“That will be gone,” he said of the merits of a sale. “We’ll be basically maintenance and tax free for that length (10 years) of time.”
Young said bylaws would be in place to protect the $150,000 from being spent by subsequent chamber boards.
“The $150,000 would be set aside and would have to come to the membership before it could be touched.”
Dentist Bob McFarlane proposed the motion to proceed with the discussion on the sale, which was approved. “I think it’s a win-win for the membership,” he said.
Young said if the deal is finalized the new building could be completed in a year.
