Barrie city council is taking steps to recover a $3-million loan from Redwood Park Communities, a non-profit organization involved in supportive housing.
On Sept. 16, council members directed city staff to work with the County of Simcoe and other stakeholders to recover the money or reduce the possible loss.
The city has given the parties 90 days to reach an agreement. If no agreement is reached, the city could take additional steps to recover the loan.
The interest-free loan was approved in June 2021 to help finance supportive housing projects in Barrie.
The full amount was drawn down in April 2024, with repayment pushed to Dec. 31, 2025.
In May 2025, council offered to forgive $500,000 of the loan if Redwood repaid $1.8 million by June 30 and another $700,000 by Sept. 1.
The city says those conditions were not met, leaving the full $3 million due by the end of 2025.
City staff held meetings and communications with Redwood between July 2025 and April 2026 regarding repayment.
Coun. Gary Harvey, who chairs the finance and responsible governance committee, said the city’s report provides a clear account of the history surrounding the loan.
“For the most part, it’s pretty self-explanatory and outlines the history of what’s transpired to date,” he said.
“During the last two terms of council, there have been a number of motions, confidential and public
reports, and memos concerning the city’s loan and promissory note to Redwood Park Communities, Redwood Builds.”
Redwood officials said it missed only the Dec. 31, 2025 repayment deadline. The June and September dates were conditions for the proposed $500,000 loan forgiveness, not repayment deadlines under the existing agreement.
The organization expected to repay the loan through mortgage financing after Lillian Place was built in Barrie’s north end in 2025. That financing did not materialize, leaving Redwood unable to repay the loan by the December deadline.
Lillian Place has been operating for nearly a year.
The organization has stated it remains dedicated to repaying the loan and is working with the city, County of Simcoe and Salvation Army on a repayment plan.
Mayoral candidate Tanya Saari, who is on leave from her position as Redwood’s managing director, said in a statement that she joined the organization in 2023, after the loan had been arranged.
“At the time I began my leave, there were active and ongoing conversations between Redwood, the City and the other parties involved regarding the loan and repayment,” she said.
“I was not directly involved in those discussions, and I do not have any current information or updates on where things stand today.”
Saari said she did not want to speculate or speak on behalf of Redwood about the current situation.
