More cash has been approved to flow to the Building Hope project in Orillia.
Simcoe County council approved providing the project with a $2.5 million, interest-free line of credit and an additional forgivable loan of $226,000 at their meeting on Tuesday after a presentation from Building Hope representatives Glenn Wagner, board chair, and Linda Goodall, executive director.
These amounts are in addition to $510,000 in county funds that had been previously approved, and $2.7 million in construction financing for the supportive housing units.
This brings the total amount raised through local fundraising, provincial and federal grants, loans and lines of credit to $14 million - that is the estimated amount of the project cost.
Final project costs won’t be known until the tender process is complete, which is currently underway.
“It certainly is one of those projects that is worthy,” Orillia Mayor Steve Clarke told his county council colleagues. “We need all four levels of government to support it.”
There were four options on the table for county councillors to consider, the most ambitious being the original ask from Building Hope for a $5 million interest-free line of credit and a $1 million forgivable loan.
However, board chair Glenn Wagner said the project organizers would be happy to meet in the middle.
“We’re confident with (this option), that we can, in fact, fill that gap ourselves,” said Wagner, who noted they will have to continue their fundraising campaign.
“Yes, there is some risk involved," said Wagner. "There’s no doubt. I think there’s always risk in things that are important. But there’s greater risk in us doing nothing.”
The $2.5 million interest-free loan approved on Tuesday includes some caveats, such as the loan having to be repaid to the County of Simcoe within three years of the built units being occupied.
The forgivable loans from the county are contingent on the units maintaining affordable rent prices for 20 years.
“It’s fantastic. We’re very thankful for the support from all levels of government,” Wagner said after the meeting. “We’ll raise it... through fundraising, the same we’ve done for the past two years. This (line of credit) allows us to go ahead with construction.”
The first phase of the Building Hope project includes 20 supportive housing units in a facility that will be staffed with housing support workers.
The second phase is the new emergency shelter with 40 beds for men, women, families and youth. The current Lighthouse facility has 12 beds for men only.
The new facility will also be home to a first responder access room, mental health and addictions support, counselling offices, housing supports, a commercial kitchen, a medical office, laundry facilities and feature a soup kitchen/meal program.
A third future phase will accommodate affordable housing in a potential partnership with a private developer.
The site plan approval process is currently underway with the City of Orillia, with construction expected to start this fall.
- with files from Dave Dawson
Funding breakdown for Building Hope project
- $5.6 million Canada Mortgage and Housing Corporation
- $3.6 million province/county/city already approved
- $2.5 million interest-free line of credit from the County of Simcoe (approved today)
- $1.2 million fundraised by Building Hope
- $500,000 in-kind donations/gala/other events
- $400,000 development charge rebate from the City of Orillia
- $226,000 forgivable loan from the County of Simcoe (approved today)
Total raised to date: $14 million
Source: County of Simcoe staff report CCW 2019-256
