The first part of this series, published in February, took us into the history of the Heritage Centre (HC) campus’ history, to demystify the confusion about its early development. Part Two, in March, focused on its current benefit to the community, offering a look inside the seniors living and medical components and identifying some of the people who have made it happen.
This month, we’ll look at the future of the centre and the forethought that’s gone into creating a viable long-term social enterprise.
From today’s economic standpoint, the HC is Niverville’s largest employer, with over 300 full and part-time staff. The centre also draws over 25,000 visitors every year and provides services for over 50,000 people through its businesses, housing, daycare, and medical clinic.
The HC is also the largest taxpayer in the community, with an annual property tax contribution that will reach $160,000 when the new life lease facility is complete—though the Town of Niverville has recently announced approximately $300,000 of tax relief for the life lease over the coming four years.
Upon completion, the centre will have an estimated replacement value of about $60 million. Any surplus revenue generated above the 25 percent operating reserve will be forwarded to the Niverville Health and Community Foundation. These monies have been designated for community recreation and social amenities. Because the HC is under the community’s ownership, the books are open to the public and reports and financials are submitted to the town council annually.
Assuming there are no major setbacks, Niverville Heritage Holdings Inc. (NHHI) expects to retire the mortgage in 25 to 30 years. The town will then have the opportunity to buy back all HC assets for $1. They can choose to run it themselves, allow NHHI to continue to act as a trustee, or find another board.
Without a mortgage, the centre should provide a massive direct income stream to the town. Based on today’s dollars, this could mean over $1 million in additional funds annually for the community, or approximately 50 percent of the town’s entire budget. The additional funds could be used to invest in infrastructure, roads, or recreation, or used to lower taxes.
Council will, alternatively, have the option to sell the centre to a private company. The result would be the loss of a major ongoing income stream and the potential loss of the atrium and event room to office spaces, changing the dynamic of our community gathering place.
In the event that NHHI should be approached for a private sale before the mortgage is retired, the right of first refusal will be granted to the town. With this clause in place, the town could choose to match the offer, allowing NHHI to pay off the mortgage and transfer the difference to the town. This would ensure the town’s continued ownership of the campus.
“In essence, we are building a heritage fund for future generations while benefiting from the significant medical, seniors housing, personal care services, childcare services, and community convention centre today,” says Gord Daman, board member of NHHI.
Long-term thinking didn’t stop at the financial side of things. The seniors housing plan will prepare us for the rapidly increasing senior population in the coming years.
“The oldest boomers have recently hit retirement age,” wrote Matt Lundy for The Globe and Mail on November 11, 2015, “and millions more will join them in the coming 15 years, in what amounts to a massive demographic shift that could have major implications for the country.”
Currently, the provincial standard is set at 115 beds for every 1,000 people over 75. In order for the province to maintain the required standard, about 300 new beds will need to be added every year for the next 16 years.
The HC’s aging-in-place concept allows for flexibility throughout its various housing components to accommodate the increasing senior population. One example of this is reflected in the design of the coming life lease units. Factored into the plan are additional rooms which, in the interim, will be used for storage. Eventually, when the need arises, the life lease space can act as another assisted-living or supportive-living facility, the extra rooms being utilized as offices for homecare staff.
In 40 to 45 years, when the aging population declines, the life lease units can be turned into condominiums for all ages. Even rooms in the current assisted-living facility can be modified into micro-units, serving as starter homes for newlyweds or singles.
“The Heritage Centre, in so many ways, has become a beacon of hope for other communities,” says Daman.
Daman has taken calls from community leaders in Saskatchewan, Alberta, Ontario, and the Yukon who are looking to NHHI for advice in constructing similar social enterprises. He is already working with the nearby communities of Carman, Arborg, and Boissevain to develop similar models.
With the purchase of the St. Adolphe personal care home in 2013, NHHI acquired the land it sits on. Because a number of local citizens stepped up to offer NHHI short-term loans, it wasn’t necessary to leverage the assets of the Heritage Centre for the purchase. Those lenders were paid back in the first two years of the PCH’s opening.
The RM of Ritchot has also expressed interest in an aging-in-place model on the site of the condemned St. Adolphe PCH. NHHI is moving ahead with plans to create an assisted-living facility, affordable housing, senior’s life lease, and a daycare on the site. This, too, will be owned by Niverville, without private investors in the mix, creating another income stream.
On May 3, 2016, Minister of Health Kelvin Goertzen received a letter from Premier Brian Pallister instructing him to develop a funding model to “fast-track construction of personal care homes… similar to the Heritage Life personal care home in Niverville.”
It’s clear that Niverville’s Heritage Centre has become an icon. As of yet, no facility quite like it exists in Canada and it stands as a unique model for top-notch seniors’ care and community gathering places.
