The City of Vancouver is proceeding with applications to redevelop market-rental housing projects after a proposal to develop a market-residential development corporation failed a political litmus test.

The Daily Hive Urbanized reported that three of six proposed mixed-use market-rental projects are still proceeding through the development-approval process. Together, the three proposed projects would include 2,700 market-rental homes and have a combined value of $213 million, according to the Daily Hive.

Their construction remains possible although the planned market-housing development company fell slightly short of the city council support required for it to become a reality.

Councillors voted 7-4 in favour of the motion, but financial matters involving city-owned properties require two-thirds of council support.

Mayor Ken Sim’s initiative aims to generate long-term, non-tax revenue to help fund public infrastructure and community amenities while adding to the supply of homes for middle-income workers and families. While his ABC Party representatives on council supported the plan, all other councillors rejected it.

The six largely vacant or under-utilized sites were expected to produce about 4,000 secured purpose-built rental homes in phases, along with local-serving commercial space, public amenities and other community benefits. Together, the properties are valued at approximately $412 million.

Under the proposed framework, the city would sell the sites to the new company while remaining the sole shareholder through an arms-length governance structure including both municipal officials and real estate industry professionals. The model was intended to limit financial risk to the city by protecting its debt and credit rating, while allowing the new company to operate independently and pursue partnerships with private developers.

While the plan to launch the company has hit a temporary of permanent roadblock, the city told the Daily Hive that the three active development applications tied to the scuttled propose form will proceed through the review and public-consultation stages. Development applications for the other three proposed projects have not been submitted yet.

The first active application covers the 2400 Motel at 2400 Kingsway, where four towers standing up to 28 storeys with 863 market-rental units are proposed. The redevelopment is slated to include 20,000 square feet of retail spaces, including restaurants; a 15,000-sf community centre and a 5,000-sf childcare centre.

The second proposed development, located at Expo Boulevard and Hornby Street, ranks as the largest of the three active applications. It is slated to include two towers up to 54 storeys along with stores and restaurants, a public plaza and public spaces.

The third active application covers a site at Main and Quebec streets. It would include 780 market-rental suites as well as mixed-use assets similar to those of the other two proposed projects.

City staff stated during the recent council meeting that, if the proposed company was not created, the municipality would arrange a long-term ground lease with a private developer, the Daily Hive reported. In that case, the city would play a less active role and receive less that 50% of the revenue that the proposed company could generate.

“While the development approach may evolve, the municipality remains committed to the creation of new rental housing on city land,” the city told the Daily Hive.

Pictured: City-owned property in east Vancouver slated to be redeveloped as a market rental-housing project.

Image: Booking.com