County conditionally supports new lodge
By John Watson Local Journalism Initiative Reporter
Wheatland County council engaged in discussion regarding a request from the Wheatland Housing Management Body (WHMB) for funding in the amount of $916,702 during the April 2 regular meeting of council.
County administration received a letter from the WHMB chief administrative officer, March 22, requesting an advancement of funds for the design of a new hospice and lodge in order for it to be in a more shovel-ready state.
Wheatland County council has previously passed motions to provide funding for the construction phase of the project. Design work does not fall within the conditions of previous motions.
Funding for the project would come from an unallocated surplus, or be borrowed through a long-term debt. As the project would have a projected lifespan of 60 or more years, funds would be borrowed over the maximum possible length to serve the lifespan of the project.
The total cost of the Wheatland Lodge development project was estimated to be $52,739,184. Wheatland County was requested to provide $3,985,914 of this funding. The $916,702 requested to aid in bringing the project to a more shovel-ready status is not in addition to the total request, rather, as a portion of it invested ahead of construction.
Coun. Glenn Koester noted during the council meeting, the Province of Alberta has made its stance clear: grant funding will not be allocated to the project unless it can be presented in a grant application as being shovel-ready.
Concerns were expressed during the meeting by Reeve Amber Link regarding accountability by the WHMB board, and the lack of transparency of information regarding the lodge project.
“I’m furious a councillor on our council created a situation last year that led to public outrage by unilaterally directing that the request for a letter of support from our council be withdrawn and then proceeded to attend multiple meetings across our county hosted by the Wheatland Housing Management Body and Wheatland and Area Hospice Society boards where they then led the public to believe our council did not support a new lodge or our seniors. This was deliberately deceitful given the fact we had not yet had an opportunity to debate the matter or establish a council position,” she said.
“Further, council’s access to information has been limited by the board’s repeated lack of transparency. Where are the building committee meeting minutes? Reports of work done? There has been zero accountability to the public.”
Link added she wished to table a letter to Jason Nixon, minister of seniors, community and social services outlining concerns held regarding the governance of the WHMB, and a governance review of the board that was completed.
The letter discusses inaccuracies and misrepresentations in the WHMB review report, overreach in governance review and a lack of autonomy respect, issues with board appointments, dismissal of concerns raised about governance dynamics, conflicts of interest, and several other concerns.
It was suggested during the regular meeting of council to delay approving a letter of support until more information was able to be presented by county administration, as opposed to immediately, as per the WHMB request.
Coun. Shannon Laprise reminded council, in February 2023, Derek Weiss, of the WHMB, attended a county council meeting to present the financial summary of the Wheatland Lodge project at that time. It was reported there would be a $40 million Canada Mortgage and Housing Corporation (CMHC) loan, a $7 million Affordable Housing Partnership Program (AHPP) grant, and $6 million from municipal contributions for a total cost of roughly $53 million.
She added in April 2023, she had requested of the WHMB to acquire a financial analysis to clearly show how requisitions were calculated.
“We received a very detailed spreadsheet that showed exactly how the projected revenue and expenses our municipal portion of $700,000 would work towards – there is also another financial consideration, a debt contribution ratio which is required for a CMHC loan,” said Laprise. “When we looked at that spreadsheet, I noticed that there were some mistakes in it and that the spreadsheet showed not $39 million, but $28 million from CMHC. In June (2023) we had another meeting; we discussed the numbers, and I found that the Hospital Preparedness Program (HPP) grant went from $7 million to $14 million.”
Laprise expressed concerns that financials surrounding the project are not being properly communicated to the WHMB, nor to the public.
She added, she, as well as the WHMB chairman do not know the up-to-date total costs of the project, the AHPP amount, or the CMHC amount.
A motion made by Laprise to conditionally support the request for finances from the WHMB was passed following amendments by council.
The passed motion provides support contingent on a letter indicating ministerial support for the sum of $14 million for the project, an update from Weiss to update the financial proforma from May 2023 and provide it to all WHMB board members, answers to a council-approved list of questions to be provided to all councils of the Management Body board, the WHMB request quarterly updates of this analysis and the project progresses and costs change, and that the WHMB provide to all municipal partners each time the analysis is redone to the information of the total project cost, and the AHPP portion.
The motion was passed in a vote of 5-2 in favour.