Powell River city councillors are not prepared to change a developer’s final offer on affordable units within an apartment complex.
Veyron Properties plans to build a 40-unit apartment complex on vacant land between Franklin Avenue and Alberta Avenue, south of Field Street.
The build would have 10 micro units (also known as studio apartments), 15 one-bedroom apartments and 15 two-bedroom units.
As part of a development variance approved in December which changed off-street parking requirements and added two storeys to the building, it triggered a housing agreement for 15 per cent of the units being affordable, which in this case is six units.
The company has offered three micro units and three one-bedrooms over 15 years at affordable rents. A letter from the company says the six units would have an overall reduction in rents of $3,000 a month or $36,000 a year.
But city staff wanted two micro units, two one-bedrooms and two, two-bedrooms for a term of 25 years, arguing it better reflects “the diversity of unit types proposed” and addresses housing needs.
Veyron President Brett Giese says it can’t offer two-bedroom apartments because they would be “renting for less than half of market value,” based on BC Housing’s Housing Income Limits.
“Is this project viable, does it pencil out? When we’re looking at offering two-bedroom units at half of market rent that’s well below our operating costs and not only does that unit lose money, it’s starting to drag down the whole development,” Giese told a council committee Tuesday afternoon.
Councillors and the mayor were not prepared to jeopardize the deal.
“I see it as red tape that can easily be disposed of because the downside risk is that we lose this housing opportunity for Powell River,” Mayor Ron Woznow said.
The committee voted unanimously to send Veyron’s initial offer to the full city council for adoption on Feb. 1.
The company wants to break ground by summer.
