The city of St. Albert is looking to transfer land in its downtown area for the construction and operation of an affordable housing unit, council heard Dec. 6.
Council passed a motion directing St. Albert’s chief administrative officer to reach an agreement with Homeland Housing for the sale of land at 22 St. Thomas Street, a 1.3-acre parcel of land in the city’s downtown core.
In early 2020, St. Albert issued an expression of interest to explore options for the downtown site. Homeland Housing’s original proposal included 172 units within five- and 12-storey buildings, with 75 per cent of the units rented at 20 per cent below market rates.
The proposal for the land will need to be revised — including a reduction in building height and the number of units — to better align with St. Albert’s land-use requirements, Lory Scott, the city’s affordable housing liaison, said in a backgrounder. These details will be finalized as the project progresses.
During the Dec. 6 council meeting, Scott said the mixed residential and commercial development will contribute to revitalization of St. Albert’s downtown core. Scott noted less than one per cent of St. Albert’s population currently resides in the city’s downtown area.
“A vibrant downtown has been the objective of downtown planning since the early 1990s,” Scott said.
Originally planned as office space for city employees, 22 St. Thomas Street went up for sale on the open market in 2019. After no developers expressed interest in purchasing the land at the list price of $3.8 million, then-councillor Ray Watkins introduced a motion to either donate or offer a long-term lease for the land.
Now, the city is looking to transfer to Homeland Housing for a reduced cost. Scott said St. Albert could receive around $290,000 annually in property taxes once the proposed development is completed.
When asked by Coun. Shelley Biermanski why administration is proposing a land transfer as opposed to a lease, Scott said there are more complications with obtaining financing for a land lease.
“Financial institutions want reassurance there’s collateral for their significant investment,” Scott said.
Scott also noted if the city leased the land long-term — for about 40 years — Homeland Housing might not get to retain ownership of the property, potentially losing their original investment.
“If they need to get some refinancing, that may not give them enough incentive to continue maintaining the property at the end of the lease term,” Scott said.
While Homeland Housing’s other complexes in St. Albert are primarily for seniors, Raymond Cormie, CEO of Homeland Housing, said the proposed building would be accessible to all demographics.
Coun. Natalie Joly — who currently sits on the board of Homeland Housing — said, while opening discussion on the Dec. 6 motion, that affordable housing is a product that is valued in St. Albert.
“We saw that through the election, we see that through our public engagement, and through our budget consultation sessions,” Joly said. “I’m please we are moving forward with developing quite a few affordable units downtown.”
“Having a development like this in our downtown will only improve our downtown businesses,” Coun. Ken MacKay said.
Coun. Sheena Hughes said she felt confident in the relationship with Homeland Housing due to St. Albert’s pre-existing long-term partnership with the organization.
“I’m excited to see what comes forward,” Hughes said.
The vote passed unanimously.
City administration has a deadline to bring the sale agreement back to council no later than June 30, 2022.
