VIEW ROYAL LAND ECONOMICS STUDY SUMMARY AND KEY FINDINGS Presentation

SUMMARY AND KEY FINDINGS

Coriolis Consulting Corp. 8 June 2021

Scope

1. Market demand projections
2. Financial viability of redevelopment
3. Strategies to encourage redevelopment
4. Implications for land use policy

Financial Viability of Redevelopment

For development to occur:

1. There needs to be market demand for the project being considered
2. The municipality needs to approve the project
3. The existing landowner needs to be willing to sell the property to a developer
4. Development needs to be financially attractive (profitable) for the developer

Our work focused on items 1, 3 and 4.

Demand Projections

1. Retail and service
2. Office
3. Apartment
4. Hotel

Demand Projections: Approach

1. Existing situation in View Royal and CRD
2. Historic and projected population growth
3. Historic development trends by use
4. Interviews with industry representatives:
   • South Island Prosperity Partnership (SIPP)
   • West Shore Chamber of Commerce
   • Urban Development Institute (UDI)
5. View Royal’s advantages and disadvantages
6. Regional demand projections
7. Opportunities in View Royal

Demand Projections: Findings

Implications

1. View Royal is well positioned to attract:

   • Multifamily residential development - central location in the region and livability
   • Medical office space – but total market for this type of space may be limited
   • Retail, service and office space that serves the local community as the population of View Royal (and adjacent communities) continues to grow
   • Light industrial development or mixed office/industrial development (if suitable sites are available) - few locations for this type of development in region

2. There is likely limited opportunity for:

   • Larger office projects – office market is small outside of the Core
   • Larger retail and service projects - Colwood and Langford have the capacity to continue to accommodate this type of development

Implications (continued)

3. Developers primarily interested in lowrise (4 storey) and midrise (6 storey) development – likely interest in taller buildings over time
4. Land supply is the main constraint for new development in View Royal - many owners are not yet willing to sell for redevelopment
5. Commercial should be focused in locations highly accessible by vehicle, visible and offer convenient parking

Financial Viability of Redevelopment

1. Very little vacant land remaining in the Town so new development will need to come primarily through redevelopment of existing properties
2. In order for redevelopment to be financially attractive:
   • The land value supported by redevelopment must equal or exceed the value of the existing use
   • Otherwise, it is more attractive to retain the existing use

Financial Viability of Redevelopment: Approach

1. Selected case study sites that are representative of the types of redevelopment opportunities in Town - Cross section of:
   • Locations
   • Existing uses
   • Existing zoning
2. Agreed with staff on heights and densities to test for each site
3. Analyzed the likely financial performance of each scenario for each site to determine if redevelopment is likely to be financially viable

Financial Viability of Redevelopment: Sites and Scenarios Tested

Financial Viability of Redevelopment: Key Findings

Strategies to Help Encourage Redevelopment

1. Parking
2. Prezoning
3. Enforcement of Zoning

Parking

1. Review existing off-street parking requirements to determine if parking requirements can be reduced:
   • Lowers the cost of development which improves financial viability
   • Creates more certainty for developers (rather than applying for a variance)
2. Parking for commercial space should be permitted to be provided at grade in surface parking lots:
   • Locate behind new buildings with the building oriented to the street to help create a more walkable, pedestrian friendly environment.
   • Surface parking should be planned so it can be redeveloped for higher density uses with underground parking over the longer term

Prezoning

1. Could zone sites in advance for the uses, heights and densities supported in the OCP. However, there are drawbacks:
   • Reduces Town’s ability to obtain land dedications for new roads and services (if needed)
   • Limits ability to negotiate contributions towards amenities, roads and infrastructure costs
2. Only prezone sites in locations where the Town will not need to negotiate land dedications for new roads, services or public space
3. Design density bonus zoning districts that create the opportunity to obtain amenity contributions in return for bonus density
4. Only prezone in the specific locations that are intended to be focus development in the foreseeable future

Zoning Bylaw Enforcement

1. Some under-utilized properties may be renting space for uses that are not specifically permitted under the current zoning
2. Consider enforcing bylaws that restrict uses which are not permitted under existing zoning - may encourage owners of these properties to sell for redevelopment

Land Use Policy

1. Hospital Precinct
2. Island Highway Corridor
3. Future Town Centre
4. Other Mixed Use and Apartment Locations
5. Infill in Residential Areas

Hospital Precinct

1. Properties identified for mixed use (along Helmcken) should be considered for 4 to 6 storey development
2. Vacant properties along Hospital Way adjacent to Victoria General Hospital should be considered for 4 to 6 storey mixed use development:
   • Part of these lands should be considered for office development to create an opportunity for additional medical related office space
   • Apartment development should also be permitted – stand-alone office space is unlikely to be financially attractive to private developers
3. Properties identified for multifamily residential development should be considered for 4 to 6 storey apartment development

Island Highway Corridor

Offers a variety of different opportunities. For portions identified for Commercial (such as the Western Gateway Community Corridor), consider the following:

1. Designate properties for a mix of employment accommodating uses including office, retail, hotel as well as light industrial
2. Allow mixed office and light industrial development (stacked industrial):
   • Starting to occur in other nearby municipalities (such as Colwood)
   • Financially viable at sites that are improved with low value existing commercial buildings
   • Creates new employment accommodating opportunities and tax base
3. Continue to allow heights up to four storeys as currently supported by the Commercial designation in the OCP

Town Centre

1. Treat redevelopment of the planned Town Centre as a longer term prospect
2. Designate for a mix of apartment, retail and service, and mixed use development
3. Consider providing the flexibility to build taller, higher density buildings – creates the opportunity to achieve increased density which will help improve redevelopment economics over time
4. Do not prezone these parcels because:
   • Town will need to negotiate land dedications for new roads, services or public space as part of future rezoning
   • Town may want to negotiate amenities as part of future rezoning
   • Preferred development plan for lands may evolve over time

Other Areas

1. For other locations that are identified for mixed use or apartment consider designating properties for 4 to 6 storeys
2. To encourage infill housing (duplex, triplex, etc) and townhouse development in existing residential neighbourhoods:
   • Explore the opportunity to permit infill housing with a minimum of four to six infill units per existing single family lot
   • Consider increasing the permitted density in the existing townhouse zoning districts

Thank you