Here's your rent: Province paying big bucks for leased space
50 property leases in St. John's area costing nearly $10M annually
Newfoundland and Labrador's cash-strapped provincial government is paying nearly $10 million annually to rent space in St. John's, Mount Pearl, Paradise and Conception Bay South, with the Department of Justice and Public Safety leading the way with 20 leased spaces.
That information is contained in the results of an access request provided to CBC News, detailing a list of 50 property leases currently on the books at the Department of Transportation and Works, which is responsible for the administration of property leases.
The biggest beneficiary of this expenditure?
The owners of Atlantic Place, a prominent office building in downtown St. John's that is also home to the provincial court.
The province pays more than $1.4 million each year to Halifax-based Southwest Properties Partnership on seven different leases at Atlantic Place, paying up to $24.20 per square foot of space, which is about average in comparison to other government leases.
It's also costing taxpayers $800,000 to accommodate employees with the Department of Child, Youth and Family Services at a building owned by Frog Pond Holdings Limited, located at 81 Kenmount Rd.
Another notable tenant is the Newfoundland and Labrador Legal Aid Commission, which pays nearly $700,000 per year for space at 251 Empire Ave. This building is owned by Kenmount Properties.
Meanwhile, the province has signed seven different property leases with Beothuck Investments Inc., totalling roughly $400,000, primarily to the Department of Justice and Public Safety.
A large public service
Provincewide, there are 299 leased properties, costing taxpayers $23.3 million.
Of the total office space used by the provincial government, 34 per cent is leased, which is well below some other provinces, according to a statement provided by the department.
There are more than 46,000 employees in the province's public service, accounting for about 20 per cent of all jobs in Newfoundland and Labrador.
A 2013 report by the Atlantic Institute for Market Studies found that Newfoundland and Labrador has 109 public employees per 1,000 residents. That's nearly 30 per cent higher than the national average, according to the AIMS report.
The government has plenty of publicly owned buildings, including Confederation Building, which has undergone a $50-million renovation, but not enough to accommodate every department and agency.
According to the department, leasing is often the "best option" because it can be more cost-effective and economical.
As for the costs to lease properties, this is determined by market factors through the public tendering process.
The leasing of space is also a growing trend. Five years ago, there were 290 leases, costing $18.4 million annually.
Government entities among the landlords
The leases are generally in the five- to 10-year range, with the cost per square foot ranging from a low of $2.30 for space leased to Transportation and Works at St. John's Airport, to a high of $50.62 for property leased to Justice and Public Safety at 57 Pennywell Rd.
Some of the more unusual landlords include the City of Mount Pearl and Rovers Search and Rescue Inc.
The province is even renting space from government entities, including Eastern Health and Newfoundland and Labrador Housing Corporation, as well as Memorial University.
Of the 50 leased properties, 38 are located in St. John's, nine are in Mount Pearl, two are in Paradise and one is in Conception Bay South.
Almost 90 per cent of the annual expenditures for leased space are paid out in St. John's.
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