Rezoning Balfour Block – 906-982 West 18th Avenue

My name is Oscar Erickson, and I'm the rezoning planner for this rezoning application at 906 to 982 West 18th Avenue, 907 to 975 West 19th Avenue, and 3403 to 3415 Laurel Street, also known as the Balfour Block.

The site shown in red is located just east of Oak Street, between Laurel Street, 18th and 19th Avenues. The surrounding neighborhood consists of single detached houses and to the west, low-rise rental buildings along Oak Street. The site is located 900 meters south of the future Oak VGH SkyTrain station and is currently occupied by 17 rental duplexes constructed in the 1950s. There are tenants on site eligible for protection under the Tenant Relocation and Protection Policy.

Land use and height are consistent with the residential low-rise generalized land use designation of the Vancouver Official Development Plan. This designation supports a range of residential tenures up to six stories. The southeast corner of the site is proposed as public open space and is consistent with the park and open space designation of the ODP.

The site is located within the Canby Corridor plan area and is identified as a unique site. The plan anticipates a mix of townhouses, low-rise and lower mid-rise buildings with 25% of the net new rental floor area to be below market rental units. It also calls for integrated public open space and seeks to secure a childcare facility on the site. While the site does meet the site's threshold for the rezoning policy for sustainable large developments, given the project is seeking to rezone to lower density through district schedules, there are limited opportunities to land this policy on the site. Staff worked with the applicant to ensure the delivery of rental housing and the retention of the park at the southeast corner, in part responding to the objectives of the city's policies.

TO PROVIDE SOME BACKGROUND, THIS REZONING APPLICATION FOLLOWS A PREVIOUSLY APPROVED CD1 REZONING APPROVED AT PUBLIC HEARING IN 2022 AND ENACTED IN 2024. THE 2022 APPROVAL CHANGED THE ZONING FROM RESIDENTIAL RT2 TO CD1 AND INCLUDED A COMPREHENSIVE PROPOSAL WITH 51 STRATA UNITS, 58 STRATA TITLED TOWN HOMES AND 99 RENTAL UNITS, INCLUDING 25 UNITS OF BELOW MARKET HOUSING. THE PROPOSAL ALSO SECURED A 570 SQUARE METER PUBLIC PARK AND A 37 SPACE CHILD CARE FACILITY.

THE REZONING APPLICATION BEFORE COUNCIL TODAY SEEKS TO REVISIT THE 2022 REZONING AND ITS SUBSEQUENT ENACTMENT. The applicant has indicated that due to changing market conditions, the existing zoning with its secured public benefits is no longer economically feasible. The applicant is now seeking an alternative way to move the project forward and has identified this proposal as a viable option. Should the current proposal be approved by Council, previously secured public benefits such as the childcare facility and below-market rental housing will be foregone.

The applicant is proposing to subdivide the site and rezone to standard zoning districts. Lot 1, here shown in yellow, would be rezoned to our R2B district, allowing for a six-story rental building. And lots 2 to 20, here shown in purple, would be rezoned to R11, each permitting a four-unit multiplex development under fee-simple ownership. PARCEL AT THE SOUTHEAST CORNER OF THE SITE WILL BE CONVEYED TO THE CITY FOR USE AS A PUBLIC PARK. THIS PARCEL WILL BE REZONED TO A CITY ONE DISTRICT LIMITED TO PARK USE. staff note that the park secured under the previous proposal was larger at 570 square meter compared to the park parcel secured under this proposal at 375 square meters. As the enactment of the 2022 rezoning reflected the park commitment in the ODP, staff also note that although this park is smaller than illustrated in the ODP, it still meets the intent of securing a public park on the site. Administratively, the city will undertake a land exchange. The city frontage lands, being a city-owned seven-foot-wide frontage strip along 19th Avenue, shown in the diagram within a purple dashed line, will be exchanged for the park parcel. A service lane is required for the planned multiplex developments, and the lane will be secured through a dedication.

