Report to/Rapport au :

Corporate Services and Economic Development Committee

Comité des services organisationnels et du développement économique

and Council / et au Conseil

26 July 2010 / le 26 juillet 2010

Submitted by/Soumis par: Kent Kirkpatrick, City Manager/Directeur municipal

Contact Person/Personne ressource : Gordon MacNair, Director

Real Estate Partnerships and Development Office/Directeur, Partenariats et Développement en

immobilier

(613) 580-2424 x21217, Gordon.MacNair@ottawa.ca

Bay/Baie (7)

Ref N°: ACS2010-CMR-REP-0037

SUBJECT:

DISPOSAL STRATEGY – 2720 RICHMOND ROAD – FORMER GRANT ALTERNATIVE SCHOOL

OBJET :

STRATÉGIE D’ÉLIMINATION – 2720 CHEMIN RICHMOND – ANCIENNE ÉCOLE PARALLÈLE GRANT

REPORT RECOMMENDATIONS

That the Corporate Services and Economic Development Committee recommend that Council:

1. Receive the Centre multi-services francophone de l’Ouest d’Ottawa (CMFO) Progress Report Three, dated 17 June 2010 attached as Document “1” of this report, regarding a Business Plan for a multi-use service centre, long term care facility and seniors housing cooperative on the subject property;

2. Declare the property shown as Parcels “A” and “B” on Document “2” attached, containing an area of 2.07 ha (5.11 acres) municipally known as 2720 Richmond Road and described as part of Lot 21, Concession 2 (O.F.), Geographic Township of Nepean now in the City of Ottawa being all of PIN 03959-0080 as surplus to the City’s needs;

3. Approve the sale of the property shown as Parcels “A” and “B” on Document “2” attached on an “as is” basis and having a market value of $3,940,000 subject to any easements that may be required to the Centre multi-services francophone de l’Ouest d’Ottawa (CMFO) as described in this report and pursuant to a Memorandum of Understanding that has been received subject to the following conditions:

a) That the City provide a grant to the CMFO in the amount of $1,940,000 being the City’s total contribution to the proposed francophone multi-service centre in the west end of Ottawa, this amount representing the market value of the front half of the site and that the CMFO pay the amount of $2,000,000 plus HST, if applicable, to the City on closing, this amount being the market value of the rear portion of the site;

b) That the CMFO provide their final Business Plan to the City for the subject property no later than 15 July 2011 including a concept plan showing the proposed development;

c) That the closing date shall be no later than 3 years from the date of execution of the agreement of purchase and sale by both parties;

d) That the City maintain the subject property and the main heritage building as a “vacant building” including minimum life cycle requirements and also secure the rear annex building to prevent entry and minimize liability until the closing date;

e) That the CMFO submit non-refundable payments, each in the amount of $35,000 commencing on the date of execution of this agreement by both parties and every four (4) months thereafter until closing date with annual adjustments being made to reflect actual operating costs and minimum lifecycle costs estimated at $105,000 per year and these non-refundable payments shall not be credited to the purchase price on closing;

f) That this agreement will become null and void if the project is cancelled before the closing date or the CMFO does not submit their Final Business Plan on or before 15 July 2011; and

g) That in the event that the CMFO does not proceed with the development of this property in accordance with their Final Business Plan within two years after the closing date, the City shall have the option to repurchase the entire property for $2,000,000 and upon the City repurchasing the property, it may market the property for sale for redevelopment.

4. Waive City policy pertaining to the public marketing of viable properties.

RECOMMANDATIONS DU RAPPORT

Que le Comité des services organisationnels et du développement économique recommande au conseil municipal de :

1. Prendre connaissance du troisième rapport d’étapes du Centre multiservice francophone de l’Ouest d’Ottawa (CMFO) daté du 17 juin 2010, annexé au présent rapport et intitulé Document 1, portant sur un plan d’affaires pour l’aménagement d’un centre de services communautaires polyvalent, d’une installation de soins de longue durée et d’une coopérative de logements pour personnes âgées sur ladite propriété;

2. Déclarer surplus par rapport aux besoins de la Ville la propriété indiquée comme les lots A et B dans le document 2 en annexe, comprenant une section de 2,07 hectares (5,11 acres) connue dans la municipalité comme étant le 2720, chemin Richmond et décrite comme une partie du lot 21 de la concession 2 (O.F.) du canton géographique de Nepean, maintenant dans la Ville d’Ottawa, représentant le PIN 03959-0080 dans sa totalité;

3. Approuver la vente de la propriété indiquée comme les parcelles A et B dans le document 2 en annexe, telle quelle et sous réserve des servitudes requises et ayant une valeur marchande de 3 940 000 dollars, au Centre multiservice francophone de l’Ouest d’Ottawa (CMFO) conformément au protocole d’entente qui a été reçu et est assujetti aux conditions suivantes :

a) que la Ville accorde une subvention de 1 940 000 dollars au CMFO comme contribution municipale au projet du centre multiservice francophone dans le secteur ouest d’Ottawa, cette subvention représentant la valeur marchande de la partie avant de la propriété et que le CMFO accepte de payer un montant de 2 000 000 dollars plus la TVH, si elle s’applique, à la clôture, ce montant représentant la valeur marchande de la partie arrière de la propriété;

b) que le CMFO dépose son plan d’affaires définitif à la Ville pour ladite propriété au plus tard le 15 juillet 2011, accompagné d’un plan de conception décrivant l’aménagement proposé;

c) que la date de clôture ne dépasse pas trois ans suivant la date d’exécution du contrat d’achat et de vente par les deux parties;

d) que la Ville entretienne ladite propriété et l’édifice patrimonial principal en tant qu’immeuble vacant, en gère la durée utile et assure la sécurité de la bâtisse adjacente arrière pour empêcher l’entrée et minimiser les risques d’ici la date de clôture;

e) que le CMFO fasse des paiements non remboursables de 35 000 dollars chacun, à partir de la date d’exécution de ce contrat par les deux parties et tous les quatre mois par la suite jusqu’à la date de clôture, des ajustements annuels étant faits pour refléter les frais d’exploitation réels et les coûts minimums d'entretien de durée utile estimés à 105 000 dollars par année, et ces paiements non remboursables ne seront pas crédités du prix d’achat à la clôture;

f) que cette entente devienne nulle et sans effet si le projet est annulé avant la date de clôture ou si le CMFO ne dépose pas son plan d’affaires définitif d’ici le 15 juillet 2011;

g) advenant que le CMFO ne procède pas après la date de clôture à l’aménagement de ladite propriété conformément à son plan d’affaires définitif dans un délais de deux ans suite à la clôture, que la Ville puisse racheter la propriété dans sa totalité pour 2 000 000 dollars, et une fois ladite propriété rachetée par la Ville, qu’elle puisse la mettre en vente sur le marché aux fins de réaménagement.

4. Déroger à la politique municipale relative à la mise en vente sur le marché de propriétés viables.

BACKGROUND

Acquisition of Former Grant School Property

The City purchased the subject property in March 2008 (Report Number ACS2007-BTS-RPM-0046) for $3,940,000 from the Ottawa Carleton District School Board (OCDSB).

The subject property is a 2.07 hectares (5.11 acres) parcel of land improved with a three-storey 2,835 m² (30,516 sq. ft.) vacant building including a one-storey rear addition (former Grant School) situated on the south side of Richmond Road just east of Pinecrest Road within the Queensway Terrace North Community, as shown on the attached Document 2. There is also a detached one-storey building located in the rear yard. The exterior of the main building and the front lawn with its landscaping were designated under Part IV of the Ontario Heritage Act by City Council in July 2008. The area subject to the heritage designation is approximately 0.92ha (2.27 acres) and the extent of the area is shown on Document 2 attached to this report. The one-storey rear addition and the one-storey detached building at the rear of the existing building are not included in this designation.

The acquisition of the property was approved subject to staff reporting back to Council with a business case outlining how the property can be optimized by severing off the school at the front of the property and selling it to a community partner, Centre multi-services francophone de l’Ouest d’Ottawa (CMFO). In addition, approval was subject to a viable business plan and offering the remaining lands for sale to a developer to create intensification within the greenbelt in support of the objectives of the Official Plan and offset a portion of the acquisition cost of the property. The highest and best use for development was assumed to be low to medium density residential uses subject to rezoning and market conditions. The subject property is situated in an I1A – Minor Institutional Zone.

CMFO Business Plan Status

Meetings were held in October 2008 and January 2009 with representatives of CMFO. They advised that they would present a business plan to the City in August 2009. The CMFO also advised that they required the whole site to develop a viable business plan. They were made aware that the City had not intended to transfer the whole property to a community partner and the resulting shortfall would have to be presented to Council for consideration.

On 15 October 2009 the City received an interim Business Plan from the CMFO. The proposal encompassed a community service centre, a senior’s co-op housing component and a long term care facility. Staff reviewed the proposal and requested additional information. On 2 November 2009, the CMFO submitted a revised interim Business Plan. The expected contribution from the City to the CMFO project was not outlined in the business plan. The CMFO requested that the City keep this property on hold until January 2011 to allow time to prepare a detailed business plan for their project.

On 9 December 2009, City Council approved the recommendations in report number ACS2009-CMR-REP-0046 – Disposal Strategy - to receive the CMFO Progress Report dated 2 November 2009 and allow the CFMO until 31 January 2010 to submit their Final Business Plan to the City.

DISCUSSION

On 6 May 2010, the CMFO submitted their interim Business Plan to the City and submitted a further revised document on 17 June 2010 (see attached Document 1). The CMFO requested an extension until the end of 2011 to submit their Final Business Plan. Staff is recommending that the CMFO Final Business Plan, including a concept plan, be submitted to the City by 15 July 2011. This will allow one more year for the CMFO to firm up agreements with their partners and obtain the necessary funding commitments to finalize their Business Plan. A meeting was held with the CMFO on 17 June 2010 and it was agreed that the City will proceed based on a Memorandum of Understanding (MOU) between the two parties to obtain approval to transfer the property to the CMFO subject to conditions as outlined in the MOU and Recommendation 3 of this report.

In accordance with this agreement, the City will transfer the property to CMFO within the next three years and the CMFO will pay non-refundable payments every four (4) months to cover the operating and minimum life cycle costs for the property until the deferred closing date. The City has been maintaining the property since March 2008 on an interim basis until a decision was made as to its future use. It was felt that it is now reasonable for the CMFO to take over the responsibility for maintenance and life cycle costs based on the City deferring the closing date up to three years.

The entire property is being sold to CMFO. The market value of the property is $3,940,000. The City’s contribution to this project is a grant in the amount of $1,940,000 being the market value for the front portion of the site. The CMFO is a non-profit organization registered as “Cooperative multiservices francophone de l’Ouest d”Ottawa”, registration number 1613452, and is therefore eligible for such a grant.

The CMFO will pay $2,000,000 plus HST if applicable, on closing. This amount represents the market value for the rear portion of the property and is considered the CMFO’s contribution in order to acquire the entire site as opposed to the front portion only as was originally proposed. In this agreement, the City recuperates $2,000,000 from the initial acquisition cost, and this amount reflects approximately the expected revenue if the City had sold the rear portion of the site on the open market.

In accordance with the City’s Surplus Property Disposal By-law, properties meeting minimum requirements of the zone to permit development are considered viable and must be advertised for sale to the general public. However, this property was acquired on the understanding this site may be transferred to a community partner subject to certain conditions, and this policy is therefore being waived as per Recommendation 4.

The proposed development of this site by the CMFO in accordance with the Business Plan submitted will consist of the following:

The existing building will be gutted except for the exterior walls and rebuilt as a multi-use service centre that will house community groups, a family health centre, a daycare/school including educational programs operated by La Cité collégiale, a dental clinic, and a Caisse Populaire service centre for a total of 35,500 square feet. The rear portion of the property will be developed as a 100 unit co-op housing project for seniors and a 117 bed, long term care facility. The total project’s cost will be approximately $55M.

