Township Completes Acquisition of 350 St. Andrew St West in Fergus

CENTRE WELLINGTON – The Township has completed the acquisition of 350 St. Andrew St West in Fergus, a strategically located property that will support the Township’s efforts to facilitate affordable housing.

Council received a report confirming that all conditions of the Agreement of Purchase and Sale have been fulfilled and that the Township’s acquisition of the property is now final.

The approximately 0.39-acre property is located on the south side of St. Andrew St West in downtown Fergus, overlooking the Grand River.  The site was formerly occupied by a medical building and associated surface parking.  The property has since received approval for a four-storey, mixed-use building containing 36 residential units and one ground-floor commercial unit.

The Township’s next step is to identify an experienced partner to help bring affordable rental housing to the site.  An Affordable Housing Initiative report being considered by Council at the next meeting recommends that staff proceed with a Request for Proposal (RFP) to identify a qualified organization to develop, operate and manage affordable housing on the property.

The proposed RFP would provide flexibility for proponents to propose the land arrangement that best supports the feasibility and affordability of the project.  Options could include a purchase, long-term lease or other land arrangement, subject to future Council approval.  Proponents would also be required to demonstrate their experience, financial capacity, development approach and ability to meet long-term affordability requirements.

The report also recommends that staff begin exploratory discussions with adjacent property owners to determine whether there may be opportunities to support or enhance the future development of the site.  These discussions could include potential opportunities related to parking, site access, public connections or other arrangements that could improve the functionality, feasibility, or community benefit of the project.

The property represents an opportunity to support affordable housing in an established area of Fergus, close to existing services, amenities, employment opportunities, commercial uses and community infrastructure.  Its location also provides an opportunity to add housing within the Township’s existing built-up area, supporting a more complete and connected community.

The need for affordable housing is being felt across Centre Wellington.  The Township’s 2025 Housing Needs Assessment found that approximately one in six households in Centre Wellington are living in housing that is considered unaffordable, with more than one in three renter households spending 30 per cent or more of their gross household income on shelter costs.

The Housing Needs Assessment also identified a need for a broader range of affordable rental options for households who may not qualify for deeply subsidized housing but are not adequately served by the existing rental market.  This can include essential workers, community-serving professionals, families and older adults who want to remain in the community as they age. 

The Township has already advanced several elements that can help support future development of the property, including existing approvals and available plans, studies and other background information.  This work is intended to provide potential proponents with a stronger starting point as they assess the feasibility, cost, timing and long-term operation of an affordable housing project. 

To support the acquisition, the Township applied to the Wellington County Community Housing Development Fund for $1 million in funding.  The application was approved, reducing the amount required from the Township’s Housing Reserve.

The property was purchased for $1,080,974.84, including legal costs, non-rebate HST and land transfer tax; the total transaction cost is approximately $1.13 million. Following the $1 million contribution from Wellington County, approximately $130,000 of the total cost was funded through the Township’s Housing Reserve.

The acquisition provides the Township with an opportunity to use municipally owned land to help create more affordable housing in a well-established part of Fergus, close to the services and amenities residents rely on.