19 Jun 2023 Council meeting Housing

77 Chapel Street - Acceptance of Project Under "Revitalization Tax Exemption Bylaw 2018 No. 7261"

Motion
That Council approve the Revitalization Tax Exemption Agreement for a proposed 154-unit residential development at 77 Chapel Street.
Minutes, page 12
Sources
Agenda itemCity agenda
Staff reportPage 1
Purpose
To obtain Council approval for a residential development at 77 Chapel Street to be included in the Downtown Revitalization Tax Exemption program.
Staff report, page 1
Staff recommendation
That Council approve the Revitalization Tax Exemption Agreement for a proposed 154-unit residential development at 77 Chapel Street.
Staff report, page 1
DocumentsStaff report about Economic Development

Leonard Krog Yes

But there are some signs out there. And some of us older folks have seen this happen before. Major developments not proceeding, particularly in the city of Vancouver condominium units in major centers not being sold. . Ah, getting financing together. The banks tighten up very quickly. I'll tell you a quick story. My grandparents and the prairies in 28 wanted to borrow money. They had good credit. They had a farm. They wanted to buy more cattle, and the banker said no. . Because the banker understood how the economy worked, and the Great Depression started. A year later, they sold the farm mercifully before it collapsed. Now I tell that timely story just to suggest that this is not going to continue forever, and whatever concerns we may have around a tax exemption now, if it makes the difference between this project proceeding and not proceeding in a community with a less than 1% vacancy rate and the end it results in quote unquote over building for the market that drives down house prices. . Then it's well worth the investment by reducing the property taxation in accordance with the program that this council it. The City Council of Nanaimo brought in for I think good public reason.

Paul Manly Yes

Councilor Manly Yeah, I want thank you Worship. Um Yeah, I see the value in incentivizing building in our downtown and I would actually like to to. I'm looking forward to revisiting this bylaw because I'd like to see a phased approach. . Um With this particular property where we're looking at $1.7 million of taxation over 10 years, which is a fair chunk of money and Um Yeah. So you know, I'm kind of mixed. I voted against the last one. And I'm I'm kind of mixed about this one because I do want to see this. These projects going forward, and I do want to see our downtown revitalized, but I think this is a It's a pretty sweet You know, very sweet deal for developers and, um And Years down the road. Other councils may be looking at this and going I was quite they're quite give away because we do have a beautiful Location here, and we are a desired location for people to move to, and people are coming here whether we develop or not. . This community is growing. There's demand for housing here, and developers are building housing based on that demand. . So, um Yeah. Those are my thoughts. Thank you. Thank you.

Ian Thorpe Yes

Thank you worship. Since I've been involved on council, we have been struggling to encourage development downtown. . And more housing, downtown and residential development. And council decided to use this as an incentive. I personally support the concept very strongly if we wish to review it at some future date, as staff is suggesting that's fine. We can have that debate. But right now the agreement is in place and this project like others qualifies for it. . So I don't know why we're spending a lot of time debating philosophy when that's better applied to a future meeting. If we want to review this entire program right now, we have a policy in place. A project that qualifies under our own guidelines. So I say, Let's vote on it.

Janice Perrino Yes

Thank you, you worship I can't help myself at the one thing that I heard during the election very clearly was do as much as you can to support development in the downtown core. So we bring more people and and build an environment of family and, you know, just joyful connection with our business community as well as our You know the residential community and We have had trouble getting Buildings of this type in our downtown core. And I'll tell you as much as I want to review this and we can do that in the future. . They have. They have gotten their application in in time, they have every right to ask for the 10 year. . It's it's a long time. But as far as I'm concerned, if we can get this development up and going get residents living in there all the better. I will absolutely be supporting this and I hope all of council does.