GVHA, PCC Finalize Lease for CPR Terminal
Apr 27, 2012
(News Release) VICTORIA — The Provincial Capital Commission (PCC) announced Thursday, April 26, that the lease agreement has been finalized with the Greater Victoria Harbour Authority (GVHA) for the historic CPR Steamship Terminal on Victoria's Inner Harbour.
GVHA’s plan for the iconic building will see increased public access to the building offering a dynamic mixture of retail and commercial services, exhibits and attractions, food and beverage outlets, and office space. GVHA was granted full access to the building commencing December 22, 2011, for planning purposes and is targeting a soft/partial opening of the CPR Steamship Terminal in early fall 2012.
GVHA is currently in the process of selecting sub-tenants and negotiating leases with potential sub-tenants. Accordingly, GVHA has requested that the PCC grant a period of up to 60 days before releasing a copy of the lease agreement with the PCC. The PCC will honour this request and is obligated to consider third party business interests in releasing such information.
Highlights of the CPR Steamship Terminal lease with GVHA are:
- 40-year lease with an initial 20-year term and two 10-year renewal options.
- Total capital investment in the building (from the provincial and federal governments, the PCC, GVHA, and sub-tenants) for seismic upgrade, rehabilitation, restoration, and commercial fit-out is projected at $10 million.
- Annual rent is based on revenue sharing, principled on risk/reward, with an annual base rent guaranteed.
- PCC revenue share over initial term projected at $8.6 million.
- Base rent and initial lease term commence September 1, 2012.
- GVHA to assume all responsibilities for property management and lease administration with its sub-tenants.
- In respecting GVHA third party business interests, PCC will release a copy of the lease within 60 days at www.bcpcc.com .
- 180-day fixturing period commenced March 2, 2012.
Last fall, under the professional oversight of Ernst & Young LLP, four submissions underwent a thorough, two-step review process involving a seven-member screening team and a five-member community advisory panel comprised of appropriate subject matter experts. Submissions were assessed against the board-approved tenancy plan on three main categories: proposed use, lease terms, and assessment of business risk.
The advisory panel presented the PCC board of directors with a summary of its analysis and conclusions, and unanimously recommended the GVHA submission as the lead applicant. The board accepted the recommendation of the community advisory panel and announced its decision on November 30, 2011.
The advisory panel members were: Eric J. Donald (chairman), president of the Danzo Group of Companies; Sasha Angus, economic development officer with the Greater Victoria Development Agency; Sandy Beaman, owner of Patrician Ventures Ltd.; John Keay, principal of Keay & Associate Architecture; and Donald Luxton, principal of Vancouver's Donald Luxton & Associates Inc., a nationally recognized expert in heritage and cultural resource management.