At last Monday’s (June 1) council meeting, members unanimously agreed to waive the outstanding rent arrears owed to the city by the city’s emergency shelter, The INN, and Indwell Community Homes, which operates Railway City Lofts on Talbot Street and The Station on Queen Street.
Indwell is also re-purposing the former Balaclava Street Public School into 78 supportive housing units, equipped with essential supports to assist residents.
In her report to council, Danielle Neilson, the city’s Acting Director of Social Services, advised that The INN leases 10 Princess Ave. from the City of St. Thomas and depends on municipal and provincial financial commitments, as well as other grants, bursaries, and fundraising to keep its doors open.
Five years ago, the city entered into lease agreements with both non-profit organizations for the operation of The INN and Railway City Lofts. These leases include monthly rents in the amount of $2,500 for the INN and $6,400 for Railway City Lofts.
The leases also indicate that the monthly rent is subject to annual adjustments being applied based on the Consumer Price Index, which is currently set at a maximum of 2.5 per cent each year.
However, it is important to note that these increases were not applied to The INN and Indwell until 2026, and resulted in increased rents and cumulative rent arrears.
In the case of The INN, the arrears total is an estimated $30,000 and $70,000 for Indwell.
In her report, Neilson stressed that the operating costs for The INN and Indwell have increased year over year.
She cautioned, “Annual rent increases present budgeting challenges that compromise their operating costs and needs. Further, both organizations are not equipped financially to pay back the amount of cumulative rent arrears owed to the city based on the annual increases that were not applied between 2022 and 2025.”
And so, Neilson recommended the following to council:
- Waive the rent arrears owed by both organizations;
- Resume original monthly rents of $2,500 for The INN, and $6,400.00 for Railway City Lofts, with no annual increases for the duration of the lease;
- Authorize staff to negotiate and enter into new or amended lease agreements with The INN and Indwell that reflect these changes.
Coun. Gary Clarke questioned why “We’re just catching on to this now? What happened that it’s gone on for a number of years where the rent was supposed to go up, and it didn’t?”
Clarke was advised that “There was a transition in staffing, where they were doing a review and an audit of all the existing agreements, and it revealed that there was no increase in the rent that was invoiced, and that was corrected, which then subsequently revealed that the community group was unable to pay those funds at this time.”
Clarke continued, “Have we had discussions with the community groups in terms of how they are going to deal with this in the future?
“I can see us, maybe, helping them out initially. They are two new operations where we’ve increased the number of services.”
Clarke continued, “I’m wondering long-term, how we’re going to solve this problem?”
Neilson assured, “Corrective measures have been taken to ensure that any future occurrences of missed rent won’t happen.
“And, in the event that they do, we would take different measures to ensure that the city received the payment that is required.
However, no explanation was given as to what those “different measures” might be.
Neilson indicated the term for The INN has expired, and “We’re looking at entering into a new lease, and the lease for the Railway City Lofts expires this year.”
Coun. Earl Taylor sought clarification on the fact that the city would not be implementing 2.5 per cent increase on future leases, so what would the term be on those leases?
To which Neilson responded, “I would expect that the lease term would be five years. I don’t know that we would look to extend it or shorten it.”
And Neilson advised that the intent is likely not to increase the rent year over year.
Coun. Jeff Kohler questioned Neilson on whether the arrears only applied to rent increases.
Neilson indicated, “There are actually a few missing months of rent through The INN.
“An administrative error was caught by The INN, but unfortunately, their system for tracking those rent payments that were missed, their accounting system in general is quite basic, and it wasn’t flagged until a few months of missing rent had occurred.”
Did no one at city hall raise an alarm when rent was not submitted for a period of time?
“The INN operates under pretty tight financial circumstances month over month, and it presented a challenge to The INN to repay those missed months,” explained Neilson.
“It was flagged for the director of social services, who recommended that we review it and bring a recommendation to council.”
While the good work undertaken by The INN and Indwell is not in question, surely the accounting practices of the city’s social services department appear nothing short of loosey-goosey.
Were any decisions not to apply yearly rent increases run by council for their consideration and approval?
Same with the arrears owing.
How often do we hear the call for fiscal accountability at city hall?
A ROUNDABOUT RECOMMENDED FOR SOUTH EDGEWARE
A two-lane roundabout is being recommended for a busy intersection in the city’s north end.
The intersection improvement is prompted by the need for infrastructure upgrades along South Edgeware, from west of Balaclava Street to Highbury Avenue, to allow for a deep trunk sanitary sewer connection between the Yarmouth Yards industrial park and the new sewage treatment plant.
Infrastructure upgrades are required on South Edgeware Road from west of Balaclava Street to Highbury Avenue to provide a deep trunk sanitary sewer connection between Yarmouth Yards and the new sewage treatment plant. This project includes the installation of trunk sewer and sanitary forcemain, Secondary transmission main and watermain replacement, and storm drainage improvements.
The underground utility work provides an opportunity to ensure the related roadway improvements accommodate planned growth and intensification on this important arterial corridor.
In his report to council for Monday’s (June 8) meeting, Daniel Koppert, the city’s Manager of Capital Works, advises, “for a roundabout intersection treatment at Burwell Road, some property acquisition is required in the north-east and southeast quadrants of the intersection.
“Under the Environmental Assessment Act, property acquisition for roadway improvements triggers an Environmental Assessment, a public process wherein a problem or opportunity is identified, alternative solutions are proposed, the solutions are evaluated, and a report is then prepared for review.
