Construction on Meadowbrook project starts next month thanks to council’s blessing

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With costs for the planned Meadowbrook affordable housing project roughly 20 per cent beyond what was originally projected two years ago, the local community housing corporation required city council’s blessing Monday to pursue another $5 million in debt funding in order to keep the project alive.

That endorsement was given unanimously during a special council meeting.

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The Windsor Essex Community Housing Corporation — controlled by the city — can now secure under the province’s Investment of Affordable Housing initiative a 20-year forgivable loan that will now equate to $20.5 million with the new $5 million increase.

The corporation intends to pay back the loan through rent payments it receives from tenants of the new housing project.

The $39-million Meadowbrook project, to be located on the east end in the 3100 block of Meadowbrook Lane, will be Windsor’s first affordable public housing construction effort in 30 years and provide a mixed array of 145 single and family units.

It will be good to see the shovel getting in the ground in August

With council’s final blessing completed, construction on the long-awaited 10-storey affordable housing building — originally approved in 2018 — will finally get underway in August, said Hans Kogel, the housing corporation’s chief development and regeneration officer.

He expects the project will be completed within two years and be ready for occupancy in August, 2022.

Originally scheduled to be completed by the end of this year, there were concerns expressed last month by officials involved how the housing project may not be finished until the end of 2022 at the earliest, but with financing now secured the date has moved up.

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Aside from financing issues, Kogel listed several reasons for construction delays as including troublesome soil conditions and an added “value engineering” review once projected costs came in higher than anticipated.

“That led to some changes in (design) and some re-approvals were needed,” he said.

On top of that, there have also been complications due to the ongoing COVID-19 pandemic, Kogel said.

The city previously agreed to provide $12 million towards the housing project. Council was told Monday the decision to act as a “municipal guarantee” in order for the housing corporation to secure a larger loan will not increase taxpayer contribution to the project.

But several councillors on Monday had questions surrounding the possibility of a default on the loan and whether the city would be held responsible with the municipal guarantee being provided. City administrators said full responsibility will remain with the housing corporation and not the city.

Meadowbrook will have 76 “geared-to-income” units and 69 that will reflect market rates in Windsor.

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There will be 12 units reserved for people fleeing domestic violence, four for people with developmental disabilities and five to be reserved for Windsor Family Services to provide housing for troubled youth.

“We do have business case projections that are very conservative,” said Janice Guthrie, the city’s deputy treasurer. “I see no issue on whether (the corporation) will be able to meet their mortgage payments on a go-forward basis.”

Some of revenues generated will also be put aside in a reserve fund to help with ongoing upkeep and repairs in the years ahead, Guthrie said.

“That is also built into the current business model,” she said.

Several members of council following the vote to support the added loan expansion, applauded the housing project finally getting underway. Amico Corporation was selected by the housing corporation last year to be construction manager for the project.

“At the end of the day, this will check off a lot of boxes (for needs in the city) and is really a good news story,” said Coun. Rino Bortolin. “It will be good to see the shovel getting in the ground in August.”

“This is good news,” added Mayor Drew Dilkens. “Even though there is an escalated cost, the cost to the taxpayer will not be any more. We look forward to the shovels getting in the ground and getting this building constructed by August 2022.”

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