CRD Accepts Lease Agreement for Viewfield Property

Feb 27, 2014

INFORMATION BULLETIN:

Victoria, BC– The Capital Regional District (CRD) will own the two buildings located at 808 and 836 Viewfield Road on September 30, 2014. In advance of taking ownership the CRD is entering into a lease agreement with Wilson Foods for both buildings. 

 

The properties include 2 lots that each have large warehouse buildings. The buildings are currently used as a grocers’ warehouse and for associated office space. The structures have a total area of 11,744 m2  or 126,291 square feet. The lease will be for both buildings in their entirety, however; the CRD can take back about 19,272 square feet in the building with three months’ notice if a beneficial use for the CRD is identified. 

 

This agreement ensures that the entire building is leased and there is positive revenue above the carrying costs for the year, with the gross rent of $1.3 million per year. The lease agreement will provide funds to cover the temporary loan interest, operating costs, insurance, property taxes and enable the CRD to pay down some of the principal for the $17 million borrowed for the purchase.    

 

The lease arrangement will commence the day the sale closes on October 1, 2014 and extend until September 30, 2015 with a renewal option.

 

The BC Assessment Authorities assessment of the Viewfield properties increased from $12,489,000 to $13,950,000 between 2012 and 2014 which indicates that industrial values have been on an upswing. A long term decision on the building has not been made. In the short-term the CRD will continue to search for tenants to use the space beyond October 2015. This lease enables the CRD to further evaluate future uses for the building, and pay down the loan. 

 

As part of the Seaterra Program the biosolids energy facility is confirmed for the Hartland Landfill site and the CRD Board has committed that the facility will not be located on the Viewfield property.

 

-30-

 

For media inquiries, please contact:
Andy Orr, Senior Manager, CRD Corporate Communications
Tel: 250.360.3229 | Cell: 250.216.5492