The City of Victoria will soon have a new window on the Inner Harbour after agreeing to pay $7.98 million to the provincial government for 812 Wharf St., home to Tourism Victoria’s Visitor Centre, Milestones restaurant and two other tenants.
The deal, expected to close March 23, has been self-financed by the city in what Mayor Lisa Helps called a “clean deal” — just cash — by borrowing the money from its own building and infrastructure reserve fund.
The city plans to pay itself back, with interest, over the next 22 years.
“I think the taxpayer should be very grateful for council’s bold and innovative leadership,” said Helps, noting they took a page from Burnaby’s municipal playbook. “They have a reserve fund of over $500 million. They borrow from themselves, pay themselves interest and strategically acquire assets for the long-term.”
At present, the building generates $980,000 in annual revenue, with expenses of $520,000.
“After [22 years], we will own it outright and it will be a long-term revenue generator for the taxpayer,” said Helps.
A spokesperson for the Technology, Innovation and Citizens’ Services Ministry said the deal made sense. The ministry is responsible for Shared Services B.C., the agency that took over managing property after the Provincial Capital Commission was dissolved last year.
“The Victoria Visitors Information Centre was deemed surplus to government needs, as it is not used to deliver any government programs, nor are there any future plans to do so, and it has no strategic value to government,” the spokesperson wrote in an email. “This was also the case with the PCC greenway lands in Langford and Crystal Gardens.”
The mayor wouldn’t rule out acquiring other harbour assets, and intends to maintain discussions with the provincial government.
“We will keep our eyes and ears open for what the province may be divesting; they are still figuring out what they want to divest,” she said.
The ministry spokesperson said the province is not considering selling other harbour assets.
Last year, there was a land swap with the City of Victoria for Ship Point and Crystal Garden.
Helps said 812 Wharf St. is a strategic asset and shows the city is committed to the Inner Harbour’s health.
“This Inner Harbour is a key priority of this council, this city and this region and we are putting our money where our mouth is,” she said. “[This investment] sends a strong signal this is a priority for us and we’ve done it to maximize the taxpayer’s benefit in the long term.”
Helps also noted over the next four years the council intends to continue Inner Harbour development by advancing the David Foster harbour pathway and finally taking some action on the Belleville Street Terminal.
Tourism Victoria chief executive Paul Nursey said the new landlord at 812 Wharf St. brings renewed stability. “Local ownership is a good thing and we have a deep relationship with the city. They’re a good partner to work with,” Nursey said. He hopes they will be able to hammer out a long-term lease which would allow them to invest in some minor renovations to their information centre.
Tourism Victoria’s Visitor Centre is the busiest in B.C., and saw an estimated 300,000 visitors last year despite being closed for two months.
During the transition from the Provincial Capital Commission, Tourism Victoria and other tenants had been on a short-term lease with Shared Services B.C.
The building was seismically upgraded in 2007 as crews drilled 10 metres into rock to attach steel cables that run the height of the building to its clocktower.
According to the ministry, the Provincial Capital Commission had invested more than $10 million in its publicly owned properties, including the seismic upgrade and rehabilitation of the Crystal Garden, Visitor Information Centre and CPR Steamship Terminal.
