By Roy Wood, Special to the Times Chronicle
The Osoyoos and District Arts Council will soon begin to pay rent for use of the town-owned Osoyoos Art Gallery, as the town of Osoyoos moves toward more structured management of its assets.
At a recent committee meeting, town council approved a proposed five-year lease of the building, which will see rent increase annually from $50 per month in the first year to $250 per month in year five.
In a presentation to council, community services director Gerald Davis pointed out that the building is past its life expectancy and “is not in great condition and needs significant upgrades.”
Under the expiring lease agreement, the town has been on the hook for capital upgrades. “The repairs and maintenance on this facility will be costly. … As the facility ages we will have more capital items to maintain, and we do not have any funds identified for amortization, capital improvements or maintenance.”
By way of example, Davis noted the recent asbestos removal from the building, which was budgeted at $75,000. There was no money set aside for the job and it was paid for out of general reserves, he said.
Mayor Sue McKortoff suggested it is time for a more user-pay approach. “If we don’t start collecting at least a little bit of money from the (arts council) then we could be stuck again doing capital projects.”
The report mentioned that rent for the facility could be earmarked for maintenance and capital improvements.
The issue has come forward as the current lease has expired and the arts council has asked for renewal.
They also asked if they could take over the ham radio station room, which was once part of the Amateur Radio Club of Oliver. Town officials were unable to locate current users.
Aside from the gallery itself, the building is home to Osoyoos Painters and Potters, Artists on Main and the Desert Centre.
In an interview with the Times Chronicle earlier last week, arts council president Nancy Krushelnicki said it is too early to assess the implications of the rent decision. The council board was to meet this week to discuss the matter and plans a meeting with the town.
The move toward having non-profits pay some rent is in line with the recent initiatives by town administration toward creating so-called “asset management plans.”
For example, such plans were created for the town’s water and sewer assets and led to substantial increases in utility user fees to deal with aging infrastructure.
Having an asset management plan for town-owned buildings will allow for more predictability around capital costs, said Davis.
If the town knows, for example, that a new furnace or hot water system will be required, “they can be planned for a little more efficiently, rather than suddenly getting a $30,000 bill that we didn’t know about.”
According to Davis’s report, “Administration is preparing asset management plans for town-owned buildings and will be presenting to Council later this year.
“It is apparent that many of the buildings are nearing the end of their life and decisions need to be made soon so that proper consultation and planning can occur to ensure methodical and fiscally responsible decisions can be made on capital repairs to existing structures and lease renewals.”
