A proposal to turn Niagara-on-the-Lake’s former hospital site into a community hub is drawing questions about cost and what one prominent developer describes as a lack of detailled financial information.
The vision, led by the James A. Burton & Family Foundation, would transform 176 Wellington St. into a multi-use space — envisioned as a permanent home for local arts, heritage and cultural groups — with classrooms, daycare, performance space and exhibitions, along with about 250 parking spaces.
The foundation does not plan to change the town’s ownership of the site, but would redevelop it under a long-term lease.
NOTL developer and resident Rainer Hummel of Hummel Properties Inc. says Burton has widely, publicly presented the vision — but has so far left out the detailed financial information Hummel says is needed to reassure taxpayers.
“I think it’s similar to another cross lake ferry service — just a pipe dream that isn’t viable,” he told The Lake Report.
“The moment it fails, it would require the taxpayer to step in and fund the ongoing operation.”
Hummel said detailled financial information should be part of the final request for proposals and not now, but argued that “a simple statement that his foundation will cover the whole cost, or has already secured a financial commitment from a higher level of government, could allay taxpayer fears.”
“We’re being asked to get behind a pretty big idea without actually seeing the full picture,” he wrote in a public April 2 Facebook post.
Chairman Jim Burton said the foundation is not releasing estimated costs ahead of a request for proposals, when full financial details would be provided.
“What residents are being asked to consider right now is the direction for the site: whether it remains a public, community-serving asset and what kind of use aligns with the town’s own consultation and guiding principles,” he said.
“Releasing detailed cost ranges at this stage could compromise a fair procurement process and create an uneven playing field.”
Burton said the foundation has, however, “undertaken internal planning work to understand the scale of redevelopment required for a project of this complexity” and is prepared to be a “major financial contributor.”
The foundation would act as a “catalyst” for redevelopment, he said, through a financing approach blending philanthropy, government grants and private investment aimed at generating returns while benefitting the community.
“The foundation’s approach is grounded in minimizing long-term public burden.”
Burton said describing the project as funded by a single source would be “inappropriate” and that initiatives of this scale are “almost always” supported by multiple funding streams — but would not confirm specific funding commitments or structures yet “out of respect for a future open procurement process.”
Hummel said any new community hub should be built on the existing community centre lands and the town should focus on expanding those facilities in a financially responsible and sustainable way.
“Why does every available property suddenly need to become another community hub?”
Asked what would address his concerns, Hummel said the town should put the property up for sale and allow the highest bidder to present a proposal. If that fails, he said it should be sold off and left to a private buyer to decide what to do with it.
“If Burton believes in the proposal’s viability, then open your checkbook and buy the property,” Hummel said.
Burton’s proposal, however, centres on keeping the site in public hands.
“Allocation of financial risk, including any role for the town, would be clearly defined through a formal agreement,” he said, “if and when a proposal is accepted.”
