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Resident displacement a concern for council
Aboutique condominium and townhouse project was before the Planning Committee last Wednesday evening. The proposed development is located on Inkerman Avenue and Nery Avenue in Picton, and would feature 560 units—462 three-storey stacked back to back townhouses and 98 three-storey street townhouses with a network of private laneways. The street townhouses feature their own integral parking garages and private driveways. The back-to-back townhouses would have parking spaces allocated in a nearby parking area. Phase one of the development would include 66 units, with 50-70 units thereafter in each phase, with all units to be either two- or three-bedroom, and a full buildout of nine years. The sub-division is also to include a landscaped village greenspace as a focal point, a network of pedestrian walkways and semi-private open spaces as well as a perimeter multi-use path, as well as connections to Macaulay Mountain Conservation Area trail network.
The main concern of councillors was that of displacing current residents. Fred Heller, developer and President of FLC Group told the committee that the current residents would be given first opportunity to purchase a new unit. “The existing tenants will be offered accommodation in the new development either for purchase or for rent. Other than that, they will be given all the correct notices that are needed under the Ontario Landlord and Tenant Act,” he said. Heller also explained that a downpayment drawdown program will be offered to those who qualify. “The program is similar to programs offered in the GTA. It’s downpayment assistance to help middle- and low-income families,” explained Heller, who went on to say the range of downpayment assistance is usually 15 to 25 per cent of the purchase price and is arranged and funded by developer. Roughly 5 per cent of the total units will qualify for funding.
Councillor Phil St-Jean was worried about displacing residents who might have nowhere else to go.
“I’m going to admit that I have some great difficulty with this entire proposal. Do you recognize that this can be perceived as gentrification of an existing low- to middle-income community?” asked St-Jean. “I recognize that this community needs some TLC. It needs to be developed. I’m excited to know that someone is willing to do that. But I do have great concern that a lot of the individuals up there will have no place to go.” Kelly Graham of SvN – Architects + Planners explained that although she understands the concern, the developer is taking all of the proper steps. “Gentrification is something that we talk about in my community in Toronto as well. What my client has proposed to do, which is give people fair notice and provide people opportunities within the new development for those who are eligible, is more than fair,” said Graham, who also noted that by the development being phased, it gives ample time for new accommodation to be found.
Councillor Jamie Forrester asked what the pricepoint will be. Heller explained that the median price of the first phase would be $380,000, with two-bedroom, 787 square-foot units starting at $275,000. The monthly common fees would be under 30 cents per square foot.
Councillor St-Jean was also concerned about the lack of commercial services available near the proposed development. “My personal opinion being a lifelong resident who also spent a considerable amount of time in that particular part of the community, I don’t see a future there for a whole lot of commercial development. There should be a commercial component in complete neighbourhood,” he said. Graham explained that the developer would be happy to discuss the potential. “That was something that was considered, and a recent market study was conducted that shows that there was not likely to be a market for commercial uses. That’s why we proceeded with no commercial uses. But we would be happy to take it back and have discussions,” she said.
Councillor Janice Maynard wanted to make sure that the community actually benefited from the development. “If we are going to have a development that is going to radically change the cultural heritage and displace people, we want to make sure that the benefits the community receives outweigh the negative consequences, and that may include a cash component, and not just a few feet of grass or another trail,” said Maynard.
Staff received the report, and it will be brought forward to a future Planning Committee Meeting for consideration after receiving public input.
On the website version of this paper there are 3 stories and 3 opinion pieces that all deal with affordability of housing in one form or another. In the end, Council has asked their staff to come up with a definition of affordability. That definition exists: CMHC has a definition of affordability (https://www.cmhc-schl.gc.ca/en/developing-and-renovating/develop-new-affordable-housing/programs-and-information/about-affordable-housing-in-canada)
The County discussed affordability in 2012 as seen in this report: https://www.thecounty.ca/wp-content/uploads/2020/09/Housing.pdf
The Ministry of Housing discussed affordability as well: https://www.auditor.on.ca/en/content/annualreports/arreports/en17/v1_314en17.pdf
Even TVO weighed in: https://www.tvo.org/article/home-truths-part-1-why-affordable-housing-isnt-just-a-toronto-issue
Basically housing is affordable if you do not spend over 30% of you gross income on your housing costs. Clearly affordable is not an absolute number. If you earn more you can afford more. If one spent some time to look at census data and other sources of income information, one would find that the median household income is under $70,000.00. Median means that half of the people will fall below the median and half over the median. At the median affordable is $1750 a month for housing, tax and insurance. This will support a mortgage of about $300,000.00. Assuming a $20,000.00 down payment this is a $320,000.00 home. A 40 hour week job paying minimum wage will provide a gross income of just under $30,000.00. Using the same calculations, you maximum home price is about $111,000.00 with a mortgage of about $91,000.00.