Leamington Council accepts proposal for attainable housing development on former secondary school lands

At its meeting of August 15, 2023, Leamington Council accepted the proposal submitted by Amico Properties Inc. (Amico) in connection with the development of attainable housing upon the former Leamington District Secondary School lands at 125 Talbot Street West, Leamington, subject to the terms of the Request For Proposal (RFP) and the relevant statutory approvals processes.

Concept Plan

Amico’s preliminary concept plan for the development of the subject lands includes two six-storey apartment buildings, with 95 and 105 units, respectively, for a total of 200 apartment units and 105 townhome units for a project total of 305 dwelling units. All apartment units are designed to be accessible rental units. The townhome units are 2.5 storeys in height, with some accessible units included. All townhome units will be owned. The concept plan also includes a central park area, a smaller parkette around the central mailbox and a daycare building. The concept plan and renderings are shown in Appendix I.

The development of the subject lands includes the following:

A typical street grid commonly found in adjacent neighbourhoods.
A gentle transition to higher density, avoiding placing taller buildings directly adjacent to existing single-unit dwellings.
Connectivity to east neighbourhoods via John Street and to west neighbourhoods via a new pedestrian path, and to north neighbourhoods via the Leamington Recreational Trail.
Enhanced trailhead connection to the Leamington Recreational Trail.
A street tree canopy, sidewalk network.
Creation of a new neighbourhood park.
Short and long-term bicycle parking.
Apartment units with an indoor bicycle parking facility.
A space reserved to develop a covered transit stop along Talbot Street.

The proposed development meets the zoning requirements for both building height and density. Parking has been provided at a rate of 1.0 spaces per dwelling unit with a potential for an additional 85 street parking spaces. The park area size at 0.4 acres is slightly less in area than 5 percent or 0.65 of an acre. Any required balance would be satisfied by way of a cash in lieu of parkland contribution.

Attainable Housing

The RFP defined attainable housing as housing that costs less than 30 percent of a low to moderate household’s before-tax income. Employment and Social Development Canada defines low income as being below 50 percent of annual median income for an area. Moderate is above 50 percent but less than 80 percent of annual median income for an area.

According to the Statistics Canada 2021 Census, in Leamington:

"low income" was approximately $39,500 or below, which translates to accommodation costs, including utilities, as:

$11,850 or below, annually
$988 or below, per month

“moderate income” was approximately $63,200 or below, which translates to accommodation costs, including utilities, as:

between $11,850 and $18,960, annually
between $988 and $1,580, including utilities, per month

Amico’s proposal indicates that in addition to base rent which for the attainable units will be in accordance with attainable rents at that time, additional rent will include common area maintenance, utilities, and taxes. These costs at the time of occupancy will be factored into the total rent, base and additional, to ensure the total monthly cost is in line with what is deemed the maximum attainable rents allowed at the time of occupancy.

The proposal indicates that 30 percent of the dwellings will be attainable units.

Types of Dwelling Units

This project will have a wide range of unit sizes in order to properly accommodate the many different living accommodations needed within the community. The proposed unit type and count matrix is shown in Appendix II.

Partners

Amico has signed a Memorandum of Understanding (“MOU”) with each of Habitat for Humanity (“Habitat”) and the Bridge Youth Resource Centre (the “Bridge”). The MOU with Habitat establishes that Amico will make a minimum of 18 lots available to Habitat to construct houses or provide the lots with townhomes constructed on them which Habitat will provide to those families the organization serves. The MOU with the Bridge indicates that Amico will provide rental units for the Bridge to purchase and subsequently rent out on an attainable housing basis. The CF Group is proposed as the property management company once construction is complete.

Timeline

Amico has indicated that the project will require a minor variance, approval of a plan of subdivision and three site plan agreements. Amico has suggested that this project will be built out in two phases: the first being the construction of one apartment building and approximately 32 of the townhomes as well as the daycare; and the second being the balance of the development, including the majority of the attainable dwelling units. If the demand is there, it is believed that this project can be built out in three years; however, it is possible that the project may extend to five years. The proposed construction schedule is attached to this Report as Appendix III.

Next Steps – Agreement of Purchase and Sale

Amico and the Municipality will enter into an Agreement of Purchase and Sale, which is conditional upon Amico satisfying itself as to the soil and environmental condition of the subject lands within 60 days.

The Agreement of Purchase and Sale is further conditional upon Amico applying for and obtaining minor variances and entering into a Development Agreement with the Municipality within 180 days. The Development Agreement, in addition to all standard provisions, including the provision of securities to secure the performance of the terms of the Development Agreement, shall reflect the obligations as described in the RFP and Amico’s proposal and shall also include the following provisions:

That Amico demolishes all existing buildings located upon the subject lands within 120 days from the execution of the Development Agreement.
That the Development Agreement is not assignable by Amico unless the Municipality has consented to the assignment and unless the assignee has in writing covenanted and agreed with the Municipality to assume the obligations imposed under the Development Agreement.
That Amico shall not assign any of the responsibility for the construction or maintenance of any works or services to any other person, including any subsequent registered owner of any of the lands, without the consent, in writing, of the Municipality.

The Agreement of Purchase and Sale will include a requirement that Amico execute and deliver an Option to Purchase the subject lands in favour of the Municipality, free and clear of all encumbrances, at a purchase price equivalent to the purchase price paid for the subject lands, less 10 percent, exercisable in the event that Amico fails to meet its obligations or develop the subject lands as set out in the Development Agreement.

Next Steps – Development Agreement

Following the execution of the Agreement of Purchase and Sale, Amico and Administration will commence working through the development approval process as well as the application for a minor variance and site plans as required. Accordingly, Council and the public will have the opportunity to review and comment upon the proposed development throughout the process.

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