Financial struggles put proposed Indigenous medical hotel in jeopardy

A new medical travel hotel for rural Indigenous patients seeking care in Vancouver, slated for completion in the coming months, could now be in jeopardy. 

The Dunna’eh House of Healing was the most recent vision for a controversial 28-story building on the southeast corner of Birch and Broadway when the owners, Vancouver-based Jameson Development Corp., pivoted from market-rate rentals to “medical accommodation units” in November of last year. 

However, after several delays and a slew of financial struggles, the estimated completion date has been pushed back again from the previously anticipated May to possibly as late as October 2026, George Morrison, president of the First Peoples Group of Enterprises (FP Group), told Vancity Lookout.

“We’re still on a mission to go through with Dunna’eh… to find that space and deliver our programs for a much-needed cause,” noting that the creation of the Dunna’eh House of Healing has been a goal for the FP Group for nearly a decade.

However, he added, “if [the owners] put us in a position where the financial model doesn’t work, then we’re not going to participate in that space.” 

The Pappajohn family's Jameson Development Corp. — headed by brothers Tony, Tom and John — owns a 75 per cent stake in the 2538 Birch street property through a holding company, James Holdings Ltd. The remaining 25 per cent is held by Gatland Capital Corporation.

The project, nearing completion, was set to be sold to the FP Group, an Indigenous advocacy firm, for an increased price of $235 million in Aug. 2025. However, court documents reveal the deal was formally terminated when the agreement expired in December.

While he is still "optimistic,” Morrison said the group is being cautious. “First Nations have had other projects that they get into trouble with with big developers, and then we’re left holding the bag,” he said. “That’s why we’re very careful in making sure that we pulled back and didn’t want to … put ourselves in a position of being dragged into their financial wounds.” 

Trouble became apparent when Jameson Development fell under financial pressure to put the project under creditor protection in November, despite receiving a low-cost loan from the province in 2023. BC Housing suspended funding for the project due to concerns regarding repayment, which Jameson told The Realist resulted in a “liquidity crisis” for the company. 

According to the court-appointed credit-protection monitor’s report, at that point [Jameson] “had approximately $156.5 million owing to BC Housing, $12.5 million to James Holdings and a further approximately $16.1 million outstanding to third party creditors,” including the construction company, Metro-Can Construction (BB) Ltd. “The Petitioners are unable to pay their liabilities as they became due,” the report stated, with total amounts owed to secured and unsecured creditors exceeding $185 million. 

The FP Group has “continued to cooperate” with Jameson and took part in the restructuring plan that was presented in the hopes of getting the project completed, Morrison said. But at this time, they are no longer planning to buy the building outright nor formally partner with the development company. 

The Birch property was originally approved for 258 purpose-built rental homes, 200 of which would have been market rental units and 58 moderate-income rental units under the city’s Moderate Income Rental Housing Pilot Program. 

Following the November redevelopment changes, the 58 moderate-income rental units are set to be retained, while the 200 market rental units will instead be used for “temporary accommodation for medical care,” with priority given to Indigenous travellers and run by the Indigenous-led nonprofit Dunna’eh House of Healing Society. 

However, Morrison told Vancity Lookout that the site still has not been rezoned to accommodate the necessary changes for the project, adding that the FP Group has since taken over communications with the city.

Jameson was granted court-approved stopgap funding to finish the final nine per cent remaining of the project, Morrison added. 

Birch site met with controversy

The site that is currently under construction at Birch and West Broadway has a controversial history among Fairview residents. For years, the space housed a Denny’s restaurant before it was sold to Jameson Development Corp. in 2016 and later slated for the development of a 28-storey tower in a tight council vote in 2020. 

At the time, it would have become the tallest building in Fairview and was much larger than the initial 16-story proposal for the property, drawing significant criticism from residents worried it would change the neighbourhood's character.

The pivot to Indigenous medical accommodations came at a time when demand for rental housing in the city had significantly cooled, due in part to drops in immigration, international student restrictions and changes in the economy. 

