The Okotoks Ratepayers Community Group submitted their petition last week in protest of taxpayer funds being used for phase one of the Homestead Project.

If 2,900 of the reported nearly 3,200 signatures are validated, the Town faces a steep uphill battle to move forward with the project as currently approved.

The Town has been engaged in land lease negotiations with Realize Communities over the project, which includes the Tiny Homes ecovillage.

Thomas Grenier, the developer who brought the ecovillage plans to town council, says he isn’t “overly optimistic” the project will continue should the petition be approved, but he hasn't exhausted his options to provide affordable housing in this community.

“We're really trying to find out a way if this is palatable to the people who live (in Okotoks),” Grenier said. “Given that the community response has been so voluminous, we are cautious about proceeding. But we’re not going to pull the plug until we talk to the Town.”

Elaine Vincent, Town CAO said there is no set date to announce whether the petition has met the Municipal requirements, though it is expected to be ready in time for discussion at the August 19 council meeting.

If the petition is verified, ouncil has two paths to choose from. They can either heed the wording of the petition, which dictates that no ratepayer funds be used to finance the Homestead Project, or hold a town-wide referendum seeking approval from residents.

Given the mounting pressure on the Town since the project's approval in May, Grenier believes it’s unlikely that council is hungry to trigger a referendum.

"This may sink the operation entirely, but we will see how the chips fall,” he said. 

"In good faith, I want to work with (the Town). Despite all of the hiccups that we've had, we have a very strong shared vision of creating something great for the town of Okotoks. So I'm going to hold out, and see what happens, and hope that we can come forward with something great."

The financial approval for the Homestead Project is a split cost, with the Town’s portion coming from their capital reserve fund, and CMHC funding provided to Realize Communities to build the Tiny Homes ecovillage. 

Grenier says his goal remains to create affordable housing and to build a sustainable, replicable community that benefits the residents both in the proposed ecovillage, and the Town of Okotoks at large.

"My intent is, because this would be the first Tiny Home community like this in the country, is not to do it poorly," he said. "The reason the CMHC could be involved is because they want to test it. They want to showcase the opportunity of having this type of housing model set up as a non-profit with its programs and its ample community space as something that can be replicated.”

Included in the first phase of the Homestead Project is 42 Tiny Home units and a building meant for communal use by members of the neighborhood. Grenier's vision for the community building includes space for a garden, and programming for cooking and physical activity classes.

The most recent update on the land lease negotiations were limitations put on the discussions by council at their June 24 meeting.

Council passed a motion at that meeting that any agreement with Realize Communities must include a repayment of half of the Town's projected $3.34 million infrastructure costs, and a monthly lease fee deemed equivalent to property taxes.

Grenier says the new funding requests from the Town may have made the project untenable from the perspective of affordable housing. He says the restrictions would increase the monthly cost of a Tiny Home unit by a minimum of $125 per month.

"I really want to ensure that I am not saying "affordable housing" in air quotes, and charging people just enough to be called affordable, so the Town could make a profit off of this," he said. "I've come here trying to propose this village, not for personal gain, but entirely to set the model that I think would actually work for people. I'm hoping that in these next couple weeks the Town and I can remain committed to this notion of actually providing affordable housing that benefits people, particularly as citizens of Okotoks."

While the ratepayer group's petition is directed at the Homestead Project, its success wouldn't necessarily be a death blow to the development as a whole, but the Town's portion of the funds would be seriously in question. 

Grenier says it’s also possible that changes to the affordability of the units could affect CMHC funding as well. 

Faced with the possibility of ratepayer funds being pulled from the project, Grenier says the Tiny Home village could still move forward, though it would likely look very different from the currently approved development.

"It is possible for this to be done in a more conventional way where (Realize) owns the land... but that currently within Okotoks' land options isn't a possibility," Grenier said. "Five years from now, probably. But this (version of the Tiny Homes) is kind of either at D'arcy Ranch, or probably the project will either be delayed or not happen at all.”

Part of the reason for the Homestead Project's unconventional development process is the Town has limited options for developing the land in the north end of D'arcy. A stipulation from when the land was annexed in 1994 ensures the parcel remains Town-owned, and used only for municipal purposes. That means it can't be purchased and developed as a traditional community, nor can it be sold commercially. 

The partnership between the Town and Realize Communities has provoked the ire of many Okotokians who would prefer to see the Town not invest ratepayer money into a private development before details on long-term repayment had been firmed up. But Grenier believes that since the land must remain Town-owned, having a third-party non-profit developer who can bring their own funding makes Realize a strong match for the D’arcy land.

"If the land in question, owned by the Town, has to be developed no matter what, and can not be used for any sort of commercial enterprise other than affordable housing, then the Town, if it wants to recoup any of its costs for developing that land will need to work with a third party," Grenier said. "No conventional housing development... could go there because the land isn't able to be sold, no mortgage could be put on it."

The land could be used for other municipal purposes, such as a park, but the financial analysis of that type of development has not been completed by the Town. 

For his part, Grenier says he understands why residents feel frustrated about the project, and believes part of the issue, including the lack of clarity about land use possibilities, has been a matter of poor public rollout.

"During this whole process, we and the Town needed to engage better with the Okotoks residents, and explain more clearly the finer points of this project and why it's a good deal for Okotoks in general," Grenier said.

With public pressure mounting on the Town, a rising potential cost for prospective Tiny Home residents, and the pending success of the ratepayer group's petition, Grenier admits his optimism of the project’s completion are beginning to wane.

“I think I would be too optimistic or naive to say I have a great deal of faith in this still happening,” he said. 

“Ultimately my strongest priority is the provision of actual, and adequate... community-building Tiny Homes," he said. "And if we can't do that in Okotoks, I guess that's just where we have to leave it."

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