CplKlinger
Senior Member
Previous councils chose to neglect CMR, and that is the consequence. Much like how the province has a ton of deferred maintenance because successive governments don't provide adequate funding. Part of the reason, in the city's case, is that per-capita infrastructure funding through MSI/LGFF has dropped from $420 in 2011 to around $150 in 2023, before slightly rising to $180 in 2024. While some of the gap has been covered by project-specific funding, that's exactly the problem: project specific funding has restrictions on how it can be spent, and is often for growth projects (ie LRT and road expansion). LGFF (formerly MSI) is unrestricted capital funding, meaning that municipalities have the flexibility to put it toward important CMR work.What an interesting analysis/conclusion.
Manage your wholly owned assets until such time as they require significant investment to maintain and modernize, keep in good working order etc., all because you haven't been doing the appropriate maintenance and upgrades that should have been invested in them for decades. Then, to avoid those costs, sell the asset at the bottom of the market while accepting a further substantial discount so the purchaser can complete that work.
Maybe someone could use it as a case study to write a book about how not to manage either your real estate or your staff...
My point stands either way; more office space = either more maintenance costs, or more renewal costs.
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