“Subject to general agreement with the report’s findings, the solution is then implemented.”
The roundabout is the preferred option of the three presented. The others are to maintain the status quo and optimized signal control for an intersection with a less-than-ideal layout and poor sightlines.
The construction cost of the roundabout would be in the range of $3 million, with annual operating and maintenance costs estimated at $11,000.
Costs associated with optimized signal control would be less, at $1.4 million, and annual operating and maintenance costs in the range of $28,000.
During a public consultation period held this March, twelve comments were received by email. Of the comments received, two favoured Alternative 2 (Optimized Signal Control), and three favoured Alternative 3 (Roundabout Control).
Two responses favoured Alternative 1 (Do Nothing), and five responses did not indicate a preference.
Koppert advises, “The South Edgeware Road Trunk Sanitary Sewer project is a multi-year phased project. Phase 1 (Woodworth Avenue Construction) was included in the 2026 Capital Budget.
“Phase 2 (South Edgeware Road – Waterworks to Burwell Road) will be included in the 2027 Capital Budget submission.
“Phase 3 (South Edgeware Road – Burwell Road to Highbury Avenue) will be included in the 2028 Capital Budget request. Costs associated with the construction of Alternative 3 will be included in the Phase 3 (2028) budget request.”
DDB COACH OFFERS A WINDOW ON THE CITY
While the Downtown Development board is generally not in the travel business, it does have a spiffy railway coach that it employs for promotional opportunities.
At Monday’s meeting (June 8), it is seeking council’s blessing “to enter into a repayment agreement with the Elgin County Railway Museum (ECRM) to install windows on the DDB rail coach so it can be stored outside.”
That’s according to a letter from DDB chair Grayden Laing.
He advises, “To date, the rail coach has been stored at the Elgin County Railway Museum for a monthly rental fee and taken out for events.
“However, due to the safety concerns with the ECRM building, if we take the coach out for an event, we will not be able to return it there for storage, and it will have to be stored outside on the tracks next to the Railway City Tourism Office.”
Laing continues, “This is a concern because the coach currently has no windows, and if exposed to the elements, there would be increased deterioration to the interior.
“Approval of this arrangement will support the preservation of an important community and heritage asset while allowing the DDB to continue utilizing the promotional coach for public events, downtown programming, and tourism initiatives benefiting the City of St. Thomas.”
“We would like to continue the use of the coach for downtown events, so we worked with the ECRM to put this proposal together for installing windows into the coach.”
The cost of the 45 replacement windows, plus installation, is $15,730, interest-free.
The ECRM has proposed covering the restoration costs upfront, with the DDB repaying the museum by the end of 2027.
Laing concludes, “Approval of this arrangement will support the preservation of an important community and heritage asset while allowing the DDB to continue utilizing the promotional coach for public events, downtown programming, and tourism initiatives benefiting the City of St. Thomas.”
Surely a win for all parties involved.
But, will the coach act as a magnet for vandals, and are there concerns about exterior deterioration due to the elements?
CEMETERY FUNDING LANGUISHING IN THE TO-DO PILE
In January of this year, we wrote about how, for the second time in a decade, the St. Thomas Cemetery Company has begun the process of abandoning St. Thomas Cemetery (West Avenue) and South Park Cemetery, south of the city.
In 2015, the board of directors had served notice that it would seek to abandon the two burying grounds if the long-standing city grant wasn’t reinstated.
West Avenue Cemetery
And in October of that year, city council voted to extend the cemetery board of directors a financial lifeline of sorts by way of a $20,000 operating grant. Combined with the first instalment in April of $30,000, it left them $9,000 short of the amount requested during 2015’s budget deliberations.
At the time, we spoke with board chair Tom Marks, who confirmed that year after year, the board seeks to increase the city’s financial participation beyond the $60,000 level.
The current budget is in the neighbourhood of $200,000, including about $116,000 for a pair of full-time employees and one part-timer.
Marks had requested an increase in city funding to $90,000 this year, plus $100,000 in capital funding.
Well, on Monday’s agenda is City Manager Lisa Higgs report on Unfinished Business, which includes a grant request from the cemetery board dating back to August, 2024.
Included in this advisory is “Waiting for formal communication from the cemetery board.”
So, which side is holding up the process?
Related post:
ADDING TO THE CANDIDATE LIST
A bit of movement on the municipal election front this week in St. Thomas.
A second candidate has stepped forward to contend for the mayor’s post.
Aidan Frederick filed his papers on Monday and joins Douglas MacTavish in what is now a two-horse race to lead council in the Oct. 26 municipal vote.
Frederick is a junior staff accountant at Graham Scott Enns in St. Thomas.
MacTavish ran as the Liberal candidate in last year’s provincial election, finishing a distant second to MPP Rob Flack.
And a second St. Thomas councillor has declared their intention to run in the 2026 municipal election.
On Tuesday, Earl Taylor filed his nomination papers and joined Jim Herbert in hopes of securing voters’ approval.
Taylor was defeated in the 2022 municipal vote, losing out to Tara McCaulley by five votes for the final seat on council.
After McCaulley stepped away from council early last year, Taylor was appointed to fill the vacant seat.
Herbert, in the meantime, is looking to serve a third term on council.
Ironically, Aiden Frederick is related to Tara McCaulley.
And so we now have six individuals vying for a council seat on Oct. 26: the aforementioned Herbert and Taylor, along with Joe Docherty Jr., Brian May, Kyle Yates, and Kay Vaughan.
We will have profiles on all of the candidates in the near future.
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