Neepawa gives up on lodge project

Hey there, time traveller!
This article was published 23/07/2011 (5411 days ago), so information in it may no longer be current.

Potential deals have come and gone over the past few years but finally, with much frustration, the Town of Neepawa has walked away from the East View Lodge project.

Following the construction of the new Country Meadows Personal Care Home in 2009, the town and a Winnipeg-based developer, Adler Properties, worked to create a proposal that would address the community’s housing crunch and convert the former personal care home into a 45- to 60-unit apartment complex.

When provincial Health Minister Theresa Oswald decided that public bidding should take place, however, another 47 days passed and not a single outside bid was received. By that time, Adler had lost its financial backing and the town was once again on the hunt for interested developers.

Despite what Mayor Ron Forsman calls "an epidemic with housing issues," councillors made the difficult decision Tuesday evening to abandon the deal.

At least for now.

"This is still salvageable if the province will sell directly to the developer," economic development officer Rick Donaldson said.

This was a desirable choice for the town because the property is owned by the Assiniboine Regional Health Authority.

If the RHA were to sell the property to the town and the town sells it to a developer, the town would be hit twice with land transfer taxes in the ballpark of $132,000 plus legal fees. Town ownership could also be risky if the developer backed out of the project halfway through — it would leave the town to pick up demolition costs.

Right now, the province forks over around $20,000 a month to heat, maintain, insure and pay taxes on the aging property.

Donaldson has courted more than a dozen other developers since Adler Properties left the project.

FWS, a large developer with deep pockets and projects worldwide, expressed keen interest, but after a year of engineering studies, and drawing up architectural plans, FWS became disappointed in its return on investment and they too walked away, leaving their research and drawings available for other developers.

As of this week, three companies remain interested in the project but now it appears the province wants more.

"Because the province may have to provide some incentive money and because there were three developers that had stayed the tide, it was obvious to the province there was maybe some value in the property potential so to be fair to everyone maybe they should open it up to tender again," Donaldson said.

"Quite frankly, I said screw this. And council decided we’re not getting involved."

Now, the rusting, mould-ridden property loses its lustre everyday and the community is no closer to solving its very real housing crunch, Forsman said.

"The facility is deteriorating big time, the roof is leaking badly. Something needs to be done fairly soon or the only alternative left is to demolish it and haul it away," he said.

A lack of available land to be developed and the tight or non-existent vacancy rate for rental units means there is no quick fix for the housing crunch.

The Neepawa-based pork processing facility, HyLife Foods, can be thanked for the boost of immigration to the area, and with 250 additional foreign workers scheduled to arrive later this year, the push is on to find a solution, he said.

A 24-unit housing complex is currently under construction and it’s hoped the project will help free up affordable properties for the newcomers and eventually, their families.

"We certainly need some action. Bits and pieces are happening, but not enough and not quickly enough," Forsman said.