UTE NATIONAL BUILDING COMMITTEE (Item 15)
The committee consisted of two parts, the Initial review committee of
Betty Bannon (National President) Bob Campbell (1st National Vice President)
and Michel (Mike) Lefebvre (Executive Assistant to the National President.)
This group had a meeting with Greg C. Jarvis from Coldwell Banker Commercial
as to the space, needs and requirements of the Union of Taxation Employees
for now and in the future. We stated that we were looking at property in
and around Ottawa including the Quebec side of the Ottawa River.
From this meeting Mr. Jarvis supplied a list of eight (8) possible buildings
to purchase and thirty eight (38) rental properties that could meet our needs.
The review committee did a drive by site visit to each property and brought
the number that had potential down to eight for a site visit and inspection.
Most of the rental properties that were looked at were discarded for cost;
the buildings that were dropped that could be purchased were for location
and need of repairs. From the eight that were visited and inspected on July
17th it was determined that six (6) could meet the requirements of UTE.
The whole committee was convened on August 17th to meet with Mr. Jarvis
and to visit the potential sites. This committee consisted of the review
committee plus, Pamela Abbott (RVP Pacific) and Shane O’Brien (Labour
Relations Officer representing the Alliance Employees Union Unit V). The
committee visited and inspected the sites and then had a discussion with
representatives from the PSAC regarding available space, costs per square
foot for rental and costs of renovations.
We also spoke to Steve Jelly, representing the PSAC who indicated that the
PSAC was reviewing its formula for renovation costs, and would likely increase
the amount of renovation costs absorbed by Holdings to a standard rate for
all PSAC tenants of between 75% and 90%.
The following information was provided to the committee by email.
Steve
Jelly stated he had subsequently indicated to UTE’s committee
that the actual percentage could be higher than the 75% to 90% range.
In consultation with Bonnie O’Keefe, Juleka Machher, and Denis Patry
we can now report as follows.
We will recommend that:
-
Holdings pay for all standard renovation costs
for all PSAC and Component tenants minus $6 per square foot.
-
the standard for renovations be the 11th floor space occupied
by the Director of Finance and Admin and the HR section (almost completed.
- This recommendation will be made to the Holdings Board during the
week of October 4th.
I can no longer state the amount that tenants, including UTE, will
be required to pay as a percentage since the actual costs of construction
are constantly changing. That said, the 6$ per square foot charge represents
approximately $27,000 out of a $300,000 renovation bill for the most
recently renovated 11th floor space. In other words, at current construction
rates, the tenant cost represents 9% of the total, while Holdings will
absorb 91%. Should the cost of renovations increase, which is likely
in the current context, the percentage absorbed by Holdings will increase.
In practical terms, the amount that UTE will pay towards the cost
of a standard renovation will be capped at $6 per square foot rounded
down to $27,000 per ½ floor or $54,000 per entire floor. In
addition, UTE and all other tenants will be required to pay 100%
of the cost of any extras or upgrades from the standard renovation.
Denis Patry will be providing an outline of what is included in the
standard renovation in short order. In the interim, I can tell you
that it is a complete renovation. Arrangements can be made for you
and any members of your committee to view the 11th floor renovations
to get a sense of what is included.
Two final points.
First, the PSAC is committed to upgrading 233 Gilmour Street to a
specific level. As a result, the Renovation standard is both a minimum
standard in the sense that tenants cannot renovate to a lower – and less costly
standard, and a maximum standard in the sense that the cost of the standard – minus
$6 per square foot is all that the PSAC will cover through Holdings.
Second, I can reiterate that the PSAC can accommodate UTE’s
space requirements, and schedule the UTE renovations very close to
the top of the list.
The committee debated all the pros and cons of the available space and the
information from the PSAC. They considered all the properties that were available
for purchase, including those that required renovations and some that would
also make UTE a landlord. The Committee did not feel that this was a selling
point at this time. The available Rental space would not save UTE any money
or if it did, the amount was minimal and the location was not an added benefit.
Recommendation 1:
The committee is recommending that UTE stay at 233 Gilmour at this time
and proceed with acquiring more space in the building and making the appropriate
renovations to meet our needs.
Recommendation 2:
The committee also recommends that the committee stays seized with this
issue and have Mr. Jarvis keep us informed of any buildings that come up
for sale that could meet our needs in the proximity of the down town and
surrounding area.
Respectfully submitted,
Bob Campbell
1st National Vice-President
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