Thorold’s most iconic heritage building, Keefer Mansion, is looking for a new tenant.
Keefer Developments, the company currently locked into a 30-year lease with the City, has decided to walk away from the property.
They've put the lease assignment — which is set to expire at the end of 2033 — up for sale for $695,000.
“We have always been proud of the Keefer Mansion and its place in the community,” says the company’s president, Phil Ritchie, in an interview with ThoroldToday. "Although we have completely enjoyed our time, we have decided to bring our chapter with the property to a close and allow new hands the privilege of caring for the site."
When Keefer Developments first took possession of the property 20 years ago, they turned the building into an inn, which closed down right before the pandemic.
Now, Ritchie has decided it is time to move on from the property.
"In exchange for a 30 year lease with a very low monthly rent, we agreed to completely renovate and restore the building," he says. “There’s an enormous amount of capital that was put into the property so for us to abandon ten years of that, we have to try to recover some of that investment."
Keefer Developments currently pays $1064 monthly rent to the city. Under the lease agreement, they’re also responsible for operating expenses such as property taxes, utilities, tenant insurance, and basic maintenance.
Meanwhile, the City pays for fire insurance, as well as capital repairs. In the last few years, the City paid for the installation of a new roof and electrical service, and during the recent budget deliberations, council set aside $40,000 to repair a retaining wall and driveway.
That's why Ritchie thinks Thorold taxpayers would benefit from a sale of the property.
“The right and best outcome for both the taxpayer and the property was to reach a simple agreement with the City to allow our exit and the sale of the property to new hands,” Ritchie says. “There are many possibilities for the site that could better serve the community, and completely protect the important heritage story of the building."
But negotiations quickly fell through.
“The City was unwilling or unable to hold discussions with us in good faith,” says Ritchie. “I’m sure they’d be more than happy for us to walk away. They would have to buy us out of the lease but we would do that in partnership with the property. Which they want to do, they want to sell the property. That’s the best ending for taxpayers and the best ending for the building."
If the lease expires on December 31, 2033 as intended, the City won't have to buy Keefer Developments out of the lease, but they're on the hook for any capital repairs until then.
"When the lease is over they can do what they want with it," Ritchie says. "I think it’s been shortsighted and it’s not in the best interest of the taxpayer."
With no other way to untangle himself from the property, Ritchie decided to put the lease assignment up for sale.
“Along with a right of first refusal on city sale of the property, our lease allows us to both assign or sub-lease the property,” he says. “As an assignment the new party will completely take over our lease and continue in our place.”
By selling the lease assignment for $695,000, Keefer Developments hopes to recover their financial investment into the property.
The buyer will still have to continue to pay the $1064 monthly rent to the City, and will also have to take care of the other financial obligations of the lease agreement.
There are already plenty of offers rolling in, according to Ritchie, but he emphasizes it’s important the right candidate is found.
“The ideal candidate will be sensitive to the heritage and community value of the property, and have the requisite financial resources to operate the approximate 8500 square foot home,” he says. “There are several uses permitted by the current zoning and would work well within the practical limits of this wonderful historic building.”
ThoroldToday reached out to City Hall for comment and received the following statement: “Thank you for the interest in Keefer Mansion, the property is owned by the City and is leased until January 2034.”
For inquiries about the sale of the lease, email Keefer Developments.
