Opinions needed

So I created a little space for my dog cause I’m expecting my second in May and right now we live in a 3 bedroom upper duplex and basically he’s been chilling out in our third bedroom with all his necessities but soon enough that will be baby’s room so I created him a little space and I do have to confine him there when we’re not home or sometimes when we are home and I can’t keep an eye on him cause he tends to pee and poop all over the place. He’s 5 and I’ve had him since he’s 2 months old and I was never able to train him. He literally refuses. He’ll go on his pad if it’s not too far otherwise he’s not a very smart dog ...🤷‍♀️

What do you guys think of this space ?! I was debating whether I should put his dog bed in there but it’s kind of big AND he pees and poops in there too 🙄 AND I sent a picture to my husband and he says he refuses the pipi pad to be in the living room. He does not want to smell pee or poop. So now I dunno what to do I’m conflicted.. he’ll do his business on the balcony sometimes bit it’s currently -40 degrees here and he refuses to go out understandably. So I dunno now. Any suggestions ?