Minto will give a developer land for $1 if it's used for affordable housing units

A New Brunswick village is offering cheap land to any developer who promises to offercheap rent.

The Village of Mintowill sell a plot of land for just a dollar to whichever developer pitchesthe best plan to build at least six affordable housing units in the community this year.

The villagehas issued a request for proposals for the project, which includes the offer for the 9.8-acre plot,provided "the successful applicant enters into a development agreement that satisfies the Village of Minto."

The piece of land is accessible via Bridge Street, and is registered under PID45079191 andPAN 00965218. Provincial records show it was last assessed as being worth $12,500.

Mayor Erica Barnett said the village did an online survey of housing needs among residents last year, and found that more than 46 people were in need of more affordable rental options.

She said those respondents included young families, immigrants and seniors who were looking for safe and affordable places to live in the community, which is located about 50 kilometres east of Fredericton.

Barnett said councillors got to work on ideas to entice developers to help fill some of that need, and decidedto sell the lot, with thecaveat attached.

"So the property that we're offering up is, is quite large... and we're hoping that, you know, once the six [units] go up that we can get commitment that there will be, you know, more built kind of yearly as the need keeps rising."

When it comes to what will constitute affordable, Barnett said there's no stipulated dollar figure being set by the village, butdiscussions about "fair" rent costs will be had with developers.

Beyonda commitment to creating six units, Barnett said applications will be judged based on the design of the units, their energy efficiency, and the applicants'interest in building additional affordable units in later years.

"So we'll be looking at it as a full-scale project and what we see will benefit, you know, our community in the most positive way."

A similar initiative was launched by Village of McAdam, which in 2018announced it would sell 16 housing lots each for a dollar, in a bid to lure new residents and stimulate growth.

Need exists for more housing

Elizabeth Mills is the president of the Minto Community Resource Centre, which operates a food bank, thrift store and manages four public housing units.

She said there's a great need for more affordable rental units in Minto, which is exemplified by thewave of inquiries they getwhenever one of the units they manage becomes available.

She applauded the village's initiative to increase that supply of affordable housing and said she hopes it's a success.

"I think it's a great initiative," she said."Obviously the council is recognizing the need and that's what they feel is a justified effort to reduce that need."

No guarantee it will attract developers, group says

The incentive by the Village of Minto to attract developers is a good start, said Gerry Webster, president of the Saint John Apartment Owners Association.

However, he said it's no guarantee it will attract developers to build in a smaller community like Minto, on top of committing to make the units affordable.

Webster said one-quarterof the entire cost to construct a building the purchase of landincluded is typically spent on taxes and permits.

He said the land itself typically costs developers about 10 per cent of the total cost.

He said the deal could be sweetened if the village also offered to waive things like building permits and other municipal fees.

"Offering the land for a dollar on a proposal is a great start. It sends out all the right signals and everything else. And in some areas, it goes very, very well," Webster said.

"But I just don't see an apartment building going because you can get the land free.I just don't see it."

J.D. Irving considered stakeholder

The second page of the request for proposals contains a paragraph titled "Private meetings with village staff and stakeholders."

It states the Village of Minto will arrange one-hour meetings with respondents March 7-11 to address any questions and comments.

Participants will include representatives from the Village of Minto, Peter Corbyn, a housing consultant, Dominic Aube with the Canada Mortgage and Housing CorporationandRobert Fawcett from J.D. Irving.

Barnett said the company is a large employer in the region, referencing the sawmill in the neighbouring community of Chipman, and said many Minto residents travel there every day for work.

With the company planning to hire more workers in the coming years, Barnett said having themat the table will show applicants that the housing needs in Minto will continue to increase.

In an email, J.D.I. spokesperson Anne McInerney said the company is recruiting to fill vacancies in key positions caused by retirements and an aging workforce, which includes bringing newcomers and their families to the province.

At the same time, people in communities across New Brunswick, including newcomers and their families, are experiencing challenges finding housing in the province, she said.

"Improving the availability of housing in rural New Brunswick will require a collective effort and cooperation from all partners," McInerney said.

"Communities, developers, employers and government all have a role to play to help address the housing challenges in rural New Brunswick."