ST. PAUL – The MD of St. Paul Foundation’s Lodge Project has gained momentum as the Foundation received an $8 million conditional approval from the Canada Mortgage and Housing Corporation (CMHC).
The $50 million project, which has been in the works for over two years, would help address housing issues in the community. It involves replacing and expanding Sunnyside Manor with a new 90-unit residential building, lodge services, and the demolition of older cottages on the property.
Derek Weiss, consultant for the MD Foundation, told Town of St. Paul council on Nov. 12, that the $8 million conditional approval from CMHC will mean a strong endorsement of the project’s viability, encouraging other stakeholders – such as the Government of Alberta – to help with funding the whole $50 million project.
Often, to be approved by the CMHC, a project needs to demonstrate it can cover its operational costs and debt payments from its own revenue sources, like rental income, without needing excessive municipal or provincial support.
A strong demand for new housing units is also required for CMHC approval. Meeting these criteria involves conducting occupancy studies, as well as showing waitlists to ensure the proposed number of units will generate the expected revenue.
Receiving conditional approval means the MD of St. Paul Foundation has met these criteria.
“It is an enormous win that we have that approval with very large grant dollars attached to it. Now it's all subject to meeting conditions too. So, we’re now looking for the next level,” said Weiss.
Some conditions for the conditional approval involve the CMHC wanting assurance that other funding sources, like the contributions from municipalities and provincial grants, are secured.
The financing is contingent on the project securing this additional support to cover the entire $50 million cost, so the $8 million from CMHC does not stand alone.
Simply put, this means additional support is needed.
The project’s funding strategy includes contributions from local municipalities – the Town of St. Paul, County of St. Paul, and Town of Elk Point – who are asked to commit $4 million upfront.
The Town of St. Paul council has approved its portion of approximately $987,000.
The Foundation will be meeting with the County of St. Paul and Town of Elk Point to secure their commitments. However, the project’s progress also hinges on final funding decisions from the Government of Alberta.
If all the pieces align, the Lodge Project would then enter the construction phase.
Town of St. Paul Mayor Maureen Miller thanked everyone involved in bringing the project to this point.
“This has been a long, long process. So, I just want to make that awareness, even though the motions happen here, there’s a lot of work being done in the background,” she said.