University of Regina says 'misconceptions' exist on Conexus deal in Wascana Park

Conexus Credit Union's head office might be moving to the foot of Wascana Park.

On Monday night,citycouncilapproved the transfer of 1.1 hectares (2.6 acres) ofcity-owned land inWascanaCentreto the Universityof Regina for development purposes.

• Regina approves land donation for Conexus office in Wascana Centre

The U of R will lease the land,located west ofDarkeHall on the College Avenue campus,for 90 yearsto the credit unionforits 80,000-square-foot head office.

In return,Conexus has donated $8.25 million to the University of Regina to revitalize the College Avenue campus.

But the University's vice-president of administration says the deal is worth much more than that.

"Probably one of the biggest misconceptions is that Conexus is getting this for free," said Dave Button "They're actually paying well beyond what isfair and reasonable value. Only one part of what they're contributing to this actually gets reported. That's the cash amount of $8.25 million."

Darke Hall improvements

Button said, in addition to the up-front cash donation, Conexus will be paying for major upgrades to DarkeHall, which will remain in the U of R's control.

Button estimated thatimprovements to Darke Hall would have cost the school as much as $10million.

"The atrium or lobby part of theConexusbuilding will also serve as the reception area, lobby andaccess forDarkeHall," said Button.

• University of Regina's Darke Hall closing for $3M facelift

Maintenance costsof the area will be covered by Conexus for the lifetime of the 90-year lease.

Conexus will also provide 15,000 square feetof space for a'business incubator'. Button said it will be the first of its kind in Regina and allow students, faculty and businesses to meet and exchange ideas.

Button said the footprint of the head office will be smaller than some people think.

"There's 2,300 acres in Wascana Centre. The part that is being transferred by the city is 2.6 acres, but the actual development will be farless than 2 acres. The development will be on a small triangular piece of land everyone would have assumed was already the university's," Button said.

Opposition to commercial development

CouncillorShawnFraservoiced concern in the councilmeeting over the donation amount, and also over the fact thatConexuswill not pay rent over its long-term lease.

He disagreed with the mayor's suggestion that the deal was too good to pass up.

"If $8 million is too good to pass up for an office building near the park, what that means is:the next person who comes along with $9 millionhow can that not be too good?" saidFraser.

The Regina Downtown Business Improvement District (RBID)opposed the development as well, saying it could set a precedent for more office space developments withinWascanaCentre and that it violates the city's own policy to keep office space downtown.

The city made an exception in this case. It has a required location for office developments which, for the most part, keeps them in a boxfrom 4th Avenue to College Avenue (north side)and then from Albert Streetto Broad Street.

Other development plans inpark

The University/Conexus projectisn't the only development that is beingplanned on park grounds.On the east side of the park, Brandt is working on a plan toredevelop and expand the headquarters forThe Canadian National Institute for the Blind.

According to theWascanaCentreAuthority, the new building may 'accommodate other tenants inadditionto theCNIB.'

"The [downtown] office development policywas put into place for a reason and it should be consistently applied."saidJudith Veresukthe executive director of RBID.

The current vacancy rate for office space in downtown Regina is 15.17 per cent according to Colliers International. That is up from 12.54 per cent in fourth quarter of 2015.

In 2012, the downtown office vacancy rate was about 5 per cent.

"This processactuallyisn't over yet," said Fraser. On Monday, city councillors voted to bend the city's downtown office policyin addition to approving the transfer of land.

The application still has to be submitted to the WascanaCentre Authority, which willultimately decide whether the construction will go ahead in the park.

Fraser said residents who are eitherin favour of, or opposed to the developmentshould contact Mayor MichaelFougere.