Dear Editor,

Over recent weeks there has been much discussion in our local media regarding the seniors housing affordability issue at Rainbow. A majority of Council, with the very best of intentions, rejected the price proposal for the Lot 10 portion of the development, with the RMOW exercising its option to assume ownership and responsibility for delivery. They suggest that the price point of $370 per square foot is simply too high compared with resale values for existing WHA restricted resident housing. As a result this seniors housing product at Rainbow would not meet the need for affordability transition certainty within our community, as our aging population moves from the restricted resident housing (RRH) to restricted seniors housing (RSH). So, why was there such a price point differential?

The answer is relatively simple. Most, if not all, of the WHA inventory of RRH was delivered under much different conditions, where the Development Agreements (DA) were very specific in terms of a price point for delivery of the RRH both in terms of final price and product. Over the years these prices varied from $120 up to $190 per square foot; however, they did not reflect in any way the true building and development cost of those units, as they were part of a negotiated amenity zoning package. Similarly, at Cheakamus Crossing the $250-per-square-foot price point for RRH was only achieved as a result of significant development costs being assumed by VANOC — a really good deal for our community. During the 2009 year the average price for resales of those WHA RRH apartment and townhome units ranged between $245 and $282 per square foot. These resale prices reflect a maximum value increase over the years based on a relatively low appreciation formula.

Now the DA requirements for seniors housing at Rainbow was far different, with no pre-determined or mandated price point. In fact, the DA was quite specific, where the Lot 10 portion of the housing was to be delivered at cost (e.g. including all soft costs, development cost charges and financing) plus a management fee, and only excluding the cost of serviced land. There was no negotiated, preset price point in the DA for Rainbow. The developer’s proposed price level at $370 per square foot was attractive to many seniors, and was certainly far more affordable than the market housing in Whistler. In addition, it was a product designed specifically for seniors, though unfortunately it was not the answer for everyone.

Seniors housing does come at a premium relative to RRH, because seniors do have specific additional needs in order to age comfortably in place. WHA is now exploring options for the delivery of this seniors housing Lot 10 component at Rainbow at a much more affordable level. This will be challenging, and we can only hope that they will be successful.

Gord Leidal, President

Mature Action Committee

Whistler