Bought the school

Council to complete purchase of Queen Elizabeth School

The facts are as follows: Last year, the County agreed to buy Queen Elizabeth School in Picton. It would pay $1.375 million, conditional upon the municipality receiving grant funding from senior levels of government. That funding failed to come through. The offer to purchase the school expires on June 10.

But rather than let the offer expire, council agreed last week, as a committee, to purchase the former school anyway— with County taxpayer money.

“How could we not?” implored Mayor Steve Ferguson. “We have a housing crisis. This will help. And provide a centralized hub for social services.”

According to Shire Hall staff, it is not yet clear whether it can do any of these things. Yet, they recommended that Council complete the purchase of the former school— spending $1.375 million, presumably from idle cash—to buy time to investigate potential partnerships.

“Our application was not successful,” explained housing director Adam Goheen about how a federal funding application that had been described as strong, had fallen through. “We are not aware of any other current funding program. Nor have we budgeted for this purchase. We have no reserves. We cannot draw from a well that is dry. A partnership with a private party will be required.”

Goheen figures there will be interest in such a partnership in which private interests acquire all or part of the former school site at a below-market price. In return, the municipality will seek to retain a measure of control over what happens there—including the possibility of hiving off a chunk of the schoolyard for the Affordable Housing Corporation.

The County’s manager, Marcia Wallace, sought to remove any ambiguity, or wishful thinking, about the decision before Council.

“In no circumstance can we afford this property,” said CAO Wallace. “We need to sell it to a developer. If we can’t find a willing partner who will do what we want, we will sell it on the open market.”

That was good enough for many councillors. South Marysburgh representative John Hirsch and Picton councillor Kate MacNaughton praised the ‘creative thinking”.

“It is too good an opportunity to pass up,” said MacNaughton.

Fellow Picton councillor Phil St-Jean challenged any of his colleagues who weren’t on board with using County money to buy the school, saying that it was up to them to come up with a better plan.

“I am not seeing any other options,” said St-Jean.

But Hallowell councillor Phil Prinzen didn’t appreciate being put in a corner by the mayor or his council colleagues.

“We have a whole lot of balls in the air, and in fairness, the lack of funding likely threw those balls in the air,” said Prinzen. “But I would like to see where some of them land long before I support a $1.375 million purchase on taxpayers’ backs.”

Many councillors are banking on a big arbitrage win to insulate them from the risk of buying another property. Many, including the housing director, believe the 4.76 acres is worth considerably more today than the price the County has agreed to pay.

St-Jean is sure of it.

It will be darn easy to double our money if we just flip it,” said the Picton councillor, “but that isn’t what we are suggesting we do here. If we do carve off a piece of this land for the Affordable Housing Corporation, the entire purchase price will be supported by the sale of the building,” according to his calculation.

Councillor Prinzen didn’t like the smell of any of it.

“I understand the municipality can buy it and flip it, but I didn’t think the municipality was a real estate tycoon,” said Prinzen. “I don’t think that is our role. Nor do I think we should be making money off of other people.”

Hillier councillor Chris Braney worries about a pattern of reaching into County taxpayers’ pockets to fund what senior levels of governments won’t.

“I hate to sound like the strict parent,” said Braney, “but I am very concerned about where the money is coming from. I am not confident how we intend to do it.”

Yet others figure this is Council’s last chance to shape what happens on this key bit of property.

Athol councillor Sam Branderhorst leaned on her upbringing that taught her that buying land is always a smart move, that if you “can’t figure out how to cash flow it,” you can always sell it later, but you can’t go back in time.

Councillor Bill Roberts urged his colleagues to tamp down the fed bashing—that this municipality will need to go back to both government levels for future support.

A CLOCK IS TICKING
Should Council ratify the completion of the offer to purchase at its meeting next week, Goheen and his team will begin the heavy lifting of a thorough building and an environmental assessment. Such information will be included in expression-ofinterest (EOI) documents that will be prepared to attract partnership interest.

If a deal can’t be made to offload this property to a private developer by the end of the year, the purchase price will be added to the tax levy, according to County finance director Amanda Carter. Despite the caution, Carter was bullish on the acquisition.

“It is being funded outside of our budget process, which makes everyone uncomfortable,” said Carter, “but there are times when business opportunities arise outside of the budget process, and we need to be able to pivot. This is one of those situations.”

WHAT ABOUT THE NEIGHBOURS?
Late in the discussion, Councillor MacNaughton mentioned that the neighbours of the former school have views about what will happen with the site.

“The community in that area would feel more comfortable if the municipality controlled that real estate,” said MacNaughton. “It would help them understand their needs are part of the picture—in this well-established part of Picton.”

St-Jean concurred.

“Neighbours are not in favour of more big developers moving in,” said St-Jean. “They want to see a community-led initiative that controls what goes on there.”

Reconciling Shire Hall’s intention to be in and out of this property in seven months with the ambition of some councillors that the municipality control what happens next will be an intriguing balance act for Goheen and his team. Many eyes will be upon them.

In a recorded vote, Mayor Ferguson, and councillors MacNaughton, St-Jean, Maynard, Hirsch, Grosso, Roberts, Nieman and Branderhorst voted in favour of using County funds to purchase the former school. Councillors Prinzen, Braney, Harrison, Engelsdorfer and Pennell voted against.