The developer of a hotel and residential complex near the Richmond Olympic Oval is asking for an eight-week extension on final approval of the project in order to avoid having to create more affordable rental suites.
City council upped its requirement for affordable housing units from 10 per cent to 15 per cent in city centre developments about 18 months ago.
The Landa development, on Elmbridge Way, was grandfathered into the lower amount due to the timing of its application.
This was contingent on having projects ready for final approval within a year.
However, because city council asked Landa to do some extra work on traffic management, it was given an extension of about five months more - to April 15 - for final adoption.
Now Landa is asking for another extension of eight weeks on its final approval by city council.
If city council doesn’t grant the extension, not only would Landa have to increase the affordable units (low-end market rentals – LEMR units), but they would also have to make 15 per cent of their units market rentals.
These changes would have “devastating financial implications” for the development, explained Landa Global Properties in a letter to city council, given higher construction costs and higher interest rates.
“15% LEMR and 15% market rental was not a consideration when the site was purchased in 2019 and implementing this into the project at this stage would render the project unviable,” the letter continues.
Landa explains that it has been working “tirelessly” with the city but some legal paperwork is still outstanding, which means they cannot meet the April 15 deadline.
While city staff didn’t recommend approving the eight-week extension, given it went against policy, the planning committee decided to allow it in order not to stall the project further.
This decision will need final approval at a city council meeting.
The development proposal is for 356 residential units and a 189-room hotel.
City staff estimated, if Landa had to redesign the project with more affordable and rental units, it could add another 18 months to the project in a “best-case scenario.”
If the extension wasn’t allowed, the number of low-end market rentals would have to increase from 30 to 45 and the developer would also have to build 45 market rental units.
Wayne Craig, the city’s director of development, said the eight-week extension should be “sufficient and realistic” to get the project off the ground.
The development community is under “tremendous stress,” Craig added, with construction costs up five to six per cent and high interest rates also up.
“There are a number of factors impacting project viability at this time,” he told the planning committee.
An agreement on the affordable housing units for the project was approved by city council last week.
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