This centre will serve the Francophone population in West Ottawa of approximately 28,000 being approximately 20% of the City’s total francophone population of 143,000 people. French will be the language of governance, administration and work, but the complex will be open to everyone.

The feasibility analysis for this project is based on the hypothesis that the construction funds will be provided by various founding sources from three levels of government. The analysis concluded that the feasibility of the community service centre is marginal in the long term and requires the development of the rear portion of the site to support the project being the proposed housing co-op and long term care facility. These proposed uses are permitted under the present I1A Institutional zoning for this site except for the housing co-op which will require a zoning amendment to allow low rise apartments. The project’s strength rests in the organizations that will be participating in it. The Montfort Hospital, Revera, Cité collégiale, and the Équipe de santé familiale communautaire de l’Est d’Ottawa are organizations that create structuring partnerships. The housing co-op, together with the long term care centre, will offer an innovative model for seniors. The synergy that will be created between the entire complex components will determine its success.

This project has been conceived, developed and supported by a very committed group of community volunteers with limited professional resources. They have shown significant progress in developing their service model and a number of applications have been submitted to various Provincial Ministries, with responses pending. As a result, the time frames outlined within this report to complete updated concept plan leading to finalization of the sale, are reasonable.

ENVIRONMENTAL IMPLICATIONS

The City undertook a Phase I and II ESA as part of the due diligence process when it acquired the property and no environmental issues were identified.

RURAL IMPLICATIONS

There are no rural implications resulting from the sale of the subject property.

CONSULTATION

Councillor Cullen and the General Manager of Community and Social Services recently met to discuss this project and concur with the recommendations in this report. Subsequently, staff met with the members of the CMFO board of directors to discuss the proposed recommendations in this report.

HOUSING FIRST POLICY

The Official Plan policy directs that the City make land available for affordable housing and give priority for the sale or lease of surplus City-owned property for this purpose.

The Housing First Policy, approved by Council on 13 July 2005, establishes priority consideration to the Affordable Housing Division in the identification of potentially surplus City-owned property, to be used in achieving the City’s affordable housing program targets. The policy also requires that the Official Plan target of 25% affordable housing, be met on any City-owned property sold for residential development. Where viable, residential properties are disposed of without a condition requiring an affordable housing component, and 25% of the proceeds from the sale are to be credited to a housing fund, to be used for the development of affordable housing elsewhere in the City.

The subject property is a viable property and therefore meets the affordable housing criteria outlined in the Housing First Policy. The current CMFO Business Plan includes a proposal for a 100 unit co-op housing project for seniors. Should this plan materialize, it is expected that the 25% affordable housing target will be achieved.

COMMENTS BY THE WARD COUNCILLOR(S)

I am in full support of the recommendations contained in this report. City staff has worked with CMFO to enable this former school site to be converted into a true community centre serving the francophone community in Ottawa's west end while respecting the heritage features of the site. It is a good example of how the City's Surplus Schools Policy has been used to benefit the community

LEGAL/RISK MANAGEMENT IMPLICATIONS

Legal Services has been advised that CMFO is a non-profit organization. Grants are permissible to organizations that are not a “manufacturing business or other industrial or commercial enterprise”. On that basis, there are no legal/risk management impediments to implementing any of the Recommendations arising from this Report.

CITY STRATEGIC PLAN

The City purchased this property with the intent to provide an opportunity to a community partner to redevelop the front half of the site and sell the rear portion for redevelopment to offset half of its acquisition cost. The community partner, (CMFO) determined that they required the entire property for their development. The entire property is being sold to the CMFO subject to them contributing $2M being the market value of the rear portion of the site and subject to a viable business plan. The City’s objective of recuperating half the acquisition cost is being met, and the CMFO will benefit from a larger site for their proposed development to serve the francophone community in the west end of Ottawa.

TECHNICAL IMPLICATIONS

N/A

FINANCIAL IMPLICATIONS

The acquisition cost of this property was $3,940,000. The property is being sold to CMFO for $2,000,000. The difference of $1,940,000 represents the City’s contribution to this project. The net revenue of $2,000,000 will be credited to the sale of surplus account.

SUPPORTING DOCUMENTATION

Document 1 - Interim CMFO Business Plan report dated 17 June 2010

Document 2 - Sketch showing the subject property.

DISPOSITION

Upon approval of the recommendations of this report by Council, Real Estate Partnerships and Development staff will prepare the agreement for the sale of this property to CMFO based on the Memorandum of Understanding and continue to liaise with the CMFO, finalize this transaction and continue to monitor the progress of the project to completion.

DOCUMENT 1

Business Plan submitted by the CMFO – 17 June 2010

FINAL VERSION

BUSINESS PLAN SUMBITTED TO THE CITY OF OTTAWA

LAND PURCHASE PROPOSAL

FORMER GRANT SCHOOL SITE

2720 RICHMOND ROAD, OTTAWA

COMPLEXE MULTISERVICES FRANCOPHONE DE L’OUEST

JUNE 17, 2010

Thanks to the Trillium Foundation who made this study possible.

TABLE OF CONTENTS

1. SUMMARY..

2. Introduction..

3. The Francophone Community of West Ottawa – Demographic and Economic Picture..

3.1. Wards of the City’s West End.

3.2. A Portrait of Francophones living in Census Families in West Ottawa.

3.3. The Economic Situation of Francophones in West Ottawa.

4. Description of the Grant School Site..

5. Community Centre’s Financial Data..

6. The Three Components of a Project Occupying the Entirety of the Land

6.1. Discussion Parameters.

6.2. Project’s Three Components.

6.2.1. Community Centre.

6.2.2. Long-Term Care Centre.

6.2.3. A Housing Cooperative for Seniors.

6.3. Summary of the Three Components.

7. Results of Discussions with one of the City’s Urban Planners..

8. Observation and Decision: Purchasing of the Land..

9. Follow-ups..

10. Conclusion..

11. Support Letters from the Montfort Hospital and Cité collégiale..

LIST OF FIGURES

Figure 1 - Grant School Site – Entirety of the Land.

Figure 2 - Grant School Site – Split Land.

LIST OF TABLES

Table 1 – Municipal Wards – West Ottawa.

Table 2 - Demographics, West Ottawa, CF Families, 2006.

Table 3 – Average Personal Income – Census Families – West – City of Ottawa, 2005.

Table 4 - Occupants at the Community Centre and Surface Area Needed.

Table 5 – Fund inputs and outputs, scenario with an operating cost of $8 per square foot

Table 6 – Fund inputs and outputs, scenario for an operating cost of $9 per square foot

Table 7 – Fund inputs and outputs, scenario for an operating cost of $9 per square foot and a reserve of 2%

1. SUMMARY

Our firm was given the mandate of preparing the business plan for the Centre multiservices francophone de l’Ouest d’Ottawa (CMFO), which will be located at the Grant School site at 2720 Richmond Road in Ottawa. Work began on 1 December 2008 and will continue until the end of 2011. This study is a follow-up to the first needs study, conducted on 1 November 2004 and titled Feasibility study for the creation of a Francophone multiservice centre in West Ottawa.

Following this study, the CMFO conducted an initial fund raising campaign and collected $440,000. The CMFO also approached the City to look into purchased land that would accommodate the centre. On 27 June 2007, the Grant School site was put up for sale by the Ottawa-Carleton District School Board. The City of Ottawa bought the land in March 2008 for $3,940,000. The property was purchased for the construction of the community centre planned by the CMFO, subject to certain conditions. Initially, the City wanted to split the property in two, giving the front part to the CMFO where the school currently sits and selling the rear section for a residential complex to recover part of the purchase cost.

The business plan included a demographic analysis of the west end areas, i.e.

· Barrhaven

· Kanata North

· West Carleton-March

· Stittsville-Kanata West

· Bay

· College

· Knoxdale-Merivale

· Somerset

· Kitchissippi

· River

· Kanata South

The total Francophone population in West Ottawa is approximately 28,000 people, 23,025 of whom live in census families. Francophones comprise a bit more than 9% of the total west end population and 20% of the city’s total Francophone population. In total, 6,045 Francophone immigrants live in the west end, i.e. 26% of the west end’s total Francophone population and 31% of the city’s Francophone immigrants.

Generally speaking, Francophones have an average personal income that is higher than Anglophones. The difference is around 10%, the exceptions being the areas of Kitchissippi, Bay and College where Francophones have a lower income than Anglophones. The higher the income people have, the more they live in the suburbs. The economic situation of Francophone immigrants is quite similar to that of Anglophone immigrants in each area. The average personal income impacts the geographic distribution of Francophone and Anglophone immigrants in a way similar to the non-immigrant population. The higher the income of immigrants, the more they tend to settle in the peripheral areas. Among the Francophone immigrants, there are small pockets of prosperity in Kanata North, West Carleton-March and Kanata South. However, there are significant pockets of poverty among the Francophone immigrants in Bay, College and River.

The Grant School site purchased by the City covers a total area of 5.11 acres, or 222,788 square feet. The current school has a total surface area of approximately 31,000 square feet. In July 2008, the front part of the site was designated a protected zone by city council, in accordance with Part IV of the Ontario Heritage Act. The school is obsolete and will have to be demolished, except for the outside walls which must be preserved for heritage purposes.

The following table presents the potential occupants of the community centre and an estimate of the space required.

Occupant	Surface area in net square feet	Surface area in gross square feet – estimate
CMFO	300	376
Centre communautaire Franc-Ouest	800	1,000
Coopérative Ami Jeunesse	2,000	2,500
Centre Soleil d’Ottawa Ouest	150	187
Action Logement	150	187
Centre de services –Caisse populaire	2,000	2,500
Family Health Centre – Équipe de santé familiale communautaire de l’Est d’Ottawa	8,000	10,000
Cité collégiale – Daycare-school, educational programs and other services	12,000	15,000
Dental clinic	3,000	3,750

Total surface area required	28,400	35,500

The feasibility analyses are based on the hypothesis that the construction funds will be provided by various funding sources from the three levels of government, each based on its own programs and initiatives, and there will be no mortgage on the building. The analyses concluded that the feasibility of the community centre is marginal in the long term if the centre is limited to the front part of the land. The available space does not allow for future expansion possibilities. This poses a problem since Cité collégiale alone could use 18,000 net square feet. Also, the CMFO cannot assume the risk of being the landlord for all these spaces. The plan includes a certain amount of space being reserved for regular rental to small non-profit groups. It will be necessary to develop an owner‑tenant concept or long-term leases for the other groups that will be housed at the centre, notably those that will be using large spaces. The potential partners expressed a desire to analyze various modalities in this regard.

In January 2009, the CMFO asked City managers to provide it with the time needed to come up with a group of partners in order to buy the rear part of the land and to design a complex that would meet several needs in the community. The City agreed.

The land available for construction is approximately 4 acres of the total of 5.11 acres. The Francophone population of Ottawa is 143,000 people according to the 2006 census. If it was a city, the Francophone community of Ottawa would be the 22^nd largest city among Canadian cities in terms of population. The CMFO’s perspective is to see to the development of the Grant School site through the lens of a city looking to optimize the services rendered to its population over its territory as a whole and not through the lens of services to be rendered to a small minority community within a given geographic area.

This perspective led the CMFO to approach Francophone partners who serve the entire City of Ottawa and Eastern Ontario. The goal is to maximize the use of resources and Francophone structures that already exist in the City and develop the Grant School site with established partners with solid foundations.

The planned project encompasses three separate but complementary components:

· Community centre

· Long-term care centre

· Housing cooperative for seniors

At this stage of the process, planning is in the design phase only. Partners for the long-term care centre are the Montfort Hospital and Revera Inc. It would be a centre with 117 beds, covering an area of 73,125 square feet. The project is planning for a palliative care environment with a few beds for people in the latter stages of life.

