The Municipality of Jasper is proposing the creation of a Municipally Controlled Corporation (MCC) to establish an organization dedicated to promoting the development of affordable housing, and working towards increasing the availability of housing options for residents. The MCC would also provide a means for the Municipality to borrow funds specifically for housing development without exceeding its debt limit. The proposed corporation would have the opportunity to accept private investments to further support affordable housing initiatives.
Public Hearing
A Public Hearing to consider the proposed resolution will be held on:
Tuesday, August 15, 2023
Starting at 1:30pm or as soon thereafter as possible
Council Chambers, Jasper Municipal Library
500 Robson Street, Jasper, AB
Presenting at the Public Hearing
Anyone wishing to make a presentation regarding the proposed resolution must, in writing, inform the Municipality of Jasper of their intention by Wednesday, August 9, 2023 at 4:00pm (MST).
Written Submissions
Written submissions can be:
- Emailed to Emma Acorn, Legislative Services Coordinator, at eacorn@jasper-alberta.ca;
- Mailed to the Municipality of Jasper, c/o Legislative Services Coordinator, PO Box 520, Jasper, AB T0E 1E0; or
- Dropped off in person at the Administration Office located at 303 Bonhomme Street, Jasper, AB, Monday to Friday between 9:00am and 12:00 noon, or 1:00pm and 4:30pm.
The deadline for written submissions is Wednesday, August 9, 2023 at 4:00pm (MST).
The below August 15 Public Hearing Information Package was assembled to provide information to Jasper residents in accordance with the Municipally Controlled Corporation Regulation (AR 112/2019).
Frequently Asked Questions
Municipally Controlled Corporation (MCC)
Q. What does creating a Municipally Controlled Corporation (MCC) have to do with Housing?
The Jasper Community Housing Corporation (JCHC) and Committee have identified the need for an alternative governance structure for the JCHC to further housing development in the community; specifically, that the Jasper Community Housing Corporation be converted to a Municipally Controlled Corporation (MCC).
The JCHC was incorporated on 2007/09/21 and is currently structured as a Company Limited By Shares. In its current structure, the JCHC cannot assume debt independent of the municipality or provide equity in return for capital contributions. These goals can be accomplished through the conversion of the JCHC as a Company Limited by Shares to a Municipally Controlled Corporation.
Establishing the JMHC as an MCC allows the Municipality to play a more direct role in the delivery of housing in Jasper. The JMHC could formally partner with the private sector, and fund and finance housing developments in Jasper.
There are 3 main advantages of creating an MCC:
- Debt incurred by a MCC does not count toward the debt limit of a municipality;
- An MCC can have assets and leverage or borrow against them to fund future development;
- An MCC can partner with the private sector to fund development.
If established, the JMHC could act as an owner, operator and source of capital for their current assets, as well as future developments that are underway like the Connaught Housing Project.
What is the cost of creating an MCC?
Costs to create an MCC are nominal and were approved in the 2023 budget. Staff time, consultant and lawyer fees make up the bulk of the cost. Consultants assisted with the creation of the JMHC Business Plan (a requirement to establish an MCC) and contracting lawyers ensures the municipality meets the requirements to establish an MCC as laid out in the Municipal Government Act (MGA).
Connaught Housing Project
What is the Connaught Housing Project?
The Connaught Housing Project, in its most recent form, is an initiative by the JCHC to develop affordable housing on Parcel GC on Connaught Drive in Jasper.
A business plan has been developed, and a substantial portion of funding has been secured to move forward with the project.
The development will be affordable housing, with rents in the 60-75% of market rental rate for Jasper.
Q. Why is the town investing in an affordable housing project?
Adding more rental units in Jasper will fill a gap that has existed for years. Municipal Council sees the importance of providing affordable, quality housing for residents and has committed, through the adoption of Housing as a Strategic Priority and the approval of a $5 million debenture, to being an active partner in advancing housing solutions in the community.
The project aligns with Council’s strategic priorities of Housing and Community Health. Specifically:
• to take proactive steps to reduce the risk of people becoming vulnerable and respond when they are vulnerable,
• to invest in infrastructure to support housing, and
• to invest in developing community focused housing units.
Q. Where is the proposed building site?
The proposed project site is Parcel GC on Connaught Drive. This is the vacant parcel of land next to the Petro Canada, on the south side of Connaught Drive. The existing Parcel will be divided into 2 lots anticipating future development on the remaining site.
