Although Dawson has long had a shortage of rental housing, studies indicated that construction costs were prohibitive for the private sector to profitably build units at reasonably affordable rents. KDO therefore looked to a not-for-profit model to increase the rental housing supply in our community.
Significant research into market & demand, financial feasibility and oodles of draft plans, meetings, presentations, RFPs and more have gone into the final approach taken by KDO and its partners.
The resulting project is an apartment complex of eight compact, energy efficient units that are suitable for single individuals, couples, or small families. There are six 1-bedroom and two 2-bedroom apartments sized modestly at an average of 470 ft2 and 590 ft2 respectively. Located in the downtown core, the 2-storey structure has been designed to meet historic bylaws and complement Dawson City’s heritage landscape.
Excavation and site prep was completed by Gammie Trucking. The design and construction RFP was won by Oro Enterprises. Both are local companies.
Construction went better and faster than anticipated and was completed ahead of our September deadline, allowing tenants to move in June 1, 2017.
This project had a lean budget, and was designed with both construction and operation efficiency in mind:
- Super-green energy-efficiency standard construction
- Electric heat and HRV installed and assigned individually to each unit
- No interior common areas to minimize our heating, custodial and other property servicing costs
Financial Investment Summary
WHO: The project is managed and the asset owned by Klondike Development Organization, a not-for-profit society
EQUITY: Grant from Yukon Housing Corporation for 60% of capital cost (Municipal Matching Program and Affordable Rental Construction Program)
CITY OF DAWSON CONTRIBUTIONS:
– 100% property tax rebate for 10 years
– Guarantee of KDO’s commercial bank mortgage financing
The remaining financing takes the form of a commercial mortgage, secured against the new building. The project generates the necessary cash flow to pay down the full mortgage interest and principal over a 20-year term.