Upscale living coming to Kenora: developers find new uses for former Abitibi consolidated properties.

• Author: Ross, Ian
• Position: DRYDEN/KENORA

Winnipeg real estate developer is making its first foray into Ontario with an upscale waterfront condominium project in Kenora.

The $40 million Headwater luxury subdivision development by the Qualico Group contains 90 units spread out over five buildings, which will be developed in phases.

"We're hoping, based on pre-sales activity, that we would start construction on the first building sometime in the fall," said Qualico Headwaters manager Barry Hedgecock. "An opening is scheduled sometime in late winter or early spring 2010."

The eight-acre site is on the south end of the 300-acre Tunnel Island and connected to Kenora and Keewatin by bridges on Highway 17.

Situated on a point overlooking the islands of Lake of the Woods, the property resembles an A. Y. Jackson postcard.

"Kenora is the ultimate diamond in the rough" said Hedgecock. "It's got so much to offer and it's really got a great past. It's tough to find another body of water in the world like Lake of the Woods."

This past spring, Qualico began advertising Headwaters on billboards around Winnipeg.

The Lake of the Woods area has long been a cottage haven for many Winnipeggers through the generations as the City of Kenora seeks to economically diversify itself beyond its traditional reliance on the forestry industry.

"I don't think it's going to take a whole ton to turn that town around and (become) a No. 1 destination for seniors and vacationers," said Hedgecock.

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Winnipeg's Ray Wan is the Headwater's architect. The general contractor is Dominion Construction of Winnipeg and Thunder Bay.

Hedgecock said the interior amenities will be limited. There will be no fitness room or common gathering space. The attraction is outside with a private beach, marina slips and docking.

Unit prices start at $400,000 and go up to $1 million.

Hedgecock said the development isn't necessarily geared toward seniors but as "upwardly mobile," client base. "Some people we have reservations with already are far from retirement. They want to get away from the cottage and the maintenance but still have lake access."

He wouldn't divulge Qualico's threshold of pre-sales before breaking ground on the first two buildings, but so far, he claims 300 people have registered on the website.

The lion's share will come from Manitoba but Hedgecock said their market is far-reaching with contacts coming from Vancouver, California and Texas.

In June, a Headwaters billboard was erected in Kenora on the...