A missed deadline to proceed with development of East View Lodge has fueled speculation that the Assiniboine Regional Health Authority (ARHA) will now move ahead with demolition of East View Lodge in 2011.
However, Neepawa economic development officer, Rick Donaldson said despite any finalized plans to renovate the former care home to ease the town's increasing rental housing crunch, that speculation is unjustified.
"My bet is that won't happen," Donaldson said.
The Town of Neepawa has shown the property to six potential developers on the behalf of the ARHA.
Donaldson said a company called the FWS Group of Companies with a head office located in Winnipeg, has shown interest.
"They did a lot of number crunching," said Donaldson. "And have agreed to meet with us in two weeks time."
FWS expects to be able to breathe new life into the East View Lodge, creating 53 new apartment units.
Donaldson said, if the project goes through, the new units will make a huge difference because of the lack of rental housing inventory throughout the area.
The need for housing is mainly due to the influx of immigrants working at the hog plant. Many of these immigrants have now fulfilled their part of the immigration contract and are able to bring their families to come live with them.
"Currently many of the workers are living with four or five other people in small basement suites or motel rooms, but our climate does not allow for that year-round," said Donaldson. "In summer, they are able to go out and get away from each other when needed, but with the frigid winters we get, that just isn't possible during the colder months."
While the town may be asked for incentives, Donaldson said people won't need to worry about lots of money coming out of the taxpayer's pocket.
However, if for some reason FWS is unable to continue with this plan, the East View Lodge has already been scheduled by the ARHA to be demolished in late 2011 or 2012.