Survey Plan: 302 Bessborough Avenue (Attachment 2)

CITY OF VICTORIA DENSITY BONUS POLICY STUDY

Redevelopment in these locations is likely a longer term prospect.
Redevelopment in these locations will require a higher achievable concrete apartment unit sales prices or higher permitted density.
At the large shopping centre sites, the potential CAC would be influenced by requirements for on-site dedications, infrastructure costs and the mix of uses, which will not be known in advance of a development application so it is not possible to estimate the potential supportable CAC at these sites in advance.

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5.5 Other Findings

As part of our analysis, we tested the implications of including office space or rental apartment units as part of the redevelopment. Our findings can be summarized as follows:

There is no opportunity for a CAC from office projects in the Small Urban Village, Large Urban Village and Town Centre locations.
Any requirement to include or replace rental units at new projects has a large impact on the potential CAC from residential or mixed use rezonings.

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5.6 Key Implications

The key implications from our financial analysis are as follows:

The overall study area has a limited number of sites that are financially attractive for redevelopment at the maximum permitted OCP density. The sites that are attractive for redevelopment are focused in the Urban Residential and Large Urban Village designations.
Other than vacant sites, no sites that we analyzed are attractive for rezoning and redevelopment at the base OCP densities. Therefore, part of the value of the bonus density that is available needs to be retained by the developer (and is not available for an amenity contribution) in order to make redevelopment financially attractive.
Most sites that are financially viable for rezoning and redevelopment can support a CAC in the range of $5 to $14 psf of floorspace over the base FSR identified in the OCP. This is significantly lower than the market land value created by the additional bonus floorspace (typically $30 to $60 per square foot of buildable floorspace depending on the site's location) because part of the additional value that is created by the bonus needs to be retained by the developer to make rezoning and redevelopment financially attractive.
A higher CAC will reduce the number of sites that are financially viable for redevelopment under current market conditions.
Some unusual rezonings (e.g. industrial to residential) may support a very high CAC, depending on the proposed uses and density.
The supportable CAC for large sites cannot be evaluated in advance of a detailed concept plan because the potential CAC would be heavily influenced by requirements for on-site dedications, infrastructure costs and the mix of uses, which will not be known in advance.

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