Banff politicians have passed first reading of a bylaw to borrow $670,000 to help fund the purchase of a $1 million building on Beaver Street owned by Bow Valley Credit Union.
At a meeting Monday (April 25), council passed first reading of the borrowing bylaw and scheduled second and third reading for May 24. The financing conditions on the purchase contract for 221 Beaver Street won’t be lifted until that time.
Some members of council were seeking additional information before giving support to borrow money, but Councillor Stavros Karlos said he is now satisfied there is a business case for this purchase.
“The information I received validates for me the questions I had,” said Karlos, who voted against the purchase when it first came to council in March.
The Bow Valley Regional Transit Services Commission (BVRTSC) currently rents the lower floor of the building at 221 Beaver Street, and the upper level with a three-bedroom housing unit and den houses a local tenant.
The purchase price of the property is $1,005,000 and $670,000 of that will be financed with a 30-year Alberta Capital Finance Authority debenture. The remaining funds will come from general capital reserves.
Administration projects the building will generate an annual cash flow surplus of approximately $4,000 to $9,000 over the next 10 years after rents are collected and expenses are paid.
Town administrators say they are honouring both existing leases, but plan to rent the second floor to Town of Banff employees as staff accommodation once the lease with the existing residential tenant expires in 2017.
“The Town would intend to rent the main and basement level to the BVRTC for as long as they desire,” said Kelly Gibson, the Town of Banff’s corporate services manager.
The building is located in the public service land use district and was the site of a lengthy legal dispute between Parks Canada and the Town of Banff when the Municipal Planning Commission gave the green light for a lawyer’s office to open there.
Parks Canada, which won the dispute in court, believed the municipality was trying to expand its commercial footprint by circumventing the commercial development cap. The Town believed a lawyer’s office was a public service.
