Joint Planning Group Report

Markaz Ul Islam Society of Edmonton

Southwest Muslim Community Centre

Westend Islamic Society of Edmonton

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Agenda

1.Project Background2.Role of Joint Shoora Committee & Joint

Planning Group3.Terms of Reference high level review4.Project Overview/Findings5.Recommendations6.Question & Answer Session

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Project Background Information:

Executive meeting held in July 2011(Joint Shoora Committee) nominating Board representatives (formation of Joint Planning Group).

Joint Shoora Committee agrees to Terms of Reference.

Role of Joint Planning Group (JPG):

Scope Document the feasibility of developing and establishing a single,

jointly-owned, well-integrated facility within relatively easy reach of south side catchment areas.

Mandate/Deliverables To develop a needs-based feasibility study and some viable options for

a single well-integrated facility.

Accountability JPG decisions are reached by consensus and accountable to Joint

Shoora Committee.3

Terms of Reference Background Information:

Key deliverable: A documented report which will provide a comprehensive but high level assessment and options in relation to at least the following major components:

• Needs-based assessments and priorities• Potential locations, size options and acquisition costs• High-level building cost estimates of major components• Potential funding requirements and options • Recommended priorities and phases• Requested action from the sponsoring organizations.

The acceptance of the final report and the ultimate decision to proceed with the project will be the responsibility of the three sponsoring boards, taking into account the findings and recommendations of the JPG and consensus reached through the Joint Shoora Committee.

Note: The final report is this presentation.

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Joint Planning Group:

Chair - Dr. Ahmed Hammami (SMCC) Secretary - Sabeeh Farooqui (MISE) Farukh Haque (WISE) Mahbub Choudhury (SMCC) Mohammad Nawaz Moughel (MISE) Ghulam Nabi Chaudhary (MISE) Dr. Omar Farooq (Community Rep)

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Project Outline:

1. Findings of Committees• Needs Assessment/Demographics• Land/Location• Financing Options

2. Overview of Options

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Needs Assessment/Demographics:

Long-term Vision:

1. A Masjid to accommodate daily and Friday prayers 2. Educational facilities to provide Islamic education and public schooling to

children3. Provision for a seniors apartment complex, with potential linkage to

supporting facilities and access to health care services4. Attached library and Da’wah facilities, supported by on-site administrative

staff5. Youth recreation facilities 6. A hub for some basic shopping and certain types of professional services

(ie health)7. A funeral preparation and transportation facility for deaths within the

community8. Suitable parking facilities

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Needs Assessment/Demographics - Continued:

• In Sept/October 2011 a comprehensive ‘Edmonton Southside Muslim Demographic Survey’ was completed online and in paper.

• Survey requested household size, contact info, and postal code/address.

• Address/postal code information allowed us to focus on Southside respondents only, and develop an idea of where majority of Muslims reside.

• Total of 1253 respondents.

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Needs Assessment/Demographics - Continued:

T6R T6K T6J T6H T6L T6W T6X T6T T4R T6M T5T T6E0

50

100

150

200

250

300

350346

196176

157135

10066 61

8 5 2 1

Population By Postal Code

Postal Code Prefix

Pop

ula

tion

Cou

nt

Millwoods & SouthEast 634

Riverbend/Windermere (SouthWest) 603

Other (Non-South) 16

Total Respondents 1253

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Needs Assessment/Demographics - Continued:

Conclusions:• Confirms a balanced population between

SouthEast & SouthWest with significant growth in the SouthWest.

• Points towards the importance of having a site within reach for both communities.

• Quantifies the necessity of an appropriate expansion plan.

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Land/Location:Completed:• Met with City of Edmonton (COE),

Developers, Real Estate representatives, Educational institutions.

• Responded to a COE Expression of Interest for School Surplus Land at the Keheewin Site (premise on a Seniors housing plan & Masjid)

• Determined a site requirement of minimum 6 acres to satisfy services desired and long term feasibility.

