Mahsi ,Mr. Speaker. Mr. Speaker, I am pleased to announce the implementation of the government's Yellowknife office plan.
As Members may know, there is currently a surplus of over 100,000 square feet of office space on the Yellowknife private real estate market. As well, the government has approximately 76,000 square feet of surplus space in its own inventory of owned and leased buildings, which results from our efforts over the past three years to develop a more effective and efficient government structure.
With the pending creation of two new territories on April 1, 1999, this government surplus is expected to increase to about 125,000 square feet by 1999, as departments further consolidate their staff in shared space, and reconfigure themselves to reflect the needs of the new western territory.
Taking those factors into account, Public Works and Services, in cooperation with all government departments, has developed a plan designed to satisfy the government's need for office space in Yellowknife up to the year 2002 through a combination of short, medium and long-term leases.
At the same time the plan is designed to minimize any significant impacts on the Yellowknife real estate market and economy.
The principles on which the plan is based include:
- reducing the government's ownership of office space in Yellowknife;
- ensuring effective management of the lease inventory to avoid excess costs;
- maximizing private sector involvement in the provision of GNWT office space in Yellowknife; and
- doing everything possible to protect the viability of the Yellowknife real estate market, and hence, reduce any serious impacts of the city's economy.
As a result, we were able to develop a plan to reduce our office space inventory from 441,000 square feet to 351,000 square feet.
Mr. Speaker, by the year 2002 the government will:
- sell a variety of government buildings through a public and open process, starting with the Tapwe Building currently occupied by a variety of government funded advocacy organizations. The organizations will be provided with alternate office accommodation;
- sell the regional offices of RWED which are located on the Great Slave Lake waterfront;
- sell the Laing Building with the proviso that it cannot be leased back to government as office space. This will allow for the alternate use of a major facility in the downtown core and remove 60,000 square feet of office space from the Yellowknife market;
- lease from the private sector, through a competitive process, a replacement office space for the 36,000 square feet of government office space lost through the sale of the Laing Building;
- bring together staff of each department so that they occupy adjacent leased space; and
- finally, the government will gradually reduce space as needs decline over a period of six years, by not renewing selected leases when they expire.
Mr. Speaker, this plan will initially result in increased costs for tenant improvements. However, this initial investment will be paid back in reduced costs over a six-year period. I am pleased to be able to present this office plan, as we believe it is a sound business decision that balances the operational needs of the government, while maintaining a viable commercial real estate market in Yellowknife. Thank you, Mr. Speaker.
--Applause