Stony Mountain will soon be home to a 50-unit seniors housing complex with first access granted to Rockwood residents.
The RM is teaming up with Kenaston Development Projects on the initiative, with construction slated to begin in summer 2025 and occupancy expected two years later.
During a public hearing on Dec. 11, Rockwood’s finance manager Ashley Michaluk unveiled the conceptual renderings for the project. She also shared a site map showing that the complex will be located in the West Ridge Lakes development in Stony Mountain, which will be located between Provincial Trunk Highway 7 and Old Highway 7 on the south side of Road 75N.
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“With the development in Stony Mountain underway, the RM of Rockwood wanted to be able to offer housing for the aging population within our own community. Most seniors want the option to be able to live within the community they call home for as long as they possibly can, without the worry of moving away from friends and loved ones,” she said.
“The RM of Rockwood recognizes the significant toll a move like this can take on seniors’ health and overall well-being. In alignment with the Manitoba Seniors Strategy, Rockwood is committed to bridging this gap for housing solutions for this demographic of our population.”
The municipality is forming a community development corporation, also known as a CDC, to be able to work with developers Kenaston Development Projects to invest in the initiative.
“Council’s primary goal is to ensure that our residents have access to what their dollars are invested in,” Michaluk added.
The company Mistecture is contracted to design and manage the project. The estimated total cost is $15 million, with the RM of Rockwood investing a maximum contribution of $7 million towards it.
The CDC will enter into a loan agreement for the $7 million contribution, which will be disbursed to the project in phases. For Phase 1, which is the pre-construction phase, $3 million will be borrowed internally from the RM’s aggregate reserve fund, which had a balance of about $5.2 million at the end of 2023.
Then for Phase 2, which is the construction phase, another $4 million will be borrowed through an externally sourced debenture.
“The impact on taxation will only be felt for the first few years of the project. Once the facility is built and operational, the CDC will begin to repay the loan from the proceeds of the rentals and the annual loan payment will no longer be generated by taxation,” Michaluk said.
“In addition to this, the seniors housing complex itself will also provide a significant increase to the municipality’s tax base, which would alleviate the requirement for operating expenses through taxation as well.”
CAO Chris Luellman said the facility represents the first stage of a larger vision. This stage consists of basic rental housing for one-bedroom and two-bedroom units, as well as a common room for family get-togethers.
“There’s no life lease,” he said. “The rent will be approximately $1,300 for a one-bedroom to $1,500 for a two-bedroom. It makes it quite affordable. … Our partnership was to ensure that we had a kickstart. We ignited the opportunity for development going into the future.”
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Looking ahead, the second stage would focus on a 50-unit age-in-place facility that would include memory care. Other ideas for this second stage could include a central square, an arts and crafts shop, customized care plans and recreation opportunities.
So far, they’ve received nearly 40 serious inquiries from people hoping to move into the first facility.
“The interest is there to basically fill the first building immediately,” Luellman said.
“The CDC will work in partnership with the developer. … The developer will manage the facility, and we’re looking to sell our interest after a couple or three years — hopefully within a 10-year window.”
After that, the municipality would like to reinvest in the memory care facility.
“The first priority is Rockwood residents,” he added. “It will not be rented out to anybody but Rockwood residents unless we have openings and there are no more names on the list to enter into the faculty. It is Rockwood specific.”
Jim Campbell, former Rockwood reeve, expressed some trepidation about the municipality’s plans to partner with a developer.
“You all believe you’re doing the right thing and I respect that,” he said. “Time will tell if it is right.”
At the Dec. 11 meeting, Rockwood council passed first reading of a general borrowing bylaw for the project. Now the municipality will submit the bylaw to the provincial government to seek Municipal Board and ministerial approval for the borrowing. Council would also need to approve the planned West Ridge Lakes subdivision, where the seniors housing complex will be located.
After the RM receives Municipal Board and ministerial approval, the municipality will amend the borrowing bylaw for the $3 million to be borrowed from the aggregate reserve fund, with repayment to start in 2025. The annual payment would be $427,132.51, based on a seven per cent interest rate, but this rate could be lower. The average tax bill increase, based on a $125,000 portioned assessment, would be $71.88 annually.
In summer 2025, construction is expected to begin, and the RM will again amend the borrowing bylaw to receive approval to release the remaining $4 million to be borrowed. Repayment of this portion will start in 2026.
The annual payment on the $4 million would be $569,510.01, based on a seven per cent interest rate. The average tax bill increase, based on a $125,000 portioned assessment, would be $95.88 annually, which is in addition to the levy raised in the first phase of funding.
If all goes according to plan, the project would be complete in summer 2027. Loan repayments to the Community Development Corp would then begin, using the funds generated by rental income. This repayment through rental income would offset the need to levy the repayment through taxation.
