When Sandy Clark’s mom moved into a retirement home in St. Albert, she thought she had a pretty good deal.
She put up just over $450,000 and entered a life lease agreement with Christenson Developments, which owns the Citadel Mews East retirement facility just north of Sturgeon Hospital in St. Albert (the same complex that suffered a fire in 2021).
According to Christenson Development’s own website, the life lease “permits residents to use the equity in their current older home, or in other investments, to reduce the net rent portion of their monthly living costs. Your net rent is reduced at 6 to 8% per year on the capital invested; a savings of roughly $2,000 per month before income tax, considerably more after tax.”
The result was the 88-year-old would only have to pay $1,100 per month which is substantially less than what she would have to pay otherwise to live there.
She moved out of Citadel Mews East in August 2022. According to Christenson’s website, “Under Christenson's industry leading Life Lease and Optional Loan Agreements, Residents can stay for life, or move with 90 days notice to vacate. The funds invested in the Life Lease Loan are returned to the Resident, or to their estate, less an 8% Release Fee. This fee covers marketing and minor renovation costs. It's a one-time charge to you, regardless of how long you live there.”
Over a year has passed, and Clark’s mother has yet to receive her money back.
The Gazette has talked to numerous residents and will have their stories next week along with a response from Christenson Developments.
Watch stalbertgazette.com for further developments on this story.
