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These costs can be mitigated or completely avoided if VBE is able to repurpose the closed school and
lease the retained space to a third party in a timely manner.
Recommendation 6.22
VBE include analysis of sale, lease and retention options in its assessment of capacity rationalization.
Access to sale proceeds
In the event the closed school is sold, VBE has indicated concern that it would not be able to access the
proceeds or it would receive less Ministerial funding support if it were holding a large surplus of funds
from its disposal of surplus Schools.
From EY’s discussions with Ministry representatives, it appears the Ministry would be supportive of VBE
using these funds to upgrade the balance of its facilities through facility upgrades and replacements
without a reciprocal reduction in the following year’s Ministerial funding. Further, as Ministerial funding
is based on enrolment, there appears to be no mechanism by which the Ministry could take this
approach.
Recommendation 6.23
VBE and the Ministry agree on the availability of proceeds and impact on future funding in advance of a
decision to undertake capacity rationalization.
Need for space during SMP upgrades
The need for the existing excess surplus capacity during the SMP upgrades may be one of the major
limiting factors to an aggressive, capacity rationalization approach in the short term. This issue is
discussed in detail in section 6.7.3.
Need to maintain a contingency of schools
EY’s analysis with respect to cost savings and revenue generation has generally assumed a very
aggressive rationalization approach where a maximum reduction in capacity is undertaken to achieve
its utilization target of 95%.
While VBE is projecting stable enrolment over the next 10 years, the longer term enrolment forecast is
currently under development in conjunction with VBE’s LRSFP. Once a school facility is closed and sold,
it may be very difficult to acquire more land to build a school if required in the future given the lack of
land in Vancouver, rising land prices and competition for land from residential, commercial and
industrial land developers.
There may be the ability to increase capacity at the District’s existing schools; however, EY was unable
to make an assessment based on the information provided.
Recommendation 6.24
VBE undertake an assessment of capacity in school lands to understand options for generating
additional future on-site capacity (e.g. new buildings at existing school, additional levels to existing
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