TOWNSHIP OF ESQUIMALT STAFF REPORT
MEETING DATE: September 21, 2026 Report No. SI-26-021
TO: Council
FROM: Judy Kitts, Director, Strategic Initiatives
SUBJECT: Real Property Portfolio Review
RECOMMENDATION:
Recommendation
That Council direct staff to undertake a real property portfolio review and report back during the 2027 budget process with recommendations regarding a Real Property Strategy and future resourcing requirements.
Body
EXECUTIVE SUMMARY:
The Township of Esquimalt owns and manages a diverse portfolio of real property assets that support municipal service delivery, community objectives, public amenities, and future strategic opportunities.
Historically, responsibility for real property matters has been distributed across multiple departments rather than being managed through a coordinated corporate framework. As the Township's real estate portfolio and strategic priorities have grown in complexity, a more coordinated and proactive approach is required.
This report recommends undertaking preliminary analysis and portfolio review work to better understand the Township's real property assets, current management practices, and future organizational needs. The results of this work would inform a future report to Council during the 2027 budget process regarding the potential development of a Real Property Strategy and any associated governance, staffing, or resource requirements.
BACKGROUND:
Municipal governments rely on real property assets to deliver services, accommodate operational requirements, provide recreation and community amenities, support infrastructure, and advance broader community objectives.
Over time, Esquimalt has acquired and retained a variety of properties for differing purposes, including parks and open space, municipal facilities, transportation and utility corridors, community amenities, and leased or licensed property interests. Collectively, these assets represent a significant public investment and support many of the services provided to residents.
Historically, real property responsibilities have been managed through individual departments and projects as needs arise. While real property management activities currently occur across the organization, the Township has not undertaken a comprehensive review of its portfolio or established a corporate framework to guide property-related decisions and priorities.
The Township has also recently invested significant effort in facilities and asset management planning. This work provides valuable information regarding the condition, maintenance requirements, and lifecycle costs of physical assets. However, they do not address broader questions regarding how municipal properties should be used, retained, repurposed, leased, redeveloped, exchanged, or strategically managed over time.
Accordingly, staff have identified the need to better understand the Township's real property portfolio, current management practices, and future organizational requirements in order to determine whether a formal Real Property Strategy and dedicated real property function may be warranted.
ANALYSIS:
Current Municipal Property Portfolio
The Township currently owns and operates a diverse portfolio of facilities, including the Municipal Hall, the Public Works Yard, the Esquimalt Recreation Centre, Archie Browning Sports Centre, Gorge Pavilion, the Parks Nursery, the new Fire Hall, the Temporary Fire Hall, and Chafe House.
Beyond municipal facilities, the Township also manages a range of land assets, leases, licences, rights-of-way, easements, and other property interests that support municipal operations and community objectives.
Municipal real estate represents one of the Township's largest and most valuable assets. Effective stewardship of these assets requires specialized expertise and a coordinated approach. Without a coordinated corporate approach, property-related decisions may continue to be made on a project-by-project basis, limiting opportunities to optimize assets across the broader municipal portfolio.
Current and Emerging Real Property Considerations in Esquimalt
Several property-related decisions are expected over the coming years that demonstrate the need for a more strategic and coordinated approach to managing municipal assets.
The new Esquimalt Fire Hall is scheduled to open in early 2027. Once operational, the Temporary Fire Hall will no longer be required for its current purpose and is estimated to have approximately 15 years of remaining useful life. This creates an opportunity to evaluate potential future uses of the facility and how it may support municipal operations, community needs, partnership opportunities, or other strategic objectives.
To this end, the Township is currently evaluating proposals for a Municipal Facilities Options Analysis that will examine potential options related to office space requirements, the Victoria Police Department's Esquimalt Division space within Municipal Hall, and future use of the Temporary Fire Hall. The work will consider Municipal Hall's growing accommodation pressures and opportunities for space optimization.
The Township also owns property at 500 Park Place North, which was originally identified to support development of a new Public Safety Building. Following the decision to proceed with the Public Safety Building (now the Esquimalt Fire Hall) without a new VicPD facility, the property fronting Esquimalt Road is no longer required for its originally intended purpose. As a result, the Township is currently considering future options for the site. A report presented to Council on September 14, 2026, outlined potential next steps and strategic considerations. The future of the property represents a significant real estate decision requiring evaluation of municipal needs, financial implications, community benefits, and long-term land use objectives.
The Township also leases off-site space for municipal archives and records storage. As future accommodation needs continue to evolve, opportunities may exist to better align existing municipal facilities with operational requirements and reduce reliance on leased space.
