Delays in construction, uncertain government funding puts potential Dunnville childcare space in doubt

DUNNVILLE—A childcare facility expected on the main floor of Dunnville’s in-development affordable housing facility is on shaky ground as construction delays are pushing the facility past its expected December 2026 opening.

“(The build is) underway…. However, it’s not anticipated to be occupied until into 2027,” said General Manager of Financial Data and Services Mark Merritt to Council on the Ramsey Drive project.

DUNNVILLE—This rendering shows the proposed affordable housing development on Ramsey Drive in Dunnville, where a 41-space childcare centre was planned for the main floor. Ongoing construction delays and uncertainty around government funding have put the childcare component of the project in doubt.

Councillor Rob Shirton asked why the site was ever planned to be operational this year.

“I’ve never seen a building of that magnitude built in under a year. Why are we even suggesting that? What am I missing here?” he asked.

Merritt replied, “It’s an excellent question. We all knew that the December occupancy date … was ambitious. Having said that, when we did the final approvals for the build, the cost and everything, that was the June (2025) period. We thought we would be able to start sooner; however, it took a lot longer than we anticipated to get the funding in place.”

Additionally, Merritt outlined issues that arose when construction began: “There was all kinds of soil remediation that ended up needing to happen. That really extended that timeframe more than four months just for those two items alone.”

When first announced, a key component of the project – which will add 56 mixed-income apartments to the community – was the 41-space childcare centre to be operated by YWCA (Young Women’s Christian Association).

The childcare centre, powered through a $600,000 capital funding investment through the Canada-Wide Early Learning and Child Care (CWELCC) program, has been in the works since 2023. The County staff report said it’s unclear whether that $600,000 will ultimately be used to build the site or if it will end up being returned to the government due to the delay in its operational opening.

As access to funding through CWELCC is dependent on the number of childcare spaces available within a riding being in place before the start of a new calendar year, Children’s Services must reassign those 41 delayed spots to other approved childcare sites within the region to maintain access to the funding that was to be used to convert the main floor space of the Ramsey Drive project.

“The absence of a confirmed CWELCC funding commitment beyond 2026 we believe is contributing to the Ministry’s ability to support capital construction projects that extend past the end of the current calendar year,” read the staff report, adding that, as a new program, there are limited historical trends to inform future funding expectations.

With the 41 spaces re-assigned, Haldimand-Norfolk Housing Corporation (HNHC) will continue to maintain the main floor of the building as a shell for “as long as feasible” to allow for the re-allocation of childcare services to the Ramsey Drive site “should the Province confirm a renewed funding agreement with the Federal government.”

HNHC is exploring alternative uses for the main floor of the building as a contingency should new funding not be announced by the end of the current year to cover the required expansion for childcare spaces.

With Council’s approval, Haldimand will now issue letters to the Federal and Provincial ministries outlining the urgent need for the renewal of CWELCC funding, including a commitment to a five-year system-building framework.