Yes and no. In the short-term, it wouldn't increase costs but it would mean that they need to pay for leases, utilities, etc. that they otherwise could have saved. That's a large reason why the GoA is consolidating space, for example. In the longer term however, there's a lot of capital costs involved in maintaining and renovating spaces down the line. For example, administration is hoping to sell Century Place and Chancery Hall and consolidate staff in other buildings.
In a report to council, they explain why:
"The City’s total renewal investment requirement over 2023 to 2032 is $8.37 billion, with annual requirements in the range of $721 million in 2023 to $1.02 billion in 2032. Over the 2023 to 2026capital budget cycle, the required renewal investment is $3.58 billion. As of the spring 2024 supplementary capital budget adjustment (SCBA), only 57.5 per cent of the City’s ideal renewal need was funded in the current budget cycle. Currently, 60.1 per cent of the City’s facility assets are considered to be in Fair condition and approaching the end of their lifecycle. Of those assets in Fair condition, approximately one third will fall into Poor condition over the next 10 years. Based on analysis supporting the 2023-2032 Capital Investment Outlook, the ideal investment to keep the entire portfolio of facilities assets in an optimum physical and functional condition is estimated at approximately $2.2 billion over the next 10 years. In this circumstance, it is prudent that options for rationalizing and rightsizing municipal assets are explored. The need to evaluate and right size municipal assets is essential to ensure Edmonton can support its current assets and have the right framework in place to support the growth of the population.
Century Place is 51 years old and Chancery Hall is 59 years old. Both buildings require significant investment to maintain and modernize, keep in good working order and achieve the City’s climate resilience goals. Repairs are becoming increasingly complex and costly system replacements will soon be required. Facility systems should be renewed at certain intervals as part of asset management best practices. Building renewal includes work to extend the service life of certain systems (e.g., elevators, building envelope, etc.) and replace certain components that have reached the end of their service life (e.g., electrical systems). The estimated capital investments required in the short-term and over the next 10 to 20 years for Century Place and Chancery Hall include amounts for both lifecycle renewal of facility systems and required floor renovations."
The specific requirements for these buildings, and their financial implications, was kept confidential, but I think the two paragraphs together paint a pretty telling picture. If taxpayers want taxes to stay low, then their tax dollars must be used for more urgent things than maintaining and renewing office space for the sake of keeping bodies downtown for an extra day or two per week. Encouraging more companies and residents to move downtown would have a much better return on investment; both by generating tax revenue instead of costing tax dollars, and creating a more vibrant atmosphere outside of business hours.