Morrison said he believes this likely contributed to the financial crisis faced by the developer. 

“[Jameson] got to the point where they weren’t paying their bills, and then after three months, Metro-Can walked off the job and put them in a bad financial situation,” said Morrison. “If it wasn’t for us working in cooperation with them, they probably would have lost [the property] to bankruptcy.” 

This is not the first time that Jameson has run into financial trouble in the midst of one of its more ambitious projects.  

The Jameson House, a 37-storey tower in the heart of Vancouver’s business district, also went into creditor protection in 2008, in the midst of yet another significant downturn in the economy. At that time, another developer, Bosa Properties, got involved after the Pappajohn family ran out of money and credit to help finance and complete the project in 2011. 

Morrison said he was not aware of this prior bankruptcy at the time that their broker recommended Jameson Development for the Dunna’eh House of Healing project. 

Jameson Development did not respond to emails or phone calls requesting comment.

A much-needed space for Indigenous patients

The setbacks and uncertain future for the project come at an unfortunate time for rural and Indigenous medical travellers. 

The Dunna’eh House of Healing was set to offer a “safe, culturally appropriate residential lodge” with accommodation provided at “minimal cost to the patient and their First Nation.”

Estimates for accommodation at the Dunna’eh House are $325 to $365 per night, based on recommendations set by the First Nations Health Authority (FNHA), with stable rates that will not spike during special events, such as the upcoming FIFA World Cup.

Tourism Minister Spencer Chandra Herbert told CBC that about 350,000 people are expected to visit Vancouver during the World Cup. Despite thousands of recent cancellations by FIFA, demand for Airbnb and other short-term rentals is still likely to be stretched close to capacity. 

The availability and high cost of accommodations have led many rural health authorities to issue warnings to patients not to travel to Vancouver throughout June and July for non-emergency medical care, with some, like the Skidegate Health Centre on Haida Gwaii, denying coverage for accommodations during that period. 

For many rural Indigenous people, receiving safe and comprehensive medical care when they need it is often out of reach. A 2024 StatCan survey found that roughly a third of First Nations living off reserve, Metis, and Inuit reported having unmet health-care needs in the previous year. 

Registered nurse and scientific director at the Rural Coordination Centre of British Columbia, Nelly Oelke, told Vancity Lookout that access to specialty services is unequal across the province. In particular, the most specialized, complex medical treatments are largely only available in Vancouver. 

When it comes to treatments that require medical attention as quickly as possible, for example, cancer and some cardiac issues, “that’s a real challenge for Indigenous people who need to travel.” 

“During events like a Taylor Swift concert or the World Cup, accommodation is so expensive…I can imagine that an accommodation service [like the Dunna’eh House] would be a very valuable thing,” she added.

If the Dunna’eh House is completed, most bookings for Indigenous patients would be pre-arranged through an in-house travel clerk and be eligible for coverage under the FNHA’s travel programs. 

Although Morrison said that the Dunna’eh House does not currently have any legal agreements with the FNHA, the health organization has expressed support for the project. 

“Accessing culturally safe care away from home is a significant worry for many First Nations people due to racism that exists across the health-care system,” noted a written statement provided to Vancity Lookout by the First Nations Health Authority. “The vision of the Dunna’eh House of Healing is one of hope where community members needing care in and around Vancouver can stay with dignity in an environment that is grounded in culture and support.”

The future of the Dunna’eh House of Healing

According to court documents, Jameson has been granted a stay on proceedings “to focus on completing the Development and implementing the Purchase Agreement for the benefit of all stakeholders,” with the most recent of several extensions set to expire on May 29. 

The monitor’s report noted that BC Housing, the province and the City of Vancouver are “generally supportive” of the Dunna’eh House of Healing but “require that the restructuring be successful.” 

Court documents also reveal that Jameson has “identified…several potential First Nations as investors” and “developed an initial timeline for non-binding and binding investment offers that would align with” the proposed extension period. 

Construction has resumed at the property, but when and if the project will go through as proposed remains uncertain.