Taylor mulls county leaseback

2008-11-27 / Local News

By WES KELLER Freelance Reporter

Acting on a recent development in Guelph- Eramosa Township, East Garafraxa Mayor Allen Taylor has asked the Dufferin County treasurer to investigate the possibility of a leaseback arrangement for a county administration building.

"I think it's a wonderful idea," said Mayor Taylor when asked whether, to his knowledge, county council had ever considered such an arrangement.

He said the topic of a municipal leaseback arose in a conversation at a Rural Ontario Municipal Association conference, when Guelph-Eramosa Mayor Chris White casually discussed a new medical centre being built at Rockwood.

The 12,035 centre is under a 25-year lease with Coldpoint Holdings Limited on a tract of land owned by the township. At the end of the term, title to both the building and the land reverts to the municipality.

Whether or not leaseback arrangements are common among municipalities, they are widely used by major corporations and some government departments, including - in past years at least - the Liquor Control Board of Ontario.

Dufferin needs about 18,000 square feet for administration in addition to about 7,000 for the POA and sally port. At the last county council meeting, Shelburne Mayor Ed Crewson suggested demolishing the countyowned house at 55 Zina Street to provide space to build the administration building.

The county does have several space options, including 55 Zina and property by the works department at Primrose. As well, private developers could offer ample space at, for example, Fairgrounds Shopping Centre.

Mulmur Mayor Gord Montgomery, who's seeking a first term as county warden, wasn't certain there would be agreement among councillors and staff for a move of the administration and POA away from the courthouse. He said there appears to be "a desire to have it attached."

As to a leaseback, he said he hadn't been on the "research committee" considering accommodation options, and couldn't say whether or not the committee had considered anything other than ownership.

"Governments generally prefer ownership." But he said he would like to think about the implications before expressing an opinion.

Mayor Montgomery might be correct in his opinion of governmental preferences. Yet there have been moves toward the "PPP' approach, or the public-private-partnership in recent years.

That, essentially is what the Rockwood medical centre entails, according to Mayor Chris White.

"This public / private partnership is the culmination of an effort by the Township of Guelph/Eramosa, the East Wellington Family Health Team and Coldpoint Holdings

Limited to bring a new medical centre to Rockwood," he said when announcing the project earlier this month.

Orangeville Mayor Rob Adams said he thinks a former county council might have considered a leaseback as one option for accommodating administration, but doesn't recall that the issue had been raised during his time on the council.

Currently, he said, the preference appears to be "sticking close to the historic (courthouse)." He said the county is constantly being squeezed for (court) space. Like other councillors, he considers it important to accommodate the courts — "rather than having them move to Brampton or somewhere." (At present, the courthouse accommodates all of Dufferin's provincial and criminal offences as well as Caledon's lowerlevel criminal ones.)

Mayor Adams said he doesn't favour leaseback for the county as "you wind up paying more (for the building). The builder borrows money and expects to earn a margin." He said the county qualifies for a lower rate of interest.

"Leasing is a good idea if you don't have the money but you're a growing corporation with expectations (of future capital)."

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