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Metro Vancouver shells out for office renos

After spending nine figures to acquire a new office building, Metro Vancouver expects to spend millions more to get it ready for the move. In July, the Metro Vancouver board approved awarding a contract to Canadian Turner Construction Company Ltd.
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In July, the Metro Vancouver board approved awarding a $31 million contract to Canadian Turner Construction Company Ltd. for the construction of tenant improvements in Metrotower III.

After spending nine figures to acquire a new office building, Metro Vancouver expects to spend millions more to get it ready for the move.

In July, the Metro Vancouver board approved awarding a contract to Canadian Turner Construction Company Ltd. for the construction of tenant improvements in Metrotower III.

The contract, which was awarded through a bidding process, is for up to $31 million for improvements to facilitate the relocation of Metro Vancouver staff and board directors from the current location at 4330 Kingsway.

According to a staff report, the $30 million-budget is expected to provide for office space tenant improvements, data centre, cafeteria and board room construction, and initial design and moving costs. The report noted the additional costs of approximately $4.7 million, comprising of $2.9 million for the cafeteria to accommodate structural requirements, board room construction for future growth and the addition of a large meeting room for committee meetings and $1.8 for the project design.

Last December, Metro Vancouver bought Metrotown III for $205 million from Ivanhoé Cambridge with plans to have all of the roughly 900 staff moved in by 2017.

Metro Vancouver expects to occupy 16 of the 29 floors with the remaining floors currently leased or available for lease.

The NOW reached out to Metro Vancouver for comment, but a spokesperson for the district said there was no one available at this time.

At the time of purchase, the district made a business case for buying the newer building, suggesting it will save taxpayers in the long run.

The operating budget for the new building is $4.2 million, compared to $5.6 million in the current office, with the savings expected to continue for the next 20-plus years.

Part of the business case for the purchase includes finding tenants for the remainder of the floors. In April, Metro Vancouver Board Chair Greg Moore told the NOW he was confident in filling the building, noting realtors working with the organization believe there is demand for office space, especially given the location near the SkyTrain and amenities.

The district is also figuring out how it wants to sell the current building.

The property was assessed at $86 million. In the spring, Metro Vancouver said it would be hiring a firm to help with the process, but it’s unclear where the district is in the process.

The Metro Vancouver report from July noted if the board did not proceed with the recommendation, it could result in a delay to the relocation of staff from the current head office building, resulting in a subsequent delay in the sale of that building.