The planned replacement and upgrading of the public works yard in Nanaimo (Image Credit: File photo/NanaimoNewsNOW)

By Jordan Davidson

big boost

$77M added to Nanaimo public works yard budget

Feb 24, 2026 | 1:55 PM

NANAIMO — A substantially increased budget has been tabled for the City’s much-discussed public works project, with the vast majority of the funds being borrowed.

Nanaimo councillors approved three readings for a $77.6M increase to the Public Works Yard Updates in the 2026-2030 Financial plan, during the Monday, Feb. 23 council meeting, providing details on the future buildings and how they will be paid for.

General manager of engineering and public works Bill Sims said it’s a modern design meant to be used efficiently and effectively.

“The fundamental design ethos for the project itself has been really service delivery to the public, to the community. It’s not about making things beautiful and pretty and comfortable; it’s about service delivery. It’s fit for purpose.”

The total project price now sits at $79.4M.

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$77M added to Nanaimo public works yard budget

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The project will be closer to $126M once completed, with debt servicing costs taken into consideration.

Over $76M of the increase will come from long-term borrowing, while $726,350 is from the general asset management reserve fund, $89,550 from the sewer operating reserve, and $179,100 from the water operating reserve.

The increase includes an earlier $1.8M was committed last February to proceed with detailed design and costing work.

Councillors also approved City Staff to begin negotiations and agreements necessary to complete the project within the approved budget.

Multiple other statutory steps are required before the bylaw can come back to council for final adoption, which is expected to take several months.

Sims said this design will bring all of the City’s key working groups and staff together in one space.

“The project itself is the two highest priorities for public works, which are the fleet building and the crew and admin building, are equally critical to the City’s continued operation. We recognize that this is a generational project. The buildings will stand for multiple generations.”

Counc. Tyler Brown was the lone opposition vote through all of the motions.

While he acknowledges the current public works yard is beyond its workable life and needs replacement, he said he’s still not sold on this new plan.

“I have not been provided with the information where I have confidence in those that have scoped the project, and as a decision maker for this time of expense of $125M over a 20-year period, I don’t have confidence to vote in favour of this. I wish I did, I wish I had been provided that confidence, but over three, four years now, I have not.”

History

After three failed attempts to obtain elector approval in 2023 and 2024, the City paused project planning in December to determine its next steps.

However, due to recent provincial legislation changes made last year regarding liabilities municipalities may incur, such as leases and debt to fund services, electoral approval is not required for the City to borrow over $76M.

The report said electoral approval is not required if “the total annual cost of servicing liabilities is within 10% of controllable and sustainable municipal revenues.”

The City recorded a 2024 sustainable and controllable revenue of $246.8M, putting the 10 per cent approval-free liability threshold at $24.7M.

The total liability servicing cost, which includes the new borrowing approved in this report, is $11.8M, putting it within the approval-free zone with 4.8 per cent.

The City said borrowing would be done through the Municipal Finance Authority of BC, with a 20-year term lending rate of 4.73 per cent, with annual debt servicing costs estimated to be $6.3M.

The typical Nanaimo home valued at $787,743 would see a tax increase of around $121 annually.

Site Details

Two new buildings and ancillary updates to storage spaces will also be completed at the same time so the site can be immediately operational upon completion.

The report said 229 City staff will work out of the crew and administration building, capable of accommodating up to 263, with extra space included for potential future growth.

Over 500 parking spots will be on site.

The fleet maintenance building will be a single, 2,300 square meter floor, with around 400 square meter mezzanine for ancillary rooms like a lunchroom or washrooms.

It will be a pre-engineered building to reduce costs, and existing fleet maintenance equipment, such as lifts, hoists, and other equipment, will be reused.

Both buildings will be built to continue operating during a post-disaster emergency, and can be used as an alternative emergency operations centre.

Additional required upgrade work not included in the current project will be looked at in future spending discussions.

The report said site clearing and foundation work could begin late this year, with an anticipated completion date of early 2029.

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