These issues are not isolated facility questions. They are interconnected real property decisions that require a portfolio-wide perspective. Consideration of the Township's facilities, leases, partnerships, and land holdings as a coordinated portfolio will help support service delivery, organizational growth, and long-term financial sustainability.
A portfolio-wide review would help ensure municipal assets are considered as a coordinated portfolio rather than on a project-by-project basis. The results of the review would inform Council's consideration of whether a Real Property Strategy is warranted and how future accommodation needs, facility optimization opportunities, partnerships, surplus properties, and other real property matters should be addressed.
Local Municipal Practices
Real property management functions are common among local governments. Larger municipalities such as Victoria, Saanich, and Nanaimo maintain dedicated real estate divisions or functions responsible for activities such as acquisitions and dispositions, lease administration, portfolio management, strategic planning, and related property matters.
Smaller municipalities generally manage real property responsibilities through existing departmental structures and designated staff resources, rather than dedicated real estate divisions. The scale and formality of these functions vary based on organizational size, portfolio complexity, and corporate priorities.
The proposed review will include consideration of municipal practices and organizational models used by comparable local governments to help determine an approach that is appropriate for Esquimalt's portfolio, priorities, and organizational capacity.
Proposed Real Property Portfolio Review
Staff recommend undertaking preliminary work to establish a foundational understanding of the Township's real property portfolio, assess current management practices, and identify future opportunities and challenges related to municipal property management. This work would provide the information necessary to determine whether development of a formal Real Property Strategy and/or dedicated real property function is warranted.
A key outcome of this work would be recommendations regarding whether the Township should proceed with a formal Real Property Strategy, together with options for future governance, accountability, coordination mechanisms, and resourcing approaches related to real property management.
Preliminary work may include:
• Development of a preliminary inventory of municipal real property assets and interests;
• Review of current real property management practices and responsibilities;
• High-level review of leases, licences, easements, and other property interests;
• Identification of key issues, opportunities, and considerations related to municipal real property management;
• Development of preliminary governance and resourcing options for Council consideration; and
• Recommendations regarding potential next steps, including the scope and objectives of a future Real Property Strategy.
The proposed review would help the Township better understand how opportunities such as the future use of the Temporary Fire Hall, accommodation needs within Municipal Hall, long-term records storage requirements, and future options for 500 Park Place North relate to one another within the broader municipal property portfolio. The work would identify opportunities, challenges, and strategic considerations associated with these and other Township assets and help inform future Council decisions regarding real property management, governance, and resource requirements.
Following completion of the portfolio review, staff will report back to Council with findings and recommendations regarding next steps, including whether development of a formal Real Property Strategy and related staffing or organizational investments should be considered through the 2027 budget process.
OPTIONS:
Option 1 (Recommended): That Council direct staff to undertake a real property portfolio review and report back during the 2027 budget process with recommendations regarding a Real Property Strategy and future resourcing requirements.
Option 2: That Council defer the proposed work and continue managing real property matters through existing departmental structures.
Option 3: That Council direct staff to report back with alternative approaches for reviewing and managing municipal real property assets.
COUNCIL PRIORITY:
Good Governance and Organizational Excellence
FINANCIAL IMPACT:
Staff anticipate that preliminary work can largely be completed using existing staff resources within the Department of Strategic Initiatives and other departments as required.
Limited external support may be required to assist with property inventory development, data management tools, portfolio analysis, and review of leading municipal practices. Staff estimate these costs at approximately $10,000 to $20,000.
Staff anticipate the estimated costs can be accommodated within existing departmental budgets and available resources.
The results of the review will be reported back to Council with recommendations regarding whether to proceed with a Real Property Strategy and, if warranted, preliminary considerations related to scope, governance, and resource requirements.
COMMUNICATIONS/ENGAGEMENT:
Development of the real property portfolio review may include:
• internal staff workshops and information gathering;
• review of municipal property records and existing practices;
• research into organizational models and leading practices used by comparable municipalities; and
• consultation with external advisors, where specialized expertise is required.
TIMELINES & NEXT STEPS:
Phase 1 - Portfolio Review and Organizational Assessment (Winter 2027)
• Develop a preliminary inventory of municipal real property assets and interests.
• Review current management practices.
• Evaluate approaches used by comparable municipalities.
• Identify key issues, opportunities, and considerations.
Phase 2 - Recommendations and Budget Consideration (2027 Budget Process)
• Present findings to Council.
• Present options regarding a Real Property Strategy.
• Present governance and resourcing options, if warranted.
• Seek Council direction regarding next steps.
REPORT REVIEWED BY:
1. Ian Irvine, Director of Finance, Reviewed
2. Deb Hopkins, Director of Corporate Services, Reviewed
3. Dan Horan, Chief Administrative Officer, Concurrence
LIST OF ATTACHMENTS:
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