Archive for November 2018

Ditch a DCL Waiver

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Why Is a Vancouver Developer Backing Away from Free Money?

 
On 13 November 2018 the City of Vancouver issued a Notice of Rezoning Application for a large already-approved Rental 110 project currently described as 2153-2199 Kingsway & 4589 Gladstone Street. (The staff report that led to the assembly’s original rezoning stated: “The total DCL that would be waived is estimated to be approximately $1,036,900.”)

 

 

The most prominent variation from the application approved 16 May 2017 is

          “to remove the DCL waiver from the approved rezoning”

Why would a developer now not want that One Million Plus? The rezoning planner for the project talked about financial “numbers” and “pro forma” and “requirements of lender” as motivation for the developer to seek to abandon the attained DCL waiver. (DCL waiver means City of Vancouver allows developer to skip paying the “development cost levy” that covers about half of the burden that new development adds to taxpayer infrastructure costs like water and sewer maintenance and upgrades.)

The other obvious change to the development is seen in this tabulation of unit mix:


      Original Application               Revised Application

       
       45  Studio / 16  1 BR             16  Studio & 1 BR
       
       31  2 BR                          45  2 BR
       
        7  3 BR                          23  3 BR
       
      101  Total                         84  Total

 
More than four years ago Eye on Norquay dug into the dirt and raised huge concerns about the Rental 100 program in Rental 100 Red Flag.

Big question. With the election of a City Council that is no longer a Vision Vancouver rubber stamp machine, complete with fake requirements, is this developer sniffing a change in the wind and preferring to build rental where initial rent levels cannot be controlled?

Second question. Will the new 2018 Council let a developer who runs after bigger profit and wider latitude skip right along to another maximized opportunity?

In case you missed it, a new directive to City of Vancouver presages the possibility that sharp new enforcement fangs could emerge long before project completion:

Councillor Adriane Carr takes aim at costly rental projects subsidized by Vancouver taxpayers
https://www.straight.com/news/1167286/councillor-adriane-carr-takes-aim-costly-rental-projects-subsidized-vancouver-taxpayers

 

 

Eye on Norquay has also covered this particular development on two previous occasions:

2153-2199 Kingsway Comment
https://eyeonnorquay.wordpress.com/2016/10/19/2153-2199-kingsway/

Big Hit from Rental 100
https://eyeonnorquay.wordpress.com/2016/05/13/big-hit-from-rental-100/
 
 

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Written by eyeonnorquay

27 November 2018 at 6:18 pm