The Town of Stonewall is planning ahead for the future, which includes a proposal to borrow up to $9.5 million towards infrastructure development for an age-in-place campus and personal care home.
Plans for the age-in-place campus began nearly a decade ago. On Aug. 20, council hosted a public hearing about the proposed borrowing for the project, which will be located at 4th Street E at the 3rd Avenue S intersection. The town owns more than 20 acres at this site, which includes a dedicated five-acre parcel for a future personal care home.
The town has committed to provide a fully serviced site to support the development of the personal care home. The cost to service the location with roads, sewer, water and drainage would be $7.85 million.
Whiteland Services has approached the town in regards to jointly servicing and developing the lands to the north of the campus site. The town has agreed to enter into an agreement with Whiteland to jointly fund the shared infrastructure, to enable highway commercial and multi-family development, and to support long-term planning.
Whiteland plans to develop a highway commercial development along Provincial Trunk Highway 67, and they’d also consider developing a multi-family development south of the Highway 67 commercial development.
At the south end of the property, the town plans to buy 31.5 acres of land from Whiteland that the developer has deemed as surplus. Both the town and Whiteland would pay to service the property and jointly fund shared infrastructure. The town’s commitment to Whiteland is to purchase the 31.5 acres of land for $1.75 million and service the 31.5-acre site with wastewater sewer for $1.25 million for a total cost to the town of $3 million.
With a private contribution from Whiteland towards shared infrastructure, the town’s cost to service the age-in-place campus would drop to $6.5 million from the original $7.85 million.
CAO Wally Melnyk noted that the actual amount to be borrowed might be less than $9.5 million, which would be the maximum as a worst-case scenario. The proposed project includes the cost to service land, create road access and prepare for future development.
The repayment of the proposed borrowing would occur over 20 years at a maximum interest rate of 7.5 per cent annually, although this interest rate could be lower. The annual repayment of $931,875.82 would be included in a general municipal levy. Other proceeds could come from capital lot fees, land sales, additional grants and taxes from developments.
“The town will be looking for senior government grants and the potential to use capital lot fees along with other revenue sources to offset the costs,” Melnyk told the Tribune.
“The thing to keep in mind is that the development associated with the borrowing will also create new assessment directly as well as jobs, which should mean more homes and additional assessment.”
At the public hearing, some community members shared concerns about the high cost and long-term debt repayment over two decades. At the same time, they questioned other existing municipal debts from other projects. Other concerns focused on potential property impacts, staffing issues and insufficient public engagement.
On the flip side, some attendees expressed support, noting the need for local care. They also acknowledged the potential for economic growth that the project could bring to the community.
To reduce the amount of borrowing, some residents suggested alternative options such as co-op models, life leases and fundraising efforts.
Council gave first reading to the borrowing bylaw, which has been submitted to the Municipal Board for approval. Once approval has been received from the Municipal Board, work will be underway to complete the design of the sewer, water, roadways and drainage, probably over the winter of 2026.
“We are hopeful that construction can start in the spring of 2026. The funds identified in the borrowing will put in place infrastructure to support both the PCH and the age-in-place campus site,” Melnyk said.
“While the timing for the start of construction of the PCH is controlled by the province, the remainder of the age-in-place campus construction can proceed without approval from the province. So things like independent housing, assisted living and supportive housing options could start next year.”
The town is also buying a property at 474 4th St. East for $65,450 to establish an intersection and entrance to the age-in-place campus and personal care home site.
“Acquiring 474 4th St. E is important in terms of creating a proper access to the development and to ensure that traffic and access to the site can be properly controlled through a formal intersection at convergence of 3rd Avenue South and 4th Street East,” Melnyk said. “There will be additional land needed east of the 474 4th Street East, and we are working to gain access to the land.”
Looking ahead, the next steps for the town include finalizing the design and subdivision for the age-in-place campus. The developer and town will need to resolve the outstanding conditions on the purchase and sale agreement.
The town will also need to amend the current development plan and zoning bylaw to support these projects.
