Port Hope Council moves closer to purchasing 39 Pine Street North

39 Pine Pine Street. Image courtesy of the Municipality of Port Hope

By Dan Jones, Northumberland 89.7 FM News, Local Journalism Initiative Reporter

As Port Hope Council considered a staff report Tuesday evening to borrow up to $8 million to purchase and renovate 39 Pine Street North, staff presented a second “hybrid” option.

“We’re proposing this option here of reducing the debenture to $4.9 million. That will cover the initial acquisition costs, and set up an initial capital costs of $1.5 million to get us going and to get us off the ground,” Port Hope Chief Administrative Officer Mike Melinyshyn said.

Municipal officials identified the structure as important to meet staffing demands in the immediate and short term future compared to a new build, which could cost double and take five-years to complete.

“The new build option was rejected for two reasons: first, the estimated cost of building a new building, of comparative size, would be $12-$17Million, more than double that of purchasing 39 Pine Street. Second, the new build option would take approximately 5 years to deliver which is a significant time gap given urgent space needs,” a staff report to Council said. “Investment in 39 Pine Street allows Port Hope to generate rental income to offset purchase, capital, and operating costs. Approximately one-third of the building will be used for revenue generating, leasable space for other community service providers.”

Potential tenants to 39 Pine Street would be the Port Hope Police Services screening office, as the police have maximized their current facility and are seeking additional space. The Canadian Nuclear Laboratories and the Fair Share Food Bank are also other possible tenant considerations.

If the loan is secured, renovations would commence this winter, with the addition of an elevator, parking and driveway improvements. The building purchase cost would be $3.25 million, with further renovations of $4 million and a $1.1 million contingency. Yearly operating expenses would total $177, 000.

“A portion of the building is suitable for occupancy by staff. The plan is to locate 15 staff into the building over the coming year, commensurate with construction scheduling. Ultimately, 30 municipal staff will occupy the upper two floors of the building. Much needed boardrooms and meeting spaces will be included in the space allocations,” stated the staff report.

The 114-year-old former school will provide 28,000 square feet of space and has a 50-year life cycle. Council is directing staff to secure offsetting grants and revenue streams to reduce the capital, operating and budget costs. A bylaw to confirm the purchase of 39 Pine Street will be again before Council August 11.