Since 1867, O'Keefe Ranch has been a staple in the North Okanagan. However, the ranch, now branded as a historical society, is in dire straits financially.
According to a letter submitted to Vernon council by the society, the ranch has $77,740 worth in debt that it outstanding.
"The society, by definition, is currently insolvent," said manager of ranch, Sherrilee Franks. "Several factors have contributed to this situation, including the repayment of the $40,000 CEBA loan, the use of operating funds for capital expenses, and the layoff of key staff."
In a financial statement by the BDO auditing and accounting company, the society has a deficiency in revenues over expenses which indicate a "material uncertainty" that casts doubt about the ability for the ranch to continue to operate.
In July of 2023, the society asked the city if they would be interested in pursuing negotiations on a new lease, which was not answered. As such, the ranch continued to invest in necessary capital costs, without sufficient funding from the city.
There are several outstanding capital costs that are required to continue operating, which the society can not currently finance. Those include: $6,400 for a new grease line, $5,000 for blackwater plumbing, $4,000 for dangerous tree removal, $2,000 to fixed a downed power line, $300 in Interior Health required upgrades and $25,000 for a stairway from the museum.
The society is requesting numerous items from the city, including:
- Confirmation from the city that it is interested in discussing a new lease;
- Bi-monthly reimbursement of any capital expenditures required for operations;
- An operational grant of $85,000 to remain open until Nov. 30. $40,000 in funds are required by Aug. 15 to remain open, with the remainder needed by Sept. 1;
- Direction for staff to work with the society to create a sustainable setup until a new lease can be established.
If a "positive" solution is not reached, the society is requesting a transitional meeting to hand operations of the ranch back to the city.
Council will discuss this matter at the Monday, Aug. 12 council meeting.