The housing cooperative for seniors 55 and older is designed so that residents will be able to fully benefit from the integrated health services and social services of the community centre as well as the services offered by the long-term care centre. They will be able to remain in the same complex for the rest of their lives even if their health status were to change. The project is also planning for approximately 100 units, covering an area of 40,000 square feet. This project would be undertaken in collaboration with the Coopérative pour le bien-être des aînés francophones de l’est de l’Ontario.

The land would still belong to the community.

The project’s total cost would be $55,000,000, broken down as follows:

· Community centre: $10,000,000

· Long-term care centre: $18,700,000

· Housing cooperative: $18,000,000

· Other costs and incidentals – demolition of the old buildings, landscaping of the land, entrances and exits, etc.: $8,700,000

The final costs will be determined following architectural work.

The CMFO had an informal discussion with one of the City’s urban planners. The preliminary response by the urban planner was that the use of the land for the community centre component and the long-term care centre component would be permitted under the bylaws. A bylaw exemption, however, would be needed for the housing cooperative. The zone could keep its l1A standing with an exemption for low-rise apartments and housing units.

Being located on the same site, the three components (community centre, long-term care centre and housing cooperative) would provide significant synergy. Here are a few examples: health services will be integrated; Cité collégiale will be able to use classrooms for a few of its health programs; there will be a site for clinical internships; the daycare could be used by employees; everyone will be able to avail themselves of the services provided by the dentist's office and the credit union. In addition, the project as designed would generate significant savings in terms of capital costs. We just need to think of the community spaces for the cafeteria, the meeting rooms and laundry services that could be shared by the users. For example, this way the Cité collégiale could have access to more rooms without them having to be all located in the community centre component. Lastly, the housing cooperative and the community centre will be able to share administration costs.

Discussions with the partners confirmed the necessity to buy the land. Without having the land in hand, the partners are hesitant to commit themselves fully in the analysis process needed to reach a final decision on each of the project’s components. These processes require a major investment in terms of energy, time, human resources and financing. It is difficult to commit to such a process without the certainty that the land will belong to the CMFO.

Request to the City: The CMFO is proposing that the City buy all of the land located at 2720 Richmond Road, under the following conditions:

1. The purchase price is $2,000,000. The CMFO will take steps with the other levels of government to request capital contributions under the programs they have in effect. The City paid $3,940,000 for the land as a whole. The City’s intention is to give the front part of the land to the CMFO for the community centre and to sell the rear section. The amount of $1,940,000, i.e. the difference between the purchase price paid by the City and the amount received from CMFO for the purchase of the land, is the City’s contribution to the community centre project.

2. It is a provisional sale for a three-year period, a period during which the CMFO and the partners will gather the contributions needed to continue the project.

3. The City will sign a buy-back agreement for the property for a minimum amount of $2,000,000, without any restrictive or release clauses.

4. The inability to implement the project as planned, whether for technical, financial or other reasons, will be a sufficient argument to require the enforcement of the buy-back clause by the City at the aforementioned amount.

5. The CMFO can demand the buy-back of the property before the end of the 3-year period, if it becomes obvious that the project cannot come together before the deadline.

6. It is expected that the project will not generate any revenue over the three-year period. According to information provided by the City, the operating fees for the site at the moment total approximately $64,000 per year plus lifecycle costs. The CMFO is asking that the City assume these fees up until the moment the project can generate revenue or until the land is bought back. The terms and conditions in this respect will be clarified at the appropriate time.

7. The CMFO will take out its own insurance policy for the site. The City will have to demolish the annex behind the school, which is not insurable.

8. The CMFO is asking for an exemption on municipal taxes, for the three years of the provisional sale or until the moment the project can generate revenue, based on the shorter of these two periods.

The Mouvement Desjardins-Caisse populaire Vision Inc. has agreed to grant a mortgage for the three-year period. The CMFO signed the financing offer letter on 23 April 2010. The CMFO is therefore in a position to pay the sale price to the City once the lawyers have completed the paperwork.

In the event of a positive response from City Council to its purchase offer, the CMFO will undertake the following work starting in August 2010. The CMFO has already obtained funding from the Trillium Foundation for consulting services and to continue its process.

1. The CMFO will gather partners, create a construction committee and hire an architect. It will work closely with the City’s urban planners to make sure that the project’s three components respect municipal bylaws and will request a bylaw exemption for the housing cooperative.

2. The CMFO will undertake steps to maintain ongoing communication with the neighbours around the Grant School. The board of directors wants to make sure the Grant School project contributes to the neighbourhood’s character. For example, the board wants to preserve the mature trees on the site and highlight the front yard. Sidewalks to the south and east of the site will enable neighbours to cross the schoolyard to reach Richmond Road. The CMFO wants to maintain these access ways.

3. The CMFO will work closely with its partners in their steps to gather the necessary financing to construct the three components of the complex – the long-term care centre, the housing cooperative and the community centre. The CMFO will conduct a fund raising campaign for the part of the community centre occupied by the community groups. This part is different from the part that will be occupied by the health centre and Cité collégiale. The CMFO will have to collect funds for the construction of approximately 5,000 square feet. This could represent an amount ranging between $1,250,000 and $1,500,000. Fund raising efforts will include activities with the community and steps with government funding sources.

4. The CMFO will maintain regular contact with City authorities.

5. The CMFO will undertake the required steps to develop a Nurse Practioner-Led Clinic, to be housed in the community center, and will submit a project to the Ministry of Health and Long-Term Care in June 2010, in response to the Call for Applications-Wave3.

6. The CMFO will structure the governance for the complex as a whole. Each partner will provide governance for its own organization, but there also has to be governance for the site as a whole. Since it is a community project, the CMFO will organize a general governance structure that will be undertaken by the west end Francophone community as a whole. It includes the organization of a democratic and participatory structure, the holding of annual meetings, the creation of volunteer committees and so on and so fourth. The CMFO is also planning to create an operations committee composed of the general management of the project’s various components. This operations committee will see to the proper operating of the capital project and will resolve the issues surrounding the use of spaces based on the policies adopted by the board of governors.

Conclusion

The project has changed considerable over the study period. It is now a large project that seeks to create a complex that will meet the needs of Francophones and the community in general for many years to come. French will be the language of governance, administration and work, but the complex will be open to everyone.

The project’s strength rests in the organizations that will be participating in it. The Montfort Hospital, Revera, Cité collégiale, and the Équipe de santé familiale communautaire de l’Est d’Ottawa are organizations that create structuring partnerships. The housing cooperative, together with the long-term care centre, will offer an innovative model for seniors. The synergy that will be created between all the complex's components will determine its success.

2. Introduction

Our firm was given the mandate to prepare the business plan for the Centre multiservices francophone de l’Ouest d’Ottawa (CMFO), which will be located at the Grant School site at 2720 Richmond Road in Ottawa.

The work began on 1 December 2008 and it is expected to continue until the end of 2011.

The mission of the Centre multiservices francophone de l'Ouest d'Ottawa (CMFO) is to be a place for people to gather, for the growth and development of the French language and for the promotion of French services to the Francophone and Francophile population of West Ottawa.

More specifically, the CMFO is pursuing the following objectives:

1. Gather together and offer a space for all organizations looking to offer services in French to the Francophone and Francophile population of West Ottawa;

2. Support Francophone organizations working within the Centre in order to help them better serve the Francophones and Francophiles of West Ottawa, notably Francophones and Francophiles who live in poverty and who have difficulty integrating into the community;

3. Provide the necessary training to stakeholders from various tenant organization in order to develop synergy and joint and concerted strategies in terms of interventions with the Francophones and Francophiles of West Ottawa.

The representatives of the CMFO believe that the delivery of various Francophone community and cultural services in a joint gathering area will promote greater visibility for the services and greater access that will allow the Francophone community of the city’s west end to live in its own language, to participate fully in all aspects of Canadian society and ensure its long-term development.

The members of the CMFO board of directors:

1. Jocelyne Chénier (President): Ms. Chénier was a hospital social worker for seniors.

2. Roger Farley (Vice President): Mr. Farley is a Health Canada employee.

3. Diane Normand (Treasurer): Ms. Normand is retired. She had worked in the banking sector.

4. Castel Éveillard (Councillor): Mr. Éveillard is a teacher.

5. Ronald Saumure (Councillor): Mr. Saumure currently works for the Government of Canada in building management.

6. William L. Neville (Councillor): Mr. Neville owns a mediation firm.

7. Jérôme Tremblay (Councillor): Mr. Tremblay is formerly an elementary school principal and is now retired. He is the president and founder of the Coopérative AMI JEUNESSE.

8. Marlene Catterall (Councillor): Ms. Catterall is retired. She has been a teacher, consultant and federal MP for Ottawa-West-Nepean from 1988 to 2005.

9. Jean-Louis Schryburt (Councillor): Mr. Schryburt is retired. He worked in the French education sector in Ontario and is a volunteer in various organizations in the region, notably with seniors and in the health sector.

This study is a follow-up to the first needs study completed 1 November 2004 titled Feasibility study for the establishment of a Francophone multiservice centre in West Ottawa. A survey with a representative sample of 152 respondents, comprising members from community organizations and parents of Francophone schools in West Ottawa, confirmed that the level of interest in receiving French services was generally quite high. People had to indicate their level of interest in receiving these services on a scale of 1 to 4, where 1 indicated “no interest” and 4 indicated “a very high level of interest”. In decreasing order of interest, the services ranked as follows:

Municipal library services in French (3.46)
French book store services (3.38)
Doctor services (3.16)
Health promotion services (3.11);
Daycare and early childhood services and cultural services (3.09)
Credited courses from Cité collégiale (3.07)
Palliative care support services and the services of a French credit union (3.05)
Lawyer and legal services (3.04)
Services for seniors (3.02)
Social services (2.98)
Continuing education courses (2.96)
ATM services at the French credit union (2.95)
Sport and recreational services (2.94)
Employment and business services (2.93)
Basic mental health services (2.85)
Literacy courses (2.84)
Services for immigrants and refugees (2.82)

This quantitative data was validated with four control groups in which some forty people participated.

The study recommended that those responsible for the initiative undertake steps to implement a Francophone multiservice centre in West Ottawa that would accommodate among other things:

· A health centre

· An employability and entrepreneurship centre

· A daycare centre

· A branch of the Caisse populaire

· A bookstore or municipal library

· Office space to be rented out to Francophone socio-community organizations and multipurpose rooms

· Cultural services and an auditorium

· Services for immigrants and refugees

The CMFO followed the study’s recommendations and undertook steps to find a site. On 27June 2007, the Grant School site was put up for sale by the Ottawa-Carleton District School Board. The City bought the land in March 2008 for $3,940,000. (See City report ACS2007-BTS-RPM-0046.) According to the City report, the property was purchased to house the community centre planned by the CMFO, with certain conditions. Initially, the City planned to split the land in two, giving the front part to the CMFO, where the school is currently located, and selling the rear part for a new residential complex, all in compliance with the City’s Official Plan, in order to recover part of the purchase cost.

The business plan lists the work completed to date. It presents the following information:

1. A demographic analysis of the Francophone population in West Ottawa

2. A description of the Grant School and the land

3. A financial analysis of the proposed community centre: an estimate of the construction/renovation costs and the revenue sources, an estimate of the annual operating costs, the financial plan for the first ten years, in three components, i.e. the pro forma budget, the bottom lines and ratios and the liquidity needs per month, as well as the sensitivity analysis

4. Analysis conclusion: buy all of the land and plan a project in three components

5. The three components of a project that can occupy all of the land

6. The results of an informal discussion with one of the City's urban planners

7. The observations and the decision: purchase of the land as a whole and the financial commitments secured

8. The follow-ups

9. The appendices: commitment letters from the major partners

The map below indicates where the site is located.

3. The Francophone Community of West Ottawa – Demographic and Economic Picture

3.1. Wards of the City’s West End

The City of Ottawa currently consists of 23 areas. This structure is the result of the 1999 act that created a single level of municipal government and that merged the Ottawa-Carleton region and the 11 local municipalities.

