February 07, 2019

My blog entry “Seniors Speak From the Ledge” was a compilation by seven (7) members of the original Kootenay Columbia Seniors Housing Cooperative (KCSHC) to outline the success and history of the Grandview Project in Castlegar, B.C. The project experienced financial difficulty and an ad hoc committee felt that statements of fact were necessary to permit the public to understand the demise of the cooperative and allow those, who may be planning development of seniors housing, to limit any similar financial exposures.

I acted as the Project Manager for the project from 2005 to early 2014. I have no official position in the project at this time and I am merely providing this update for the benefit of those who may have interest as to where the Project is today.

I personally needed to review all this for my own perspective and closure.

A) Site Preparation

Project was started two (2) years after conceptual designs were prepared by Lubor Trubka & Associates, Vancouver, B.C. (see photos below)

Clearing of Grandview Drive looking North March 22, 2007

Grandview land clearing March 13, 2007

Grandview site grading June 06, 2007

Grandview site grading June 06, 2007

B) Discussions with City of Castlegar (CoC)

The original enquiry for zoning of the property was presented to Council by the sponsoring society the Doukhobor Cultural Association (DCA) in 2005. Comments from some Council members included :

1. “You have to be out of your mind to think that anyone would want to live on that property located halfway to Trail!”
2. Where would the people come from?”

C) Approval of the subdivision was in 2007. Here is the current development status (see photos):

1. 55 seniors friendly, ground level units were proposed
   1. 47 units have been constructed, (financed by seniors) as of February 07, 2019
   2. 8 lots have been purchased by a Developer who had negotiated with the former KCSHC to construct the first stage of a 238 multi-care facility. The 8 lots are adjacent to the Chateau Grandview which was the name given to that project
2. 57 residential lots were proposed
   1. 39 lots were sold prior to bankruptcy
   2. Balance are being sold by the Mortgager, Heritage Credit Union (HCU)
      1. Status of 11 lots is unknown but it is possible that a developer may have purchased them
   3. 41 houses constructed and occupied (as of February 07, 2019)
      1. 5 under construction
3. 44 lot potential, phase II planned future residential subdivision
   1. KCSHC negotiated a trade with the Project Contractor, Marwest Industries Ltd., (MIL) in exchange for unpaid costs. MiL was able to complete a purchase of the land parcel with the Trustee, Moroso & Co., (M&C) with the result:
      1. 28 lot first phase is under construction
      2. Information provided by MiL is that a large portion are spoken for
4. 13 acre reserve lot (still legally owned by KCSHC) for Supportive, Assisted and Residential Care Project they called Chateau Grandview
   1. 5 acre parcel is serviced and zoned for 205 unit project
   2. 62 unit Chateau Grandview Supportive Living Project was negotiated as a first phase of a 82 unit project. Drawings and construction estimates were completed with a Developer. Canada Mortgage & Housing (CMHC), British Columbia Housing (BCH) and Columbia Basin Trust (CBT) would not guarantee a construction loan. Take-out financing was available from three (3) mortgage firms. Further negotiations were interrupted by the bankruptcy in 2014.
   3. Drawings are available for the entire project by the Developer / KCSHC
   4. Land is under bankruptcy dated 2014, with mortgages to:
      1. $450,000, original 1st mortgage, to HCU
      2. $1,200,000, original 2nd mortgage, to 51 members of the KCSHC
   5. The status of the bankruptcy is not known (February 07, 2019) as there has not been any meetings with the Trustee since the initial one in November 2014

Perhaps the populace of a growing Castlegar have recognized that the location (despite the original opinion of some Council members) is desirable and suitable (all photos taken February 07, 2019):

Corner of 16th Avenue and Grandview Drive looking South on 16th Avenue. Residential Housing  16 th Avenue looking South into possible future Chateau Grandview site Corner of 16th and Grandview Drive looking East. Residential Housing on left side and Seniors Housing on Right Corner of 16th Avenue and Grandview Drive looking South. Seniors Housing both sides Grandview Drive looking South. Seniors Housing both sides and Chateau Grandview future possible site on right side

Grandview Drive looking North with Phase II Residential Subdivision under construction

D) Attempt to resurrect the project using Katrine Conroy NDP MLA for West Kootenay

Since the bankruptcy meeting in November, 2014, all active administration of KCSHC has ceased. There are no Directors nor any meetings of any kind as legally the KCSHC does not have any liquid assets to function as an entity.

