Two ABC 麻豆传媒映画city councillors made a rare break from voting with their party colleagues Tuesday in opposing a developer’s request for a second extension on a $10.4-million payment connected to a 33-storey condo project.
Peter Meiszner and Rebecca Bligh cast the only dissenting votes of the 11-member council to reject Anthem Properties’ request for more time to pay the outstanding balance of a promised community amenity contribution, or CAC.
“I feel that this is quite a large development company that we're talking about here, and I feel that they have the financial resources to move forward,” Meiszner said in the council chamber Tuesday. “So I'm not able to support a second extension.”
'Market uncertainty'
Anthem previously received an extension in June 2023 on the $10.4 million after citing “market uncertainty from interest rate increases, slow condo market sales/conditions, coupled with unprecedented increases in hard costs,” according to a city staff report.
The site of the proposed 127-unit condo project is on a large lot in the West End at 1616-1698 West Georgia St., which used to be occupied by a Chevron gas station. Council heard Tuesday that excavation has begun on the property.
Meiszner and Bligh are among ABC Vancouver’s eight members on council, including Mayor Ken Sim, and have rarely voted against the majority since sworn in to office in November 2022.
While their votes did not affect Anthem being granted a second extension, Meiszner and Bligh cited concerns over opening the door to developers requesting more time to pay their bills to the city.
Meiszner said he was worried council’s decision could trigger “a wave of additional deferrals” at a time when the city continues to grapple with a housing crisis.
“It's important that we keep our eye on the ball and we ensure that this housing gets delivered,” he said. “We need to do everything we can to get the housing built that people need, and honestly, I can't wait.”
'Slippery slope'
Bligh didn’t explain in the council chamber her reason for opposing a second extension.
But in an email she said, “I think it's a slippery slope as we may see more developers needing these kinds of accommodations. I struggled to support the first deferral, I couldn't support the second.”
Added Bligh: “We have a responsibility to deliver important CAC-funded public amenities, which depends on developers paying their CAC commitments on time. The city is not able to act as a financial institution for developers — that's the key message that underpinned my vote.”
When the previous council approved Anthem’s rezoning application in April 2021, the developer offered a community amenity contribution in cash of $26.1 million. The money is supposed to help fund the West End “public benefits strategy.”
Anthem has paid $15.6 million of the $26.1 million and first asked to have the remaining balance of $10.4 million paid by April 25, 2024. Now that payment has a deadline of Dec. 31, 2024, despite what a city staff report outlined when the first extension request was brought before council in June 2023.
“It should be noted that the proposed modification is considered on a ‘one-off’ basis, and does not represent a change in the city’s CAC policy relating to deferred CACs,” the report said at the time.
'Challenging economic environment'
A separate staff report before council Tuesday said the recommendation from the city’s risk management committee was to grant a second extension, “recognizing that the project is advancing with construction and making legitimate efforts to proceed in this challenging economic environment.”
The same report further stated: “Staff have carefully considered this request and are of the opinion that accepting the [extension] would support the timely delivery of housing while ensuring satisfactory payment of the CAC outstanding balance.”
The outstanding balance of $10.4 million will be charged interest from the enactment date of the rezoning bylaw at prime plus two per cent, with interest payable to the city on quarterly instalments until the date that such amount is fully paid.
Green Party Coun. Pete Fry said in the council chamber Tuesday that he trusted staff’s advice regarding the extension, while at the same time saying, “I'm not a fan of backstopping huge developers who have big resources.”
“I have to have some faith in staff that they've done the due diligence, that this makes sense and it is really only a nine-month deferral — and it does pay additional interest for the extra time,” Fry said.
“I am confident that this is a prudent decision that will ultimately deliver the full suite of community amenity contributions and the strata housing that's expected on this site. So much as I feel like I have to hold my nose to do this, I am going to support the deferral and the direction of staff.”
'Win-win'
Glacier Media contacted Anthem for comment and received an emailed statement Thursday, which read:
“Building real estate in today’s environment often requires creative solutions to get things done and we see this deferral strategy as a win-win for the City of Vancouver, the community and Anthem.
This financial strategy addresses three years of project delays due to permitting, land carrying costs, extra fees that did not exist when this project started and challenges within the market. The CAC deferral will help us build these townhomes and condos and will result in additional millions going to the community.
As a benefit to the community, the deferrals will increase Anthem's community amenity contributions overall from $26.1 million to an estimated $28.4 million, with the added interest. These funds will help the city build and expand facilities such as, affordable housing, fire halls, libraries, and child care in the West End.”
