 | E-mail this story |  | Write letter to editor |  | Order a classified ad |  Print this page |
| | E-mail this story | | Write letter to editor | | Order a classified ad | Print this page |
|
WCB purchase questioned
Mike W. Bryant
Late last week, the WCB inked a deal to buy two floors of the tower from Edmonton-based CB Financial for an undisclosed amount. That gives the agency ownership of the third and fourth floors of a building they've called home since 1990. It also recently signed a new lease for the fifth floor and for a medical clinic on the first floor. About 100 WCB employees work in the building. The agency doesn't plan to hold onto the property for long, however. It wants to build an office overlooking Frame Lake on Old Airport Road. That plan has angered many in the business community, who feel the WCB should remain downtown where most offices are located. They fear if the WCB leaves for the suburbs others will follow, and diminish the viability of the downtown core. Clark said the WCB isn't worried about finding a buyer for the property when they leave. "It's still a good business investment for the WCB," said Clark. "It's not our intent to be a landlord on a long-term basis." Clark said the company paid a premium on its lease over the years to keep the purchase option open. The WCB's 2004 annual report says it leased them for $436,000 a year. He said lease payments for all four floors cost about $1 million a year. Bob Wilson, chair of the Yellowknife Downtown Enhancement Committee, said market conditions don't appear favourable for selling commercial space downtown. "Why would they purchase the floors if they're currently leasing them, and their intention is to move," said Wilson. "It just seems to be a strange business decision." Wilson and Yellowknife Centre MLA Robert Hawkins pointed to the void created by the new federal building on Franklin Ave., which lured several government offices from downtown office towers. In September, the federal government reported that they were vacating 1,151 square metres of commercial space to move into the new federal building. "I was talking to the WAM group, and I know they have space. I know Bellanca has space," said Hawkins. "It may be a challenge to find a market for this at this time." Jennifer Marchant, general manager of Centre Square Mall, said the WCB was one of the mall's "anchor" tenants, along with the Yellowknife Public Library, which is owned by the city. She said there is space in the Centre Square tower if the WCB wants to expand. Dave McPherson, a Yellowknife businessman who spoke against WCB moving at a City Hall public hearing Monday night, said he is irked by the WCB's unwillingness to unveil its business plan. The corporation has so far refused to reveal how much its intends to spend on building a new office building, although it says the move will save money in the long run. "They keep saying this but they haven't shown anybody anything," said McPherson. "It's not good enough for them to say this is the most effective way to manage our accident fund. It's incumbent on them to show their stakeholders how they came to this conclusion." Clark said the WCB considers the building's budget "proprietary information" for now. He said it would be imprudent to disclose the budget while awaiting bids from contractors. The WCB may not be allowed to build on the Old Airport Road site. Despite a favourable vote from city council to re-zone the lot the first time it was presented Oct. 24, council has since come under pressure to reject the WCB proposal. If that happens, Clark said the WCB board of directors will consider its options, which could include a legal challenge. Or the board may simply look somewhere else. Clark dismissed any suggestion that the corporation is simply looking for a location with a nice view. "It doesn't really warrant a comment," said Clark. "It could've just as easily been out next to the Multiplex."
|