Q. Why was this location chosen?
This land currently belongs to Parks Canada and was set aside for future development. The Jasper Community Housing Corporation is currently working with Parks Canada to secure a lease for the land. Recently, the municipality of Jasper installed utility services to the property line of Parcel GC in anticipation of future development.
Q. What are the details of the development? (# of units, type, etc.)
The proposed development is a 40 unit apartment building. The proposed distribution of units is twenty 1 bedroom units and twenty 2 bedroom units.
Q. What will the building look like?
The final design has not been decided, but some design elements are predetermined to follow Parks Canada development guidelines. For example, the maximum stories of a development is three. As details are decided more information will be posted under the ‘Major Projects’ tab of the municipal website.
Q. How much will it cost?
Estimated capital expenditures for the Connaught project are $22,013,250. More precise cost estimates will be available as submissions received during the Request for Proposals process are reviewed.
Q. How is the Project being funded?
The project will be funded through a municipal debenture of $5 million, grant funding of $6.5 million (AHPP – Alberta Affordable Housing Partnership Program) and private equity.
Q. How much will rent be?
To comply with grant requirements, all units will be rented as affordable housing as defined by the Government of Alberta. Rents will fall in the affordability bands of minimum rent - 60% of market rent, and mid-range rent – 75% of market rent for Jasper.
Specific amounts are not confirmed yet.
Q. Who will be eligible to live in the units? How can you apply for a unit?
All residents will have to meet Parks Canada Eligible Residency criteria to live in a unit.
Parks Canada Eligible Residency
We are still in the planning stages, details about who can and how to apply for a unit will de added to the Housing page of the municipal website as processes are confirmed. We are not currently taking requests for units or keeping a waitlist.
Q. When will construction start?
We are in the planning stages and hope to begin construction in the spring of 2024. This FAQ’s page will be updated as we learn more and the construction schedule is confirmed.
Please Note that the Housing Project FAQ’s page will be updated as questions arise and as more information is available.
August 15, 2023 Public Hearing Information Package
1. Services the corporation intends to provide
Excerpt from the Draft Jasper Municipal Housing Corporation Business Plan
3.2 Expected Functions of the Municipally Controlled Corporation (MCC)
Within the Province of Alberta, a municipality may establish and control a corporation so long as the council of the municipality passes a resolution authorizing the municipality to control the corporation by itself, and the council is satisfied that the corporation meets certain requirements, defined in section 75.1 of the Municipal Government Act, that ultimately benefit and fulfill the needs of the residents of the municipality10. This corporation is a legally separate entity governed by the appointed board and directors and formalized through a Unanimous Shareholder Agreement and Articles of Incorporation.
The Municipality of Jasper plans to establish the “Jasper Municipal Housing Corporation (JMHC)” as a legally separate entity from the Municipality. Establishing the JMHC as a municipally controlled corporation allows for the Municipality to play a more prominent and direct role in the housing market by formally partnering and financing with the Private sector to expedite housing development in Jasper. The strategic objectives of the JMHC do not differ from those of the JCHC, but rather the JMHC further enables the municipality to act upon them through an alternative solution.
The JMHC will have an immediate capacity as a financer, owner and potentially operator of housing development(s) in the community. The scope of the JMHC is separated into two (2) periods due to the fact that the immediate capacity is to play a major role in the delivery of the Connaught housing development project by the spring of 2025. The scope and role of the JMHC could eventually expand into additional responsibilities such as residential housing facilitators. The functions in the immediate and medium-long term are further defined below.
3.2.1 Immediate Capacity
The short-term capacity of the JMHC will be to act as an owner, operator and source of capital for their current assets, as well as future developments that are underway (i.e., the Connaught Housing Project). The municipality currently owns and operates two (2) staff housing assets and one (1) medical clinic which could become assets of the JMHC upon incorporation and transfer:
- Residence - 1251 Cabin Creek Drive;
- Residence (Duplex) - 895 Bonhomme Road; and
- Cottage Medical Clinic - 300 Miette Ave.
CONNAUGHT DRIVE DEVELOPMENT:
The Connaught Drive development is a 40-unit development, consisting of 20 1-bedroom units and 20 2- bedroom units, located on parcel GC in Jasper (See Appendix 1 for site aerial view). There has been significant planning and investment that has already taken place for this development, dating back to 2018, which includes site servicing, preliminary design considerations, Class C cost estimate, and additional pre-work.
