Winter Games Have First Corporate Sponsor
Wednesday, July 18, 2012 @ 5:00 AM
BID Group CEO Brian Fehr, Host Society Chair Anthony Everett, and Winter Games CEO Stu Ballentyne sign agreement for Canada Games House
Prince George, B.C. – The 2015 Canada Winter Games Society will soon have a new home.
With the sponsorship of the BID Group of Companies, the Winter Games Team will be moving into 6,000 sq feet of office space above the Canada Post office at the corner of 5th and Quebec Streets. The space will become “Canada Games House”.
The tenant improvements to prepare the office space for the Games have been paid for by the Bid Group at an estimated cost of $250,000.00.
Watch for the exterior of the building on the Quebec Street side, to undergo a change as well, as the east facing exterior wall will feature a wood enhanced entrance, the 2015 Winter Games colours and branding and a special mural of an athlete.
The interior space features a central reception area, numerous offices which will be home to multiple employees, a kitchen, and there will soon be an elevator added to ensure the second floor is accessible to everyone.
(at right, Anthony Everett and Stu Ballentyne stand in the central reception area of the new Canada House space)
This sponsorship is the first community corporate sponsorship for the Games which are just 940 days away from the official opening ceremonies.
“This space means we will have a home from now through the Games and into our post Games wrap up” says Games CEO Stu Ballentyne.
For BID Group CEO Brian Fehr, he hopes the Winter Games will capture at least some of the spirit he witnessed at the 2010 Olympics “When the Olympics were announced for Vancouver, I was pretty negative, but I bought the red mittens, and before you know it I was trying to catch all the hockey games. If the 2015 Games in Prince George can capture even a bit of the positive energy and feeling of the 2010 Olympics, it will be incredible for this community and this region.”
Fehr is encouraging everyone, corporately and individually to get involved “We believe the opportunity to welcome all of Canada to our home for this amazing event is tremendously important for our region.”
Comments
Fancy office to go with the fancy paycheques. Good work organizing committee. Now all you need is some CASH sponsors.
BTW, the value of the sponsorship shouldn’t be listed as the building improvements – that’s an asset the BID group get’s to keep to themselves after the summer of 2015.
The appropriate sponsorship in-kind value is the office space rent for 3 years, whatever that is worth. Anyone have a good approximation of what that value might be?
It is not a prime space. I have been in it a few months ago. Not sure what the reason for offering it is. Could be as simple as they want to because they are good corporate citizens … or could be that they are having some problems renting it this is a good opportunity to make a charitable donation expensed against a business so that the taxpayer gets to pay a not insignificant component of it.
Downtown rents likely have gone up a bit. but about 8 years ago we paid $15/sf in the Scotia building for about 2,000sf on a 5 year lease with the equivalent of 1 year going towards tenenat improvement. Thart was all inclusive and included janitor services. That building has undergone significant upgrading to the inside, elevator, heating system including adding a zone and now the building exterior. I assume the rents have gone up accordingly. Maybe someone can provide current info. I would guess around $18 to $20/sf.
The post office building, is a different story, even though the tenant are there.
I would think $10 to $12/sf. There is no “storefront”. That is $72,000 per year for $12.
For anyone to put in $250,000 for a three year lease which works out to $40/sf is poor judgement. I would love to look at what they actually did for that which goes to base upgrading of a space as compared to tenant immprovement specific to the function of the Winter Games organization.
bohemian…you must factor in the market value of the space, including the leasehold improvements that are being provided by the landlord. If you only use the base rent for your calculation that would mean the tenant would be responsible for the leasehold improvements which would be considerable. It would appear that the $250,000 estimate is on the conservative side.
gus…you should check your numbers. $250,000 for 3 years works out to under $14.00 per square fooot …not $40!!!
You calculate on an annual basis.
http://princegeorge.kijiji.ca/c-real-estate-commercial-office-space-Office-Space-for-lease-1340-5th-Ave-Prince-George-W0QQAdIdZ387388771
$10/sf for first year on 5 year lease for a 1,200 sf ground floor space. God enough for Shirley Bond next door.
