Submitted by Phil Cox on behalf of Planning & Development
We remain in a holding pattern on lease negotiations with the City. Our new key contact there has been talking with colleagues in the Calgary Real Estate and Development Services (REDS) to arrive on a lease calculation for Sunnyhill. Our consultant, Lee, is monitoring developments and keeping our City Councillor Druh Farrell appraised. At some point, it may make sense for Sunnyhill to send a letter to senior administration seeking to understand the hold-up. Now, with the Municipal election looming closer, new limits are to be imposed on communications and decision-making at City Hall that will last until the October vote.
The lease calculation is critical to the whole package. Without it we cannot know the financial viability of the project. It is the missing piece of information that, once in place, will allow us to see clearly our options for retrofitting the two and three-bedroom units and for replacing four of our one-bedroom units with a new build. We have been told that neither CMHC nor FCM will entertain a proposal until we have the lease arrangement worked out with the City.
At this week’s P&D session with our consultant, Lee, members discussed and approved a “work-around” idea. We agreed to calculate the highest lease rate that we could possibly pay the City to stay on the right side of the debt-to-service ratio limit for Sunnyhill. With this “placeholder” number, we are able to complete the pro-forma and other remaining details, proceed with member approval discussions and then be ready to make adjustments once a final lease rate is put forward by the City.
Watch this space for updates on this situation. There was talk of having our membership meeting and vote on the project before the end of June. This is now be postponed until later in the Summer.
In the meantime, you may wish to review the housing project package in its current state. Click here to view the slides that Lee presented in our April 15th General Meeting.
Over the last three years, we have learned that housing cooperatives are not as well understood in Calgary as they are in Canada’s larger cities where they are more prolific. As it happens, Sunnyhill is the only housing coop in Calgary sitting on leased land. This lack of understanding may be a factor contributing to our halting process with the City. By contrast, Vancouver has had a framework in place since 2017 to guide negotiations for end-of-lease situations. In that city there are over 200 sites where City land is on lease to coop or affordable housing projects. This is not to say that everything is rosy for housing coops dealing with Vancouver City Hall. There are issues there too. To catch a glimpse of how housing cooperatives are recognized and dealt with in the City of Vancouver, click here.