While New Westminster city council was voting to proceed with construction of an office tower at the city's future civic centre, Coun. Betty McIntosh was enjoying a Hawaiian cruise.
Had McIntosh been at the April 30 city council meeting, she would have voted against the city's decision to borrow funds and use reserves to fund construction of an office tower.
"I had opposed the city going alone," she said about her stance on the decision. "I believe there could be a developer out there."
The city announced April 30 that it would proceed with construction of the office tower component of the new multi-use civic centre facility on Columbia Street. Although the Uptown Property Group had planned to build the office tower, it later withdrew from the project.
The City of New Westminster will continue to explore opportunities to sell or lease the office space. McIntosh said she doesn't want the city's decision to develop the tower to quash interest in the project in the development community.
"I think it sends a signal that the city is ready to do business on its own," she said. "I wouldn't want to discourage a developer."
McIntosh believes there is a great potential for Class A office space in New Westminster.
"I am not that nervous or worried about it being leased out. I am not concerned about it being a positive project," she said. "There is continuing work to find a partner. I believe we can find a partner. There is a whole list of opportunities."
The City of New Westminster negotiated $35 million for a civic facility as part of a development assistance compensation agreement related to gaming expansion in the city. The city later sought proposals for a partner in the project, with the goal of finding ways to generate funds for the city to help offset some of the costs of operating the civic centre and to help with downtown economic development and revitalization efforts.
In order to proceed with construction of the office tower, city council has agreed to borrow $59 million for the project as soon as possible. In addition to using $43 million of casino revenues to cover the entire cost of the civic centre ($35 million negotiated for a civic centre and $8 million that's been reallocated from other casino projects), the city's plan is to borrow up to $11 million from the Municipal Finance Authority for the city's costs related to the multi-use civic facility and parking structure, up to $33 million related to traditional capital programs, and up to $15 million to interim finance the costs related to development assistance compensation funding until the development assistance compensation funds are received.
"I'd like to see us liquidate some of the properties we have so we don't have to get into so much debt," McIntosh said about her preference for funding the endeavour.
When council considered the plan to proceed with consultation of the downtown office building as part of the civic centre, Coun. Chuck Puchmayr was the only councillor to vote against the city's decision to borrow money and use reserves to fund the tower.
New Westminster city council believes the office tower is a critical component of revitalization efforts. The city notes it will bring in increased revenue from property taxes (about $50 million over 50 years), create an activity precinct in the downtown, bring new customers for new and existing retail in the downtown, and create up to 250 new jobs in the downtown.
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