After reflecting on its financial position, the Board of Directors of The Inn of the Good Shepherd has decided not to proceed with a proposed affordable housing build at the corner of Melrose Avenue and Exmouth Street in Sarnia.
The charitable organization planned to build a six-storey apartment tower at the site of the former Laurel-Lea St. Matthew's Presbyterian Church, which is currently being used as an emergency shelter.
On July 9, the Inn announced the difficult decision not to proceed with this major project and instead focus on providing emergency shelter, food security programs, housing supports, and other essential services.
"No one wanted to reach this conclusion. We recognize that affordable housing is a critical need in our community, and this was not an easy decision," said Board of Directors Chair Liz Koetsier in a media release. "However, as a board we have an obligation to steward the organization responsibly and ensure the inn has the financial means to continue delivering the essential services that thousands of people depend on each year. We believe this decision reflects that responsibility and strengthens the inn’s capacity to serve our community well into the future."
Inn Executive Director Jack Christine said the decision reflects the significant changes seen since the project was first conceived several years ago.
"When the Laurel Lea project was first envisioned, the inn was in a much stronger financial position than it is today," said Christine. "Today, we no longer have the same financial flexibility we had when the project was first conceived."
However, Christine said the decision does not represent a change in the organization's commitment to addressing homelessness and housing insecurity.
"Affordable housing remains an essential part of the solution to homelessness," said Christine. "Although we will not be moving forward with this affordable housing project, our commitment to supporting people experiencing homelessness and housing insecurity remains unchanged. Our focus continues to be on ensuring that individuals and families in our community have access to the essential services they need today, while maintaining a strong and sustainable organization for the future."
The project had been a controversial matter as members of the Melrose community voiced health and safety concerns surrounding the emergency shelter.
City council initially voted against the proposal but in a nearly split vote in October 2025, council directed staff to accept a counter offer in order to settle an appeal filed to the Ontario Land Tribunal.
Meanwhile, the overflow shelter is expected to remain open until a proposed expansion and renovation is completed at The Good Shepherd's Lodge.
