What Is A Public-Private Partnership?

  • A public-private partnership is a method of partnering between the public and private sector for the construction, supply, or operation of a facility or a service traditionally procured by the government itself.

Why was a Public-Private Partnership Agreement Utilized?

  • These partnerships are becoming more common due to cost savings utilizing private sector experience, specialized equipment and labour efficiencies, competitive bidding, as well as transfer of risk to the private sector. If the project had gone over budget the Town would not have been responsible for the cost over runs.

What was the Public-Private Partnership that the Town Constructed?

  • The public-private partnership consisted of the Town transferring land to the private company to construct a public square and a new building comprising of a 6,000 square foot library, 2,150 square feet of commercial/office space,

and a 12,350 square foot municipal office, including an underground parking lot situated at the corner of Primrose Street and First Avenue West.

  • The property situated where the previous Town hall was located, was sold at market value and commercial buildings were constructed and retained by the private sector. The Town will reacquire the public facilities including the library, municipal office, and park for $1.00 at the end of a 10-year lease agreement.
  • The library has relocated to the new location from the municipally owned building on Fern Road West. The building inspector, engineer, and public works staff have relocated to the new municipal office from their temporary location in the old Fisheries building on Sunningdale Road West. The Town office staff and Council have moved from the old Town hall on Second Avenue West into the new premises.
  • After the new library/municipal office building was occupied, the old Town office site was redeveloped into 7,900 square feet of commercial, retail/office space fronting the corner of Second Avenue West and Primrose Street.

Financing of the Library & Municipal Office Project

  • The Town’s previous long term Capital Expenditure Program reflected allocating a total of $4.1 million over a 14 year period from 1997 to 2010 to construct a new municipal complex. This works out to an average of $293,000 per year for 14 years.
  • The public-private partnership project has an annual net lease cost of $168,075 which is approximately $125,000 less per year than the Town’s previously budgeted capital expenditure plan. This has resulted in a $125,000 annual savings to fund other Town projects.
  • The public-private partnership resulted in the public receiving the benefit of the facility in year one and paying for the project over 10 years, instead of the 14 year period previously identified in the current Capital Expenditure Plan. The Town will continue to receive library lease payments beyond year 10, even though the facility will be paid off in 10 years.

Project Benefits:

A new larger modern library facility for the citizens of Qualicum Beach.

Revitalization of the area by providing more pubic park land, new sidewalks, trees, and ornamental street lighting.

The developer paid approximately $217,000 to the Town for development cost charges.

Permit fees and works and services for off-site improvements totalled an estimated $280,000.

Property taxes are being received from the private commercial retail/office buildings located on properties that were previously tax exempt.

Council chambers are vastly improved and public capacity expanded to better facilitate Council meetings and other meetings.

Committee meetings previously held at the civic centre are now held in the municipal office, thus making available space to be rented out at the highly demanded civic centre.

Improved efficiencies and convenience for the public by once again providing the municipal offices within one building by relocating the building inspector, engineer, and public works’ staff from their temporary location on Sunningdale Road West.

New building designed to operate as the Emergency Operations Centre in the event of a disaster.