Thompson city council has amended and passed a resolution that will allow the city to sell three land lots to Keewatin Housing Association Inc. (KHA) for a nominal charge, still being negotiated, that it had valued at $434,000.
Sharon McKay, president of KHA, wrote a letter to Mayor Tim Johnston and city council on Nov. 30 of last year, stating that KHA had been in discussions with Gary Ceppetelli, director of planning and community development for the City of Thompson, about parcels of city-owned land that could become new locations for KHA to develop up to 30 new, affordable rental housing units for aboriginal families.
The total project, which is expected to cost over $6.2 million, looks at using lots on Arctic Drive at Goldeye Crescent, Fox Bay and Arctic Drive and Wekusko Street.
In return for the City of Thompson offering the lots for sale to KHA for $1 each, which was originally proposed in McKay's letter, she says that Keewatin Housing would agree to certain conditions, which she details as including "renting all units at or below the median market rent for Thompson, as established annually by CMHC; renting only to individuals who do not have family income in excess of the upper limit second quintile family income established by Statistics Canada; and should Keewatin Housing discontinue providing affordable housing on a given property, then we shall pay to the city of Thompson fair market value of the land, as determined at the time of discontinuance of the provision of affordable housing."
The city's initial asking price for the properties was $6 per square foot because of infrastructure investments. But McKay proposed $1 per lot by discussing various points of interest. The final price is still being worked out.
First, the fact that the Manitoba Housing and Community Development Department (MHCDD) have already notionally allocated $5 million for the housing project. KHA will be contributing more than $1.2 million by way of mortgage financing.
"It would be appropriate for the City of Thompson to make a contribution-in-kind as a gesture of partnership with the broader community," McKay writes.
She also argues that, due to an exodus of people who cannot afford to live in Thompson leaving the community, the units would help because the project is aimed at families with children.
"Construction projects in Thompson face many challenges. Most of those challenges can be overcome - at a cost. Manitoba Housing is requesting that we build 30 units. And we all know that Thompson needs that number and more. However, our preliminary planning indicates that even with Keewatin Housing contributing over $1.2 million in financing, we will not be able to build as many as 30 units if we must pay the City's initial asking price for the properties," McKay goes on to say. "The approximate $434,000 that the city proposes charging for these three lots would buy several units that would house families for decades to come."
McKay also pointed out in the letter that the City of Thompson would earn property taxes on the units over time that, she says, will "somewhat compensate for an up-front contribution-in-kind."
Council members were anything but passive when it came to debating whether or not to sell the units for such a low price to KHA. Coun. Charlene Lafreniere, who has been a driving force behind Our Home Kikinaw - Thompson's version of Habitat for Humanity - says the city can't afford not to take KHA up on their offer.
"I personally think they're asking three dollars too much for the properties. You only have to ask a business owner why they can't have staffing. They need all levels of income. We need people that can make minimum wage and can afford to live in Thompson you can't have no housing for low income people and expect them to work low income jobs," she explains. "Talk to one of the families that have lived in our community their whole life and got displaced and had nowhere to live because there was nowhere they could afford to live in our community."
Lafreniere also pointed out that the city needs to "put our money where our mouth is" and "walk the talk" and that there are no grants out there from any level of government that require zero moneys from the city as well.
Coun. Brian Wilson echoed Lafreniere's sentiments that the city needs to take this opportunity to show they are serious about creating affordable housing in Thompson.
"I think it's really important we show where we are on this. We've got to move on it if we believe in it, and not just say we believe in it and not move on it."
Although Coun. Stella Locker says she believes housing for First Nations people is "much overdue" in Thompson, she claims the city is not getting its fair share of grant money compared to other communities.
"I feel that the taxpayers of Thompson should not be the ones that are supporting government housing - housing that government - federal and provincial - are responsible for," she said. "What's happening is we're charging less and then we're going to the taxpayers for more taxes what we as a council are doing is spend and tax."
Coun. Oswald Sawh, who had joined the meeting electronically via a speakerphone system, stated that those sitting around council chamber could not justify criticizing the federal and provincial governments for a lack of involvement in housing and then not look at working with KHA on this issue. At the same time, he points out that he does not necessarily support the selling of the lots for $1 dollar each.
"I believe that the City of Thompson needs to work with KHA in the province to make sure that's what being put on the table right now does not slip through our fingers," he stresses.
After much debate, and amendments made to the resolution put forward, councillors Sawh, Erin Stewart, Wilson, Lafreniere and Johnston voted to pass a resolution that would see the city approve the land sale parameters that identity pricing for targeted housing.
Voting against the resolution were councillors Judy Kolada and Locker. Deputy mayor Harold Smith stepped out of the room during the vote due to what he claimed was a conflict of interest, since he works as executive director of the recently established Northern Housing Operations (NHO) branch for Manitoba Housing and Renewal Corporation.
Amendments to the resolution include, under the city of Thompson land sale parameters residential targeted housing, that there be recognition of the city of Thompson's in-kind contribution of the value of the land; that there be city membership on the KHA board; and that both parties enter into a development agreement.
