The City of Salmon Arm can check off another requirement for BC Housing to establish a community shelter.
During its afternoon meeting Tuesday, Oct. 10, municipal council voted in support of a lease agreement with the Provincial Rental Housing Corporation (administered by BC Housing), for construction and operation of a shelter on city-owned properties at 341 and 361 Fraser Ave. NE.
City planning and community services director Gary Buxton summarized a number of bulleted points that will be incorporated in a final lease document to be prepared by staff for execution by the mayor and corporate officer. They include a required nominal payment of $1 per year for the lease’s 10-year duration.
“BC Housing has a fixed budget for the project, and any amounts not expended on rent can be reinvested in site improvements,” reads one of the points. The lessee will also be required to pay any property taxes, “which are likely to be assessed once the lease is assigned to the operator.” Buxton noted the property will likely be assessed as supportive housing, and “that generally yields are very low assessment value.”
The lease allows BC Housing to apply for a permissive tax exemption (for council’s approval). It also allows for 180 days following “substantial completion of the building” for landscaping and other improvements to be completed.
The lease requires BC Housing (or the operator) to maintain the building and the lease area, and the provision of a replacement of the building if lost to fire or other damage.
BC Housing may request a five-year lease extension, and must notify the city of the intent to extend at least 30 days prior to the end of the 10-year period. Buxton said he suspected the city would know far sooner than that.
During the extension period, the lease may be terminated with 180 days’ notice from the city.
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“We’ll know long before 180 days whether… we’ll need the land back,” said Buxton.
Asked about the permissive tax exemption, Buxton said to date there’s been no discussion about it with BC Housing. Furthermore, city chief financial officer Chelsea Van de Cappelle said if the property is assessed at Class 3 Supportive Housing, the value associated with that “is very nominal,” and that “there wouldn’t be any tax implications, at least no significant ones, but we won’t know that until we have those assessments in.”
Coun. Debbie Cannon noted there was no language guaranteeing money saved from the nominal annual payments would go towards making the shelter “look good.”
“Looking at it right now, there’s a lot there but I think the people that live in that neighbourhood… we owe it to those residents that it looks good, and I just wonder how we can make sure that’s going to happen?” said Cannon.
Buxton said there’s nothing in the lease to compel this. Offsite improvements like sidewalks and street lighting are required under the servicing bylaw. Buxton said the city needs to work with BC Housing on landscaping.
Coun. Sylvia Lindgren agreed the shelter needs to look good, and that BC Housing, through the template it provided for the lease, said it will do the landscaping within six months.
“They put that in there… so I feel pretty confident that they’re going to add grass and whatever else is standard,” said Lindgren. “I have seen the outside of the buildings they’ve done in Vernon, and while they are modulars… the landscaping is complete. So I don’t have any doubt they’re going to do what they said they’re going to do.”
Coun. Kevin Flynn and Mayor Alan Harrison were also confident BC Housing would deal with the concerns around the shelter’s appearance.
“One of the things we did talk about was the natural buffering and our desire to have that left and, as you can see, the natural buffering, the willow and the trees along that east side are still in place there,” commented Harrison. “So that’s a really good start… and I’m confident the landscaping will be completed as well.”
In an email to the Observer, BC Housing said it anticipates the shelter will be open for occupancy by mid-November.
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