The Hornby Island Co-op Board has a commitment to ensure safe and effective retail operations; the existing store has reached the end of its useful life and no longer serves the purpose, so the Board has a duty to act. There are critical structural and operational issues that exist that would require a complete rebuild to address, but will never completely remedy.

Renovating the existing building cannot be done without major disruption to operations, including the possibility of having to close for an extended period; renovation would merely delay the inevitable replacement of the entire building while not solving many of the operational issues that exist.

The Board has chosen to pursue the replacement of the existing store. This new store will achieve significant improvements to safety, security, operations as well as employee

satisfaction. It will be efficient, economical to operate, focus on sustainability and celebrate community.

Preliminary design work resulted in a Class C budget, including everything the Co-op needs, as well as what our staff and members have said they desire, exceeds our initial budget expectations. A scope assessment and cost savings process are underway.

The design work will now proceed to where a Class B budget can be completed. The focus will be on the base building with allowances for components to be included or added later depending on available funds. This will allow flexibility to adjust the construction program to control costs and maintain budget.

From there, the design process will progress to enable the work to be competitively tendered and the cost accurately established with a Class A budget and a decision to proceed can be made.

The Board is working through a feasibility analysis and risk assessment as well as a budget process with the store managers to ensure the fiscal viability of such a major capital expenditure is warranted.

Should we choose to proceed, construction will commence no earlier than this Fall. The issue of tariffs and resulting disruption to trade has added uncertainty and potentially higher construction cost and supply chain disruptions; the possible effect to retail and the economy in general will be considered in the decision.

We look forward to providing you with updates as the project evolves.

Our Hornby Island Co-op is currently in the late stages of designing a new Co-op building. The design team has received considerable input from members, customers and staff. In recent months open houses have been conducted to publicly share the plans and the Co-op Board continues to be available for Saturday porch sessions. Recently some members have expressed opinions and concerns, either directly to the board or on social media. The purpose of this document is to share those concerns with everyone and provide the design team’s responses.

Q. Why is the Board suddenly so interested in building a new Co-op?

The current Co-op building, the third in the Co-op’s history, was completed in 1983 and was expected to have a 40 year lifespan. The previous buildings lasted 10 and 20 years, respectively. For over 12 years the Board has been preparing to deal with the end of the current building’s life. All manner of options have been thoroughly investigated and funds have been reserved for the eventual solution.

Q. Why can’t we keep the old building?

Our present building lacks structural integrity. This became clearly evident subsequent to a major snowstorm in 1996 when the building shifted due to snow loading. Over the past 12 years the Co-op Board has investigated what can be done to remediate the building and avoid replacement. No satisfactory options emerged and eventually the Board concluded remediation was not practical. Reasons for this include:

• The most recent independent study determined that renovating the existing structure will only achieve 75% of current code requirements;

• Structural remediation would cost at least $750,000 in 2018 dollars and would result in no building improvements other than structural integrity;

• Co-op management and staff have identified a number of critical operational, safety and security issues that cannot be resolved with the existing building, even after structural remediation; and

• The building would have to be closed during remediation work, meaning the Co-op would have to move to a different temporary facility. The Co-op is an essential service and limiting or temporarily curtailing its presence is not in the interest of our island community.
  
  

Q. In Europe buildings last for hundreds of years. Why isn’t that the case with the Co-op?

The present building was constructed in the early 1980’s for approximately $25 per square foot. It has served us very well over the years but was never built to last indefinitely. One of the fundamental design requirements for the proposed new building is it must have an expected lifespan of at least 100 years.

Q. Why can’t we repurpose the old building?

Part of our process was to consider ways we could repurpose the current building. Due to the structural issues, it is cost prohibitive to make it seismically safe (quote in 2018 $750K+ and does not include any upgrades other than structural). Approval for the new building will be conditional to the old one coming down. Every effort will be made to repurpose or recycle as much of the old building as possible.

Q. Why can’t it go across the road to the gas bar parking lot?

In the recent past, the possibility of building in the gravel parking lot was extensively researched and ultimately rejected. A major problem with moving across the road is that we would lose all meaningful contact with Ringside. We consider this relationship to be vital to the Ringside merchants, the community and the Co-op itself. The importance of this was reinforced by comments received from members during the winter and spring porch sessions.

Occupying the gas bar lot with a new store would eliminate the possibility of future development on this site. 

