No interest

Council decides not to add Kate’s Rest as a project of community interest

Last week, County council decided to decline a request to grant Kate’s Rest Supportive Housing Community as a project of community interest.

Kate’s Rest is a supported-living community on Big Island in Prince Edward County that provides a home for 19 residents, many of whom manage various social and economic challenges. Funding for the community is gathered from a pool of residents’ pension, disability and social security benefits, though these funds provide barely enough to finance its operations. The project was seeking recognition as a project of community interest to attract donations to offset operational shortfalls and help fund capital improvements and potentially create new employment opportunities for residents.

In recent months, Kate’s Rest has received several visits from the fire and building departments, resulting in issued inspection orders from both the fire department and Electrical Safety Authority. Without any financial assistance and acknowledging the limited operational funds it receives, the costs to bring the property into compliance are beyond the property owners’ ability to pay.

Councillor Bill Roberts was not satisfied with staff’s recommendation to not grant Kate’s Rest as a project of community interest. “There are an awful lot of letters and an awful lot of support expressed for Kate’s Rest,” said Roberts, stating many of those letters came from high profile individuals and groups in the community including a former OPP officer, the founder of the Family Health Team, the Demorestville Women’s Institute and many others. “Kate’s Rest has sought the support of Service Canada, they have gone through federal programs such as the Homeless Partnering Strategy, the Reaching Home program, they have made that effort. They have gone to the local level to United Way as well as provincial sources and they are told there is no money available for that kind of community,” said Roberts.

Roberts also questioned how the criteria aren’t met, according to the report, for community interest. “I believe that providing shelter and affordable housing is our number one priority or pretty close to our number one priority and it is County-wide,” he said. “Not only does Kate’s Rest come with addressing affordable housing for people who have been marginalized and in many ways disregarded, but it comes with getting them jobs, apprenticeships and education, finishing high school and getting through Loyalist College. It provides them with the self-confidence and support and appreciation for the environment. It even gets them medical and dental attention and literally saves lives.”

Todd Davis, Director of Community Development and Strategic Initiatives told council that the project doesn’t fit the normal municipal criteria, using the Picton splash pad as an example. The splash pad was a project that came with an idea, formed a group, and the natural conclusion was the completion of construction and opening to public. “There isn’t a staff member that doesn’t recognize the work that is being done at Kate’s Rest, but the concern that we have is related to the ongoing operational interests,” said Davis. He explained that if the County started taking donations and issuing tax receipts, it would have to take on the responsibility of managing invoices and issuing payments.

Councillor Janice Maynard asked if the County would be legally responsible in any way if this became a project of community interest. Davis explained that everything must flow through the Canada Revenue Agency. “Absolutely we would be responsible for that project. If we are giving tax receipts for donations for a project, we run the risk of the CRA revoking that privilege, and would effectively have to take control of the project,” said Davis.

CAO Marcia Wallace added that it really boils down to the risk of that project failing and needing the municipality to step in. “It’s not that we would actively take over these projects, but if there is an issue, we are accountable for the money we collected and how that money gets disbursed properly, given our charitable status. We need to be careful how we use our charitable status, and the way the ask was formed, staff’s recommendation is that it creates a risk that we don’t recommend taking.”

Councillor Phil St. Jean asked if the best plan of action would be for Kate’s Rest to apply for a charitable number. Davis explained that now that Kate’s Rest is a registered not-for-profit, they could apply for the 2021 Community Grants Program, which would help them move towards a charitable status. “Our indications are from [Kate’s Rest] is that after achieveing the not-forprofit status, they are moving towards getting a charitable designation from CRA, and we support that activity. They can then issue tax receipts on their own for their own operation,” he said.

Councillor Roberts put forth an amending motion, asking council to approve Kate’s Rest to become a project of community interest for 12 months, or up until it can secure its own charitable status, whichever comes first, with a focus on capital improvements. He noted that the project won’t make it if the capital improvements are left to them to pay.

Wallace told council that it was ultimately its decision to make. “The recommendation was to not move forward. Staff are giving you their best advice to manage risk. But I think it is also council’s perogative to decide how much risk you can tolerate in the trade-off for what benefit you can achieve and for how long you would maintain that risk.”

Council declined to designate Kate’s Rest a project of community interest, but did decide to write a letter of support to be sent to the Prince Edward Lennox and Addington Social Services (PELASS).