COUNCIL COMMITTEE

PRESENTATION MEETING
SEPTEMBER 6, 2022
AGENDA

6 PM

COMBINED VIRTUAL/IN-PERSON

1. Roll Call

2. Special Olympics – Annual Grant Update **

Presenter – Richard Haines

3. Eprius Property Group – Former Salmon River School Property *

Presenter – Josh McEvoy

* Attachments ** No Attachments

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SEPTEMBER 1ST, 2022

A proposal by ARC Development Group

Todd Mollohan
Josh McEvoy
Jordan Perry
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ARC Development Group

Dear, Municipality of Colchester,

With this letter we wish to introduce ourselves, and to introduce to you an idea we
have, which we believe will better the lives of the people of Colchester County.

ARC Development Group consists of Josh McEvoy, Todd Mollohan and Jordan Perry.
This group brings our three companies together through our aligned goals to create
efficient, accessible, and affordable housing through large multi-family
developments. Each of us bring our own unique skillset to the table to round out our
experience and knowledge.

With ARC we bring experience in affordable housing initiatives, development

planning, lending solutions, asset management, and construction management. With
our experience in the real estate industry, we understand how to effectively work
with towns, counties and community members to put together quality housing
initiatives. For construction, through current partnerships, our group has put
together many construction projects ranging from single family to larger multi-
family/commercial developments. Examples being, 16 units, 12 units, 4 units, and at
a similar scale to what we are proposing today, we are currently working on building
a 60-unit multi-family affordable housing project in Truro, Nova Scotia.

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Eprius Group Limited

Josh McEvoy of Eprius Group Limited:

Before his real estate journey, Joshua McEvoy was a successful business owner and
entrepreneur for many years. Real estate has been a long- standing passion that has
resulted in investing time and money in training and tools that helped him learn how
to be successful in various real estate opportunities. Joshua is now a co-founder and
co-owner of Eprius Group Limited. Eprius Group, based in Truro, N.S., launched into
the real estate market and has now undertaken many new development
projects. Joshua has an excellent eye for real estate potential and is highly successful
at coordinating and overseeing all aspects of the development process.

Eprius Group, together with its contractors have completed many successful multi-
residential and commercial construction projects and have aligned themselves with
the need for affordable housing in Canada. To date they have completed more than
50 single family/semi-detached houses, multiple projects in the residential multi-
family space (3 story 12-unit buildings, 3 story 16-unit buildings, a four 4-unit
building complex, a two 8-unit building complex), work on schools (Dal-Housie
university), the local Truro-Colchester hospital, retail centers, gas stations, and many
other commercial projects.

Their most recent development project includes a 60-unit multi-family development

site in Truro. This project includes affordability, energy efficiency and accessibility as
top priorities to compete and provide in the current market.

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Tapcore Inc.

Todd Mollohan of Tapcore Inc:

Tapcore Inc. is experienced in real estate asset management and property

management. Currently overseeing 113 units in 13 buildings in 6 towns, across 3
provinces, Todd Mollohan continues to educate himself on real estate and financial
matters to offer the best service to his investors, tenants, and his team. He always
enjoys a conversation with up-and-coming investors and has been helping a few of
them get a foothold in the market so they can enjoy the benefits that real estate has
to offer. The number one key to getting started is education, mentorship, and team
building. These are all steps Todd knows very well through his journey and continues
to learn new things every day.

As a detail-oriented action taker with many years of experience in real estate from
construction and renovations to property management, Todd has poised himself
through proven systems and increasing knowledge to help many investors take
control of their investment dollars in a tangible way.

Todd has been a member of the Douro-Dummer Fire department for over 20 years.
He enjoys helping with his kids’ sports teams and is very passionate about giving to
those in need by providing leadership and hands-on skills for a host of renovation
projects at Arrowhead Native Bible Center, a children’s camp in Cumberland Bay,
New Brunswick.

Todd lives in the town of Warsaw in Eastern Ontario with his wife and four children.
More details about his business and impact on the real estate and investor
community can be seen at his website www.trueassets.ca.

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Windrose Equity Inc.

Jordan Perry of Windrose Equity Inc.

Jordan is an experienced real estate investor and mortgage broker. He and his
company own 12 apartment buildings containing 66 residential apartment units in 6
cities across 2 provinces in Canada. As a long-distance real estate investor, Jordan
has implemented systems and processes to ensure the success of all his investments
for his investors and himself. Jordan has a great history of asset management and
working with teams remotely to effectively manage rental properties.

As a mortgage broker, Jordan specializes in assisting other real estate investors with
their financing needs and offers mentorship to assist those who are new and require
help to get started. With a special emphasis on commercial lending of affordable
housing multi-family properties. This experience has enabled Jordan to work in many
different styles of investing which has afforded him a unique view on real estate
investing through the eyes of a mentor to his clients. This year so far, Jordan and his
team have worked on

Jordan worked across Canada as a Powerline Technician before leaving that career
behind to pursue his passion of investing and personal finance. Jordan also lives in
the town of Warsaw in Eastern Ontario with his wife, 3-year-old, and 5-month-old
sons.

