CITY HALL – Electors to face AAP for $16.6-million civic ops land purchase

Kamloops electors will be asked to approve — through an Alternative Approval Process — long-term borrowing for the $16.625-million purchase of a large piece of property next to the City’s civic operations yard.

The City has already made the purchase of the 9.77-acre piece of industrial land at 965 McMaster Way with what it says are short-term internal funding sources but electoral approval will be sought in the fall to move it into long-term debt, a City Hall news release said today (Aug. 7, 2025). Included will be $125,000 for initial site work.

Annual debt servicing cost for the long-term debt, estimated at $1,038,039, will be offset by annual lease payments of $277,172 and is accounted for in the 2025 budget, the release stated.

“We’re looking to finance a long-term investment with long-term borrowing, just like taking out a mortgage on a house,” said Coun. Bill Sarai, deputy mayor for August.

“This means that residents today don’t need to fund the entire purchase through a big tax hike, and the cost can be amortized over the next 30 years.”

If the APP fails, staff will propose other funding options to council. At least 10 per cent of eligible electors opposed to the project is required to defeat the borrowing through the APP. Normally, that would mean it must either go to referendum or be dropped, but the release didn’t describe what the “other funding options” might be.

Joe Luison, the City’s acting civic operations director, said space is needed for materials such as poles, pipes and other raw materials  as well as equipment as the city grows.

“The benefits of securing this type of land in this location cannot be over-stated,” he said. “It’s really a remarkable opportunity. This provides certainty for our operations and allows us to plan for growth on site rather than at satellite properties through the city, which will provide significant operations efficiencies as we expand.”

Since the entire parcel isn’t needed for current operation levels, seven acres will continue to be leased to Westcan Transport Ltd. Partnership, with lease revenue reducing the cost of borrowing, says the City.

“Work has already started on the remaining 2.77 acres to expand parking and laydown areas to support operations,” the news release says. “Planning will now begin to determine how operations will expand into this parcel over the next two decades as the current yard and buildings reach capacity.”

It says the expansion of the works yard will accommodate 25 to 50 years of growth.