Ontario-based Homewood Health Inc. has struck a conditional deal to buy the University of Victoria’s Dunsmuir Lodge in North Saanich. Homewood plans to convert the closed facility back into a mental health and addictions treatment centre.
If all goes smoothly, the centre will open in spring 2017 after a “few million dollars” in upgrading, Jagoda Pike, president and CEO of Homewood Health, said from Guelph, Ont., on Tuesday. Budget details are still being refined.
“The building itself is ideal for us. It is very well laid-out. It is going to require minimal changes, really — redecorating, renovations — to get it up to its former glory,” Pike said.
Homewood had been seeking a site in Western Canada to open a new centre when it found Dunsmuir Lodge. The property has a “wonderful therapeutic environment,” Pike said. Another plus is its proximity to the airport and ferry terminal.
The agreement will allow Homewood to partner with UVic for education, collaboration and research, particularly with the Centre for Addictions Research of B.C., she said. “It’s a sale of a property but it has actually led to some very exciting and interesting potential opportunities with the university itself.”
Homewood, owned by the Schlegel family of Kitchener, Ont., runs residential treatment facilities and clinic outpatient services. It has 4,500-plus employees and helps more than 100,000 Canadians annually.
At Dunsmuir, the plan is to offer five- to eight-week treatments for 60 to 90 patients at a time.
Most of the existing 45 rooms can accommodate two people, Pike said. “There’s plenty of capacity.”
About 60 to 80 staff will work at the lodge, including physicians, nurses, social workers, psychologists, occupational and recreational therapists and support staff, Pike said.
As well, the municipality will receive tax revenue from the facility, she said.
The sale price is confidential.
UVic said that a private appraisal done in December pegged Dunsmuir’s value at $7.6 million.
Sale proceeds will go toward capital costs of UVic’s $77-million Centre for Athletics, Recreation and Special Abilities, which opened in May 2015.
A rezoning for a treatment centre is required, as is approval from B.C.’s Ministry of Advanced Education. UVic and Homewood will hold community information sessions this spring about plans for the site.
The sale is to include buildings covering 75,196 square feet and 25 surrounding acres, 15 meeting and conference rooms, two reception rooms, a 200-seat restaurant, and a 70-seat lounge.
For now, UVic is holding on to the remaining 75 acres, part of the original property. Much of that land is considered environmentally sensitive and is on steep slopes.
UVic is talking with the Pauquachin First Nation about buying the additional land at market value, said Gayle Gorrill, UVic vice-president of finance and operations.
Originally called Gillain Manor, the lodge went into receivership when it was under construction and its builder, Farmer Construction, purchased it.
The lodge was operated as a treatment centre for a brief time.
In 1976, businessman George Poole bought the property and donated it to UVic in 1985.
The university ran it as an executive training and conference centre and for continuing studies. It came close to breaking even, Gorrill said, but there was not enough money to pay for $2 million needed for upgrading.
UVic also considered spending $10 million for upgrades and expansion.
Homewood approached UVic about buying the facility. It was not listed for sale, although “it was known” that the lodge was available, Gorrill said.
UVic has been spending about $100,000 annually to maintain the property and have security on site, she said. Shutting it down cost more than $100,000.
North Saanich Mayor Alice Finell said, “It is a very good use of the property, so I am pleased to see it coming to this.” The future of the lodge has been “worrying to our residents for some time.”
