The owner of an expanding Penticton business feels his progress is being hindered by the city.
Two years ago, James Parker, owner of Okanagan Label and Print, saw his business outgrow its Brunswick Avenue location. One of the costs to upgrade has to be taken care of through the City of Penticton, which he feels is unfairly above market value.
Okanagan Label and Print was opened in 2008, and services more than 1,000 wineries throughout British Columbia and Washington State, Parker said, adding that the company is increasing its clientele by about 30 new wineries each year.
The increased workload requires more power, which has to be drawn through a city-owned transformer.
Parker said that after shopping around, the transformer needed to suit his needs should cost between $14,000 and $16,000.
“But City of Penticton wants $32,000,” he said, citing the extra taxes, administration, and installation costs.
“He basically thinks he doesn’t have to pay the [retail] rates,” mayor Andrew Jakubeit said. “There’s a $3,800 admin charge; $2,200 to install, plus GST and PST… I don’t know why he thinks he’d be exempt from [GST and PST].”
Jakubeit said there’s a fixed rate schedule that cannot be amended, and that the city’s community charter doesn’t allow council to assist individual businesses.
Though in making the large purchase, Parker expected to acquire a tangible asset.
“But I don’t actually own it. I’m not allowed; the city will own it,” he said. “It remains property of the City of Penticton as their capital asset, yet they’re charging me taxes for their property.”
Jakubeit said buying direct isn’t a realistic option for any private company, as provincial electrical inspectors wouldn’t approve a privately run transformer, which would be considered a liability operating through public infrastructure.
“The city has to own it,” Jakubeit said, adding that regular maintenance inspections are included in the service.
As a light-industrial employer in the wine industry, Parker believes the city should assist with such investments.
“This town trades in wine,” he said. “It’s our form of currency – the city has to understand that and do everything it can to support that.”
“One-off wave my fees and free transfers – that’s not on the table here, and our community charter restricts us from helping individual businesses,” Jakubeit said.
Based on his experience, Parker said that Penticton is not open for business.
“I beg to differ,” Jakubeit said. “This council is extremely business oriented. We’re working very hard to try and be very aggressive and competitive.”
Despite opposing viewpoints with the city, Okanagan Label and Print is expecting to make its move to Dawson Avenue next month.