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Land/Location continued:

Options identified:1. Grant MacEwan Millwoods

Campus (7319 29 Avenue)

2. Land (Ellerslie Road and 34th Street) – 40 acres

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Grant MacEwan Location

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Ellerslie Land Location

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Grant MacEwan Details (7319 – 29 Avenue):Pros Cons

• Built in 1976, facility completely redeveloped in 2004

• 10.09 Acre Site• Approximately 195,000 Square Feet which is 4.5

acres of developed space.• 379 Parking Stalls• Turnkey operation including fully functional, state

of the art Educational facilities (27 classrooms, 5 computer labs, 11 specialized labs)

• Non-profit status would apply, therefore no property tax implications

• Rental of additional new building built in 2002 for professional/office space

• Major transportation hub (Lakewood Bus Terminal directly in front)

• Site has substantial recreation and parks surrounding

• Zoned as Urban Services (Religious assembly, public/private education, child care, cemetary, government services)

• Replacement Cost : $55 Million

• Appraisal value at $26 Million• Annual operating costs of $1.1 Million

(includes Grant Macewan Staff)• Reduced privacy (in a very public area)• Cost for renovating floorplan for Masjid

(no estimate).• No land for cemetary

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Grant MacEwan Campus Details

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Masjid

School Zone

Commercial

Gym

School Zone

Grant MacEwan Details (7319 – 29 Avenue):Financing

• Appraisal Cost: $26 Million• Actual Replacement Cost : $55 Million ($7M land + $48M facility)• Earliest to move in would be Fall 2013 – can delay until 2015.

3 options proposed:1. Installment purchase, flat rate of installments over a 3-5 year period (no profit

component, based purely on appraisal value)• 3 years/5 years (Bi-annual payments of $4.3 Million/$2.6 Million)

2. Profit Valuation (Shariah Compliant)• $1 Million deposit• 30 year term, profit component based on ACFA rate (3.4%)• Annual payments of $670,000 (Total $40.1 Million)• Operating Cost of $1.1 Million• 60-70% operating cost for Private School funded by EPSB• Shortfall can be covered through Professional Building rentals

3. Capital Lease• Agreed upon lease rate and term (combined operating cost + capital cost)• Would need to provide assurances of end of term purchase

Note, on any arrangement, we can negotiate partial purchase/lease of the facility. Grant Macewan is very flexible in financing arrangements

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Land (Ellerslie Road and 34th Street) Details:Pros Cons

• 40 Acres• Total cost of $2.7 Million ($67,500/acre)• Allows for a staged development

• Masjid• Gym / Community Centre• School• Senior Housing• Commercial Outlets• Private lots• Islamic Cemetery

• Architectural design flexibility• Can be used as investment property as City

has development plans in adjoining area• Can generate profit for future plans

• Development constraints, servicing is > 5 years away

• Cost of servicing approx. $250,000/acre ($10 Million)

• Cannot subdivide and sell land until serviced• Longer term 7-10 year project• Will need a dedicated development team• Location may be a constraint for SouthWest

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Land (Ellerslie Road and 34th Street) Details:Financing

• Land Cost: $2.7 Million + 100k Purchasing Costs = $2.8 Million

4 Options proposed (6 acres set aside for Masjid):

1. Whole Community Ownership (Charity)• 1000 shares of 34 acres @ $2800 per share

2. Part Community Share Ownership (Profit)• 1000 shares of 34 acres @ $2800 per share ($82,350/acre)

3. Land Ownership - Two Acre Lots (Profit)• Allocate 17 two acre lots @ $164,706 per lot ($665k/lot including services)

4. Land Ownership – Quarter Acre Lots (Profit)• Allocate 68 quarter acre lots @ $41,176 per lot ($104k/lot including services)

Can be used exclusively as a SouthSide Islamic Cemetery.• 800 Plots/Acre, $2000 per family membership – significant profit opportunity

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Conclusions:

Grant MacEwan• Turnkey operation – majority of needs satisfied.• Location is ideal for the Community.• Opportunity to begin an Educational Institution.• Seller willing to work with us on any financing arrangements.• Sustainable Financing is the only concern.

Land• Longer term development plan (7-10 years).• Costs can be managed through phases.• Enough land to satisfy all our identified needs.• Can be utilized as an investment opportunity.

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Conclusions:

The options to consider:

Pursue Grant MacEwan if funding can be arranged.

Pursue Land as an investment for community (no development planned).

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Question & Answer Session

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