Town agrees on rental lease with ODAC
By Don Urquhart, Times Chronicle
The Town of Osoyoos has followed up on its preliminary discussions in October on charging rent for non-profits as the town shifts to more of a “user pay” system in order to help pay for maintenance and capital improvements for aging facilities.
The issue has also underscored the eventual need – probably sooner than later – for consideration of replacement options.
In a presentation to council at the Dec. 10 regular meeting, Gerald Davis, Director of Community Services outlined the details of the proposed lease agreement that it developed in discussion with the Osoyoos and District Arts Council (ODAC).
ODAC is requesting a five year lease with an option to renew for an additional five year term and agreed to a rental payment of $50 per month for year one, increasing by $50 per month each year until 2029. The fees collected for the five year term will be $9,000.
Davis noted the facility – the former police station and jail – is “not in great condition and needs significant upgrades”. The building is beyond its life expectancy and is currently used by a few groups under the ODAC umbrella.
This includes the Osoyoos Pottery Club, Artists on Main, Desert Centre, Janet Marcotte Music, Osoyoos Quilters Guild, Osoyoos Photography Club, Music in the Park, Osoyoos Actors Studio Inclusive Society, Osoyoos Wood Carvers and the Art Gallery – all of which share this space.
Under the lease agreement, ODAC pays for all utilities except for capital upgrades with anything over $500 being the Town’s responsibility.
“The repairs and maintenance on this facility will be costly,” Davis noted citing a handful of improvements made earlier this spring which included the exterior wall garage door at the back of the building, window replacement and asbestos removal.
“As the facility ages we will have more capital items to maintain, and we do not have any funds identified for amortization, capital improvements or maintenance,” Davis added. The situation reflects an ongoing problem as the town wresstles with aging and often crumbling infrastructure after scant attention was paid by previous administrations in putting aside money for building replacements.
Davis also noted that feedback had been received from a representative of the Artists on Main group “who wanted council to be aware that they may fold if the agreement is approved”.
The club through the Arts Council and Town of Osoyoos has received free use of the building, during which time they have offered galleries, events, art lessons, programs for seniors, people with disabilities and they have loaned paintings to local businesses. The Artists on Main is one of the oldest clubs in town and was founded in 1950.
In a recent report to council, town staff identified the replacement value for the Arts Centre which included the pottery area and the Art Gallery. Providing a life of five remaining years will still require regular maintenance improvements.
Council also passed a motion to add to the Strategic Priorities Chart, a multi-purpose facility that incorporates existing and potentially beneficial community organizations,” Davis said in his report.
This includes investigating ways to include several organizations under one building which may be more sustainable and could possibly be in place before the end of the new agreement. The Administration is also working to bring a reserve fund to the 2025 budget that will assist in facility asset management purposes.