Ground should break this spring on an arts and learning campus that will see community partners come together in a shared space.
Okotoks council gave a nod to the campus project at its Nov. 25 meeting, approving its scope, budget, and leasing terms. The campus will include expanding the Okotoks Public Library, as well as housing Bow Valley College, Community Futures, Foothills School Division (Cameron Crossing School), Christ the Redeemer Catholic Schools (offices and St. Luke’s Outreach Centre), as well as limited retail space.
The project was projected to cost $23.3 million, but the Town’s portion has been reduced to $18.3 million with CTR Catholic coming on board as a purchasing partner to the tune of $6 million. The school board initially pledged $5 million but increased its investment to suit its needs.
“The idea is it would be our central office and St. Luke’s Outreach maintaining a presence in the downtown area and saving up considerable amounts of cash that were being applied towards a lease, and instead putting that money back into operating,” said CTR associate superintendent Michael Kilcommons.
Plans show CTR on the third floor of the campus building, with St. Luke’s taking up about one-third of the space the remainder devoted to the school board offices.
Its $6 million contribution will come out of the school division’s reserve funds, he said. By owning space rather than leasing two downtown buildings, he said eventually the money directed to rent would make its way into the classroom.
Christ the Redeemer began looking for space to purchase about one year ago, but when it was clear the offices would have to move out of downtown, they spoke to the Town and were told there could be an upcoming opportunity.
“When they (the Town) started to pursue it in earnest later last spring we were in on the ground floor as a potential owner,” said Kilcommons.
He said the school division is excited for the opportunity and the ability to keep its presence in the core of Okotoks.
“It’s just central to our operations in our major centre,” said Kilcommons. “About half of our division population is in Okotoks, so we like the idea of being right here as an anchor.”
Coun. Tanya Thorn said she likes the project for its unique approach to doing business. She said bringing partners on board in the early stages is a new and innovative approach to project development.
She said working through the process of an integrated project delivery (IPD) model made it possible to find partners like CTR Catholic and rework the numbers and scope.
“We’re able to come back and come up with a new budget – a lower budget from the Town’s perspective – because of the partners we’ve got with it,” said Thorn. “I think this is a great opportunity, and I always like to see a budget go down. That’s a good thing.”
In addition to the entities that will be housed in the arts and learning campus, the Town has also formed a relationship with the Okotoks United Church, as its parking lot will be used to accommodate campus users.
The parking arrangement will also include the former Creamery site and some street parking along Riverside Drive, for a total of 205 stalls.
Jamie Dugdale, corporate strategist for the Town, said construction is set to begin in March 2020 with $9.4 million earmarked for the first year of construction. The forecasted 2021 budget is $7.9 million, and $1 million was in the 2019 budget for planning and design work.
He said operations of the building will be covered by lease payments, with tenants responsible for taxes, building insurance, maintenance and utilities.
In addition, not-for-profit group leases will include a minimum return on capital rate of the posted Alberta Capital Finance Authority 25-year borrowing cost. Commercial for-profit tenants will include a capital rate of market, plus or minus two per cent, he said.
“Operating costs will be covered by the lease rate with the partners, so the impact on the (Town’s) operating budget has been mitigated,” said Dugdale.
Flood risk concerns have been addressed by setbacks and building materials, he said.
The building will respect the 10-metre setback requirements from the floodway. It will also be constructed at an elevation 500 to 600 mm above the one-in-100-year flood requirement of the Town, he said.
“This will allow the project to comply with a one-in-200-year flooding event, should that standard be introduced,” said Dugdale.
He said the building materials used will be durable and able to withstand any potential overland flooding threat.
There will not be an impact on the Sheep River riparian area, and he said any trees removed will be replaced.
Should the project realize savings along the way, a list of added-value items was also approved by council, to be completed in the following order of priority as funds permit: paving the Creamery site, grading the United Church parking lot, net-zero water, a site events panel, improve windows in the existing library, making the building solar-ready for photovoltaic panels, improving roof insulation in the current library, and net-zero energy elements.
A performing arts centre is considered phase two of the project and not included in the current approved budget. Its future construction will be dependent upon when the Town acquires the last remaining residential lot on Riverside Drive.
The theatre options are 450 seats at $38.6 million or 1,000 seats at $67.7 million, and both scenarios include a 110-stall parkade.
The Town is now moving into detailed design of the first phase of the project.
Construction is expected to be completed by July 2021.
