B.C. Housing will pay Commonwealth Health $5.905 million - $164,000 per unit - for the construction of Elizabeth Fry Place on Sixth Avenue.
Under B.C. Housing's formula for social housing developments in the North, the typical cost per unit for an equivalent development would be $183,600.
"B.C. Housing had a fixed price per unit agreement with Commonwealth - our purchase price will not change. The cost risk is on the private developer," a B.C. Housing Ministry spokesperson wrote in an e-mail. "Due diligence was still a part of the construction process. B.C. Housing conducted two independent appraisals to confirm the value and an independent quantity survey was used to verify construction pricing."
Commonwealth privately tendered the construction work to Yellowridge Construction of Port Moody. A city building permit for the housing complex estimated the value at $4.88 million.
B.C. Housing, the federal government and City of Prince George contributed a total of $6.2 million toward the project. The $300,000 difference between the amount paid Commonwealth and the $6.2 million total budget is to cover legal costs, HST, administrative and other costs, the spokesperson said.
Commonwealth approached B.C. Housing with an unsolicited offer to build the 36-unit seniors housing complex.
"The local Elizabeth Fry Society identified this site for its development potential in 2009. The City of Prince George then approached B.C. Housing to discuss provincial involvement in developing the site," the spokesperson said. "The developer then approached B.C. Housing and made an offer to build housing. The circumstances are not unusual. B.C. Housing regularly receives, and in fact encourages, nonprofit societies and developers to bring forward proposals based on our Community Partnership Initiative."
The unique infrastructure already in place at the site contributed to B.C. Housing approving the project, the spokesperson wrote.
Commonwealth president Dan McLaren said he cannot comment on the deal with B.C. Housing under a confidentially clause in the agreement.
However, McLaren said, Commonwealth still plans to build a six-storey housing unit on the remaining portion of the site. The proposed development would include up to 60 one and two-bedroom condominiums with retail space on the ground floor.
"We can't do it now, of course, because they are still using [the location] as a staging area," McLaren said.
McLaren said Commonwealth is currently in the planning stage of development, and is considering a focus on seniors housing or student housing for the facility.
A covenant on the property, which Commonwealth purchased from Treasure Cove Casino operator John Major, required the construction of six townhouses.
That covenant was modified to allow a six-storey building to be built in place of the townhouses - and extended the deadline for the construction to take place, McLaren said.
"Our vision is to get northern B.C.'s first six-storey wood building built," he said.
City ownership
Once Elizabeth Fry Place is completed, B.C. Housing will buy it from Commonwealth and transfer ownership to the City of Prince George. The city will then lease the facility to the Prince George and Region Elizabeth Fry Society for 60 years.
The city is contributing $910,000 toward the total cost of the project, on the condition that ownership of the building be transferred to the city, Mayor Dan Rogers said.
"We will convey the $910,000 to B.C. Housing once the project is complete and the title for the building and equipment is transferred to the city," Rogers said. "Our agreement is with B.C. Housing."
The city's contribution to the project will come from the city's real estate reserve fund, Rogers said.
"It aligned with the city's plan for downtown," Rogers said. "[And] it already had the parking down below the health centre."
Local ideal: operator
Prince George and District Elizabeth Fry Housing Society executive director Kathi Heim said the society has had its eye on the site since 2007.
"I started in 2007 to start feeling out where suitable sites might be," Heim said. "Then the funding for seniors' housing was announced probably about two years ago. We had enough legwork done to be in the right place at the right time."
Although the society initially selected the site now being developed as a new RCMP detachment, she said, the current location of Elizabeth Fry Place was also considered desirable.
It's downtown, close to services, the medical centre and a bus route, she said.
"The fact it's close to our main office worked out nicely as well," Heim said. "We're just thrilled. It's definitely going to meet our needs."