To help fund the Connaught Drive development the municipality previously applied to the Rapid Housing Initiative (RHI), which is a fund under the Canada Mortgage and Housing Corporation (CMHC), to deliver affordable housing units throughout Canada. Unfortunately, they were not successful with the applications. More recently, the municipality applied to the Affordable Housing Partnership Program (AHPP) under the Alberta Seniors, Community and Social Services and were recently announced as a successful recipient of a $6.5M grant for this development. The municipality will be looking to fund the remaining capital through the JMHC and with buy-in from local businesses. This is further discussed in the sections below.
JMHC Responsibilities:
Although local businesses and/or residents will be contributing to the capital required for development, it will be the responsibility of the JMHC to design, construct, operate and maintain the development.
- Design & Construction: the JMHC will contract project management, design and construction services to deliver the Connaught Drive development.
- Operation & Maintenance: the JMHC intends to procure the maintenance services of
Evergreens Foundation for property maintenance and ancillary support services of the Connaught development, while the existing assets to be transferred will continue to be maintained by the MoJ. Evergreens currently operates 14 multi-family and seniors housing facilities in the region and properties in Jasper, including the Alpine Summit Seniors Lodge. It is important to note that the details of the contract with the Evergreens Foundation are still being finalized.
The contractual relationship between private shareholders (e.g., local businesses) and the JMHC is further defined in section 5.0 Shareholder Plan and Governance of this report.
3.2.2 Future State
Through consultation with the municipality, it is evident that there are local residents living in housing that does not adequately meet their needs or housing that is too much for them to maintain. Examples of this could be a new family who requires additional space (e.g., additional rooms, storage, etc.), or a senior resident who no longer requires the space they are currently in and may be looking for a smaller home.
To help to solve for this, the future state responsibilities of the JMHC may include acting as a residential housing facilitator. As a residential facilitator, the JMHC would be able to effectively meet the housing needs of their residents by enabling housing transactions between locals. Whether this be as simple as facilitating introductions between residents looking to make a change, or using aggregated housing supply and demand information to plan future developments in the area.
The second primary function of the future state JMHC, assuming that the Connaught Drive model proves\ to be an effective housing delivery mechanism, is for the JMHC to act in the capacity of developer,\ investor/shareholder/financer, and operator of residential assets where opportunities exist. It is to be determined by the JMHC's Board as to whether the role and responsibility of the JMHC are to be expanded at a later date.
These two future capabilities allow JMHC to continue to execute on the Municipality of Jasper’s mandate to maximize the effectiveness of Jasper’s current housing supply, while also opportunistically expanding it to meet the growing demand within the community.
2. Names of shareholders of the corporation
The Municipality of Jasper wishes to be the sole shareholder and jointly create and control the Municipally Controlled Corporation under the Business Corporations Act (RSA 2000, cB-9).
3. Geographic locations in which the corporation intends to provide services
Within the Jasper, Alberta town site.
4. Market impact analysis
Excerpt from the Draft Jasper Municipal Housing Corporation Business Plan
4.1 Market Impact Analysis
One of the primary considerations that any municipality is to consider in the creation of a MCC is the effect of the MCC’s operations upon the private market and private operators. It has been a policy statement of the Province of Alberta, in creating the updated MCC regulations, that the Province does not want a government entity or a government owned entity, such as a MCC, to compete with the private sector and/or impact the private sector’s provision of services.
It is evident that without more influence and/or involvement from a local entity with a mandate to address the persistent housing demand in Jasper, the housing gap will continue to limit both current and prospective residents of Jasper and the welfare of local business owners. As is enumerated in Section 3.0 Current Municipal Housing Context and several other studies completed to date, it is evident that:
- Vacancy rates have consistently remained at near zero, and have been there for decades;
- There is a housing shortage, and lack a quality housing, within Jasper;
- The Housing Need and Demand Assessment report evidences that there are both challenges with respect to the supply of housing and cost of housing; and
- There is a material impact on the success of local businesses due to the inability to provide accommodations for their staff.
When considering the current housing providers in Jasper, the following is noted:
1. There are a number of private operators of residential dwellings within the Municipality;
2. Though there are a number of private operators, and the private sector being unable to satisfy the increasing need of housing supply; and
3. The private developers on their own require rates of return which makes it extremely challenging to increase affordable housing supply.
