An agreement between the City of Thompson and Winn-Can Properties Ltd. to build about 110 new homes in the Burntwood South subdivision by the end of 2011 may be renegotiated as not a single unit of housing has been built since the deal was struck with the developer on June 23, 2008.
Winn-Can Properties Ltd. is comprised of a Winnipeg group of investors, working in conjunction with Schickedanz West, a division of Calgary-based Schickedanz Bros. Construction, to build 96 multi-family units, priced around $200,000 per unit, as fourplexes in the MacMaster Bay area of the Burntwood South subdivision.
In each of 2009, 2010 and 2011, Winn-Can was to develop and offer for sale no fewer than 30 serviced lots, houses or townhouses under the deal.
The development was to proceed in three phases starting with the single family detached homes on 19 lots on the portion of Smith Crescent west of Campbell Drive. In Phase 2, Winn-Can was to receive an option to develop Hambly Crescent and Smith Crescent west of Campbell Drive in a configuration to be determined by the City of Thompson.
The 96 multi-family units were to be built in the second phase, although there was some discussion last year between the city and Winn-Can about having them constructed before the single family detached homes. The water, sewer and other infrastructure to build either phase are not in place.
Based on market demand, the agreement was originally touted as leading to the development possibly of more than 300 homes in the subdivision by Winn-Can.
The necessary land has been rezoned and the title transferred. Winn Can was to construct roads and services throughout Smith Crescent, MacMaster Bay, and Hambly Crescent, and also develop the remaining portion of Campbell Drive.
The deal, which saw Winn-Can as developer-of-last resort when no one else expressed interest in undertaking the project, turned sour when the economy tanked last fall, leading to a last-in, first-out scenario.
The Winn Can project represented the major first shift since the 1960s in the city's role in the development of residential property. Previously, the city was its own developer, essentially taking care of every aspect and then letting a builder construct the buildings.
In a good year, the city at best recovered its development costs under the old system. At times, it lost money. Now, the market is expected to drive the pace and style of development.
The market has accomplished at least for the time being what angry current single-family detached homeowners in the Burntwood South subdivision in the south-westerly corner of the city, particularly residents of Smith Crescent, Campbell Drive and Despins Road, were unable to do for themselves last year.
While they turned out in force last Aug. 11 at a public meeting under the Manitoba Planning Act to oppose council amending its zoning bylaw for the area from R1 Single Family Dwelling Zone - which includes the classic detached bungalow - to R3 Multiple Family Dwelling Zone, they lost the battle as the proposed project was consistent with the Thompson Planning District's development plan bylaw, which had recently been approved by Minister of Intergovernmental Affairs and Thompson NDP MLA Steve Ashton.The Winn-Can project was also consistent with provincial land-use policies, said Kate Cruickshank, the local community planner in the community planning services of the Manitoba Department of Intergovernmental Affairs here: "Land use plans should contain an appropriate mix of residential, commercial, institutional, recreational, public, resource-related use, and other uses. A reasonable balance of supply in relation to demand for such uses should be maintained on a regional basis."
The City of Thompson still hopes to salvage a renegotiated agreement and will seek concessions from Winn-Can for the delay, which means no construction is now likely to get under way until next summer at the earliest.
