The MD of St. Paul Foundation’s Lodge Project has reached a milestone with a conditional $8 million approval from the Canada Mortgage and Housing Corporation (CMHC).
The $50 million project aims to address housing challenges in the region by replacing Sunnyside Manor with a new 90-unit residential building that includes lodge services and the demolition of older cottages on the property.
Derek Weiss, a consultant for the MD Foundation, presented an update to town council on November 12, highlighting the significance of the CMHC’s endorsement. He noted that securing the approval, which includes substantial grant funding, represents a significant achievement. Weiss also pointed out that the funding is contingent on meeting certain conditions, and the foundation is now focusing on progressing to the next stage.
The approval from CMHC signals confidence in the project’s financial viability, contingent on its ability to cover operational costs and debt repayments through revenue, like rental income, without excessive municipal or provincial support. The foundation met key criteria, including demonstrating a strong demand for new housing units through occupancy studies and waitlist data.
The $8 million grant is a significant step forward but represents just part of the funding needed. The CMHC requires assurance that the remaining project costs will be covered by contributions from other sources, including municipal and provincial funding.
The funding calls for $4 million in upfront contributions from local municipalities, with the town of St. Paul already committing approximately $987,000. The foundation will seek further commitments from the county of St. Paul and the town of Elk Point.
The project also hinges on securing final funding decisions from the government of Alberta. If all funding is secured, the Lodge Project will move into its construction phase.
St. Paul Mayor Maureen Miller expressed gratitude to all involved, noting the extensive efforts behind the scenes. “This has been a long, long process. So, I just want to make that awareness, even though the motions happen here, there’s a lot of work being done in the background,” she said.
The Lodge Project, which has been in development for over two years, will continue working with stakeholders to bring the project to life.