There are no official boundaries determining where the region commonly known as the west end start or ends. Some of the complex’s planned components, such as the Multiservice Centre, might attract Francophones from all over the city whereas other components will draw people located nearby. For the purposes of this study, we consider that the following areas are part of the city’s west end. These are areas mostly located west of Bronson Avenue or west of the Rideau River in the south end of the city.

Table 1 – Municipal Wards – West Ottawa

Ward No.	Ward
3	Barrhaven
4	Kanata North
5	West Carleton-March
6	Stittsville-Kanata West
7	Bay
8	College
9	Knoxdale-Merivale
14	Somerset
15	Kitchissippi
16	River
23	Kanata South

The numbering for these wards was taken from the following City website. (See: http://www.ottawa.ca/city_hall/ward/current_structure/index_en.html, page consulted on 1 March 2010.)

A map of the wards can be found at the following site: http://www.ottawa.ca/city_hall/ward/new_structure/final_map.pdf

We have included ward 14 in this list because a significant portion of this ward is located west of Bronson Avenue. We have also included ward 16 since it is almost completely located west of Bronson Avenue and Airport Road. We did, however, exclude Ward 17, Capital, since the vast majority of residences in this ward are east of Bronson Street. The Francophone residents of these three central wards of the city, but west of Rideau River, will certainly make use of certain CMFO services, but they will also be able to go towards Patro or even the east end of the city for other services. This choice will depend in part on the nature of the services sought and the ease of access, by bus or by highway.

We included the rural wards, i.e. wards 5, 6 and 23. Some readers might be surprised to find out that Francophones have been established in these regions for several years, drawn by, among other things, the advanced technology industry located in Kanata.

We have also excluded ward 21 (Rideau-Goulborn) and ward 22 (Gloucester-Nepean South). These wards are located west and south of the city. They could be considered wards of the west end, but they are quite far from the Grant School site.

The fact that the Grant School is located a few minutes away from the Queensway, at the Pinecrest exit, will facilitate access enormously for anyone with a vehicle. Also, the site, located near the Lincoln Fields station, is easily accessible by the city's mass transit system. Grant School is located 1 km from the Lincoln Fields station, a walk of approximately 15 minutes. Four bus lines serve the site, i.e. routes #2 - Downtown - Bayshore, #85 - Hurdman - Bayshore, #97 - South Keys / Airport - Tunney’s Pasture and #116 - Baseline - South Keys. Route #172 - Lincoln Fields - Bayshore is a 5-minute walk on Pinecrest Street, near Richmond Road.

3.2. A Portrait of Francophones living in Census Families in West Ottawa

Table 2 presents the distribution of the Francophone population living in census families (CF) in the city’s west wards in 2006. (Source: Personalized Table – Statistics Canada – 2006 Census – Data – sample - 20%).

The reader needs to have an understanding of the term “census family”. Statistics Canada defines a census family as follows:

· A married couple and the children, if any, of either or both spouses;

· A couple living common law and the children, if any, of either or both partners; or

· A lone parent of any marital status with at least one child living in the same dwelling and that child or those children.

All members of a particular census family live in the same dwelling. A couple may be of opposite or same sex. Children may be children by birth, marriage or adoption regardless of their age or marital status as long as they live in the dwelling and do not have their own spouse or child living in the dwelling. Grandchildren living with their grandparent(s) but with no parents present also constitute a census family. (Source: http://www.statcan.gc.ca/concepts/definitions/c-r-fam-eng.htm - page consulted on 1 March 2010.)

The data uses the First Official Language Spoken derivation (FOLS). Statistics Canada defines this derivation in the following manner:

The derivation method is described in the regulations concerning the use of official languages for the provision of public services. The derivation first takes into account the knowledge of the two official languages, second the mother tongue, and third the home language (i.e., the language spoken most often at home).

In the derivation, people who report in the knowledge of official languages question that they can conduct a conversation in French only are assigned "French" as their first official language spoken. People who report that they can carry on a conversation in English only are assigned "English" as their first official language spoken.

The responses to questions on mother tongue and home language are subsequently used to establish the first official language spoken by people who report speaking both English and French well enough to conduct a conversation, or who report that they cannot speak either of the two official languages. Specifically, the "French" category includes people (not yet classified) who have a mother tongue of French only or of French and at least one non-official language. The "English" category includes people (not yet classified) who have a mother tongue of English only or of English and at least one non-official language.

For cases that are not classified according to the preceding criteria, people are assigned to the "French" category when they speak French only or French and at least one non-official language as the language they speak most often at home. People are assigned to the "English" category when they speak English only or English and at least one non-official language as their main home language.

People are assigned to "English and French" when they speak both English and French well enough to conduct a conversation and when their mother tongues and home languages are both English and French or neither English nor French.

The derivation rules assign persons to particular languages as follows.

English

Includes:

1. Persons who can speak English well enough to conduct a conversation and cannot conduct a conversation in French;

2. Persons who can speak both English and French well enough to conduct a conversation who have English as their mother tongue or as one of their mother tongues along with a language other than French;

3. Persons who cannot speak either English or French well enough to conduct a conversation and who have English as their mother tongue or as one of their mother tongues along with a language other than French;

4. Persons not classified according to the preceding criteria, who can speak both English and French well enough to conduct a conversation and whose main home language is English or English and another language other than French; and

5. Persons not classified according to the preceding criteria who cannot speak either English or French well enough to conduct a conversation and whose main home language is English or English and another language other than French.

French

Includes:

1. Persons who can speak French well enough to conduct a conversation and cannot conduct a conversation in English;

2. Persons who can speak both French and English well enough to conduct a conversation and who have French as their mother tongue or as one of their mother tongues along with a language other than English;

3. Persons who cannot speak either English or French well enough to conduct a conversation and who have French as their mother tongue or as one of their mother tongues along with a language other than English;

4. Persons not yet classified according to the preceding criteria, who can speak both French and English well enough to conduct a conversation and whose main home language is French or French and another language other than English; and

5. Persons not classified according to the preceding criteria who cannot speak either English or French well enough to conduct a conversation and whose main home language is French or French and another language other than English.

English and French

Includes:

1. Persons who can speak both English and French well enough to conduct a conversation, and whose mother tongues and main home languages are both English and French; and

2. Persons who can speak both English and French well enough to conduct a conversation and whose mother tongues and main home languages are neither English nor French.

(Source: http://www.statcan.gc.ca/concepts/definitions/language-langue05-eng.htm - page consulted on 1 March 2010.)

We have added the categories FOLS French and FOLS French and English to create a Total of Francophones category since statistics show that a significant proportion of people in the category FOLS French and FOLS French and English are immigrants. These people can use services in French and their children are enrolled in French schools, in accordance with the policies of the Government of Ontario.

Text Box: Abbreviations to make it easier to read the tables

FOLS E = First Official Language Spoken – English
FOLS F = First Official Language Spoken – French
FOLS F+E = First Official Language Spoken – French and English
Total Francophone = Addition of FOLS F and FOLS F+E

Each row therefore presents census family data for each ward whereas the second-last row presents the same data for the total population of Ottawa.

Observations made from the tables:

· The total population of Francophones in West Ottawa who are members of census families is 23,025 people. The last row reveals that CF comprise 80% of the city's total Francophone population. If the same proportion applies to Francophones in West Ottawa, it can be reasonably concluded that the total number of Francophones in West Ottawa is approximately 28,000 people (23,025/0.8).

· CF Francophones comprise 9.4% of the total CF population in West Ottawa (23,025/243,880).

· Francophones in West Ottawa in CF comprise 20% of the total Francophone population in CF for the city as a whole (23,025/115,155).

· CF Francophone immigrants comprise 26% of the total CF Francophone population in West Ottawa.

· CF Francophone immigrants in West Ottawa comprise 31% of all CF Francophone immigrants in Ottawa (6,045/19,770).

· CF Francophone immigrant families have a much higher life rate (85%) than Anglophone families (83%) and Francophone families (80%).

The data regarding Francophone immigrants is particularly important. This high percentage surprised leaders during the discussions to group together partners for this project. People were unaware that West Ottawa was attracting such a large number of Francophone immigrants. It is obvious that a large portion of the project's activities will be targeting this immigrant population whose needs are often different than the needs of the non-immigrant population.

Explanation of the Table

Table 3 may appear complex at first glance. We presented various data since the simple average personal incomes do not provide an accurate enough picture of the economic situation in various segments of the population living in a CF. Since we are counting individuals categorized as FOLS F and FOLS F+E as Francophones, it is necessary to provide the personal income of these two categories since the data is presented this way by Statistics Canada. We cannot take the average of two averages and obtain a valid statistic.

One must understand the contents of each column in order to make comparisons between the appropriate columns.

· Column 3: the average personal income of all individuals 15 or older in CF categorized as FOLS F, whether they are immigrants or non-immigrants.

· Column 4: the average personal income of all individuals 15 or older in CF categorized as F + E, whether they are immigrants or non-immigrants.

· Column 5: the average personal income of all individuals 15 or older in CF categorized as FOLS E, whether they are immigrants or non-immigrants.

We then made a distinction between the average personal income of non-immigrants and immigrants for people living in CF. According to Statistics Canada, non-immigrants are people who are Canadian citizens from birth. Immigrants are people who have permanent residence status in Canada or who had it in the past. An immigrant with permanent residence status is a person who has been given by immigration officials the right to reside in Canada as permanent residents.

· Column 6: the average personal income of all individuals 15 or older in CF categorized as FOLS F and who are non-immigrants.

· Column 7: the average personal income of all individuals 15 or older in CF categorized as FOLS F + E and who are non-immigrants. The numbers in question for this column are very small for each ward (a few dozen in most cases) and cannot be used. The wording N/A means not available.

· Column 8: the average personal income of all individuals 15 or older in CF categorized as FOLS F and who are immigrants. In some cases, the numbers were too7 small and therefore not reported.

· Column 9: the average personal income of all individuals 15 or older in CF categorized as FOLS F + E and who are immigrants.

· Column 10: the average personal income of all individuals 15 or older in CF categorized as FOLS E and who are non-immigrants.

· Column 11: the average personal income of all individuals 15 or older in CF categorized as FOLS E and who are immigrants.

Observations from the Income Analysis:

· Columns 3 and 5 make it possible to compare the average income of individuals in CF from the total FOLS F and FOLS E population, whether the people are immigrants or non‑immigrants. Two trends were presented.

Francophones generally have an average personal income that is higher than Anglophones. The difference is around 10%, the only exceptions being the wards of Kitchissippi, Bay and College where Francophones have an income that is lower than Anglophones.

It is also obvious that the higher the income, the more people tend to live in the suburbs. The average personal income of FOLS F in peripheral wards is around $58,500 whereas the average personal income of FOLS F in the wards nearer the downtown is around $41,000. The same phenomenon is seen in the Anglophone population. The FOLS F + E category comprises, in large part, immigrants and the data regarding this segment is presented in column 9. We see the same phenomenon with this population. For example, FOLS F+E immigrants living in Kanata have an average income of $54,592 whereas those living in the Bay ward have an average income of $30,173.

· Columns 6 and 11 make it possible to compare the average income of individuals in CF from the total FOLS F and FOLS E population that is non immigrant. Once again, we can see that the average personal income of non-immigrant Francophones is higher than that of Anglophones in the peripheral wards, but about the same in the other wards. The average personal income of Francophones is around $50,000 and the average annual income of Anglophones is around $46,000.

· Columns 8, 9 and 10 make it possible to compare the situation of FOLS F, FOLS F + E and FOLS E immigrants. A few significant trends should be pointed out since they will have a rather important impact on the services that will be offered by the CMFO.

The economic situation of Francophone immigrants is quite similar to the economic situation of Anglophone immigrants in each ward. The average personal income has an impact on the geographic distribution of Francophone and Anglophone immigrants in a way that is similar to the non-immigrant population. The higher the income, the more immigrants settle in the peripheral wards.

