Developers have another two years to start building two projects that promise 470 new units of housing in Saanich.
Development permits for the two were set to expire this week, but Saanich council voted to extend them until January 2027.
They include a large mixed-use project at the corner of McKenzie Avenue and Shelbourne Street, and a condominium and townhouse project that has yet to break ground at 4096 Torquay Dr.
Mayor Dean Murdock said developers are facing an “exceedingly challenging” environment in terms of costs.
“Interest rates have clearly frustrated development proposals, particularly those that were in the queue and approved prior to a significant increase in those rates. But there’s also construction, construction material and labour costs that have increased significantly that I think have also contributed to stalled progress on a number of fronts.”
In a letter to council, Nicola Wealth Real Estate, the proponent behind the Podium project at 1555 McKenzie Ave., said the unprecedented rise in interest rates “created a notably challenging environment for the delivery of rental housing across sa国际传媒.”
Conditions have improved, however, and excavation is expected to start on site in March, the company said.
The project, which received a development permit in January 2023, is expected to include a six-storey building with 384 rental units and 19,000 square feet of commercial space on the ground floor.
It replaces the Shelbourne Professional Building and an adjoining parkade. Demolition of that building was completed in June.
The Torquay project, meanwhile, has been delayed by both high interest rates and internal questions over ownership.
In a letter to council, consultant Deane Strongitharm said an “internal and protracted dispute regarding the ownership structure and priorities for the project” affected project timelines.
However, he noted the ownership issue has been settled and the project is back on track.
The project proposes 86 residential units in a five-storey curved building. It includes two levels of underground parking and community amenity contributions worth $387,000.
The project has recently come under fire from neighbours, who say over the last two years, the property has been allowed to fall into disrepair and garbage has started to collect beside some of the buildings on site.
Murdock said the district has been told the owners will address the problem.
He said he hopes council does not have to extend more development permits.
“I’m hopeful based on what we heard [Monday] night that a lot of those circumstances or situations are starting to resolve and it’s now becoming more viable to move forward,” he said.
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