ATTACHMENT 2 - 339-345 Island Highway Rezoning Application, Community Amenity Contribution

RE: 339-345 Island Highway Rezoning Application, Community Amenity Contribution

Boardwalk and ICIC are pleased to present our amended rezoning application and proposal for the properties located at 339 - 345 Island Highway, as summarized in the letter to Mayor and Council issued under separate cover.

The purpose of this memo is to outline the Applicant’s proposed Community Amenity Contributions (CACs), following discussion with the Town of View Royal Staff. The Local Government Act provides for CACs in exchange for incentives and or bonus density. Although we have not received any incentives or bonus density, Staff and Council have been clear they desire a CAC contribution. In light of that, we are offering $4000 per unit for a total of $942,000. We understand that View Royal policy requires that a percentage of these CACs funds be provided to the CRD for their Affordable Housing Fund.

Public Benefits

The proposal offers View Royal a number of public benefits, most notably it will implement the OCP’s envisioned mixed residential designation of the site. Further, it will enable the transformation of a property that has long been recognized as being in need of redevelopment and will offer new housing choice to the Harbour Neighbourhood. The purpose-built rental homes will be suited to families, single professionals and seniors looking to downsize in the community and are located in close proximity to existing and planned neighbourhood commercial.

Preservation of a significant number of trees on the site through careful site planning maintains the neighbourhood’s unique character and provides a naturalized open space setting for resident use.

Community Amenities

We have been working with Staff to develop a comprehensive community amenity package to complement the proposal for Council consideration. As you are aware, the Local Government Act allows local governments to obtain community amenity contributions during the rezoning process through a variety of ways, including negotiating Community Amenity Contributions or using density bonusing. Density bonusing provides voluntary options for a developer to build either to the base density or to a higher level of density, if certain amenities or affordable housing are provided. The Town of View Royal does not have a community amenity density bonus policy beyond that offered for providing underground parking, and the proposal is not exceeding the targeted OCP density. Instead, the View Royal Community Amenity Contribution (CAC) Policy provides guidance during the rezoning process to consider how new development can help meet the needs of the community through voluntary, negotiated amenity contributions. However, no CACs are required under the Local Government Act, as no incentives have been provided by View Royal.

To inform the negotiation process and in accordance with the View Royal CAC Policy, a Land Lift Analysis was completed by an independent economist and determined that there was no residual land value associated with the proposal. The CAC Policy states that where a lift in land value is determined, the Town would seek 50% of that lift value as an amenity contribution. Where there is no lift in land value, the policy states that alternative community amenities may be negotiated.

Despite the findings of the Land Lift Analysis demonstrating that there is no lift in land value, we have heard Council and community interest in ensuring new development contributes positively to the Town of View Royal and have worked with View Royal Staff to prepare a Community Amenity Package. The package includes a proposed voluntary amenity contribution of $4000 per unit, which is in keeping with the CAC Policy’s target rates for Cash Amenities. With 238 units, the Community Amenity Contribution for this proposal is calculated as $952,000, of which we understand a portion is to go to the Capital Regional District Housing Trust Fund. In addition, Boardwalk is committed to offering below market rent to all first responders and veterans.

Further to the Cash Amenities, the proposal is also contributing to the Town’s infrastructure assets with a new signalized intersection at Prince Robert Drive and Island Highway to be paid for entirely by the applicant. The inclusion of a Tangible Amenity that offers enhanced traffic movement for all community members utilizing or benefitting from the movement of goods and services along the Island Highway corridor, is part of the amenity package offered by the applicant. The development is also providing the Town of View Royal with land to legalize the road way that currently encroaches onto the site.

Both the Cash and Tangible Amenities will be secured through a legal covenant.

In addition to the Cash and Tangible Amenities, the proposal would result in over $1.55 million in Development Cost Charges, over $900,000 in Building Permit Fees and ongoing increase in annual property tax revenue to the Town of approximately $400,000. These economic factors contribute to the Town’s vitality and provide benefits to the community as a whole, and may help meet demands for services (such as RCMP) associated with growth and population increases.

Conclusion

We thank Staff for your guidance and direction and for working with the Applicants during the application process to arrive at a comprehensive proposal for redevelopment of the site in alignment with OCP directions. We trust the above reflects our discussions to date and accurately documents our CAC proposal.

Sincerely,

Rob Whetter architect AIBC LEED™ AP de Hoog & Kierulf architects