There are pockets of prosperity among Francophone immigrants in the wards of Kanata North, West Carleton-March and Kanata South.

There are significant pockets of poverty among Francophone immigrants in the wards of Bay, College and River where the average personal income is around $30,000, compared to an average income of $34,000 for Anglophone immigrants, to an average income of $42,000 for non-immigrant Francophones and to an average income of $43,000 for non-immigrant Anglophones in these same wards. It can be expected that these Francophone immigrants will have greater need for health and employability services than Francophone immigrants who are better off and living elsewhere in West Ottawa and non-immigrant Francophones.

4. Description of the Grant School Site

Figure 1 presents a map of the overall site. The site has a total surface area of 5.11 acres or 222,788 square feet. In July 2008, city council designated the front part of the site as a protected zone, in accordance with Part IV of the Ontario Heritage Act. (See: http://www.e-laws.gov.on.ca/html/statutes/english/elaws_statutes_90o18_e.htm.)

The Grant School was inaugurated in 1922 by the old Township of Nepean. At the time it was a “centralized” school, meaning that it accommodated students from four other schools into a single classroom in a new institution designed to more efficiently meet their needs. Constructed at the time when the farmers’ party, the United Farmers of Ontario (UFO), held power at the Legislative Assembly with the support of the workers movement, the school had a community room, which was among the new facilities that the UFO government wanted to make available to the residents of rural regions. The school carries the name of the Education Minister at the time, R.H. Grant. (See: http://city.ottawa.on.ca/residents/planning/built_heritage/designation/plaques/2009_en.html)

The protected area (heritage zone), including the current school (without the extension attached to the school) and the land in front, covers 2.27 acres or 98,977 square feet. The unprotected surface area, at the rear of the Grant School, is 2.84 acres or 123,811 square feet. The building behind the school is not part of the designated zone. The school has a surface area of 30,516 square feet.

CMFO authorities visited the school on a few occasions, along with an architect and a City official. It quickly became apparent that the current building is outdated and that a new construction will be needed. The protected designation carries with it an obligation to preserve the walls of the school in any renovation or construction. The building behind the school, which houses classrooms, can be demolished.

According to City officials, there are no major environmental issues on the site. There were, however, three concerns expressed:

· There is no evidence of buried oil or coal, but the school was once heated with oil and probably coal. It is possible that heating materials might be buried there.

· The site is located 600 metres from an old landfill site. This might affect the underground work, but there is no plan to drill a well at the site.

· The buildings were constructed in 1920 and 1949. There are probably designated materials (asbestos, lead) in the building.

Figure 1 - Grant School Site – Entirety of the Land

5. Community Centre’s Financial Data

During 2008 and 2009, the CMFO held discussions with various potential partners to identify those who would be interested in moving into the community centre. The following organizations expressed a desire to have space at the centre.

The CMFO, the Centre communautaire Franc-Ouest, the Coopérative Ami Jeunesse, the Centre Soleil d’Ottawa Ouest and Action Logement are community groups that serve Francophones in West Ottawa and the city as a whole. The Centre communautaire Franc-Ouest offers cultural and recreational services. The Coopérative Ami Jeunesse is a charitable organization. The Centre Soleil d’Ottawa Ouest brings together seniors 55 or older; Action Logement offers services to low-income people. In all, these groups would need about 4,500 square feet of space.

Caisse populaire officials would like to explore the possibility of opening a branch at the centre. Space would be limited at first, but could be called upon to grow based on demand.

The CMFO approached the Équipe de santé familiale communautaire de l’Est d’Ottawa to have this organization operate a family health centre in West Ottawa in order to ensure an active offer of health services that are linguistically and culturally appropriate. The approaches and modalities will need to be studied and a business plan will have to be developed for this purpose. Preliminary discussions show that the CMFO should reserve about 10,000 square feet for this venture.

Cité collégiale wants to offer a point of service in West Ottawa that could include services to immigrants and training services. La Cité would be responsible for organizing a daycare at the site. It is planned that Cité collégiale would occupy approximately 15,000 square feet.

The following table presents a list of potential partners and the space required for each.

Table 4 - Occupants at the Community Centre and Surface Area Needed

Occupant	Surface Area in Net Square Feet	Surface Area in Gross Square feet – Estimated
CMFO	300	376
Centre communautaire Franc-Ouest	800	1,000
Coopérative Ami Jeunesse	2,000	2,500
Centre Soleil d’Ottawa Ouest	150	187
Action Logement	150	187
Centre de services – Caisse populaire	2,000	2,500
Health Centre - Équipe de santé familiale communautaire de l’Est d’Ottawa	8,000	10,000
Cité collégiale – Daycare-school, educational programs and other services	12,000	15,000
Dental clinic	3,000	3,750
Total surface area required	28,400	35,500

The gross space includes hallways, washrooms, mechanical rooms, a few meeting rooms and common rooms. Services could therefore be offered at the centre by organizations such as the Centre de services Guigues or others, benefiting the West Ottawa community. These spaces also include storage space for the occupying groups. At this stage in the discussions, it is not possible to clarify what specific spaces will be used and by what groups. This will come in the next phase, when the CMFO will form a construction committee, hire the services of an architectural firm and hold discussions with community partners.

To calculate the community centre’s financial data, we have developed a spreadsheet that is integrated into the Word electronic version of this report. Just click on the icon below and the complete spreadsheet in Excel format will appear on the screen. To reduce the ecological footprint of this report, we will only be taking up the highlights of the analysis in this report.

The spreadsheet presents the following variable data:

Surface area of the building in gross square feet (the surface area is a variable value since the construction costs, operating costs and the capital reserve are based on the total surface area);
Cost of construction per gross square foot;
Total value of the project without the land;
Current operating costs per square foot, per year;
Capital reserve as a percentage of the building’s value;
Rent per square foot, per year;
Project’s capital management;
Benefits (%);
Time (%).

It is therefore possible to change the value of this variable data to determine the feasibility threshold based on an occupancy scenario of 100% or 80%.

When the variable data changes, the spreadsheet calculates the resulting changes for the fund inputs and outputs as well as the deposits at the end of each month, for each year over a period of ten years.

The starting hypothesis is that the construction funds will be provided by the various funding sources and that there will be no mortgage on the building. The three planned funding sources are the City of Ottawa, the provincial government and the federal government, each based on its own programs and initiatives. The spreadsheet therefore presents the analyses for the operating costs only. It is expected that the construction costs will be around $250 per square foot.

Table 5 presents a scenario in which the variable data is as follows. We have assumed the final surface area for the project will be 40,000 square feet. Experience has shown that the organizations will eventually cover needs greater than those originally planned in this type of project and that community centres always lack space. That is why we have developed a scenario with 40,000 square feet rather than 35,000 square feet.

Building’s surface area in gross square feet	40,000
Construction costs per gross square foot	$250
Total value of the project without the land	$10,000,000
Current operating costs per square foot, per year	$8
Capital reserve as a % of the building’s value	1.0%
Rent per square foot, per year	$15.00

Based on this scenario, the CMFO is projecting returns of $1,300,000 after ten years based on an occupancy rate of 100%, and returns of $100,000 after ten years if the occupancy rate is 80%.

Table 6 presents the same variables, except that the current operating costs will be increased to $9 per square foot. Such an increase could be generated by an increase in electricity and heating costs. In this scenario, the CMFO is projecting returns of $900,000 after ten years with an occupancy rate of 100%, but a deficit of $300,000 after ten years if the occupancy rate is only 80%.

Table 5 – Fund inputs and outputs, scenario with an operating cost of $8 per square foot

CENTRE MULTISERVICES FRANCOPHONE DE L'OUEST D'OTTAWA (CMFO) COMMUNITY CENTRE COMPONENT
CASH FLOWS – 10 YEARS (2010-2011 to 2019-2020)
2010 CONSTANT DOLLARS
		Initial Value					Initial Value
Building’s surface area in gross square feet	40,000	40,000	Project’s capital management			$120,000	$120,000
Construction cost per gross square foot	$250	$250	Benefits (%)			25.0%	25.0%
Total value of the project without the land	$10,000,000	$10,000,000	Time charge (%) (sharing with COOP and SLD)			33.3%	33.3%
Current operating costs per square foot, per year	$8	$8
Capital reserve as a % of the building’s value	1.0%	1.0%
Rent per square foot, per year	$15.00	$15.00
Scenario with 100% occupancy	2010-11	2011-12	2012-13	2013-14	2014-15	2015-16	2016-17	2017-18	2018-19	2019-20	TOTAL 10 YEARS
INITIAL DEPOSITS	$0	$130,000	$260,000	$390,000	$520,000	$650,000	$780,000	$910,000	$1,040,000	$1,170,000	$0
INCOMING REVENUES
Rent - 100% occupancy	$600,000	$600,000	$600,000	$600,000	$600,000	$600,000	$600,000	$600,000	$600,000	$600,000	$6,000,000
TOTAL INCOMING REVENUES	$600,000	$600,000	$600,000	$600,000	$600,000	$600,000	$600,000	$600,000	$600,000	$600,000	$6,000,000
OUTGOING FUNDS
Project’s capital management	$50,000	$50,000	$50,000	$50,000	$50,000	$50,000	$50,000	$50,000	$50,000	$50,000	$500,000
Operating costs	$320,000	$320,000	$320,000	$320,000	$320,000	$320,000	$320,000	$320,000	$320,000	$320,000	$3,200,000
Capital reserves	$100,000	$100,000	$100,000	$100,000	$100,000	$100,000	$100,000	$100,000	$100,000	$100,000	$1,000,000
TOTAL OUTGOING FUNDS	$470,000	$470,000	$470,000	$470,000	$470,000	$470,000	$470,000	$470,000	$470,000	$470,000	$4,700,000
VARIATION IN DEPOSITS	$130,000	$130,000	$130,000	$130,000	$130,000	$130,000	$130,000	$130,000	$130,000	$130,000	$1,300,000
END DEPOSITS	$130,000	$260,000	$390,000	$520,000	$650,000	$780,000	$910,000	$1,040,000	$1,170,000	$1,300,000	$1,300,000
Scenario with 80% occupancy	2010-11	2011-12	2012-13	2013-14	2014-15	2015-16	2016-17	2017-18	2018-19	2019-20	TOTAL 10 YEARS
INITIAL DEPOSITS	$0	$10,000	$20,000	$30,000	$40,000	$50,000	$60,000	$70,000	$80,000	$90,000	$0
INCOMING REVENUES
Rent - 80% occupancy	$480,000	$480,000	$480,000	$480,000	$480,000	$480,000	$480,000	$480,000	$480,000	$480,000	$4,800,000
TOTAL INCOMING REVENUES	$480,000	$480,000	$480,000	$480,000	$480,000	$480,000	$480,000	$480,000	$480,000	$480,000	$4,800,000
OUTGOING FUNDS
Project’s capital management	$50,000	$50,000	$50,000	$50,000	$50,000	$50,000	$50,000	$50,000	$50,000	$50,000	$500,000
Operating costs	$320,000	$320,000	$320,000	$320,000	$320,000	$320,000	$320,000	$320,000	$320,000	$320,000	$3,200,000
Capital reserves	$100,000	$100,000	$100,000	$100,000	$100,000	$100,000	$100,000	$100,000	$100,000	$100,000	$1,000,000
TOTAL OUTGOING FUNDS	$470,000	$470,000	$470,000	$470,000	$470,000	$470,000	$470,000	$470,000	$470,000	$470,000	$4,700,000
VARIATION IN DEPOSITS	$10,000	$10,000	$10,000	$10,000	$10,000	$10,000	$10,000	$10,000	$10,000	$10,000	$100,000
END DEPOSITS	$10,000	$20,000	$30,000	$40,000	$50,000	$60,000	$70,000	$80,000	$90,000	$100,000	$100,000

Table 6 – Fund inputs and outputs, scenario for an operating cost of $9 per square foot

