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Former Sundre Motel's Conversion into Rental Units Progressing
The former Parkwood Motor Inn in Sundre is undergoing a transformation, with plans to turn the old motel into rental units. This project, led by Andrea Warkentin, a commercial and residential Realtor, and her partner Brenda Bastell, is an example of how developers are adapting to meet the demand for housing in communities with low rental vacancy rates. The conversion is well underway, and tenants could potentially move in as early as January 2025.
Embracing New Opportunities Through Adaptive Reuse
The repurposing of the Parkwood Motor Inn into a mixed-use residential and commercial building is a promising move for the community of Sundre. The project will result in 24 new dwelling units, including bachelor, one-bedroom, and two-bedroom apartments. The new spaces will be modern and comfortable, with updated amenities such as new windows, plumbing, and electrical systems. These updates ensure the new rental units are safe and attractive, addressing both community needs and the current housing crisis.
Adaptive reuse of buildings like this offers a sustainable approach to development. By repurposing existing structures, developers can save resources, reduce construction waste, and maintain the character of a community. The project in Sundre showcases how older buildings can be given new life, meeting modern needs while preserving a sense of place.
Overcoming Bureaucratic Challenges
However, the process hasn’t been without its challenges. One of the biggest hurdles for Warkentin and Bastell has been navigating the bureaucratic red tape involved in converting a commercial property to residential use. The need to secure an exemption from Alberta’s New Home Warranty Program delayed the project for several weeks. This experience highlights a common frustration among developers: finding the right contacts and understanding the regulations required for such unique projects can be daunting.
Despite these challenges, Warkentin praised the local municipality and building inspectors for their support and cooperation. This positive collaboration shows that while bureaucracy can slow down progress, effective communication and community support can help navigate these complexities.
Demand for Accessible and Inclusive Housing
A notable aspect of this project is its commitment to accessibility. Four of the 24 units are designed to be accessible to tenants with mobility issues, featuring wider doors, step-in showers, and other modifications to ensure ease of use. Warkentin noted that these accessible units will likely be in high demand, reflecting a growing need for inclusive housing solutions.
This focus on accessibility aligns with broader trends in the housing market. As the population ages and the demand for accessible homes increases, developers who prioritize these needs will be better positioned to serve diverse communities. Providing accessible housing also enhances community inclusivity, allowing people with different needs to live independently and comfortably.
Leveraging Government Programs for Affordable Housing
The federal government’s CMHC MLI Select program has been a significant incentive for the Sundre project. This program is designed to encourage developers to create multi-family housing by offering extended amortization periods and low down payments. Warkentin explained that such incentives are crucial in a market where the cost of construction has nearly doubled since 2019.
By participating in this program, developers can offer affordable housing and make projects financially viable. The program’s flexibility allows developers to earn points by including accessible units, adopting green initiatives, or setting aside a portion of units for affordable housing. This approach provides a pathway to balance profitability with social responsibility.
However, there are challenges to fully utilizing these incentives in certain regions. For instance, Alberta’s reliance on natural gas makes it less cost-effective to implement some green initiatives favored by the federal program. Nevertheless, Warkentin and Bastell are exploring a mixed approach to gain points through accessible housing and energy-efficient upgrades.
The Financial Realities of Real Estate Development
Warkentin’s remarks underline the importance of financial viability in real estate development. She emphasized that without the backing of programs like CMHC, it would be nearly impossible to undertake such conversion projects, especially on a short commercial mortgage term. The incentives provided by these programs reduce the financial risks for developers, making it more feasible to invest in housing projects that meet the needs of the community.
The project in Sundre demonstrates how real estate development is fundamentally about balancing risks and rewards. By carefully planning and taking advantage of government programs, developers like Warkentin and Bastell can contribute to solving housing shortages while still ensuring a reasonable return on investment.
A Step Towards a Sustainable and Inclusive Future
The conversion of the Parkwood Motor Inn into rental units is a microcosm of a broader movement toward more sustainable, accessible, and inclusive housing development. It reflects the growing recognition that real estate is not just about buildings but about people and communities.
As this project moves forward, it serves as an example of how creative solutions, perseverance, and collaboration can overcome challenges and create opportunities for growth and improvement in housing. It’s a story of adapting to change, finding new uses for old spaces, and meeting the diverse needs of a community.
Share Your Thoughts
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