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Posted Jul 13, 2018, 5:00 PM
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Ach, du.
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Join Date: Feb 2011
Location: Downtown - Vancouver, BC
Posts: 231
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Rezoning of 750 Pacific Boulevard
The rezoning of the old Plaza of Nations lot, 750 Pacific Boulevard, passed council last night with a unanimous vote - only Councillor Jang was not present.
They didn't really focus very much on affordability, Brent Toderian came and spoke out against the project, and the general discussion focused on the community amenities, form, function, and public access to privately owned POP.
Below are my speaking notes from the meeting, where I came to speak, and offer my conditional support - though the conditions are pretty vague, I was writing the last of this as I was sitting in the chamber.
To start, I'd like to thank Council for the opportunity, as perfunctory as it may be, to offer up our voices when significant decisions such as these arise.
So, my opinion requires a bit of a layup – so I will try to speak as quickly and efficiently as I can.
This proposal, which requires today's rezoning, is brought forward by Canadian Metropolitan Properties Corp, which is a privately held company, with – as reported by the Internets - revenue of 3 million, 8 employees, and it is categorized under Real Property Subdividers and Developers, Cemetery Lots Only - which I found somewhat amusing.
The property, which we discussing here today, was purchased by Canadian Metropolitan from Concord Pacific in 1990 for around 40 million dollars – adjusted for inflation that's about 68 million.
The property, estimated by the Vancouver Sun in 2016 to be around worth 500 million, has increased in value since purchase by nearly 635%.
This corporation belongs to Mr. Oei Hong Leong, of Hong Kong, who has a net worth over 1.2 Billion Dollars - which would imply that he has nearly half his total wealth tied up in this property.
Over the past twenty eight years, the lot has remained mostly vacant, notwithstanding whatever the Edgewater might have been up to, and there was a lengthy court battle between Concord Pacific and Canadian Metropolitan Properties – hilarity ensued.
So with that being said – what is being proposed, to secure this rezoning?
Well, we'll be tripling the build-able sq.footage from nearly 700K to over 2 million.
The details? It will 1.6 million of residential, 350K of Commercial/Office and just over 100K of community space.
So that means:
5 % to Community Use
17% to Commercial/Office Uses (Which includes a hotel)
78% (an overwhelming majority – as it should be) to Residential Uses
So of the community uses – it's broken into three parts.
Child Care: 11K sq.ft.
Ice Arena: 33K sq.ft.
Community Centre: 65K sq.ft.
So as far as I can understand - only 70% goes to actual program space that will utilized by the public full-time.
The other 30% goes to the ice rink, a slightly larger replication of the one at Robson Square, and it will apparently be used by the Canucks for practice.
Are the Canucks, considering they have a net worth of over 740 millon dollars, net revenues of 156 million dollars, and a tidy annual profit of 22 million dollars, going to contributing anything to the construction of the practice rink - surely, I would hope they are.
So – if we are going to look at the potential per unit cost in the development, I did some rough calculations though there are variables that I am unable to ascertain.
We start with the land – worth 500 million (for now, as the rezoning will unavoidably increase its value) + 87 million for the community amenities, or is that 100 million (the documents are worded vaguely?) divided by 1700-2000 units quoted on the signage around the site in False Creek, which was not mentioned in the documents for this rezoning (besides the social housing) add on top the 100-300 million in construction costs, taxes, carbon taxes, fees, fines, and the new regulations concerning the property market potentially being brought in by Victoria, and most importantly the profit motive – they need to make some money at the end of the day.
In addition to these factors, we need only look to yesterdays decision to bring in a new infrastructure development levy, which I wholeheartedly support, to see that we are living in an environment where nearly everything pushes the costs higher – and nearly nothing is pushing them down.
So if we take my guesswork into consideration on the low end – with units totals in the 1700-2000 range we are looking at a per unit average of 700 K – give or take.
And if Canadian Metropolitan decides to reduce the number of units from that target, the price climbs exponentially towards 1 million dollars per unit on average.
I'll point out the comments one of Tuesday's speakers - the median income in the city of Vancouver is under 70K and the average home price hovers around 1.2 million dollars.
I'd also like the to point out comments made by Councillor Reimer that quoted the average Vancouver income, I'm not sure if its pre-tax or take home, as hovering around 97 thousand dollars.
The problem with averages is that high-income earners have a tendency to drag the 'average' away from the reality of the situation – which, if we look at the bigger picture, which is the province itself, is that 48% of the people in British Columbia make less than 30K a year.
Additionally, if we are to look at this sort activity regarding development in this city.
I'd like to point something that I found to be intriguing about this project. It seems, according to the Vancouver Sun, that Canadian Metropolitan Development Corp. made a 10K
donation to the local MLA, the Honourable Sam Sullivan, during his BC Liberal Leadership campaign.
I just think its important that we know this, as it's part of making an informed decision.
So – what's my point here?
The number of units is CRUCIAL to the success of this project – it's on the waterfront, it's centrally located, it's a new build in an ossified and overheated real estate market – this isn't the recipe for affordable housing by any means.
So my advice to council, is that as this proposal works its way through the process we need to make this land work for the city, not for the solely for developers – for its citizens, not some random investment vehicle that belongs to wealthy man who literally lives in another world.
In a situation such this, where our hands are tied by the powers that be, both junior and senior, we need to advocate tirelessly for the people of this city.
We need to the bend the curve to our benefit.
So, to conclude – I support this rezoning, but my support is contingent on three conditions.
Make it as affordable as possible, the number of units are key factor in this.
Make it look nice, without blowing the budget.
Make it a community asset, see if we can find ways to improve the current offer for the average citizen.
Thank you.
__________________
'If you want to breed Mexicans on your farm, fantastic. Dress them up as little sailors, that'd be fun. Bravo.' - Stephen Colbert
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