Thirty below-market rental housing units are included in a two-tower development being proposed in downtown New Westminster.
The city has received rezoning and special development permit applications that would pave the way for a mixed- tenure and mixed-income development at 65 First St. The site is located near Albert Crescent Park, which is at the eastern end of the downtown near the Pattullo Bridge.
According to a staff report, the site is located within Tier 3 of the Columbia Station Transit Oriented Development area, but the applicant is proposing density and heights above those mandated in Tier 3.
The applicant is proposing an in-kind contribution of 30 below-market rental housing units (10 per cent of the condo units). The project would include 304 stratified condo units and 299 market rental units in two residential towers near Albert Crescent Park.
At its Oct 21 meeting, council unanimously directed staff to work with the applicant to prepare a plan of development for the site that would be suitable for consideration of first, second and third readings.
The staff report stated that Monday’s preliminary report to council was the first step in the application review process. Subsequent steps will include an interdepartmental staff review, applicant-led public consultation, a presentation to the New Westminster design panel, the creation of a Be Heard New West webpage, a comprehensive report to council, and consideration of the rezoning and housing agreement bylaws.
Coun. Ruby Campbell asked staff if the project would include space for a daycare, noting the need for daycare spaces in the downtown neighbourhood. Hearing that daycare space is not part of this proposal, she questioned if that’s something that could be pursued at this stage of the process.
Jackie Teed, the city’s manager of planning and development, told council that adding daycare at this stage may impact the applicant’s ability to provide the affordable housing component. But because this is a preliminary report, she said council could instruct staff to explore that idea with the applicant.
“We can do that. It just might have other impacts,” she said. “But I think we're early enough with the preliminary report that we could look at that and at least report back on our conversation.”
In addition to the staff recommendation, council unanimously supported Campbell’s motion that staff be directed to confer with the applicant about the potential for daycare on the site.
Years in the works
Planning for the redevelopment of the site has been in the works for several years.
The city’s former land use and planning committee received a pre-application review for the site in February 2019. That proposal called for a 24-storey residential tower and podium, including 60 secured market rental units.
The Oct. 21 staff report stated that the developer, Merchant House Capital, entered into an agreement with the strata corporation at 65 First St. to buy the property in 2019 and advised the city of its desire to temporarily operate the building as rental housing following the sale and until the property is redeveloped. In March 2020, council approved a housing agreement bylaw.
“Sale of the property completed in 2021,” said the report. “The clarity provided through the housing agreement was critical to the developer’s decision to tenant the building, rather than leave units vacant until redevelopment.”
Now, the developer is proposing two residential towers with heights of 31 and 35 storeys; Tower A would have 299 market rental units and 30 below-market units, while Tower B would have 304 stratified market condo units. Ground-oriented, pedestrian-scale townhouse units are being proposed along the Albert Crescent Park frontage.
“The below-market units and overall development scheme would address council’s Homes and Housing Options strategic priority through creation of a mixed-tenure, mixed-income community in a transit-oriented neighbourhood,” said the report. “These units would be owned and operated by the YWCA and available to low- and moderate-income earners, with rents targeted to meet below-market rates set out by IHP (inclusionary housing policy). Additional details of the in-kind amenity proposal would be refined as the application progresses.”
According to the staff report, tenant assistance requirements were negotiated with the applicant in 2021 and secured through a housing agreement bylaw.
The report stated the applicant has voluntarily proposed tenant assistance measures that exceed their legal requirements.
“In addition to the requisite four months’ termination notice and three months’ rent compensation required through the housing agreement, the proposal includes: hiring a tenant relocation coordinator to support tenants in locating new housing; additional financial support for moving costs and deposits; and flexibility for tenants to terminate leases early, while retaining supports and benefits,” said the report. “Secondary rental market tenants (i.e. those who rented from a strata unit owner) who resided at the building prior to its sale would be provided an additional $2,000 in financial support.”
In September, council unanimously voted in favour of a motion directing staff to update the City of New Westminster’s tenant relocation policy using Burnaby’s policy as a model. The city’s goal is to provide greater support for tenants who may be displaced from their homes.
In the Oct. 21 report, staff said this application would not be compliant with an updated tenant relocation policy but they consider the applicant’s proposal to be reasonable because the tenant assistance requirements being offered by the developer were secured through a housing agreement that was negotiated with the city in good faith and exceed what’s required in the agreement.
