Corporate Office

9011 9915 Franklin Avenue, Fort McMurray, Alberta T9H 2K4 Telephone: (780) 799-4050 Fax (780) 799-4025

www.wbhadc.ca

July 14, 2011 The Honourable Lloyd Snelgrove Minister of Finance and Enterprise 204 Legislature Building 10800 - 97 Avenue Edmonton, AB T5K 2B6 Dear Minister Snelgrove; Re: News release of July 5, 2011 - Fort McMurray Continuing Care Centre The Government of Albertas announcement of the selection of the Willow Square site in Fort McMurray, for the location of the much needed 100 unit continuing care centre, was a welcomed announcement for the community. As presented by Minister Danyluk, the site would hold the new centre on a portion of it, with the balance of the site to remain vacant for potential future use for seniors housing. The site is located at the major intersection of Hospital Street and Franklin Avenue (see sketch below), one of the busiest intersections in the city. The proximity of the site to local schools, churches, shopping and the hospital, make it convenient for people without vehicles to gain access to these venues. The redevelopment offers a one-time opportunity to maximize the benefits of the sites location for the entire community. Restricting the site to seniors only is not in the best interest of the community and needs to be looked at prior to making a final decision on the use of the site. The site could incorporate, together with facilities to meet the seniors housing needs, the following uses that would benefit the community and potentially all the citizens of the province:

There are two elementary schools in the immediate proximity to the site, that both have excess capacity (empty class rooms). The redevelopment of the site to include affordable housing would substantially reduce this excess capacity, bringing the two schools nearer to full utilization, allowing the school boards to operate more cost effectively thereby resulting in better education for the future residents of the community.

Minister Lloyd Snelgrove July 14, 2011 Page 2

The local hospital was designed for a population of less than 40,000. As the community continues to grow to 80,000 and beyond, pressures on the local hospital will also continue to grow. The redevelopment of the site, proposed by WBHDC and shown below, would allow for the moving off site of clerical and clinical functions, opening up space for additional care areas, and extending the useful life of the current hospital. As the current hospital is already serving a community of twice its design capacity, and given that there is no plan to add another hospital to the community at this time, the current hospital will have to last for at least 10 years, which is the amount of time it typically takes to build a hospital in Alberta. WBHDC, as a not-for-profit company, has had discussions with and are willing to make a portion of the proposed 60,000 sq. ft. of office space available to the hospital, at an attractive rental rate over a long term; resulting in having more funds available to deliver better health care to the community and extending the life of the current hospital.

Local non-profit organizations and NGOs continue to struggle with paying rents in the

$40.00+/sq. ft. range, based on the same funding models that are used in other areas of Alberta. A portion of the commercial retail and offices space of the development is proposed to be made available to these organizations at competitive rates.

The lease on the premises that WBHDC occupies in the Provincial building is coming to and

end. Office space in the new development would prove to be a cost effective way to provide the administration of affordable housing in the community.

Local retailers would benefit from the inclusion of affordable rentals in the area due to the

increased density and traffic that the development would bring to the community.

Additional Seniors self-contained units would be in keeping with Premier Stelmachs vision of keeping families together and aging in the right place.

The Municipalities lower town site redevelopment plan lists this site as a medium density site,

with 6 to 8 storey buildings permitted. Developing less than the allowable maximums, would not be the best use of these expensive lands in this part of the city and in fact, WBHDC has a commitment from the City to approve multiple 12 to15 storey structures, to accommodate the community campus development illustrated below.

The current going rate for office space in Fort McMurray is approx $50/sq.ft. Providing

affordable access to 90,000 sq. ft. of office space and another 90,000 sq. ft. of commercial space, will go a long way in assisting the community and the organizations that support us.

Minister Lloyd Snelgrove July 14, 2011 Page 3

Supporters of the concepts outlined above.

The Mayor of the Regional Municipality of Wood Buffalo, Melissa Blake The Regional CAO of the Regional Municipality of Wood Buffalo The Planning Department of the Regional Municipality of Wood Buffalo The Fort McMurray Chamber of Commerce Both local School Boards Local churches Local businesses Assistant Deputy Minister, Housing and Urban Affairs, Mike Leathwood

We will be in Edmonton on July 19th on other business, and would appreciate if we could meet with you sometime that day to discuss this issue and a couple of other land issues in Fort McMurray. Sincerely

Bryan Lutes cc Premier Ed Stelmach Minister Mary Anne Jablonski Minister Jonathan Denis Minister Ray Danyluk Jeff Johnson, Alberta Treasury Board Tom Ross, Alberta Treasury Board

Minister Lloyd Snelgrove July 14, 2011 Page 4

Conceptual drawing of proposed uses

Bryan LutesConceptual drawing of proposed uses