By Keith Lacey, Local Journalism Initiative Reporter
The Regional District of Okanagan-Similkameen will take possession of its new headquarters on Skaha Lake Road in mid-October, with all staff expected to move in before the end of 2025.
On Thursday, the RDOS Board of Directors approved a staff recommendation to finalize the purchase of the land and building at 3547 Skaha Lake Road. The sale will close on Oct. 15, with possession set for Oct. 16.
Chief Administrative Officer Jim Zaffino told the board the move is intended to consolidate operations and provide more space for staff, improving organizational efficiency and collaboration.
Currently, most of the RDOS’s 120 full-time employees work out of the Martin Street headquarters in Penticton, across the street from Gyro Park. However, others have been based in two additional downtown offices for several years.
In April, the RDOS entered a Contract of Purchase and Sale for the Skaha Lake Road property. The agreement included 13 due diligence conditions to guide whether the purchase would proceed or be terminated.
On June 19, the board reviewed staff’s due diligence and gave initial approval to launch the Alternate Approval Process (AAP), seeking public assent to borrow up to $10 million for the purchase. That process concluded in late July, with the borrowing bylaw receiving the necessary approval.
Three existing tenants — Penticton Excel, Hometime Realty, and Weyerhaeuser — will continue leasing space on the main floor of the two-storey building.
Zaffino also confirmed that a lease surrender agreement with Windward Software Systems, a previous tenant, has been reviewed and deemed satisfactory.
The $10 million loan, to be repaid over 30 years, will be shared among RDOS taxpayers. Based on current estimates, the annual cost would be $1.23 per $100,000 of assessed property value—equivalent to just over $12 per year for a home assessed at $1 million.
Proceeds from the future sale of the current RDOS headquarters at 101 Martin Street are expected to generate several million dollars, which will go directly toward repaying the loan and easing the financial burden on taxpayers.
“At this stage, final board approval is the last administrative step,” said Mark Koch, managing director of community and environmental services.
When asked about the timeline for selling the current building, Koch said the process has already begun.
“Staff have initiated discussions. A contractor has been retained to assess the building, and several professionals are evaluating various components,” he said.
However, significant upgrades are needed before the building can be listed for sale, including roof repairs and elevator improvements.
“Those projects are underway, and we’re working closely with the project team,” said Koch. “We anticipate listing the building for sale by mid-to-late next year, but that depends on the design progress. The board will be kept updated.”
The Martin Street building was constructed in 1980 and underwent structural and geotechnical assessments, along with renovations, in 2015 and 2016. Still, RDOS officials have long stated that the space no longer meets the organization’s needs.
An RDOS report from 2021 noted, “The boardroom is too small for members, staff, the public, delegations, and media. The public reception area and common spaces are limited, storage capacity has been exceeded, and work areas are too cramped to be efficient or welcoming.”
There were prior discussions about co-locating with the City of Penticton in a shared facility, but those talks eventually stalled.
Currently, RDOS leases additional office space at 176 Main Street — shared with Valley First Credit Union — and a smaller site on Estabrook Avenue, near the main office. Consolidating all staff at the Skaha Lake Road property will allow RDOS to end those leases and streamline operations.
Zaffino noted that RDOS had considered constructing a new building outside the city, but the cost was too high.
“In 2023, a report estimated that a new facility would cost over $20 million. Buying an existing building reduces financial risk to taxpayers because it comes with a fixed cost,” he said.
This article first appeared in the Penticton Herald.