Architectural drawings are not submitted for a standard district rezoning. Instead, the form of development is reviewed at the development permit stage. The RR2B and R11 district schedules set out the expectations for the built form that can be anticipated.

In order to facilitate the earlier delivery of the RR2B rental building and lane, and to minimize disruption to tenants, the rezoning process will occur in two phases. In Phase 1, the developer will develop the land north of the lane. Once the Stage 1 building permit for the RR2B rental building is issued and all other associated conditions are satisfied, the developer can proceed to Phase 2, which includes conveyance of the park to the city and development of the lot south of the lanes. To conclude the process, the current City 1-884 will be repealed together with the public benefits secured at that time.

A virtual Q&A period was held, and in total, 88 pieces of correspondence were received. Support was expressed for the addition to the housing stock, the proposal's improved neighborhood fit, the proposed lower density, and the housing options that the proposal offers.

Concern was expressed for tenant displacement, the loss of the previously secured public benefits, building height, and impact to neighborhood character. In response, staff note that the applicant is required to provide tenant compensation based on length of tenancy, support finding interim housing, and their right to return to the new rental building at existing rents. Further, the proposed rezoning would result in a lower overall density compared to the previous proposal. While this change results in a reduction of the previously secured public benefit, it continues to secure a public park for the community. The proposed six-story rental building will comply with the RR2B district schedule. This zoning framework was created through a comprehensive citywide policy process designed specifically to guide the development of new rental housing across Vancouver, ensuring consistency, predictability, and compatibility with the city's broader housing goals. I also note that the anticipated form of development under this proposal reflects a reduction in density, thereby providing a smoother and more compatible transition to the surrounding single detached houses in the immediate area.

With the application approved, the project is expected to provide a total of 2.7 million in DCL contributions. It would also deliver approximately 90 market rental units and secure a public park.

In conclusion, this proposal is consistent with the ODP and delivers the replacement rental housing and public park identified in the Canby corridor plan. However, it falls short in delivering a childcare facility and the below market housing component originally anticipated. Staff have worked closely with the applicant to arrive at the viable proposal and while recognizing the reduction in public benefits are bringing this application forward for council's consideration. Staff recommend approval subject to conditions outlined in Appendix B. Staff and the applicant team are available to respond to any questions. Thank you.

Good morning, Mayor and Council. My name is Evan Lewis. I'm Senior Director of Development with West Group Properties. As you heard, we were asking for council to approve a reduction in density to this site. The application voluntarily reduced the allowable density by approximately 80,000 square feet, a reduction of roughly 40%. In its place, we envision a 95-unit rental building under RR2B, together with 20 front and back duplexes under R11 zoning. This form is consistent with the official development plan and, importantly, is highly consistent with the character and scale of the surrounding neighborhood. This decision was not made lightly. Following approval of the previous higher density rezoning, West Group made good faith efforts at significant cost to advance that scheme. We developed and submitted development permit and building permit drawings for all phases, paid the associated fees, and advanced the process to the point that many of those permits were issuable. We even leased out, built out, and furnished a nearby sales center, which is currently sitting unused. As we did that work, market conditions deteriorated. We ultimately saw no viable path to deliver the approved scheme at a revenue that could support its cost. Current application is our response, multifamily rental housing and ground-oriented duplex housing that we believe there is genuine market demand to support. Because we were giving up substantial density, the project economics no longer support the in-kind child care facility and below-market housing that were tied to the larger CD1 proposal. However, the revised proposal still conveys a parcel of green space to the city for a future park at the corner of Laurel and 19th Avenue. Perhaps most importantly, tenant protections and eligibility remain unchanged in this new application. Every eligible household retains the same benefits as under the prior proposal, including the right to return to the new building, their existing rents, financial compensation, and coverage of moving expenses. Tenant eligibility has been determined in collaboration with and confirmed by housing staff. During the previous public hearings, some tenants expressed that communication from West Group had been inadequate. Although staff confirmed that we had met and exceeded the communication requirements of the tenant relocation and protection policy, we sought to improve our communication with tenants. We held two in-person meetings at Hillcrest Community Center, one in November 2022 and one in May 2024, attended by members of the tenants group, senior housing staff, and our team. Based on feedback that we received at the November 2022 meeting, we began issuing regular project updates to eligible tenants. Since 2022, we have issued 12 written letters advising those tenants of the status of redevelopment efforts. We also retained a new independent tenant relocation consultant, Shauna C. Luke, who I believe is on the call. Every eligible household has been contacted individually and offered ongoing relocation planning and housing search support. Eligible tenants have been advised that relocation is not required at this time as no notices to end tenancy have been issued. And throughout, we have maintained transparent communication about the project status, timeline changes, and current market conditions.

