The building is familiar. Its future is anything but.
As Niagara-on-the-Lake plans to redevelop the site of the former hospital at 176 Wellington St., looking closely at the idea of parking, the future of Royal Oak School, now operating inside the building, is increasingly uncertain.
The building costs about $181,000 a year to operate and brings in roughly $107,000 in rent and parking revenue, including about $20,000 from tenancy, mostly from Royal Oak.
Of the 65 students enrolled at the school, 44 live in NOTL. Children come from Old Town, Virgil, Queenston, St. Davids and Glendale.
Council approved a lease extension allowing the school to remain at the site until June 2027 but can terminate the agreement with six months’ notice as it decides the property’s long-term use.
That decision is now tied to a broader debate: should the town continue to subsidize the school in a municipally owned building operating at a loss?
For Royal Oak, the site is more than just a lease.
“176 Wellington is an ideal site for the school,” said Julia Murray, head of school for Royal Oak. “We are connecting with our heritage.”
While council explores a parking-focused plan for the site, the James A. Burton & Family Foundation envisions a multi-use community hub — focused on arts, culture and education, with space for Royal Oak, local organizations, exhibitions, performances, events, classes and parking — a vision the school is “very passionate and inspired by,” Murray said.
“The power of shared space for shared programming and increased reach is exponential,” she said, adding that under Burton’s vision, organizations could expand and collaborate “to serve our community in even more broad and creative ways.”
But some councillors say the current arrangement — originally intended to help the school get established — needs to be reconsidered.
“Currently, the site supports approximately $20,000 of the $180,000 in annual carrying costs through tenancy, with the remaining costs borne by taxpayers. That is a fact,” said Coun. Maria Mavridis. “This is not a criticism of the school.”
It’s on council, Mavridis said.
“Councillors are aware that taxpayers are covering these costs and need to assess the feasibility of these costs,” she said.
“If the public is comfortable with their tax dollars subsidizing this type of arrangement, then I respect that.”
Mavridis said councillors are responsible for ensuring residents have “all the facts” and suggested Royal Oak “present on its own merits” why its location should remain at 176 Wellington St.
Murray reviewed the town’s budget documents for the site and said “the majority of these costs largely exist whether the building is tenanted or vacant.”
Royal Oak board member Robin Ridesic said the school’s rental revenue actually helps offset those costs.
“The tenants that are in that building are helping offset some of the carrying costs that the town has on that site no matter what,” she said, pointing to a massage therapy clinic paying rent in the basement.
Nonetheless, Ridesic — who has two children currently attending the school and two who previously went — said the building is currently a “financial loss.”
“That is why the town needs to decide what they’re going to do with that site, so that it won’t be a financial loss going forward,” she said.
Without knowing exact figures, Ridesic said Royal Oak pays slightly less than $20,000 in rent, but with other tenants included, that figure is “roughly correct.” Murray declined to share exact figures but said it’s in line with other non-profits in town.
Coun. Erwin Wiens said it’s important the school eventually begins to earn revenue while also benefitting the “broader NOTL community.”
“NOTL taxpayers have supported the Royal Oak School through the use of municipal property — at a significantly reduced cost,” he said. “That support was provided by the town to help the school establish itself within our community.”
“As we move forward, we have a duty to ensure that any use of municipal assets reflects both community benefit and financial responsibility.”
Wiens said the school, “like all other organizations,” will be encouraged to put forward a proposal during the request for proposals process for redeveloping the old hospital site.
Lord Mayor Gary Zalepa says discussion should hold until the town takes a broader look at what the site should become.
“I think that’s a premature question,” he said when asked about specific uses for the property.
“An amount of community space has been identified as important for redevelopment — whatever that community space is going to contain would be a decision pointed at another date,” said Zalepa.
Coun. Adriana Vizzari said any decision must balance the needs of students, families and the wider community and Coun. Sandra O’Connor said while the school is a valuable part of NOTL, the question remains how it should be supported.
“There are many ways to support it,” said O’Connor, noting that the Burton proposal is one way — but “until we get to the point that they’re all laid out, I really don’t want to say one way is better than another.”
Coun. Wendy Cheropita said she wants to see more proposals brought forward before council commits to a single path.
“I did vote against the staff going forward without adding a (request for proposals),” she said. “I think that it is so important for our community to be able to compare different proposals.”
Royal Oak, she said, is a great school and so are the programs it runs in the summer.
“It was local families, a handful of them, that got together and they were the ones that actually developed the idea of Royal Oak,” she said.
“That story should be told.”