There is no reason why the Winter Games needs a jewel of a space. If it was not donated, how much would they pay for it? How about upgrading the City-owned Cadillac ranch space – storefront and allows City to upgrade the space for future office or retail usage charged against Winter Games money.
I think there is more to this than meets the eye ….
Fred… I am talking about the cost of tenant improvements …. $250,000/6,000 = $41.67/sf.
Unless I was a lawyer, I would never put in $250,000 worth of tenant improvements on a three year lease in this town.
A rough calculation would be the equivalent of a 1 year lease on a five year term unless the rental rates are horendously low. That is a reasonalbe move in incentive if there are enough spaces in the community. I think there are still enough spaces in the community. The market is still competitive where some sort of incentives are given. Somebody tell me otherwise and prove it, and I will go along with it.
“It would appear that the $250,000 estimate is on the conservative side”
Do you know the condition the upstairs of the building was when BID bought it? I think if it has nt been done, someone ought to audit it from he point of view of what are building owner improvement and what are tenant inprovements. They could have brought the whole mechanical system up to a new standard as well as electrical and commuunications systems that will benefit a future tenant.
On top of that were the tenant improvements put in with the input of the Games people and did any of the converstations go like this:
“we really do not need expensive door like that and that kind of flooring, etc.” followed up by “well, we want the flooring to last longer than the 3 years as well as the finishing in general, because we will be able to use it afterwards for ourselves or other tenants.”
Interesting where such discussions can lead.
[/url]http://www.royallepage.ca/ListingSearch/advanced.aspx?referrer=agent&price_desc=f&location=CREA&agentId=1119314&username=dblack&exclusivesID=dblack[/url]
Previous City Furniture … 13,000+s on ground $5/sf .. triple net I assume….. Fortis right across the street. Tons of display windows to promote the Winter Games to the public ….. “come on in folks to see what we are all about” …. .
http://www.royallepage.ca/ListingSearch/advanced.aspx?referrer=agent&price_desc=f&location=CREA&agentId=1119314&username=dblack&exclusivesID=dblack
http://www.royallepage.ca/jumplisting/search/BC/PG%20City%20Central/483680/0?feed=4&userName=dblack&language=en
$12/sf for a small office in a prime building and locaion (BDC) …. ready to move in …. minor tenant improvements required ….
I realize Winter Games requires larger space, but larger spaces often rent for less per unit and provide more incentives. I am showing this just to show that the price range I mentioned above is in the ballpark.
http://www.royallepage.ca/ListingSearch/advanced.aspx?referrer=agent&price_desc=f&location=CREA&agentId=1119314&username=dblack&exclusivesID=dblack
There seem to be at least 4 separate spaces for lease in the BDC building, most at $14/sf, including a large ground floor space. All ready to move in with minor tweaking ……
That should give a better idea of the market ….. unless there are some hidden problems with the BDC property.
How are you doing fred???? Coming up with any counter offers?
Well, 6000 sq.ft x $14/ sq. ft x 3 years = $252,000
So this is sponsorship announcement is right on the money. Good for BID (it was anyway, I just like to see values on par with true values).
bohemian just said it…
give it a rest Gus.
Lenny, I was not the one who put a figure out there. BID did. They could just have said that they were getting free space for 3 years. In fact, it actually does not say that specifically. Specifically it says that the tenant improvements ave been paid by BID. It does not say that the lease is also a donation ………
I know Lenny …… details …. the devil is in the details.
I assume the lease is also free. So maybe the total write off is half a million bucks. You might know that minor little quarter million buck detail, Lenny. :-)
Does this go under the heading of truth in advertising?
Gus
“The devil is in the details”. ..so true
We don’t know the terms of the lease agreement…but rest assured that the valuation will have to meet the test with CCRA!
Regardless of the value…and we can all agree it is significant …I for one am truly thankful that there are private companies and individuals that see their way clear to give back to the region like the Fehr Family and their companies continue to do. This is just one example of their generosity and support.
Gus, you would do us all a favor if you would follow their lead rather than trying to find fault!
The devil really is in the details, isn’t it.
On behalf of the normal folks …Thank You to the BID Group.
Comments for this article are closed.