INNISFAIL – The Town of Innisfail is moving ahead to issue a tender for a multi-million-dollar infrastructure construction project to create saleable residential and commercial lots in 2025 at the planned westside Napoleon Lake South development site.
The planned 12-acre development on a vacant field south of Napoleon Lake, located near the intersection of 42 St. and Highway 54, is earmarked to have 62 residential lots, an apartment site and buildings on a 1.62 acre of commercial land.
The town considers this property the most readily serviceable area in the community and is the only town-owned parcel identified for commercial and residential development, with proposed housing types that support both older adults looking for bungalow products as well as more affordable products for ownership and rental.
The proposed development is also considered essential as there is a critical shortage of housing of all types in Innisfail, despite attempts in the recent past, such as at the westside Bella Vista development and along the northeast side of Dodd’s Lake.
Last year, following a public hearing, there were some serious concerns with the planned development, notably over the impact of proposed high density rental units, and the project’s commercial component.
Nevertheless, on Feb. 18 at a special council meeting, unanimous approval was made on a motion to give administration direction to issue a tender for the installation of the project’s required infrastructure, and to move forward with a subdivision application to the Municipal Planning Commission.
Council also approved a second motion to accept the draft Napoleon South design guidelines and lot pricing as information.
In her report to council, Meghan Jenkins, the town’s director of community services, said current lot availability in the community is “very low” with 23 lots (duplex and detached) in Bella Vista and four detached lots in Hazelwood.
She added no other development areas are prepared to make lots available in 2025.
“I will say we are in desperate need of housing. I actually looked today on MLS and there are only four single-family homes for sale in Innisfail,” said Mayor Jean Barclay. “Imagine a community this size and you have four single-family houses for sale and basically nothing else. How many people are we losing to other communities because they can't find a place to live here?
“We have employers that are hiring people, and having no housing becomes a barrier.”
The total dollar estimate for construction of municipal infrastructure is $4,937,271, which will include a 15 per cent contingency, construction management, design and engineering, and offsite levies.
“We have a budget of that amount of money, but the actual number will be what the company submits for the tender process,” said Todd Becker, the town’s chief administrative officer to the Albertan on Feb. 19. “There's no financial commitment yet until council sees that report with all the tender submissions.”
Jenkins proposed to council the cost of servicing be financed through the Land Acquisition Reserve to the “greatest extent possible.”
Her report added the project is intended to generate net profit and to not have a financial impact extending beyond a five-year projection period.
Jenkins said tax revenue resulting from the residential component of the development is estimated to generate $200,000 annually based on current assessment and tax rates.
She said pre-sale lots will be made available to market with a lot draw in early May, with results provided to council in conjunction with its consideration of the contract award.
Council was told that if there is enough lot draw interest infrastructure construction could start in the same month, with home construction ready to begin in either September or October.
Jenkins’ report proposes residential lot sale prices from $64,900 to $129,900, which would include townhouses at the low end and up to single-detached residential dwellings.
Final lot prices will be presented for council approval on March 10.
The estimated home prices are anticipated to range from $350,000 to $550,000.
As for the planned apartment on a .94-acre site that would have between 24 and 32 units, the projected sale price is $250,000/acre.
In the project’s commercial area, the town also has a projected sales price of 250,000/acre.
Council was told the results of the lot draw will give council an idea of what sort of return on investment and final costs will be before it decides to move forward with its multi-million-dollar investment.
“If there's no interest in that neighbourhood and no interest from home builders wanting to do anything, then we likely won't proceed,” said Barclay. “But if there's interest there then we will proceed.
“There's a bit of a safety net there for us as well because we are in uncertain times right now with all these trade tariffs, and we don't know what's going on there, and that could have a significant impact on our community,” added the mayor. “You don't know where things are going from day to day to day.”