4. JMHC’s mandate and target is to address this challenging, low margin segment of the market and not intrude in to areas where private development is working.
4.2 Market Sounding
Colliers, on behalf of the Municipality, undertook a market sounding process aimed at further understanding housing needs in Jasper, and proposing the idea of the JMHC as a facilitator to increase the accessible housing stock within the community. Further, the market sounding served to gauge interest in local business investment into a JMHC led development specifically at Connaught Drive, but also generally as a shareholder in future development under a similar financial structure.
This important step validated the demand for housing, reinforced local business concerns focused on housing for transient workers during busy summer and winter seasons. It also affirmed acceptance of a shareholder model for development where the JMHC acts as managing shareholder with decision making autonomy over future development and operational decisions. A proposed commercial structure for the Connaught Drive development can be found in section 6.0 Shareholder Plan and Governance. A full market sounding report can be found in Appendix 2.
5. Public Hearing Process
Statement of General Purpose (what is being considered)
The proposed creation of the Jasper Municipal Housing Corporation (MCC) serves two main purposes. Firstly, it aims to address the housing priority set by Council by establishing an organization dedicated to promoting the development of affordable housing. This corporation would work towards increasing the availability of housing options that are affordable for residents. Secondly, it would provide a means for the Municipality to borrow funds specifically for housing development without exceeding its debt limit. Additionally, the proposed corporation would have the opportunity to accept private investments, to further support affordable housing initiatives.
Access to Information
A copy of the proposal to create a MCC is available on the Municipality of Jasper’s website at www.jasper-alberta.ca/housing-corporation, as well as in the June 27, 2023 Committee of the Whole meeting agenda package, also available on the municipal website.
Public Hearing
A Public Hearing to consider the proposed resolution will be held on:
Tuesday, August 15, 2023
Starting at 1:30pm or as soon thereafter as possible
Council Chambers, Jasper Municipal Library
500 Robson Street, Jasper, AB
Presenting at the Public Hearing
Anyone wishing to make a presentation regarding the proposed resolution must, in writing, inform the Municipality of Jasper of their intention by Wednesday, August 9, 2023 at 4:00pm (MST).
Written Submissions
Written submissions can be:
- Emailed to Emma Acorn, Legislative Services Coordinator, at eacorn@jasper-alberta.ca;
- Mailed to the Municipality of Jasper, c/o Legislative Services Coordinator, PO Box 520, Jasper, AB T0E 1E0; or
- Dropped off in person at the Administration Office located at 303 Bonhomme Street, Jasper, AB, Monday to Friday between 9:00am and 12:00 noon, or 1:00pm and 4:30pm.
The deadline for written submissions is Wednesday, August 9, 2023 at 4:00pm (MST).
Background Information
Council sees the importance of providing affordable, quality housing for residents and has committed, through the adoption of Housing as a Strategic Priority and the approval of $5 million in capital funding, to being an active partner in advancing housing solutions in the community. Adding more rental housing units will address one of Jasper’s biggest ongoing challenges.
The Jasper Community Housing Corporation (JCHC) Board and Municipal Council have identified the need for an alternative governance structure for the JCHC to further housing development in the community; specifically, that the Jasper Community Housing Corporation be converted to a Municipally Controlled Corporation (MCC).
On June 27th, 2023, administration submitted a Request for Decision to Committee to hold a Public Hearing to receive input on the creation of a MCC - the Jasper Municipal Housing Corporation (JMHC). At the meeting, a Draft Business Plan for a proposed affordable housing development – the Connaught Project, was presented. Experts, including consultants from Colliers Project Leaders and Brownlee law were in attendance to answer questions.
A municipality may choose to establish a municipally controlled corporation to develop housing in order to address pressing housing challenges within the community. In the specific context of the conversion of the non-profit JCHC to the “Jasper Municipal Housing Corporation” MCC, benefits include the ability to retain debt that does not count against the municipality’s debt limit and; the ability to create a vehicle for equity through the creation of shares that can be bought and sold. Additionally, an MCC is permitted to distribute profits via the payments of dividends to its shareholders without the requirement of obtaining ministerial approval, or conducting a public hearing.
This proposed governance structure, will be well suited to making the best use of the $5 million set aside by Council and a grant of $6.5 million from the Alberta Affordable Housing Partnership Program. All with the goal of increasing the number of affordable rental units on the Jasper market.