Affordable Housing Plan for Former QE School Advances Toward Council Approval
Date: March 15, 2023
A proposal to transform the former Queen Elizabeth Public School in Picton into a community-focused housing development is moving closer to reality, with council set to consider approval of a conditional purchase offer.
Prince Edward County council is being asked to authorize a $1 million conditional offer for the property at 35 Barker Street, following notification from the Hastings Prince Edward District School Board that a joint expression of interest submitted by Prince Edward Lennox and Addington Social Services (PELASS) and the County was the highest-ranked proposal.
If the purchase proceeds, the site would be redeveloped into a mixed-use residential community, with plans envisioning affordable housing alongside childcare facilities, a community health hub, shared services, community gardens, and recreational spaces.
Although both the County and PELASS submitted expressions of interest last fall, PELASS ranked higher under provincial surplus property rules, which prioritize certain public agencies ahead of municipalities. Municipal governments rank ninth on the list, behind organizations such as social service providers and school boards. A previous bid by the Algonquin and Lakeshore Catholic District School Board was ultimately withdrawn after it opted to construct a new St. Gregory’s school elsewhere.
The County and PELASS must formally submit their conditional offer by April 1.
Under the proposal, purchase costs would be shared. The offer is contingent on the County securing funding through the Canada Mortgage and Housing Corporation (CMHC) National Housing Strategy Co-Investment Fund, which would make the purchase price eligible for reimbursement. If approved, ownership of the building would rest with Prince Edward County.
Council is being asked to approve the County’s $200,000 share of the purchase price, payable once conditions are waived. The funding would be split evenly between the tax rate stabilization reserve and the capital sustainability reserve, with the expectation that the full amount would be reimbursed through CMHC funding before year-end.
Lennox and Addington County council has already approved up to $800,000 from its Housing Reserve Fund as a conditional contribution toward the purchase. That amount would be repaid by Prince Edward County no later than December 31, 2024.
In a report to council, Charles Dowdall, executive director of housing, said staff are confident the CMHC application would be successful, noting the County’s previous funding approvals through the Prince Edward County Affordable Housing Corporation.
Final approval of the offer is required at council’s March 28 meeting, after which it must be accepted by the school board. If successful, the next phase would involve detailed due diligence followed by public consultation.
The purchase agreement would include a 180-day conditional period, with the option for a one-time 90-day extension, to allow time for requirements such as environmental assessments, surveys, title searches, hazardous materials reviews, and confirmation of grant funding.
Due diligence costs are estimated between $250,000 and $350,000, with the County planning to apply for the maximum $350,000 available through the CMHC Seed Funding Program.
Queen Elizabeth Public School closed in 2017 after an accommodation review, with students transitioning to the new K–12 Prince Edward Collegiate Institute.
Council is scheduled to first review the proposal during its Committee of the Whole meeting on Thursday at 1 p.m.
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