The $17.5 million approved by Peachland residents to build a new fire hall will not be enough to cover the costs of the project.
At its March 25 meeting, staff informed council that an independent third-party estimator determined the cost of constructing a protective services building is approximately 30 per cent higher than the original estimate from 2022. Residents had approved the borrowing through a referendum that year.
“The difference in estimates is largely attributable to rapid cost escalations in the construction market seen over the past few years,” said Deputy CAO Cory Lebreacque.
He added that the district cannot absorb the additional costs without relying heavily on capital reserves and implementing multi-year tax increases.
However, staff have explored several potential solutions, including a public-private partnership (P3).
“There may be opportunities to leverage private capital by partnering with a developer on a mixed-use development that includes a fire hall and other uses that would benefit the community,” Lebreacque said.
Such a facility could house residential, commercial, retail, and office space, as well as municipal offices, RCMP and BC Ambulance services, and community policing.
Mayor Patrick Van Minsel, who serves on the Protective Services Building Task Force, confirmed that a P3 has been discussed as an alternative.
“It would be an option in case costs escalate further,” he said. “And as we’ve seen, costs have already risen from $17.5 million to an estimated $26 million. This is not something we can bear—we don’t have that borrowing power.”
Van Minsel said that any P3 arrangement would still need to stay within the original $17.5 million budget.
According to Lebreacque, staff have been consulting with professionals experienced in fire hall design, public infrastructure, and P3s. Conceptual drawings have already been created based on similar projects, including a new fire hall in Victoria.
Van Minsel and Councillor Alena Glasman have toured that project which has 130 housing units above fire and ambulance bays and cost nearly $36 million.
“They were happy with the P3 approach,” Van Minsel said. “One of the main concerns is that we need to own our building. I think exploring these options is worthwhile because it could save our taxpayers a significant amount of money.”
The district will seek expressions of interest in a P3, though this does not commit council to any specific process or plan.
“The district should know within six months if a P3 is a viable option,” Lebreacque said.
Council adopted the borrowing bylaw for the project in November 2022.
