Ugly questions

Good arguments on both sides. Neighbours worry, understandably, about the impact of a high-density, low-cost housing development displacing the expanse of greenspace that once served as Queen Elizabeth Elementary School’s playground. Others welcomed, understandably, the prospect of homes and apartments that might be affordable for their children, their parents, and perhaps themselves. Sitting quietly in the corner was the crass and homely issue of: How much will it cost? And who will pay?

Naturally, the folks living nearby have views. They feel— unanimously—to have been left out of the decision-making. They contend there has been insufficient dialogue between the County and the neighbours to secure the neighbourhood buy-in, which might have put this proposal on a firm footing. On the other hand, this municipality has dithered for decades as housing prices soared. Most are now out of reach of many families. Shire Hall is more than 10 years too late in discovering this crisis and figuring out how to respond.

In a rush to fix past mistakes, Council risks making expensive new ones. It risks entanglements that will endure for decades.

Council was presented with a big, messy outline of a partnership deal on Monday night—notable for some large, empty blank pages. In fairness, it was their own fault. They asked for this. Last year, Council stumbled into purchasing the former school property without a coherent plan—but with big ambitions.

Affordable and market rental housing. A community hub of social service providers. It wanted to do all this without a big cash outlay. It sought, therefore, to attract potential developers to deliver the things the municipality could not.

The partnership deal presented on Monday aims to achieve this broad ambition. But it comes with an astonishing amount of unpriced risk and liability upon the municipality and future councils. Some details will follow before the deal closes. But due diligence requires curiosity. And perseverance.

Specifically, the County is agreeing to sell the property to the developer for $1.5 million. The developer will build, in phase one, 125 residential rental units and a community hub facility comprising about 22,000 square feet, including a kitchen and shared indoor amenity space.

Had the deal concluded there, the County might have lost a few hundred thousand dollars on the transaction, but it would have gotten the promise of new homes and a facility that could benefit several community agencies and, in turn, the clients they serve. It would, for most folks, have been a satisfactory outcome.

But the deal didn’t end there. Among a handful of obligations Shire Hall has agreed to take on in this arrangement, it has committed to waiving property taxes for the affordable rental units for two decades. It is not the first time it has done so. It is, however, the County’s biggest, most expansive foray into subsidizing affordable housing.

According to Adam Goheen, Director of Housing, it is impossible to estimate the unrealized tax revenue of this arrangement.

But the entanglement doesn’t end there. The County has agreed to take on responsibility as head tenant for the community hub facility. It has agreed to take on the job of finding and managing tenants for this facility.

A few worries here. First, there are no terms presented in the report. We don’t know how much the municipality will pay or for how long. We only know that the County will be on the hook to pay rent to the developer. Forever?

Without knowing the cost, how does Council—or potential tenants evaluate the feasibility of the facility? Perhaps other municipal buildings will become more suitable/affordable for their purpose. Or does the County intend to subsidize rental rates for its tenants? If so, what does that look like? How much will this cost? Such questions need answers before Council commits to effectively acquiring another property.

Perhaps the trade-offs will prove worthwhile and manageable. There is still time to ask questions and get answers. It’s just not clear there is enough curiosity and perseverance around the council table to do so.

But no worry, Council’s motives are pure, its ambitions noble—cost is but a trifle

rick@wellingtontimes.ca