Fort Macleod council last week accepted a proposal from VB Block Commercial Inc. for an affordable housing project on Ninth Street.
As part of the agreement the Town of Fort Macleod will donate five lots to the project.
The town’s request for proposals stated a minimum of 10 per cent of the affordable housing units are required to rent for 60 per cent of the market rate.
A maximum of 30 per cent of the units can rent for market and near-market rates.
Other affordable units can rent for 60-90 per cent of market rates.
Twenty per cent of units should be barrier free to ensure access for people with disabilities.
The Canada Mortgage and Housing Corporation indicates market monthly rental rates are as follows: bachelor, $880; one bedroom, $1,020; two bedroom, $1,129; and three bedroom, $1,355.
Chief administrative officer Anthony Burdett brought the proposal to the agenda of council’s Sept. 25 meeting at the G.R. Davis Administration Building.
“This next item is quite a historical item — a monumental item,” Burdett said.
In 2017 council voted to designate five lots on Ninth Street for an affordable housing project that did not come to fruition.
Council in early September directed administration to issue a request for affordable housing proposals for the lots.
The request for proposal process was quick in order to allow applicants to apply for government funding by the Oct. 15 deadline.
“There was a window that was quick but reasonable,” Burdett said.
The Town of Fort Macleod received one response to its request for proposals, which was determined to be acceptable.
Council then met with VB Block Commercial Inc. during a closed session at a committee of the whole meeting.
Burdett said the applicant has worked with the Fort Macleod Affordable Housing Committee and government officials to ensure the project is successful.
“It’s nice to see that they’re not just going it alone, but are using the resources that are available,” Burdett said.
Burdett said the meeting with VB Block Commercial Inc. was productive and provided council and administration with the assurance they can manage an affordable housing project.
“They’ve demonstrated their commitment to the community as they are committed builders and owners of property and businesses in Fort Macleod,” Burdett said.
Coun. Mackenzie Hengerer agreed.
“They have been in our community for a very long time and they are doing this because they see a need,” Hengerer said. “There is a huge need and it is only going to increase over the next few years.”
As part of the commitment to Fort Macleod, VB Block Commercial Inc. promised to be transparent and open when it comes to communicating with neighbours and other residents.
Burdett told council having title of the land gives the company a better chance of receiving the government funding.
Coun. Marco Van Huigenbos asked about any risk to the Town of Fort Macleod, in the event government funding does not come through for the project.
Burdett said in the town’s standard development agreement there is a clause that if land is not developed, the town can reclaim ownership.
“That’s something we have pushed for as we don’t want people buying land in our community and sitting on it, waiting for the price to go up and then selling it again,” Burdett said.
Burdett said the risk to the town in this case is that if the project did not go forward, there could be a costly legal battle.
The worst case scenario, Burdett speculated, is the Town of Fort Macleod would be out the cost of the land.
“I wouldn’t anticipate that is a potential issue with this group, because I think they are working collaboratively,” Burdett said.
Burdett said it is possible to develop an “out” agreeable to both parties.
“I think the potential benefit of this project outweighs the risk,” Burdett said.
Van Huigenbos stressed he has no issues with the group, but wants the town’s interests to be protected.
Hengerer asked about amenities for the area to support the high density of population.
Burdett said administration has been working with designers on developing a green space between Ninth and Eighth streets.
The green space would be developed in phases, eventually being comparable in size to Centennial Park.
“We recognize the (population) density that’s going to be happening there with the multi units,” Burdett said.
VB Block Commercial Inc. is not expected to hear whether its funding applications are acceptable until early next year, Burdett said.