Other considerations for not building on this site include:

• Relationship/proximity of a grocery store to gas bar and fuel tanks and it would be difficult to manage hazards and traffic flow around the different uses. When we model an 11,000 ft2 building on gas bar parking lot site it is difficult to get flow to work properly regardless of the gas bar proximity.

• When we originally designed the site with the future store in the northeast corner we lost the needed space because the septic field grew along with the tank farm and fuel trucks need the turning radius in front of the tank farm thus putting the fuel truck at the front door of a proposed store.
  
  

Q. Will a new building mean higher food costs for customers?

It should not be assumed that the new building will result in higher costs - quite possibly the opposite as operations will be significantly more efficient. Having more storage/warehousing space will improve the flow of goods and means our department managers can take advantage of bulk buying, resulting in better pricing.

Q. Will there be less hardware available?

Much of the current hardware space is limited by low ceilings and awkward setup. The new space will facilitate full height shelves and will be sensibly arranged. Our inadequate warehousing space currently forces us to store items on the hardware floor when they should be properly warehoused. Improved warehouse space will eliminate this problem and free up floor space for retail sales. Also, and we haven’t emphasized this enough, the new building will have covered outdoor areas suitable for large items (wheelbarrows, garden tools etc.) and will possibly allow us to stock a limited selection of new products, such as lumber.

The current hardware department has 2,250 square feet of sub-optimal space whereas the new hardware department, inclusive of the covered outdoor area, will have 2,585 square feet of properly designed space.

Q. Will the new building have taller shelves?

Shelving for hardware and groceries will be more or less the same height as the current food store.

Q. Aren’t you limiting the potential for expansion with the current location choice?

During much of the year our building is more than large enough to service Hornby’s year-round population. In the summer the building is stretched beyond reasonable capacity. Much of the time we are too big and sometimes we are too small. Expanding solely to meet seasonal peak traffic is financially challenging. Rather, our emphasis with the new building is to maximize flexibility. Indoor space will be available for Hornby residents to meet and gather in the winter with the same space repurposed for additional retail floor space during the summer.

If at some point expansion is warranted, it may be accommodated in the gas bar parking lot. For example, many members would like to see the liquor department separated from the food/hardware store. Expanding the gas bar to include liquor would facilitate having the liquor store open for different hours than food/hardware. This is just one example of potential expansion.

Alternatively, the new building can be expanded at the front and side because of the flat roof design. It would be a major project, and we hope it isn't necessary, but it has been factored into the design plans.

Q. Why aren’t you addressing the awkward delivery truck situation?

Delivery docks are being redesigned to make them fully accessible. One dock will be for tractor trailers and the other for vans with sufficient space for proper turning radiuses and to be fully off the road. Warehouse space is being completely redesigned to optimize efficiency, eliminate bottlenecks and facilitate bulk buying storage and ease of disbursement.

Q. With the new building going into the paved parking lot, will we lose parking?

Additional parking spots along Shields Road will be available for Elders and mobility challenged customers. We will end up with slightly fewer parking spots than at present but improvements to the Gas Bar gravel lot will improve access. Emphasis is being placed on increasing and improving bicycle parking and adding electric charging for bikes and cars.

Q. Where can I see plans and pictures of the proposed building?

Preliminary plans and renderings are mounted on the front interior wall of the Co-op.

Q. We want the new building to be sustainable. Will it have such things as solar power and water collection?

Solar power and water collection are 2 specific aspects of sustainability. We will be doing some water collection, and the building will be wired for future solar power installation when we have the funds for it. However, sustainability is about a lot more than power and water. True sustainability is when a building remains for a very long duration and is loved. We believe designing a building that will serve Hornby for at least 100 years is the embodiment of sustainability.

Q. Why doesn’t the plan include housing?

We are limited by law with respect to how much of our land is covered by buildings as well as height, as a result, we have no room for an additional building for housing nor is it our mandate or competency.

Q. Are there any changes to the gravel parking lot?

Ultimately, we hope to pave the gravel lot with an ecologically sound product, but that is beyond the scope of the new building project. In the interim we have engaged a landscape architect to provide design improvements to improve access and increase the amount of greenery in the gravel lot. We have also asked the landscape architect to prepare a plan for improvements and integration with the Ringside Market.