In 2017, some of the surviving members of the original ad hoc committee approached MLA, Katrine Conroy’s office to discuss any possible method to restart the Chateau Grandview. The committee was limited to attendance of three (3) members and met with Adena Brown, Executive Assistant to Hon. Katrine Conroy, October 03, 2017 at the constituency office. Here is a brief synopsis of the event (the email record starts with the most recent email to the top of the chain):

“………From: Brown, Edena MCF:EX [mailto:Edena.Brown@gov.bc.ca]
Sent: October 26, 2017 9:01 AM
To: ‘Elmer Verigin’
Cc: ‘a-k-bigs@shaw.ca’; ‘willenstedt@yahoo.com’; ‘marilyn.verigin@shaw.ca’; ‘mqhuchet@gmail.com’; ‘nora@jukes.ca’
Subject: RE: Meeting request

Hello Elmer,

Thank you for your email.

I don’t have much to update at this point however I am continuing to work on your file. There is a backlog of requests flooding into Victoria at this time and things are slowly moving forward.

Will stay in touch.

Cheers,
Edena

Edena Brown, Executive Assistant to Hon. Katrine Conroy

Minister of Children and Family Development and Minister Responsible for CBT, CPC and CRT

Cell: 250-480-8627 Email: Edena.Brown@gov.bc.ca……………….”

“…………From: Elmer Verigin [mailto:emverigin@shaw.ca]
Sent: Tuesday, October 24, 2017 4:43 PM
To: Brown, Edena MCF:EX
Cc: a-k-bigs@shaw.ca; willenstedt@yahoo.com; marilyn.verigin@shaw.ca; mqhuchet@gmail.com; nora@jukes.ca
Subject: RE: Meeting request

Edena

Do you have an update on this matter?

Thanks

Elmer…………….”

“………………From: Brown, Edena MCF:EX [mailto:Edena.Brown@gov.bc.ca]
Sent: October 3, 2017 2:14 PM
To: ‘Elmer Verigin’
Cc: ‘a-k-bigs@shaw.ca’; ‘willenstedt@yahoo.com’; ‘marilyn.verigin@shaw.ca’; ‘mqhuchet@gmail.com’; ‘nora@jukes.ca’
Subject: RE: Meeting request

Thank you Elmer, Monique and Alden.

It was very nice to talk to you all this morning. I will work on presenting your case and will be in touch if I have any questions.

Cheers,
Edena……………….”

“…………………….From: Elmer Verigin [mailto:emverigin@shaw.ca]
Sent: Tuesday, October 3, 2017 11:27 AM
To: Brown, Edena MCF:EX
Cc: a-k-bigs@shaw.ca; willenstedt@yahoo.com; marilyn.verigin@shaw.ca; mqhuchet@gmail.com; nora@jukes.ca
Subject: Meeting request

Adena:

Thank you for meeting with Monique, Alden and I this morning.

The rendering of the proposed Chateau Grandview is appended.

The successful Developer that we were working with was Casey Van Dongen of Tri-City Contracting Ltd from Kamloops

He had advanced to the stage of:

1. Drawings for a total development of:
2. Supportive Living
3. Assisted Living
4. Residential Care
5. Operational contract with H & H Total Care
6. Total dated pricing for construction and rental rates

It is our recommendation that the B.C. Government consider this “shovel ready” project to meet the local strong demand for seniors housing.

The residents at Grandview are more than prepared to work with whoever may be able to assist in advancing this project to fruition.

Should you have any further questions, do not hesitate to contact those in attendance and the those that are copied on this email

Elmer…………………..”

After the response from Adena, October 26, 2017, there was no further responses from Katrine Conroy’s office and so I sent this email:

“……………..From: Elmer Verigin [mailto:emverigin@shaw.ca]
Sent: Saturday, October 20, 2018 8:45 AM
To: Brown, Edena MCF:EX <Edena.Brown@gov.bc.ca>; Conroy.MLA, Katrine <Katrine.Conroy.MLA@leg.bc.ca>
Cc: willenstedt@yahoo.com; marilyn.verigin@shaw.ca; mqhuchet@gmail.com; nora@jukes.ca; Alden Bigsby <allbigs@shaw.ca>
Subject: RE: Meeting request

Katrine and Edena

I am making contact on my own but sending copies to the other participants in this effort

It has been almost a year since we last heard from your offices…………………………..?????

