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A plan to establish a dedicated shelter and encampment site in Timmins has been scrapped after the provincial government declined to transfer previously approved funding to a new location.

The Cochrane District Services Board confirmed Thursday it received formal notification from the Ministry of Municipal Affairs and Housing that $3.2 million in capital funding, originally granted for a project on Pine Street South, cannot be used for a newly proposed site on Highway 101 West.

The funding was part of the province’s Encampment Response Initiative, launched in December 2024.

Board members, during a meeting Wednesday, said that it was disappointing that the funding resources that were there are not available to us, but added that they are encouraged that the ministry is still open to the fact that other resources may be available.

Project details, timeline

The now-defunct proposal envisioned a 44-unit modular facility with an adjacent encampment support zone. It was the latest attempt to address a shelter system under severe strain.

The board said the current emergency shelter in Timmins “has operated at and over capacity since the summer” and that infrastructure problems “cannot be addressed within the existing facility.”

The path to the Highway 101 West site was complex. The province approved the $3.2 million for Timmins in late January 2025, contingent on using the city-owned Pine Street property.

City council in Timmins had selected the Pine Street location in March. However, the social services board said that location faced opposition.

“When the Pine Street location was chosen... it was met with opposition and no willing partners,” wrote Timmins Wad 5 Coun. Steve Black in a social media post on Friday.

“Despite broader public support service providers and Indigenous groups opposed due to location and proximity to the dump.”

With no service providers willing to operate the Pine Street site, the board explored alternatives. In September, the board directed administration to find a new location outside residential areas.

A special board meeting on Dec. 5 identified two potential sites, referring them to Timmins city council. On Dec. 9, council passed a resolution endorsing the Highway 101 West property, formerly the Tembec mill site, as the preferred location.

The final hurdle was seeking provincial approval to move the funding to the new site. That approval was denied on Dec. 18.

Funding limitations, operational challenges

The Encampment Response Initiative funding was strictly for capital costs like property, construction, or renovations, not for operating expenses such as staff.

This limitation was a significant concern for municipal partners.

“I simply want to state that from our perspective that while we support the city and the CDSB through this initiative, we cannot absorb the types of costs that are on the table,” said Cochrane Mayor Peter Politis during the meeting on Thursday, noting it would mean a significant tax levy hike for his community.

Black echoed the point, writing “lack of any commitment of operating dollars from the province beyond what is already provided has posed challenges of any site working even if the capital dollars remained.”

Looking for a new path forward

With the project cancelled, local officials say they must restart discussions with the province under different programs.

“The province, despite not allowing the $3.2 million previously allocated to be used in the region, did leave the door open to discuss alternate programs to assist,” said Black.

The Cochrane District Services Board said it remains committed to the goal. The board said, in a news release following Thursday’s meeting, it will work with municipal partners, Indigenous organizations, service providers, and people with lived experience to explore alternatives.

“Although we are unable to move forward with this ERI Project, our focus remains on collaborative solutions that meet immediate, critical shelter and housing needs in Timmins and across the Cochrane District,” said Timmins mayor and the social services board chair Michelle Boileau.

“We know that the current emergency shelter in Timmins is operating over-capacity and we are committed to working to ensure immediate steps are responsive, inclusive and grounded in local needs.”

The board said these realities “underscore the urgent need for a district-wide homelessness strategy – including James Bay Coast communities.”

Administration will now convene a community leadership table to provide strategic oversight on relocating shelter services, with monthly progress reports promised.

“CDSB and service partners and community leaders will continue to meet and seek a new approved program and funding streams from the province to address the local challenges,” Black wrote.

However, the city councillor noted the immediate situation remains unresolved.

“Nothing has changed and we still have a shelter that is overcapacity and unable to serve everyone who requires help and it is still situated in a location that does not work without causing issues and concerns for neighbouring residents.”

More information on the Cochrane District Services Board’s Encampment Response Initiative Project, including project timelines, can be found here.