CENTRE MULTISERVICES FRANCOPHONE DE L'OUEST D'OTTAWA (CMFO) COMMUNITY CENTRE COMPONENT
CASH FLOWS - 10 YEARS (2010-2011 to 2019-2020)
2010 CONSTANT DOLLARS
		Initial Value					Initial Value
Building’s surface area in gross square feet	40,000	40,000	Project’s capital management			$120,000	$120,000
Construction cost per gross square foot	$250	$250	Benefits ( %)			25.0%	25.0%
Total value of the project without the land	$10,000,000	$10,000,000	Time charge (%) (sharing with COOP and SLD)			33.3%	33.3%
Current operating costs per square foot, per year	$9	$8
Capital reserve as a % of the building’s value	1.0%	1.0%
Rent per square foot, per year	$15.00	$15.00
Scenario with 100% occupancy	2010-11	2011-12	2012-13	2013-14	2014-15	2015-16	2016-17	2017-18	2018-19	2019-20	TOTAL 10 ANS
INITIAL DEPOSITS	$0	$90,000	$180,000	$270,000	$360,000	$450,000	$540,000	$630,000	$720,000	$810,000	$0
INCOMING REVENUES
Rent - 100% occupancy	$600,000	$600,000	$600,000	$600,000	$600,000	$600,000	$600,000	$600,000	$600,000	$600,000	$6,000,000
TOTAL INCOMING REVENUES	$600,000	$600,000	$600,000	$600,000	$600,000	$600,000	$600,000	$600,000	$600,000	$600,000	$6,000,000
OUTGOING FUNDS
Project’s capital management	$50,000	$50,000	$50,000	$50,000	$50,000	$50,000	$50,000	$50,000	$50,000	$50,000	$500,000
Operating costs	$360,000	$360,000	$360,000	$360,000	$360,000	$360,000	$360,000	$360,000	$360,000	$360,000	$3,600,000
Capital reserves	$100,000	$100,000	$100,000	$100,000	$100,000	$100,000	$100,000	$100,000	$100,000	$100,000	$1,000,000
TOTAL OUTGOING FUNDS	$510,000	$510,000	$510,000	$510,000	$510,000	$510,000	$510,000	$510,000	$510,000	$510,000	$5,100,000
VARIATION IN DEPOSITS	$90,000	$90,000	$90,000	$90,000	$90,000	$90,000	$90,000	$90,000	$90,000	$90,000	$900,000
END DEPOSITS	$90,000	$180,000	$270,000	$360,000	$450,000	$540,000	$630,000	$720,000	$810,000	$900,000	$900,000
Scenario with 80% occupancy	2010-11	2011-12	2012-13	2013-14	2014-15	2015-16	2016-17	2017-18	2018-19	2019-20	TOTAL 10 ANS
INITIAL DEPOSITS	$0	($30,000)	($60,000)	($90,000)	($120,000)	($150,000)	($180,000)	($210,000)	($240,000)	($270,000)	$0
INCOMING REVENUES
Rent - 80% occupancy	$480,000	$480,000	$480,000	$480,000	$480,000	$480,000	$480,000	$480,000	$480,000	$480,000	$4,800,000
TOTAL INCOMING REVENUES	$480,000	$480,000	$480,000	$480,000	$480,000	$480,000	$480,000	$480,000	$480,000	$480,000	$4,800,000
OUTGOING FUNDS
Project’s capital management	$50,000	$50,000	$50,000	$50,000	$50,000	$50,000	$50,000	$50,000	$50,000	$50,000	$500,000
Operating costs	$360,000	$360,000	$360,000	$360,000	$360,000	$360,000	$360,000	$360,000	$360,000	$360,000	$3,600,000
Capital reserves	$100,000	$100,000	$100,000	$100,000	$100,000	$100,000	$100,000	$100,000	$100,000	$100,000	$1,000,000
TOTAL OUTGOING FUNDS	$510,000	$510,000	$510,000	$510,000	$510,000	$510,000	$510,000	$510,000	$510,000	$510,000	$5,100,000
VARIATION IN DEPOSITS	($30,000)	($30,000)	($30,000)	($30,000)	($30,000)	($30,000)	($30,000)	($30,000)	($30,000)	($30,000)	($300,000)
END DEPOSITS	($30,000)	($60,000)	($90,000)	($120,000)	($150,000)	($180,000)	($210,000)	($240,000)	($270,000)	($300,000)	($300,000)

Table 7 – Fund inputs and outputs, scenario for an operating cost of $9 per square foot and a reserve of 2%

CENTRE MULTISERVICES FRANCOPHONE DE L'OUEST D'OTTAWA (CMFO) COMMUNITY CENTRE COMPONENT
CASH FLOWS - 10 YEARS (2010-2011 to 2019-2020)
2010 CONSTANT DOLLARS
		Initial Value					Initial Value
Building’s surface area in gross square feet	40,000	40,000	Project’s capital management			$120,000	$120,000
Construction cost per gross square foot	$250	$250	Benefits (%)			25.0%	25.0%
Total value of the project without the land	$10,000,000	$10,000,000	Time charge (%) (sharing with COOP and SLD)			33.3%	33.3%
Current operating costs per square foot, per year	$9	$8
Capital reserve as a % of the building’s value	2.0%	1.0%
Rent per square foot, per year	$15.00	$15.00
Scenario with 100% occupancy	2010-11	2011-12	2012-13	2013-14	2014-15	2015-16	2016-17	2017-18	2018-19	2019-20	TOTAL 10 ANS
INITIAL DEPOSITS	$0	($10,000)	($20,000)	($30,000)	($40,000)	($50,000)	($60,000)	($70,000)	($80,000)	($90,000)	$0
INCOMING REVENUES
Rent - 100% occupancy	$600,000	$600,000	$600,000	$600,000	$600,000	$600,000	$600,000	$600,000	$600,000	$600,000	$6,000,000
TOTAL INCOMING REVENUES	$600,000	$600,000	$600,000	$600,000	$600,000	$600,000	$600,000	$600,000	$600,000	$600,000	$6,000,000
OUTGOING FUNDS
Project’s capital management	$50,000	$50,000	$50,000	$50,000	$50,000	$50,000	$50,000	$50,000	$50,000	$50,000	$500,000
Operating costs	$360,000	$360,000	$360,000	$360,000	$360,000	$360,000	$360,000	$360,000	$360,000	$360,000	$3,600,000
Capital reserves	$200,000	$200,000	$200,000	$200,000	$200,000	$200,000	$200,000	$200,000	$200,000	$200,000	$2,000,000
TOTAL OUTGOING FUNDS	$610,000	$610,000	$610,000	$610,000	$610,000	$610,000	$610,000	$610,000	$610,000	$610,000	$6,100,000
VARIATION IN DEPOSITS	($10,000)	($10,000)	($10,000)	($10,000)	($10,000)	($10,000)	($10,000)	($10,000)	($10,000)	($10,000)	($100,000)
END DEPOSITS	($10,000)	($20,000)	($30,000)	($40,000)	($50,000)	($60,000)	($70,000)	($80,000)	($90,000)	($100,000)	($100,000)
Scenario with 80% occupancy	2010-11	2011-12	2012-13	2013-14	2014-15	2015-16	2016-17	2017-18	2018-19	2019-20	TOTAL 10 ANS
INITIAL DEPOSITS	$0	($130,000)	($260,000)	($390,000)	($520,000)	($650,000)	($780,000)	($910,000)	($1,040,000)	($1,170,000)	$0
INCOMING REVENUES
Rent - 80% occupancy	$480,000	$480,000	$480,000	$480,000	$480,000	$480,000	$480,000	$480,000	$480,000	$480,000	$4,800,000
TOTAL INCOMING REVENUES	$480,000	$480,000	$480,000	$480,000	$480,000	$480,000	$480,000	$480,000	$480,000	$480,000	$4,800,000
OUTGOING FUNDS
Project’s capital management	$50,000	$50,000	$50,000	$50,000	$50,000	$50,000	$50,000	$50,000	$50,000	$50,000	$500,000
Operating costs	$360,000	$360,000	$360,000	$360,000	$360,000	$360,000	$360,000	$360,000	$360,000	$360,000	$3,600,000
Capital reserves	$200,000	$200,000	$200,000	$200,000	$200,000	$200,000	$200,000	$200,000	$200,000	$200,000	$2,000,000
TOTAL OUTGOING FUNDS	$610,000	$610,000	$610,000	$610,000	$610,000	$610,000	$610,000	$610,000	$610,000	$610,000	$6,100,000
VARIATION IN DEPOSITS	($130,000)	($130,000)	($130,000)	($130,000)	($130,000)	($130,000)	($130,000)	($130,000)	($130,000)	($130,000)	($1,300,000)
END DEPOSITS	($130,000)	($260,000)	($390,000)	($520,000)	($650,000)	($780,000)	($910,000)	($1,040,000)	($1,170,000)	($1,300,000)	($1,300,000)

Figure 2 - Grant School Site – Split Land

6. The Three Components of a Project Occupying the Entirety of the Land

6.1. Discussion Parameters

The points of departure for the new analysis following the observations made in January 2009 were as follows:

· The space available in the non-protected section of the land;

· The needs of Ottawa’s Francophone community;

· The uses permitted under the City’s zoning bylaws.

The land available for construction is approximately 4 acres of a total of 5.11 acres, taking into account that the heritage section in front of the school must be preserved. It is also CMFO’s wish to preserve this space, which is like a park in an urban setting, and preserve as much as possible the natural beauty of the site. Five acres of land in the middle of a city represents a lot of space and a precious resource. The CMFO wanted to design a project that would meet the needs of the Francophone community over the long term.

According to the 2006 census, Ottawa’s Francophone population is 143,000 people. If it was a city, Ottawa’s Francophone community would be the 22^nd largest Canadian city in terms of population. It would be slightly smaller than Saguenay, Kingston and Sudbury, but somewhat larger than Guelph, Moncton, Brantford and Thunder Bay.

CMFO’s perspective is to see to the development of the Grant School site through the lens of a city looking to optimize the services rendered to its population over its territory as a whole, and not through the lens of services to be rendered to a small minority community within a given geographic area.

This perspective has led the CMFO to approach Francophone partners who serve the entire City of Ottawa and Eastern Ontario. The goal is to maximize the use of resources and Francophone structures that already exist in the City and develop the Grant School site with established partners with solid foundations.

Discussions with potential partners revealed that health services, community services and services for seniors would be the engines driving this project.

In terms of permitted uses, the site is located in a minor institutional zone, according to sections 169 and 170 of the City of Ottawa’s Zoning Bylaws. (See: http://www.ottawa.ca/residents/bylaw/a_z/zoning/parts/pt_07/index_en-01.html)

The City’s objectives in this zone is to permit a range of community uses, institutional accommodation and emergency service uses to locate in areas designated as General Urban Area or Central Area in the Official Plan; and minimize the impact of these minor institutional uses located in close proximity to residential uses by ensuring that such uses are of a scale and intensity that is compatible with neighbourhood character.

The permitted uses are the following:

· Community centre

· Community garden (see Part 3, Section 82)

· Daycare

· Emergency service

· Group home (see Part 5, Section 125)

· Library

· Museum

· Municipal service centre

· One (1) dwelling unit ancillary to a permitted use

· Park

· Place of assembly

· Place of worship and ancillary rooming units

· Recreational and athletic facility

· Residential care facility

· Retirement home

· Retirement home, converted (see Part 5, Section 122)

· Rooming house

· Rooming house, converted (see Part 5, Section 122)

· School

· Shelter (see Part 5, Section 134)

· Sports arena

· Training centre limited to job instruction/training associated with a school

6.2. Project’s Three Components

The planned project comprises three separate yet complementary components. At this stage in the process, planning is in the design phase only. The components will be specified as decisions are made by the various organizations involved. An exhaustive analysis by an architectural firm will be needed to determine how these concepts can be implemented at the site. The three components are the following:

· Community centre

· Long-term care centre

· Housing cooperative for seniors

6.2.1. Community Centre

The community centre component will cover 40,000 gross square feet, as presented in the previous sections of the report. The final size will obviously depend on how the centre fits together with the other components. It is possible that the centre could be located on the current footprint occupied by the school, but it is also a possibility that the site configuration will change completely. This will be determined at a later time, following a discussion between the partners, architects and urban planners.

