Joint statement from City of St. Catharines and Penn Terra Group Ltd. on 320 Geneva St. property

Last fall, St. Catharines City Council authorized the sale of 320 Geneva St. to Penn Terra Group Limited, in an effort to redevelop surplus City lands into a blend of affordable, social and market housing.

This was to be the second large multiple-unit affordable housing building in the City, following Penn Terra's successful completion of 111 Church St. in 2020, which provided 127 new affordable units, and a first-of-its-kind project for the City of St. Catharines.

Both parties are disappointed to announce that the transaction was unable to be closed within the deadline, and the current agreement of purchase and sale has been terminated.

The City and Penn Terra worked collaboratively – through several extensions – to try and close by November 10, in accordance with all of the agreed-upon terms in the agreement of purchase and sale. Each of the parties is appreciative of the effort that went into working together on this project. However, the development of affordable housing, especially a project of this magnitude, is complex and requires extensive due diligence and certainty about all aspects before it can proceed. Due to the reduced availability of qualified labour, these became significant hurdles to overcome within the timeframe, especially for an affordable housing development as proposed by Penn Terra.

Interest rates, inflation and other rising costs (such as construction materials) versus regulated affordable rents create an increasingly challenging environment when it comes to delivering on affordable and social housing. These pressures underscore a need for significant federal and provincial investment to deliver new affordable housing projects.

The City and Penn Terra along with Penn Terra's partners Bethlehem Housing and Support Services, Habitat for Humanity Niagara and Rotary Club of St. Catharines, remain committed to supporting the creation of more affordable housing within the City. It is hoped the provincial and the federal governments will also be open to participate in these discussions to determine how they may best assist in ensuring affordable housing developments can happen in this challenging economic environment

While affordable housing does not fall under a lower-tier municipality’s jurisdiction (in Niagara it is funded at the regional level), the City will continue to use its tools available to address the issue, including advocacy to upper levels of government for additional support and innovative solutions to remove barriers.

City officials will determine the next steps in regard to the future of the property at 320 Geneva St., and provide an update to City Council, and the community, at the appropriate time.