Battleford could be home to new seniors rentals

A shareholder group made up of primarily Battlefords investors plans to build a seniors' rental apartment project in Battleford. They are currently waiting on word from the Town of Battleford on a request for a five-year property tax exemption on the first phase of the $7 million project.

Battleford businessman Chris Odishaw attended Monday's council meeting to make the request on behalf of the group, saying they are hoping for a favourable response so they can start construction in the spring. The proposed two-acre site is in Battleford West, near the new Tim Hortons.

The project, said Odishaw, fills a need for rental property for seniors. It was one of the things identified as a need some years ago when he was still on town council, said the former mayor.

The plan is to build two 24-unit, three-storey buildings. The initial one would be built this spring, and the second one as needed.

To date, said Odishaw, most developers have been interested only in building and selling condos, because there's more money to be made in condos than in rentals. But, he said, not all seniors can afford condos as some of them are priced as high as $300,000. A rental property means seniors could pay a deposit on their apartment and pay a monthly rent, which would include all utilities and underground parking, rather than investing all or most of their assets into a condo and their cash in condo fees.

Odishaw described a scenario whereby a senior ready to downsize would sell their home, put up a $50,000 or $60,000 deposit on a new apartment, getting interest on that money to help to lower their rent, and a rental fee between $1,500 and $2,000. This scenario allows them to keep on deposit most of the funds from the sale of their house, making it cost effective for the renter. And there would be no condo fees, he pointed out.

Odishaw told council the site chosen will benefit from the attractive landscaping and walking trails of Battleford West and, of course, close proximity to Tim Hortons and other amenities to be built in the area. He also said each unit would have its own forced air furnace equipped with air conditioning, explaining many seniors find the slow response time of hot water heating frustrating.

The plan to build the complex has come together fairly quickly. Odishaw said, a couple of weeks ago town hall was contacted by Bridge Road Development Co., which has built seniors' housing throughout Manitoba and Saskatchewan. In many cases, the communities they contact have donated suitable land. But Battleford doesn't have any R4 serviced land ready, said Odishaw, so town hall referred them to Dean Kupchanko, the developer of Battleford West.

Kupchanko then contacted Odishaw, and now nine potential local developers have their names on the request that came to council, representing 90 per cent local ownership. In addition to Kupchanko and Odishaw, potential investors are Fred Mahon, Jeff Bachman, Trevor Scherman, Scott and Robin Campbell, Philip Levefre and Treverr Poole. The investors agreed they would want Bridge Road Developments to retain only a 10 per cent share of the project.

Odishaw said the local investors undoubtedly look to make money, but not as much as an outside developer would, since they live in the community as well.

Odishaw said he knew he was asking the town to stretch the normal 24-month tax incentive, saying it would make the project more viable since it takes the first few years to get it rented out. The exemption would apply only to the first building, he said.

Council will look at the request once they have information on how many tax dollars would be lost if they granted the request.

Since its inception in 2007, Bridge Road Developments has developed and constructed over 350 apartment homes in 22 communities across Manitoba and Saskatchewan.