Sask. government plans to buy the Lighthouse and move its residents elsewhere

Saskatoon Lighthouse bought by province WATCH: The provincial government bought Saskatoon's Lighthouse and intends to flip the property after transitioning the tenants elsewhere.

The Government of Saskatchewan plans to buy Saskatoon’s Lighthouse and flip the building once the current tenants are out.

A judge approved the sale of the embattled non-profit’s building on Monday, according to a news release from the Ministry of Social Services.

The Saskatchewan Housing Corporation takes possession of the building on Jan. 5, with plans to transition the current tenants to other housing over the next two to three years.

“Through this investment, we are providing safety and stability for Lighthouse tenants,” Social Services Minister Gene Makowsky said in the news release.

"We want to ensure all people who currently reside at that location continue to have access to services and supports that help maintain their connection to housing as we work with them to transition to alternate accommodations in the community."

Lighthouse board member Adeel Salman is reassured to see a plan to in place that accommodates the needs of the building's current residents.

"It's very relieving to know that, you know, the provincial government is going to step in and they're goiung to prioritize the needs of those who are most vulnerable in our community."

The building contains 58 self-contained rental suites and 59 supportive suites with services from other service providers.

To support the “coordinated transition of current residents,” the Lighthouse will stop admitting new residents once the province takes possession of the property.

Documents filed at the Court of King’s Bench show there were several other bids on the property, but the terms of those bids and the purchase price are redacted.

Another Lighthouse-owned property on Avenue O South has been purchased by the Sanctum Care Group, court records indicate.

The Lighthouse once served as Saskatoon’s primary emergency shelter, with 61 emergency shelter spaces.

Last year, the province revoked its emergency shelter funding due to a serious financial scandal and conflict within the organization. The funding cut came shortly after the release of a court-ordered investigation from MNP that showed Lighthouse director Don Windels had used shelter funds for personal loans.

The organization was put under the full control of a court-appointed receiver in April after an application from its primary creditor Affinity Credit Union.

The Lighthouse owed approximately $2.6 million to Affinity, but in court filings the credit union said it agreed to "accept a significant loss" of that debt to approve the sale.

The organization's 60 employees were given layoff notices last month, a failing adventure park owned by the Lighthouse was sold in the summer, and any remaining unsold properties will be listed in the new year. After a year of court battles and internal strife, Salman says the end of the Lighthouse is in sight.

"It was a trying time, and for all parties involved," said Salman.

He's proud of the legacy the Lighthouse is leaving behind.

"The bottom line is for close to 20 years, the organization serviced homeless individuals in the City of Saskatoon with a selfless interest; put them first and foremost."

-With files from Keenan Sorokan