HomeMy WebLinkAboutCRPS-06-037 - Building Maintenance Costs for former Legion Building - 48 Ontario St-156-158 King St W-Mayfair Hotel 11 Young StReport To: B. Vrbanovic and Members of Finance & Corporate Services
Committee
Date of Meeting: March 6, 2006
Submitted By: G. Sosnoski, General Manager of Corporate Services & City
Clerk
Prepared By: L. Proulx, Director of Facilities Management
Ward(s) Involved:
Date of Report: February 28, 2006
Report No.: CRPS-06-037
Subject: Building Maintenance Costs for Former Legion Building - 48
Ontario Street, 156-158 King Street West and the Mayfair, l l
Young St
RECOMMENDATION:
That $225,000 be taken from the Economic Development Investment Fund (E.D.I.F.) to fund
building repairs and maintenance for 48 Ontario Street (former Legion building), 11 Young
Street (Mayfair Hotel), and 156-158 King Street West as outlined in Corporate Services report
CRPS-06-037; this amount including 2006 operating costs for the former Legion building,
municipally known as 48 Ontario Street.
BACKGROUND:
The City of Kitchener purchased 48 Ontario Street, the former Legion building in July 2001. The
building has been vacant since the City took possession. The building water systems were
drained and heat was turned off at that time to avoid wasting energy costs.
11 Young Street, the Mayfair Hotel was purchased in February 2001. The residential occupancy
at time of purchase has continued until present.
156/158 King Street West was purchased in November 1999. It became vacant shortly after
possession by the City. A portion of the ground floor is presently occupied by University of
Waterloo for the past one and a half years. City staff occupied one portion in 2005 due to
modifications of the structure at D & O garage. The remainder of the building is vacant.
The three properties are currently listed on Heritage Kitchener's inventory. City Council deferred
a Finance and Corporate Services Committee recommendation to add the property to the City's
Heritage Register to the Council meeting of March 20, 2006.
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February 28, 2006
Page 2
REPORT:
48 Ontario St Legion Building)
Staff have assessed the condition of the Legion building in 2006. The roof membranes have
begun to fail and as a consequence, we have had some roof leaks, which has lead to some
mould problems in the building. Roof replacement is estimated at $70,000 and abatement costs
are $15,000.
In addition, we must replace the boiler, budgeted at $22,000 in order to provide minimal heat to
insure building stability and to prevent recurrence of mould. The main service needs to be
replaced according to the Electrical Safety Authority (E.S.A.). We budgeted $8,000 for this item.
Lastly, the fire alarm system requires replacement and we budgeted $5,000 for this item. If this
work is undertaken, the building will be in a state that will allow us to provide minimal heat to
maintain the building in reasonable condition into the future.
The occupancy of the building could be considered thereafter with minimal expenditures. There
is potential for revenue generating from possible rental of portions of the facility. In the event the
building was considered for sale, the value of these improvements may be recoverable. We also
propose a budget of $5,000 in operating cost in 2006.
11 Young St (Mayfair Hotel) & 156-158 King St W
Our roofing consultant has reported back on the condition of the roofs of the two buildings. He
recommends replacement of the Mayfair roof and suggests a budget of $80,000 for this work.
He suggests that the membrane on 156-158 King Street West should last another four to five
years provided we address serious flashing issues at all edges. We propose a budget of
$20,000 for this work.
The phase 2 environmental reports for these two buildings proposed expenditures in the event
the buildings are renovated. The few housekeeping items identified have already been
addressed.
FINANCIAL IMPLICATIONS:
Cam
0 eratin
Boiler
Electrical Service
Roofing
Roofing
Flashing
Fire Alarm
Environmental Abatement
Total:
Operating Costs
Total:
(48 Ontario)
(48 Ontario)
(48 Ontario)
(11 Young)
(156/158 King)
(48 Ontario)
(48 Ontario)
$22,000
$8,000
$70,000
$80,000
$20,000
$5,000
$15,000
$220, 000
$5,000
$225, 000
...13
February 28, 2006
Page 3
CONCLUSION:
The work proposed herein is necessary at this time to prevent building deterioration and to
abate environmental hazards. These improvements will add value that may be recoverable in
the future. 48 Ontario Street could be put to good use with minor costs thereafter.
L. Proulx, CET CMM III
Director of Facilities Management
LPlcr