6.2.2 Long-Term Care Centre

Access to long-term care for seniors is a priority in the community. The Montfort Hospital confirmed that it is constantly forced to move waiting patients into Anglophone homes, due to a lack of beds in Francophone institutions. Waiting periods can range from one, two or three years before a bed becomes available in a long-term care centre. During this time, patients must remain at the hospital, which is costly for the health system, or at home, increasing the challenges faced by families, or go to Anglophone care centres, increasing the challenges faced by Francophone patients on another level.

CMFO officials have explored the possibility of establishing a partnership, either with Soins continus Bruyère or with the Montfort Hospital, in order to establish a long-term care centre on the site. Following many discussions and analyses that took place between February and July 2009, a project was developed that includes within the same partnership the CMFO, the Montfort Hospital and Revera. Montfort already has an effective partnership with Revera for the operation of the Centre de soins de longue durée Montfort.

The key parameters of the planned project are as follows:

1. The long-term care centre would have 117 beds and occupy 73,125 square feet. The project is part of a series of steps that Revera must take to modernize its current Carlingview Manor site. This project will not require any new licences for long-term beds. The capitalization needed for the centre’s construction is in the area of $18,700,000. An important point to remember here is that there are some 40 to 50 Francophone patients currently staying at Carlingview Manor. Those who wish it could be transferred to the new long-term care centre to receive services that are linguistically and culturally appropriate.

2. The land would belong to the CMFO. The agreement with the City is that the Grant School land would continue to belong to the community.

3. The three partners are CMFO, Montfort Hospital and Revera Inc.

4. The project would be integrated to the other health services proposed for the site, including family and community health services in the community centre.

All the details regarding the construction of the long-term care centre will be clarified at a later date, in discussion with the Montfort Hospital and Revera.

6.2.3. A Housing Cooperative for Seniors

At the same time as the steps taken to establish a long-term care centre, the CMFO has also initiated a process to organize a housing cooperative on the site. The private sector has constructed many residences for seniors offering an array of connected services. These residences want to attract people who can pay $2,500, $3,000 and even $4,000 or more per month.

The project planned at the Grant School site is to meet the needs of low-income seniors or the needs of seniors who do not want to spend astronomical amounts for their residence.

These residences would be small units, i.e. 400 net square feet each.[1] They would be physically connected to the long-term care centre, granting residents access to the centre’s medical personnel.

This seniors complex would allow young seniors, regular seniors and seniors over 80 to access a continuum of health and social services in French. This component and the family health clinic in the community centre would mutually reinforce one another. Seniors would also have the benefit of continuing to stay in a part of the city they are familiar with and would not need to move if their physical condition were to change over the years. Also, couples living in the cooperative would not be separated if one of the spouses were placed in the long-term care centre, the two components being part of the same complex.

We will not know the exact number of units possible on the site before undertaking subsequent steps with the architects and urban planners. The number of housing cooperative units will also depend on the surface area needed for the long-term care centre and the community centre.

At the moment, the concept is a project based on a cooperative of 100 units with a surface area of 400 square feet per unit. The typical capitalization cost for 100 units is $180,000 per unit, i.e. $18,000,000 for the total project.

There are government programs that support such housing cooperatives. We have also held discussions with the commercial loans department at the Mouvement Desjardins for a mortgage. Its participation will depend on the results of the business plan.

In 1999, a group of Ottawa residents founded the Coopérative pour le bien-être des aînés francophones de l’est de l’Ontario. Among other things, this group is looking to establish a housing cooperative. It presently consists of 55 members in good standing. We have met with officials from this cooperative to present them the CMFO project. We quickly agreed on it, and this group would like to be a partner with CMFO. This group has already conducted preliminary market studies that confirm there is a high need for affordable housing for Francophone seniors in the region.

Typical Budget for the Housing Cooperative for the First Three Years

The typical budget for a housing cooperative is quite complex. The budget that follows is a simplified version of the expenses and revenues of the typical budget for the first three years of the housing cooperative’s operations.

Typical Budget for the Housing Cooperative for the First Three Years

	Year 1	Year 2	Year 3
EXPENSES
Administration	$120,000	$123,000	$126,600
Upkeep/maintenance	$120,000	$123,000	$126,600
Public service and other services	$70,000	$71,500	$73,000
Municipal taxes	$90,000	$91,800	$93,000
Insurance	$10,000	$10,200	$10,400
Reserve fund	$40,000	$40,800	$42,000
Mortgage	$410,000	$410,000	$410,000
TOTAL EXPENSES	$860,000	$870,300	$881,600
REVENUES
60 subsidized units	$451,000	$459,000	$470,000
40 market-price units	$450,000	$459,000	$470,000
TOTAL REVENUES	$901,000	$918,000	$940,000
SURPLUS	$41,000	$47,700	$58,400

This preliminary data shows that the cooperative’s average rent would be around $940 per month. This amount would be less high for subsidized rents (we are looking at a rent of around $600 per month) and higher for rents determined based on income and market-level rents (we are looking at $1,200 per month).

We have also identified two financing programs.

Co-operative Development Initiative

The CMFO submitted a funding request under the Innovative Co-operative Projects program in order to undertake a separate business plan for the housing cooperative. This program is managed jointly by the Conseil canadien de la coopération et de la mutualité and the Canadian Co-operative Association. It is a component of the Co-operative Development Initiative (CDI) that was developed in partnership by these two national organizations and the Co-operatives Secretariat. CDI is funded by Agriculture and Agri-Food Canada, the federal department to which the Secretariat is attached. The deadline for submitting a request was December 31, 2009.

CDI responded positively to CMFO’s request and has confirmed a contribution of 32 000$ to conduct a feasibility study and create a complete business plan on the housing cooperative project. CMFO is contributing 8 000$ to this end. CMFO foresees that the business plan will be completed by October 2010, in time to submit funding requests for the April 2011 funding cycle.

Action Ottawa: an Affordable Housing Initiative

This program will make it possible to directly finance the housing cooperative. The City of Ottawa is looking for proposals to create affordable housing and dwellings in support environments. These requests for proposals are made under the Action Ottawa program and the 2009 expanded version of the Canada-Ontario Affordable Housing Program (COAHP), which includes an array of incentives for private-sector real estate promoters and non-profit real estate promoters who build affordable housing in Ottawa for low-income families. These requests for proposals aim to promote the creation of rental dwellings, mainly new constructions, including annexes and expansions and certain projects that aim to convert a non‑residential building into a residential building.

The program promotes partnerships between the private sector and the non-profit sector, as well as between housing suppliers and support service providers. Those making the proposals must integrate energy-efficiency and sustainability measures into their proposal.

The deadlines for presenting proposals will be in August, September and October 2010, on a given date for the project. Thanks to the Co-operative Development Initiative, there will also be in hand a feasibility study and business plan for the cooperative project, if all goes well.

The purpose of the cooperative and long-term care centre is to allow aging people to live out their senior years without having to move from one institution to another. Therefore, a person renting a cooperative unit can live an independent life as though he/she were living in an apartment, while being able to participate in the community life if desired. As the years go by and if people begin to have mobility problems, they can remain in their unit and receive at-home services. Further on, mobility reduces further and these people can be admitted to long-term care, based on admission criteria. The project therefore includes a continuum of health and social services integrated on the same site for people as they age. We could even have a palliative care area with a few beds for persons nearing the end of their lives. The services are integrated even if the components of the continuum are managed by different organizations.

6.3 Summary of the Three Components

Being situated on the same site, the three components (community centre, long-term care centre and the housing cooperative) will enjoy a great deal of synergy. Here are a few examples: the health services will be integrated; Cité collégiale will be able to use classrooms for some of its health programs; there will be a site for clinical internships; the daycare could be used by employees; everyone will be able to avail themselves of the services provided by the dentist's office and the credit union. In addition, the project as designed would generate significant savings in terms of capital costs. We just need to think of the community spaces for the cafeteria, the meeting rooms and laundry services that could be shared by users. Lastly, the housing cooperative and the community centre will be able to share administration costs.

We can already see that this project will probably be completed in successive phases since it would be unusual to get all the answers from the funding sources involved at the same time. The board of directors will have to move forward with the first component of the project that receives the support of funding sources, whether it is the community centre, long-term care centre or the housing cooperative. Knowing that the project is looking to eventually complete all three components, each phase could be planned with the subsequent phases in mind.

The total potential cost of the project planned at this stage is $54,700,000, broken down as follows:

Community centre: $10,000,000
Long-term care centre: $18,700,000
Housing cooperative: $18,000,000
Other costs and incidentals: $8,700,000: The business plan foresees that the project as a whole will have to pay for other major expenses that have not yet been identified. For example, we know that we will need to completely renovate the building currently housing the Grant School or construct a new building on the same site. Renovation costs are high and we all know that renovation work comes with its share of surprises. Also, construction costs could be higher than normal since we have to preserve the walls of the current building. We also have to factor in the cost of demolition and the recycling of designated materials. The CMFO and the partners will know the final costs once the architectural plans and the estimates from contractors and suppliers have been submitted.

The project has the following partners. The partnership details will be determined at a later date.

CMFO
Centre communautaire Franc-Ouest
Coopérative Ami Jeunesse
Centre Soleil d’Ottawa Ouest
Action Logement
Équipe de santé familiale de l’Est d’Ottawa
La Cité collégiale – daycare-school and other services
Dental clinic
Caisse populaire – service centre
Montfort Hospital and Revera Inc.
Coopérative pour le bien-être des aînés francophones de l’est de l’Ontario
Future members of the housing cooperative

7. Results of Discussions with one of the City’s Urban Planners

The CMFO held an informal discussion with one of the City’s urban planners to review the three components. Obviously, detailed analyses will need to be conducted at the right time and place to make sure that the project's components respect all municipal bylaws. The urban planner's preliminary response was that the use of the land for the community centre and long-term care components is permitted under the bylaws. An exemption to the bylaws, however, is necessary to allow for the housing cooperative. The zone could keep the l1A status with an exception allowing for low rise apartments and dwelling units.

8. Observation and Decision: Purchasing of the Land

The steps taken since January 2009 led to the development of a very interesting concept that might meet several social, community and health needs in French in Ottawa.

Discussions with the partners confirmed the necessity of purchasing the land. Without having the land in hand, the partners are hesitant to commit themselves fully in the analysis process needed to reach a final decision on each of the project’s components. These processes require a major investment in terms of energy, time, human resources and financing. It is difficult to commit to such a process without the certainty that the land will belong to the CMFO.

Several other studies and analyses must be conducted before any final decision can be made. For example, Cité collégiale wants to create a daycare-school. This process alone would take three years. The CMFO wants to establish a partnership with the Équipe de santé familiale communautaire de l’Est d’Ottawa to create a family health centre. This will require a business plan and discussions with current health service providers such as the Centre de santé communautaire Pinecrest-Queensway. The component of the project, like the long-term care centre, will also require decisions by regional health authorities and the Government of Ontario. The development of the housing cooperative will also require a business plan as well as financing organization.

We estimate that it will take three years to bring together all the components needed for the project as a whole that will require the entire land space.

The board of directors is proposing that the City buy all of the land.

The CMFO approached the Mouvement Desjardins-Caisse populaire Vision Inc. to secure a mortgage of $2,000,000 for the purchase of the land. The CMFO, which already conducted fundraising activities in 2008, has $440,000 deposited at Desjardins and can pay the interest fees for the three years in question as well as the insurance. Desjardins-Caisse populaire Vision Inc. therefore provided a letter of offer for the financing to the CMFO for the purchase of the land and this document was approved by the CMFO board of directors and signed by CMFO officials on 23 April 2010. The CMFO would like to take possession of the land as quickly as possible to continue the process of completing the project.

