Delegation: 346 Island Highway – Community-Focused Redesign

346 Island Highway – Community-Focused Redesign

Delivering 4,000 sq. ft. of Medical Clinic Space at No Upfront Cost to Taxpayers

What’s New

• Proposal redesigned in direct response to Council’s feedback
• Incorporates 6,000 sq. ft. commercial, anchored by a 4,000 sq. ft. medical clinic
• No upfront cost to the Town of View Royal
• No requirement for taxpayers to subsidize the clinic while addressing urgent healthcare needs

The Investment

• 4,000 sq. ft. “sweet spot” clinic size
• Shell value: $2.5 million
• Fully finished value: $3 million (excludes equipment & furnishings)
• Clinic operator responsible for its own equipment, supplies, and furnishings

Pathways for Ownership / Lease

1. Ownership Through Municipal Cost Offsets (No Direct Municipal Expenditure)

• Waive CACs (est. $364,000)
• Waive DCCs (est. $592,000)
• Waive Building Permit charges (est. $500,000)
• Waive off-site improvement requirements
• Acquire a mortgage for the shortfall

2. Ownership Through Property Tax Program (Esquimalt Model)

• Developer pays property taxes based on pre-rezoned BC Assessment value
• Property taxes increase each year for 20 years, reaching full market value
• No loss of current municipal revenue
• View Royal gains ownership of a valuable clinic asset

3. Lease Option Through Property Tax Program

• Lease space for a set term, offset by property tax revenues
• Similar short-term outcome, but no long-term ownership benefit

Summary

This proposal delivers up to $3 million in community benefit, giving Council three clear options:

Option 1 – Ownership Through Municipal Cost Offsets
Option 2 – Ownership Through Property Tax Program
Option 3 – Lease Option Through Property Tax Program

Each path secures a much-needed medical clinic for View Royal without upfront taxpayer cost — while building long-term value for the community.