Canmore council has given first reading to a bylaw that will enable it to guarantee the loan its housing corporation must take out to develop its next affordable housing project in the community.
Katherine Van Keimpema, manager of financial services for the town of Canmore, was in front of council at its April 4 meeting with the bylaw for consideration.
She explained that Canmore Community Housing Corporation has requested council guarantee a maximum of 35 per cent, or not more than $5.7 million, of the construction financing being taken out for the purpose of constructing perpetually affordable housing on land in the Lion’s Park/Larch area.
“This is for funding for an affordable housing project on the old daycare lands and I don’t need to remind you that affordable housing is council’s number one priority,” Van Keimpema said while introducing the bylaw.
The land under consideration for development is located at 11th Avenue and 17th Street and is the former location of the community daycare and preschool. It is also a site that has been historically used for outdoor recreation with an outdoor skating rink located there and referred to as Larch Park by some in the neighbourhood.
But the builder and lender for the project have not yet been chosen, Van Kiempema said; those decisions are expected to be made as the process of undertaking the loan bylaw unfolds.
There are requirements set out in the Municpal Government Act for when a municipality takes out a loan that legislate timelines and processes that must be followed. That means, said Van Keimpema, at least two-and-a-half months are needed to pass a debenture bylaw.
“Giving first reading now will start that financing process, so it will be more likely we have that complete when construction is ready to proceed,” she said.
In addition to requiring a bylaw to take out a loan, it must be advertised and there is a period of time available for the public to petition the loan. If no petition comes forward, there are also 30 days after third reading of the bylaw for it to be challenged at the Court of Queen’s Bench.
“If there is a procedural issue that someone in the public had a concern with, they could apply to the Court of Queen’s Bench for judicial review,” said Chief Administrative Officer Lisa de Soto.
The debenture, if successful, would also affect the Town of Canmore’s legislated debt limits. Currently, the municipality’s debt limit is $68.3 million (based on a percentage of the prior year’s total revenues). The Town of Canmore currently holds $28.3 million in debt and debt commitments – which is 38.2 per cent of the total debt limit.
By guaranteeing the loan for CCHC, Van Keimpema explained it would have to be added to the total debt the municipality currently holds as CCHC is owned entirely by the municipality. With a maximum of $5.7 million set out in the loan, that represents 11.5 per cent of the debt limit and, if executed, means the municipality has used 49.7 per cent of the debt it is able to take out without having to apply to the province to increase the limit.
The equity used for the loan is the land, which was sold to CCHC for $1.3 million and approved by council in March. Van Keimpema said total financing requirements for the project are not expected to exceed $16.3 million.
Second and third reading of the bylaw are expected on May 5 and if no applications are made to the Court of Queen’s Bench, it would be a valid bylaw by mid-June.
The selection of the construction firm is expected to be made before second and third reading goes forward.
