Business case for 5-unit seniors apartment building viable says consultant

Craig Bakay | Jun 19, 2019

Based on preliminary cost estimates, anticipated revenues and assumed contributions, a five-unit seniors apartment building (four one-bedroom, one two-bedroom plus amenity space) would be viable, Ken Foulds of Re-Fact Consulting told North Frontenac Council at its regular meeting last Friday in Plevna.

Under the suggested model, the total costs would be around $1.4 million, of which about $330,000 would come from Frontenac County, about $300,000 from the Province’s Affordable Housing Program and about $450,000 from the township, some of which presumably could be in the form of development fees.

“We looked at six municipally owned sites, three in Cloyne and three in Plevna and got it down to one in Cloyne and one in Plevna,” he said. “There’s certainly a viable business case.

He said rent on a one-bedroom would be around $660 per month, which he said was 80 per cent of the going market rate, based on landlord surveys.

“My biggest concern is fining seniors to fill them,” said Coun. John Inglis. “I know Central (Frontenac Township) has had some problems.

“Is there a case for say two units?”

“There would be less borrowing costs but there would still be upfront costs,” Foulds said. “You’re looking at $200/square foot construction costs.”

“When the survey was done, the highest number of respondents came from Cloyne,” said Coun. Vernon Hermer. “How would the rest of Wards 2 and 3 feel about living in Cloyne?”

“I find this quite doable but the big question is still going to be 5, 4, 3 units,” said Inglis.

Mayor Ron Higgins suggested Council digest the information before bringing it back for discussion.

“Do as much as you can when you can,” said Foulds. “It takes a lot to get a project built and if you build three and want to add on, you’ll have to go through the process again.”

“Another survey?” said Hermer.

“The survey suggested people wanted in-home services,” said Inglis. “The County said ‘no’ so it’s time to give up that fight and time to get the $300,000.”

Council also heard a presentation from JP Melville Non-profit Business & Project Management on the Abbeyfield Canada Seniors Housing Model.

Storage unit

Council approved a request from the Cloyne and District Historical Society to build storage shed at the Pioneer Museum.

“I can’t see any reason not to, we own the land,” said Coun. John Inglis. “Thanks for asking.”

Efficiency study

Council approved an “efficiency study” at the request of Mayor Ron Higgins.

“I don’t see that we’re going to see a lot of savings,” said Coun. John Inglis. “I don’t object to spending $5,000 on it but I don’t have very high expectations.”

“It’s something we’re going to have to document for the Province at some point,” said Higgins.

Planned outage

A planned power outage happened at the meeting right on schedule at 11:30 a.m..

Council continued on, something that wasn’t surprising given the extensive amount of experience they’ve had working in the dark.