I recall when the NDP was in opposition and how well your office did to address the Grandview seniors with promises as to the changes that would take place when the NDP would become the government

I voted for you…………………………when in the past I did not!

The awaited change in government did take place.

What did not change is the arrogance that the former Liberals had toward our Castlegar seniors and that habit accepted by the current NDP / Green Parties

On behalf of Elmer, I am very disappointed!!!!!!

Have a good day.

Elmer……………”

I admit the above email is almost ‘Trumptisized’ but this is my blog. This is the response I received from their office:

“…………………From: Conroy.MLA, Katrine [mailto:Katrine.Conroy.MLA@leg.bc.ca]
Sent: October 22, 2018 11:25 AM
To: Elmer Verigin
Subject: RE: Meeting request

Good morning, Elmer:

Just so you know Edena is Katrine’s executive assistant in her capacity as the Minister’s assistant and no longer works on constituency related matters. .  At the time of your meeting we did not know what Edena’s role was to be as an executive assistant and was clarified after that meeting.  As well,  I am a little confused by the email below………….”

So Elmer Verigin sees no point in pursuing the matter as he does not have any authority at this time to carry on a discussion that does not seem to have any interest to our MLA.

E) An interesting final comment from Elmer Verigin

In retrospect, the idea that the DCA brought forward with sponsorship of a budget of $50,000 and was later undertaken by the KCSHC was that seniors may use their assets to receive seniors accommodations with a minimal dependence on governments. Some of the challenges were that the KCSHC did not have sufficient members who understood the complicated systems that make up the development business.

I will continue to refer to original KCSHC objective of a complex (Chateau Grandview) that was to include Supportive / Assisted / Residential Care complex as Chateau Grandview for this discussion.

1. Includes a complete serviced site (Lot 52), 1.75 ha adjacent to 16th Avenue and zoned for
   1. 82 Supportive Seniors Units
   2. 80 Assisted Seniors units
   3. 76 Residential Care Units
   4. Total 238 housing units
2. A legally connected parcel to Lot 52 of 5.22 ha in size on the lower level that includes the original Calamida Racetrack.
   1. In about 2010, B.C. Housing approached the KCSHC to apply for funding of about 50 units built with Manufactured Housing that would serve low income families
   2. Two (2) senior officials from BC Housing attended the site with KCSHC representatives
   3. City Council was made aware of this site visit as the application would need to applied for by the Municipality
   4. City of Castlegar did not send anyone
   5. BC Housing passed on the funding to another municipality
3. KCHSC had developed a plan with a Developer for a portion of the upper property for the 82 Supportive Seniors Units. I will show the perspective here again for clarity:
4. An appraisal was conducted by Adrian Rizzo, AACI, P.App., of Kent – Macpherson, Kelown, B.C., dated August 18, 2011.
   1. Land value of the upper portion was $1,500,000
   2. For the proposed first phase of 62 units, this would equate to $1,500,000 / 62 = $24,673.48 per unit. (As developers call this as $24,673.46 per door)
   3. Appraisals such as this usually are conducted as part of an on-going development
   4. It can be estimated that at a total developed 1.75 ha site an estimated extrapolation would be 238 units x $24,673.48 = $5,872,288.24
   5. The profits that the KCSHC anticipated would subsidize Care units for under privileged. A dream not to come true
5. At this time the project is in bankruptcy and the appraisals obtained by the Trustee range in the neighborhood of $700,000 far below the developed value.
6. The KCSHC was intending to create enough capital to be able to pay its Shareholders Loans and extraneous construction cost as listed in ‘Seniors Speak From the Ledge’
7. At this time after five (5) years since bankruptcy, I do much possibility that the second mortgage loan holders will receive any money. I also do not visualize that any Developer will foresee a Chateau Grandview development but a number of units similar to the 47 ground floor seniors units may take place.
8. It is unfortunate that the City of Castlegar, B.C. Housing, Ministry of Health (subsidized Residential care allocation for Castlegar), CMHC, CBT cannot be assembled by our local MLA to cooperate in a solution for Chateau Grandview because the potential of this project is not recognized. Statistics Canada suggests that the market is there

This blog has been temporarily updated to February 14, 2019. by Elmer Verigin

Happy Valentines Day!