Hay River (Apr 25/05) - It looks like a new seniors' apartment building is getting closer to reality in Hay River.

The Hay River Seniors' Society and Arcan Construction signed a memorandum of understanding in early April, and are working towards a final agreement.

"We expect it to be in place by the end of April," says seniors' society president Eileen Collins of the final agreement.

A seniors' apartment building project has been discussed for about 10 years in Hay River.

The $3.8-million Whispering Willows project will provide 24, one-bedroom units in a two-storey building.

It would be owned by a newly-incorporated company, which would be wholly-owned by Arcan Construction president Duncan Cooke or one of his companies.

"We are feeling very confident the building will materialize," Collins says.

It would see the society and the company each invest $193,000.

That would be added to a $450,000 forgivable loan from the NWT Housing Corporation.

The total includes a $181,000 piece of land south of the B&R Rowe Building in downtown Hay River.

The housing corporation money would help subsidize rents over 10 years.

A mortgage from a bank would be taken out to provide the remaining funding. The seniors' society would have a 50 per cent stake in the earned equity of the building as the mortgage is paid, but would not own the building.

Collins explains the seniors' society would get a return of about 12 per cent annually on its investment.

Arcan Construction's Cooke says it is hoped a mortgage will be approved before the end of June, "which would allow a start of construction before the end of July."

The building would be ready in the spring of next year.

Arcan Construction became involved in the project last June, after it responded to a request for expression of interest from the seniors' society.

The building would be designed for seniors with such things as easy access and meeting rooms, and offer social space for seniors.

"It's building a community for seniors," Collins said.