Duane Hicks
Carrying on toward goals set out in its strategic plan, town council and administration will be making a concerted effort in the near future to decide what to with existing municipal properties and whether to develop new residential areas.
During a special committee of the whole meeting Thursday, council agreed to make discussion of the future of the Rainy Lake Hotel a priority, as well as take a good look at residential development and their intentions towards the former Huffman School property.
As part of its commercial renewal strategy, council set October, 2013 as the date to have plans in place to minimize the number of vacant commercial and institutional properties in town.
But council and administration agreed Thursday that when it comes to the Rainy Lake Hotel on Scott Street, the process has to start sooner than later.
They agreed to hold a meeting with the local BIA, Fort Frances Chamber of Commerce, and Economic Development Advisory Committee (EDAC), and facilitated by the Rainy River Future Development Corp., to look at the fate of the hotel.
This may result in the formation of a steering committee.
Fort Frances CAO Mark McCaig said the building has fallen into disrepair, concerns about the building have been expressed by residents and businesses alike, attempts to sell it have been unsuccessful, and the community as a whole is going to have to look at what he called a “key location” in town.
“We’re going to have to consider what is the best course of action for that building,” he remarked.
Treasurer Laurie Witherspoon noted the building was put up for tax sale in January, but no one put in an offer.
The town currently does not own the property, but has until Feb. 14, 2013 to vest it (i.e. take ownership of it). If it doesn’t do anything by then, the town will have to apply to start the tax sale process over again.
Currently, there is $200,000 in taxes owing on the property.
The town could write-off the taxes owing and again advertise it for sale. But if the taxes are written off, the buyer still would be responsible for paying liens against it, Witherspoon said.
The property is decrepit, however, she added, and “it’s highly unlikely you’re going to get anyone to purchase that property the way it is.”
McCaig said Chief Building Official Rick Hallam has been directed to look into demolition pricing to get a “ballpark idea” of what the cost might be.
Travis Rob, the town’s sustainability intern, has looked into possible funding for the demolition and redevelopment of the Rainy Lake Hotel, and cited the Federation of Canadian Municipalities’ Green Municipal Fund as a potential source.
While the town does not have to own the property to apply, it must provide a plan to show what it plans to do with the property.
Recalling the BIA came to council a few weeks ago, and said it had some funds saved up and were eager to work with council to help revitalize the downtown core, everyone agreed they needed to be part of the discussion, along with other stakeholders.
“I think we need to get going on this right away because it’s going to be a time-consuming process,” warned Coun. Andrew Hallikas.
“The BIA is very interested in this—they said so . . . the Chamber, EDAC—I think all of these people need to have input,” he reasoned.
“I would like to see this issue given to them for discussion.
“But we can’t have them working separately,” Coun Hallikas stressed. “At some point, I think we need to set up set up a committee with members on it from those groups and council to be a sort of steering committee.
“So there’s some sort of focus, where there’s one group, one point, one central focus, that knows everything from all those groups.”
Consultant Tannis Drysdale said the RRFDC worked with the BIA to get a study done about the Rainy Lake Hotel property, and would be happy to facilitate meetings of the groups.
Residential lots
Also at Thursday’s meeting, council agreed to have both the Operations and Facilities and Planning and Development executive committees each look at lots for potential residential development, priorize them, and then come together to compare notes and make a joint recommendation to council.
According to the strategic plan, this should happen by the end of this November.
Possible areas for development include the old Huffman School, Erin Crescent (second stage of Kaitlyn Drive subdivision), and Nelson Street (from Minnie Avenue to Williams Avenue), although others could be identified.
McCaig said any possible subdivision development by the town would be done using reserve funds, and based on full cost-recovery through lot sales.
In addition to a possible increase in demand for housing due to future mining activity in the district, Mayor Roy Avis said he’s aware of the demand for lots right now.
“There is a lot of people that are waiting to see if we create a new subdivision,” he remarked, adding he knows of people with professional-level incomes who want to live where the old Huffman School is or on Nelson Street.
“I think there is a need for lots,” the mayor stressed. “People want to buy them and move into those areas, and they’re just not available.”
Municipal planner Faye Flatt said she gets two-three calls a week from people asking about lots available.
McCaig, meanwhile, noted the town’s assessment is going down—and something must be done to stimulate the tax base. The private sector isn’t doing development, and if people can’t get lots here, they’ll look elsewhere.
He added if people want to acquire any property the town has for significant residential development, council probably would be willing to sell it to them.
Mayor Avis said that because of municipal tax rules, private-sector development has become too risky. As soon as the lots are completed, taxation kicks in.
For example, if they have 28 lots, and they have not sold them all, they’re on the hook for taxes for the unsold lots—making such development a risky proposition, he explained.
The only partnership the town can get going with the private-sector would be to have it in the town’s name, the mayor said.
Coun. Ryan agreed, noting that for a private developer, initial sales of lots may pay for materials you put into the development, with the last three or four being your profit.
“The risk is, how long will it take before you sell it, those last few lots, to gather your profit,” he remarked. “Is it 10 years?
“That’s why nobody will do it,” Coun. Ryan added. “It’s too much of a gamble, there’s too much risk involved.
“That’s where the town can come in. Because we have time, and we own the property, and we’re the tax collector.”
Any private-sector developers interested in town properties, or working with the town, are encouraged to call Flatt at 274-5323 ext. 275.
When it comes to the old Huffman School property, it not only will be considered by the aforementioned two committees, but be brought before EDAC to ask what it sees the building and property being used for, as well as get input from RRFDC.
How much of the property should be targeted for development into residential lots, whether the existing school should be leased out, or whether it should be sold outright all are issues that have to be considered.
Several members of council felt the school should be leased out, if possible, until a long-term plan for the property is determined.
Coun. Ryan noted that you never know what a building like Huffman will be used for, noting a developer in Kenora bought an old school there for $1 and it sat unused for years.
Now, it has been renovated and the Northwestern Health Unit office there is moving into it.
According to the strategic plan, the future use of the Huffman School property should be determined by April, 2012.