Q. Will the new building put the Co-op in financial jeopardy?

The need to address our building deficiencies has existed for many years. Successive Boards have set aside reserve funds for this purpose. As of now the reserve fund exceeds $4.5 million.

As part of the decision process an initial financial viability assessment was completed using extremely conservative assumptions, including:

• Base line annual cash flow significantly lower than those realized in each of the past 3 years;

• No cash flow growth whatsoever for the next 25 years even though the new building will provide revenue growth potential and considerable operational cost savings; and

• To the extent debt is required it was projected at 7% interest even though market rates are presently well below that. Further, debt is amortized over 10 years, meaning the building will be fully paid for in 10 years when it will have at least 90 years left in it.

Q. How has the Membership been consulted?

The building has been the topic of many AGM's and Membership Engagement Events over the last 12 plus years. The Board is committed to transparent communication with our members. We have increased communication from the Board to the Co-op members, and we began "Porch Sessions" in January of this year, where Board Members were on the Co-op porch on Saturdays from 11am-1pm to engage with members and customers face to face. Detailed notes were taken and turned into a spreadsheet and shared with the architect and design team. We have also been publishing updates via First Edition Articles, and the Co-op’s Facebook Page. In addition, we conducted a presentation of the new design at our public presentation on May 28th.

There has been some chatter on social media lately, and you may wonder why the Board does not chime in. We will post formal updates and links on the Co-op Facebook Page, but the Board has not found it productive to comment on various social media sites. If you have questions or comments, please send us an email (board@hornbycoop.com), and you will get a direct response! 

Q. Has the Co-op staff been involved?

One of the most frequently heard opinions during our porch sessions was that any new building should focus on staff requirements and preferences. Members made it clear that our top priority should be to ensure Co-op staff have a safe and healthy workplace.

Staff were asked to voice their opinions and suggestions via surveys and in-person meetings. Senior management are part of the design team and are involved in all design decisions.

Q. When will the project start and how long will it take?

The plans have now been submitted for permitting. However, we do not control the processing and approval times. It is unlikely construction will start before fall of 2025 and we hope to have the new building completed in spring 2027. The existing building will be open throughout construction and no construction is expected to take place during summer of 2026. Once the new building is complete the old building will be demolished and public green space and landscaping will be completed on the old building’s location.

Q: Does the Membership have to vote on this?

Co-operative businesses are governed and run by boards of directors. The board is a group consisting of members that have been elected to make decisions for the Co-op on behalf of all the other members. Our role is to plan and oversee the business of the co-operative in accordance with the applicable legislation, regulations, bylaws and established policies so that it meets the needs of its members and effectively moves the co-operative towards achieving the strategic goals and objectives.

Because we are a policy board, the Board’s mandate is to hire a GM to manage the staff and run the operational aspects of the Co-op. Within this structure, the Board creates policies and makes decisions about the direction for the Co-op, and the managers and staff run the business.

Board members have a fiduciary responsibility to act honestly and in good faith with a view to maintaining the best interests of the Co-operative, by providing strategic direction and monitoring results. This means we must make good financial decisions, make sure the Co-op is fulfilling its objectives and mandate, and generally position the Co-op for future success. The Board is elected by members to make decisions such as what to do about our aging building.

The Co-op bylaws specify a very limited number of circumstances and decisions where membership ratification by vote is required. A new building is not included on the list.

Q. What was the process for determining to build a new building?

In the past 14 years the board has commissioned 3 independent structural assessments. The most recent of these, completed in 2018, identified significant deficiencies in the building. The Board and Management have worked with a number of respected professionals during this long process, including Michael McNamara of Blue Sky Designs, Chiu Hippmann Engineering Inc, Alan Fletcher of AFC Construction, and Federated Co-op Project Management. 

In November of 2022 at our fall Membership Engagement event held at Sea Breeze Lodge, the Co-op Board announced a redevelopment scheme that had previously been conceived with the addition of a new building at the northeast corner of the gas bar parking lot. Feedback from that event plus further assessment of the business case for this strategy demonstrated that it was neither feasible nor desirable, so other options were considered.

A request for proposals conducted last year resulted in 3 qualified commercial builders submitting Construction Management proposals. AFC Construction has been selected as Construction Manager based on the most competitive fee, most local resources, and a proven track record of successful commercial projects on Hornby Island. AFC conducted a formal request for proposal for design service with 4 competitive proposals received resulting in awarding Leckie Studio Architecture + Design the design contract.