Just to summarize and close, West Group acquired this property in 2015 with the intention of developing duplexes. We were advised that an application would not be accepted at that time due to the Canby Corridor Phase 3 planning program, which did not complete until May 2018. From there, we advanced through the full rezoning process, including a letter of inquiry process, ultimately securing not only approval in principle, but also enactment, only for market conditions to shift before we could proceed. Current application offers a realistic, deliverable path forward, less density, housing that fits the neighborhood, a future city park, and all tenant protections remain fully intact. For these reasons, we respectfully urge Council to approve the application. I'd be pleased to answer any questions, and also I'd like to thank rezoning staff for their excellent work on this application. Thank you.

Yeah, the reason for that is because that was the previous location of the park, which was consistent with the Canby Corridor Plan. In the unique site section of the Canby Corridor Plan for the site, it contemplated either a linear park going through the middle of the site, which will now have a city lane, or the corner of Laurel and 19th. So that was really the rationale for that.

We didn't proceed with the linear park. We had initially proposed a linear park through the middle of the site. At urban design panel, they asked us to do the corner park instead. The Canby quarter plan contemplated sort of one or the other. Okay. And so, yeah, we did not propose a linear park in the previous application.

I JUST WANT TO ADD MORE COLOR ON THE LOCATION OF THE PARK. IN CONVERSATION WITH PARK STAFF ALSO WE DID TALK ABOUT THOSE DIFFERENT OPTIONS WITH THE PARK. ONE OF THE BENEFITS OF IT BEING ON THE CORNER ADJACENT TO THE STREET IS THAT FUNCTIONALLY IN DESIGN THEY CAN COMBINE THE PRIVATE PARCEL WITH THE BOULEVARD SPACE TO EXPAND THE FUNCTIONAL USE. of that park space. And so that's, that's why we ultimately landed on that corner location.

No, it's a duplex. So we'll have two units.

The access just basically divided in half so that one has the front yard and one has the backyard. So just a sort of traditional duplex that you would see on a 33-foot lot.

It's 0.7 of roughly 4,030 square feet, which the mental math I'm not great at.

Per unit?

Yes.

selling the site for another group to execute on the previous CD1. I suppose there was some thought of it, but our belief was that if a group like ourselves with the expertise and capability to execute a project like that found that it was not viable, it was very unlikely that another group was going to come to a different conclusion.

Yes, we believe so, and we've been developing development permit drawings for the first phase of duplexes and the rental building with the intention of submitting those soon after this if the application is approved. Thanks. Thanks very much.

Yeah, I appreciate that question. They were certainly aware of it. And in fact, their tenancy agreement included an addendum that explicitly and specifically identified it as a redevelopment site, which they acknowledged. It also included an acknowledgement that the rent that they're being charged is less than what it would be at market in recognition of the fact that it's a redevelopment site.

That's correct, yes. And there's a condition housing staff can speak to about providing a tenant disruption plan as well. In other words, a plan to minimize disruption to tenants.

Yeah, so I guess to... put it briefly, the project economics just couldn't support it. So there was not enough lift to support delivering a childcare. The park we were able to do, there's obviously a land exchange, which Oscar alluded to where, you know, our site will be gaining a portion of the South, like a seven foot strip along the South portion of the property line in exchange for that, that park area.