The gap between what the City of Richmond is asking for and what the Onni Group is willing to pay for rezoning at Imperial Landing is “significant but not astronomical,” according to Coun. Alexa Loo.
However, that’s because Onni Group isn’t factoring in the increase in assessed land value the company will inherit should the city allow commercial retail stores at Steveston’s boardwalk.
Coun. Harold Steves said a city-commissioned study indicates Onni will receive an estimated $20 million more in land value if the maritime mixed-use (MMU) zoning is turned into commercial retail space.
Steves said the city would want in the range of 80 per cent of that figure.
Onni is presently offering $3 million in community amenity contributions for rezoning.
Chris Evans, an Onni representative, said the offer was based on how much money the company could receive from leasing the space over and above what it could receive should the land stay MMU zoning over a 10-year period.
Whereas a marine hardware store, such as Steveston Marine and Hardware, may pay only $15 per square foot (MMU) rate), a bank, such as TD Canada Trust, would pay upwards of $38 per square foot (commercial retail rate), while other shops would pay around $26 per square foot.
After accounting for realtor commissions, tenant improvements and some vacancy, Onni estimates it would gain about $2 million in lease rates.
Evans said the company is going above and beyond by offering $3 million.
However, Evans said a rise in assessed land value, as a result of the rezoning, was not a factor in Onni’s offer.
Steves is of the opinion it should be.
And, in 2014, during another rezoning application, past councillor Evelina Halsey-Brandt said she would need to see "big bucks," for the "land lift."
But Evans said the city only recently asked Onni for lease rate differences.
City of Richmond spokesperson Ted Townsend said it was premature to comment on any aspects of their proposal and/or recommendations to city council.
Townsend also said it is “premature” for Onni be hosting public consultation meetings this week.
Community amenity contributions (CACs) are common in rezoning processes. They typically “reward” a community with money for the likes of a childcare facility or a park/public space in exchange for zoning that allows increased density, which in turn raises the value of land prior to construction.
According to the Ministry of Community, Sport and Cultural Development, which regulates CACs, the "land lift" approach is usually not preferred because it raises the cost of housing and office space.
The ministry prefers “a package of amenities that makes sense given the development being proposed.”
However, Townsend called the rezoning application an “extraordinary circumstance” granted the boardwalk buildings have already been built. He added it was too soon to discuss the impact of land value.
After Onni constructed the six buildings under the MMU zoning, it initially offered $1.5 million in 2013 for rezoning.
Loo said she could foresee a point in which another lengthy standoff ensues.
If Onni doesn’t think it is economically feasible, then it will be able to sit on the property again, said Loo.
Onni is stating online, at its Discovery Days festival (public consultation) website, that the site will remain available to MMU businesses. However Evans said no priority will be given to such businesses after rezoning.
When asked what Onni had done to seek out maritime-related businesses, Evans stated that Onni had spoken to Steveston Marine and Hardware, however no plan came to fruition.
Many city councillors have expressed a desire to keep all or some of the site for maritime uses if the city were to build a full-service marina.
Steves said the city is looking to move the marina concept east, toward Britannia Shipyards.
A brief chronology of Imperial Landing property:
1893: Imperial Cannery built.
1893-1996: Fishing, no zoning issues.
1996: BC Packers Ltd. closes its Imperial Plant, fish processing ceases in Steveston.
1997: BC Packers Ltd. pitches an 800-unit condominium complex, with private waterfront access.
1998: Richmond city council introduces “maritime mixed-use” (MMU) zoning for boardwalk portion of 40-acre site.
2001: BC Packers Ltd. offices close, Onni buys entire site, with the boardwalk area zoned MMU.
2003: Onni pitches Imperial Landing to Richmond city council. Housing subsequently built on north and east sides of the 40-acre site.
2007: Onni applies to rezone MMU zoned land (the boardwalk area).
2009: Onni proposes a building plan similar to the one that exists today.
2011: Onni pulls plug on bid to build apartment towers amidst community backlash.
2012: Construction begins on the six existing, two-storey buildings in the boardwalk area.
2013: Onni offers $1.5 million for a “Leisure Fund” to rezone the site.
2014: Onni offers a cash/lease package worth about $2.5 million after council expresses interest in a library.
2015: Onni makes no offer.
2016: Onni offers $3 million for “Steveston Amenity Account.”
