The acquisition of a seniors housing development in Listowel seems to be working out for North Perth.
The municipality took over the Perth Adult Life Care Residence Project known as Perth Meadows a year ago. The intenetion was to provide financial stability by taking advantage of the municipalities ability to borrow at a favourable interest rates over the long term.
Council has now authorized a 25 year, 3.65 per cent amortizing debenture in the principal amount of $5.5 million from Infrastructure Ontario.
Councilor Warren Howard suggests it is a solid business decision and stresses no tax dollars will be used. He explains the funds will be paid back as the units sell.
The project includes 18 currently occupied town houses and 36 unit seniors apartment complex.
North Perth officials indicate it is over a third full, there are frequent expressions of interest and a professional real estate team is now involved.
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Rent received from 18 units per year $12,000/yr + Possible $12,000/yr Total rent $24,000 to $30000 with 100% occupancy. The Interest annual Cost of this bond will be $145,750. We are in the hole $100,000 each year for 25 years and still we owe the $5.5 million principal.
This senior's complex was poorly planned by the private sector. For instance..Parking for the seniors is outside in the snow ans ice. So the tax payers are now the owners of this unwanted facility at a cost of $5.5 million...as the rents of 18 occupied units will never pay the Bond's semi-annual payments..We the tax payers will have to makeup the difference.
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