The CMFO wants to buy the land under the following conditions:

The purchase price is $2,000,000. The CMFO will approach the other levels of government for a capital contribution in accordance with their programs in effect. The City paid $3,940,000 for the entire property. The City’s intention was to give the front part of the land to the CMFO for the community centre and to sell the rear section. The amount of $1,940,000, the difference between the purchase price paid by the City and the amount received by the CMFO for the land purchase, is the City’s contribution to the project.

It is a provisional sale for a period of three years.

The City will sign a buy-back agreement on the property for a minimum amount of $2,000,000, with no restrictive or release clauses.

The inability to implement the project as planned, whether for technical, financial or other reasons, will be a sufficient reason to require the City to buy back the property at the abovementioned amount.

The CMFO can require the property be bought back before the end of the three-year period if it becomes obvious that the project will not come together before the deadline.

It is expected that the project will not generate any revenues over the three-year period. The CMFO made efforts to find a temporary tenant. Members of the CMFO board of directors and a temporary tenant visited the site, accompanied by an architect, City employees and an insurance agent. It turns out that the buildings are so dilapidated that it would be impossible to renovate the rooms for a temporary rental without a considerable investment.

According to information provided by the City, the operating costs for the site currently total $64,000 per year. The CMFO is asking the City to assume these fees until the project can generate revenues during the three-year provisional period or until the land is bough back. The modalities for executing this condition will be clarified by City and CMFO lawyers, subject to approval by Desjardins-Caisse Populaire Vision Inc. For example, the real purchase price could be $1,808,000 and the buy-back value could be established at $2,000,000. This way, the CMFO would have money on hand to pay the operating fees paid by the City at the moment. If one of the project’s components begins to generate revenues before the end of the three-year period, the CMFO will assume these operating fees.

The CMFO will take out its own insurance policy on the site. The City must demolish the annex behind the school, which is not insurable.

The CMFO is asking for an exemption on the municipal taxes for the three years of the provisional sale or until the moment the project begins generating revenues, whichever is the shorter of these two periods.

9. Follow-ups

The draft version of the business plan was submitted to City officials on 6 May and the final version on June 17, 2010. It is expected that the Corporate Services and Economic Development Committee will give its views on the project on 6 July and that City Council will give its decision on 14 July 2010.

The CMFO is planning a series of activities over the next three years, preparing for a positive answer from City Council on 14 July. Starting this fall, the CMFO will undertake the following work:

4. The CMFO will maintain regular contact with City authorities.

6. The CMFO will structure the governance for the complex as a whole. Each partner will provide governance for its own organization, but there also has to be governance for the site as a whole. Since it is a community project, the CMFO will organize a general governance structure that will be undertaken by the west end Francophone community as a whole. It includes the organization of a democratic and participatory structure, the holding of annual meetings, the creation of volunteer committees, and so on and so forth. The CMFO is also planning to create an operations committee composed of the general management of the project’s various components. This operations committee will see to the proper operation of the capital project and will resolve the issues surrounding the use of space based on the policies adopted by the board of governors.

10. Conclusion

The project’s strength rests in the organizations that will be participating in it. The Montfort Hospital, Revera, Cité collégiale, the Équipe de santé familiale communautaire de l’Est d’Ottawa are organizations that create structuring partnerships. The housing cooperative, together with the long-term care centre, will offer an innovative model for seniors. The synergy that will be created between all the complex's components will determine its success. For example, the sharing of space will allow community centre users to have access to a cafeteria, and the personnel at the long-term care centre will have access to meeting rooms. The daycare-school will provide service to all employees and the health services will be integrated as well.

In conclusion, the CMFO would like to sincerely thank the employees of the City of Ottawa. They made themselves available for meetings and quickly answered our many requests for information. Their expertise made it easier to prepare this business plan.

11. Support Letters from the Montfort Hospital and Cité collégiale

(Translator’s note: Originals are in the French langue version of the report.)

Montfort Hospital

30 April 2010

Ms. Jocelyne Chénier, President

Centre Multiservice francophone de l’Ouest d’Ottawa (CMFO)

1000 Byron Avenue

Ottawa, Ontario

K2A 0J3

Dear Ms. Chénier:

I am writing to you today in support of the CMFO’s purchase of the Grant School site located at 2720 Richmond Street in Ottawa.

At its 13 April meeting, the board of directors of the Montfort Hospital adopted a resolution confirming its commitment to examine the possibilities of developing a Francophone long-term care centre in partnership with Revera at 2720 Richmond Street.

Representatives from Revera have also confirmed the need to renovate one of its establishments that is now non-compliant with the department’s standards, and as part of a call for tenders, to transfer long-term care beds to the CMFO site. Revera also confirmed wanting to extend its partnership with the Montfort Hospital to complete this important project for the Francophone community.

This project remains conditional to the recommendation of the Champlain LHIN and the approval of the Ministry of Health and Long-term Care.

Sincerely,

Dr. Bernard Leduc

President and CEO

Cc Mr. Gilles Morin, Chair of the Montfort Hospital Board of Directors

Mr. Brent Chambers, Revera Living

Mr. Ronald Bisson

La Cité collégiale

www.lacitecollegiale.com

801 Aviation Way

Ottawa, Ontario

K1K 4R3

30 April 2010

Ms. Jocelyne Chénier

President of CMFO

12 Central Park Drive

Ottawa, Ontario

K2C 3Z9

Subject: La Cité collégiale’s support for the Centre multiservice francophone de l’Ouest d’Ottawa

Dear Madam:

La Cité collégiale has as its essential mandate to ensure access to quality programs and services in French at the college level and to the Francophone communities of Ontario, especially those in the greater Ottawa region. It annually serves some 18,000 people, including 4,000 full-time students in one of its 90 postsecondary programs, 5,000 students in its continuing education courses and 6,000 clients in its employment services.

La Cité collégiale is hereby stating its support and its great interest in your project for the Centre multiservice francophone de l'Ouest d’Ottawa, because this project would allow it to better fulfill its mandate of access in the west end of Ottawa where there has been strong growth in the Francophone population.

Although it has a well-equipped provincial campus in the east end of the city, an employment office in the Vanier sector, and a satellite campus in Hawkesbury and soon in Orleans, La Cité collégiale does not have any infrastructure in West Ottawa. The CMFO project would allow our college to have access in this sector of the city to facilities and equipment and be able to offer to this growing population quality programs and services in French, such as trades training, continuing education courses, basic training programs and employment services.

La Cité collégiale would currently assess its space need at approximately 6,000 square metres, minus the common areas (washrooms, hallways, lockers, cafeteria, etc.). Here is a brief description of the facilities the college would need:

1 computer lab
4 classrooms
An open area, 3 offices for teachers
Daycare-school with observation room
1 closed-in space, 2 offices
2 multi-purpose classrooms

We also believe that sharing a building with the CMFO would generate tremendous synergy and exchanges that would serve the well-being of the Francophone population in West Ottawa, notably through the placement of our college students in traineeships.

La Cité collégiale believes that the CMFO project is necessary for the development of these Francophone communities and we assure you of our support for its development and operations.

Sincerely,

Serge Brousseau

Vice President of Student and Administrative Services

DOCUMENT 2

[1] According to Peter Trotscha, who is a specialist on the subject and who has developed several housing cooperatives at the national and international levels, the average size of housing cooperative units is 750 square feet; since the West Ottawa project is focused on independent seniors, units of 400 square feet seem quite normal. We have analyzed certain similar projects elsewhere and the units were around 400 square feet. It is a large enough space for a bathroom, an open area combining living room and kitchen with stove and refrigerator, a small bedroom, and a storage space. The laundry facilities, cafeteria and games room for community usage are part of the common space, which has not been calculated in the table. There will also have to be units for couples that will have a surface area exceeding 400 square feet.

Ward No.	Ward Name	Total Population	FOLS E	FOLS F	FOLS F+E	Total Francophones	F Immigrants
3	Barrhaven	34,045	3,170	1,915	545	2,460	510
4	Kanata North	16,770	15,175	1,000	360	1,360	470
5	West Carleton-March	14,670	13,820	770	65	835	75
6	Stittsville-Kanata West	512,710	11,560	1,065	50	1,115	65
7	Bay	24,760	21,600	2,275	530	2,805	970
8	College	30,135	27,185	2,155	515	2,670	695
9	Knoxdale-Merivale	24,365	22,065	1,580	540	2,120	650
14	Somerset	12,970	10,630	1,625	260	1,885	470
15	Kitchissippi	20,255	17,965	1,795	335	2,130	510
16	River	26,445	22,760	2,495	715	3,210	1,180
23	Kanata South	26,755	24,015	2,070	365	2,435	450
	Total West Ottawa – CF	243,880	218,045	18,745	4,280	23,025	6,045
	Total Ottawa – CF	660,565	537,505	100,740	14,415	115,155	19,770
	Percentage of CF people in West Ottawa over total CF people in city	37%	41%	19%	30%	20%	31%
	Total population of Ottawa	801,275	648,115	127,230	15,985	143,215	23,340
	Percentage - total CF Ottawa over total population of city	82%	83%	79%	90%	80%	85%

Col 1	Col 2	Col 3	Col 4	Col 5	Col 6	Col 7	Col 8	Col 9	Col 10	Col 11
Ward No.	Ward Name	Average Personal Income FOLS F	Average Personal Income FOLS F + E	Average Personal Income FOLS E	Average Personal Income FOLS F non-immigrant	Average Personal Income FOLS F and E non-immigrant	Average Personal Income FOLS F immigrant	Average Personal Income FOLS F and E immigrant	Average Personal Income FOLS E immigrant	Average Personal Income FOLS E non-immigrant
3	Barrhaven	$54,443	$46,576	$45,797	$56,028	N/A	$41,007	$43,817	$42,802	$47,014
4	Kanata North	$67,196	$46,064	$56,183	$68,752	N/A	$64,330	$50,745	$59,109	$53,957
5	West Carleton-March	$53,751	N/A	$48,721	$53,909	N/A	$47,707	N/A	$50,926	$48,452
6	Stittsville-Kanata West	$67,258	N/A	$52,696	$67,337	N/A	N/A	N/A	$53,551	$52,570
7	Bay	$34,440 $	$28,974	$39,131	$36,074	N/A	$32,001	$30,173	$33,284	$43,012
8	College	$40,460	$32,566	$41,623	$42,170	N/A	$29,339	$36,259	$38,902	$42,831
9	Knoxdale-Merivale	$42,416	$44,184	$40,540	$43,619	N/A	$42,457	$48,531	$37,650	$42,049
14	Somerset	$44,359	$38,558	$39,768	$45,719	N/A	N/A	N/A	$33,336	$43,681
15	Kitchissippi	$46,221	$27,788	$52,486	$47,479	N/A	N/A	N/A	$45,977	$54,865
16	River	$41,250	$26,844	$38,219	$47,944	N/A	$23,387	$28,850	$31,193	$42,728
23	Kanata South	$50,086	$51,944	$45,033	$51,301	N/A	N/A	$54,592	$44,697	$45,155

Report to/Rapport au :

SUBJECT:

DISPOSAL STRATEGY – 2720 RICHMOND ROAD – FORMER GRANT ALTERNATIVE SCHOOL

OBJET :

REPORT RECOMMENDATIONS

BACKGROUND

Acquisition of Former Grant School Property

DISCUSSION

ENVIRONMENTAL IMPLICATIONS

RURAL IMPLICATIONS

CONSULTATION

COMMENTS BY THE WARD COUNCILLOR(S)

LEGAL/RISK MANAGEMENT IMPLICATIONS

CITY STRATEGIC PLAN

TECHNICAL IMPLICATIONS

FINANCIAL IMPLICATIONS

SUPPORTING DOCUMENTATION

DISPOSITION

3. The Francophone Community of West Ottawa – Demographic and Economic Picture