As a real estate professional focusing on Atlantic Canada, Jordan sees the need for
this type of housing development more than most and is ever motivated by the goal
of making a difference in the lives of as many people as possible.

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Our Ask

We are very excited to present you with our ideas on how the private sector and the
Municipality of Colchester can work together to accomplish common goals that
otherwise would be much harder and capital intensive to accomplish.

The issues with unaffordable housing in Canada will persist unless we start thinking
outside the box for solutions to work together. We can achieve our common goals
with greater ease by combining our strengths to push toward these solutions. It is
with these good intentions that we think working with the county will make a great
impact in the community of Colchester.

The site of the old school in Salmon River has some great potential for a range of
dwelling types and uses. With the ever increasing need for affordable housing in
Colchester County we feel this site has great potential for a large mutli-family
development consiting of 120+ units. It is our understanding that there is some
consideration for this site to be used as a park area. We believe with the size of the
land there is adequate room to accomplish the goals of both the public and the
communitys need for affordable housing.

Our ask is for Council to take consideration of ARC Development Group to help play a
part in accomplishing these mutal goals. We ask to have an opportunity to sit with
the staff and further the conversation of what we can accomplish together on a site
like the old Salmon River school.

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Our Experience and

Social Responsibility

Currently in Truro we are constructing a project of 60 residential units. In the interest

of making a difference in communities and playing a role in positive change in
Canada, we have chosen to align ourselves with CMHC’s (Canada Mortgage and
Housing Corporation) mandate to provide affordable, efficient, and accessible
housing to Canadians. In this project we have dedicated 23 units as having affordable
rents and all buildings have efficiency that is 50% better then code.

CMHC is partnering with developers by providing special financing from their

national housing strategy to those who are willing to help their housing goals. In our
Truro development, we have secured a spot in this program, meaning that we have
the steps and experience in place to take what we have done and repeat it in other
locations.

As real estate industry professionals, we have a special interest in the creation,

preservation, and maintenance of affordable, energy efficient and accessible housing
units in Canada.

We have recently partnered with the Town of Woodstock NB to construct a 72 unit, 6

story building. We achieved this through the same efforts that we are asking of
council today. The 72 units will become 50% better than code in terms of energy
efficiency, and 20% of the units will be designated as affordable without sacrificing
quality of construction. See rendering below for an example.

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Our Proposal

With ever evolving material and labor costs, fuel prices remaining high, and the
current raising of interest rates, the need for the private sector to partner with
governments is only increasing. Affordable living is becoming a thing of the past each
day.

The following graph comes directly from the Truro-Colchester housing needs study
completed in July 2021 and is one of the many ways to showcase the need for
affordable housing.

As parents ourselves, this hits home more than any other of the eye opening stats
contained within the housing needs report. Having to sacrifice groceries, healthcare
and our children’s quality of life, is an unacceptable realty that we would like to
change as much as we can.

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Large impactful developments like we are proposing require a lot of private capital.
With ARC’s goal of bringing efficient, affordable housing to market we ask that we
work together on our aligned goals by the Municipality of Colchester gifting the
subject land located at: PID 20037073 otherwise known as 2084 East Prince St, for us
to build a multi-family complex consisting of 120+ units. If this is agreeable to
council, we would enter into an agreement for the land ownership to be transferred
when we have an approved development agreement with the Municipality of
Colchester. Our proposed timeline would be to start construction in 2023 with many
units becoming occupied within 1 year of the start of construction.

Affordable housing and positive change are what a gift of development land from the
Municipality of Colchester means to each of us and is why we would be very excited
to continue the relationship with the County of Colchester.

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An Example

To clarify our intentions and what an affordable unit could look like, below would be
an example of what we have in mind. Of course, this would be subject to approvals
and due diligence. Also, which affordable housing financing program we receive
approval for would depict what the rents could look like.

If we were granted approval to construct buildings consisting of 120 two-bedroom

units, we would be able to offer a minimum of 20% of the units (24 units in this
scenario) as having drastically reduced rent values.

As an example, based on current market conditions for a two-bedroom unit, we

would be able to reduce the rent for the 24 affordable units down to $700-725 per
month for a 2 bedroom unit.

If we were to assign more than 20% of the units as being affordable, let’s use one
third of the total units 33.3% of the total units in this next example (40 units), the
rent would increase. A two-bedroom unit could be $950-980.

If the gifted land also came with some other concessions such as reduced taxes,
assistance on completing civil work and infrastructure, or monetary assistance for
example, this would allow us to reach an even greater depth of affordability with the
number or units, and/ or the maximum rent we charge to those units.

These figures are based off current market conditions and as such are subject to
change.

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Woodstock Affordable Project

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Truro Affordable Project

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We would like to extend our sincere thanks for the work that your office and Council
is doing in our province and we hope to start a relationship so we can meet our
common goals of bringing more affordable housing into the market.

Thank you for your consideration of this project and the good work that is being
done by your department towards a better and brighter future for the people of
Nova Scotia.

Sincerely,

ARC Development Group

Todd Mollohan,

Josh McEvoy,

Jordan Perry,

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