Subdivision around new northwest Regina school hits snag

The collection plate could be coming up a little short for a Regina church’s new subdivision, and that could cost Regina’s taxpayers.

The Rosewood Park Alliance Church was approved for the Rosewood park development in 2014, and entered into a serving agreement with the City of Regina in 2015.

The development is supposed to be around the church in the as-yet unapproved Coopertown area, north of 9th Avenue North and west of Courtney Street. The Rosewood Park area includes one of the province’s new P3 schools currently being built.

Since then, the project has hit some snags. In March this year, the city served notice to the church that it was in default of the service agreement. The city said it has been working ever since to get the plan back on track, and the church has acquired a development partner, Westridge Construction.

Diana Hawryluk is the executive director of city planning and development with the city. She said northwest Regina needs a school, and their number one priority is getting the school built and open in 2017.

In a report on the development, the city said there are four things the church needs to do to convince the city it can continue in the project. It needs to provide a construction schedule, to provide a financial plan for the school site, to explain how it’s going to pay off its creditors, and to secure the $3,184,000 service bond that is require under the serving agreement.

“If those four things were in place by next Friday, then the city would feel that we were in a position to allow the developer to continue the work … And if they don’t have that information by then, the city’s going to step in to finish the servicing work that’s required to get the school finished,” said Hawryluk.

Hawryluk said if the city has to step in, it’s estimated the tenders could cost the city $1.5 million. Though, the city wouldn’t be on the hook for that money. She said it would try to get the money back through the developer, or it would turn to other mechanisms like an Endeavour to Assist to collect the money off the lands in the future.

She explained that getting the rest of the subdivision built would be up to the developer.

The church also asked for forgiveness of a $3 million dollar advance, $1 million in servicing requirements, and $2.68 million of servicing agreement fees. But the report that will be put forward at Monday’s city council meeting recommends the city doesn’t agree to it.