Proposal for 167 Subsidized Housing units in West Vancouver for residents earning between $50,000 and $125,000 per annum – opportunity cost to taxpayers is $54 million ($323,000 per unit, $3,400 per taxpayer)
District of West Vancouver (DWV) is holding a Public Hearing on the above subject Tuesday July 14, 2020 at 6 pm. After that date no more public input will be considered. Your input is important so please call your Mayor and Councillor or email them at mayorandcouncil@westvancouver.ca prior to July 14 or plan to attend the public hearing (details of phone numbers and email addresses of the Mayor and individual Councillors and details of how to attend the public hearing are on the DWV website westvancouver.ca
Subsidized housing
Subsidized rental housing is a valid and needed policy objective for those in need in our Communities. The responsibility for providing and funding this rests clearly with the Provincial and Federal Governments for which we contribute through income taxes, sales taxes etc. This project does not access any funding from these levels of Government.
The top 10% of earners in Canada earn $80,000 or more and the top 5% earn $102,000 or more- Many DWV employees earn (before benefits) $80,000 or more including our Fire and Police. The median family income in DWV is $90,000. 33% of residents of DWV have incomes below $60,000.
I and many others do not support subsidized housing for mid and high income earners.
A recent Angus Reid survey of DWV residents showed that 67% of residents do not support building more high density apartment buildings. A recent West Vancouver Community Stakeholders (WVCS) statistically valid poll showed that at least 85% of DWV residents opposed DWV using taxpayer resources to fund subsidized or below market rental housing. In addition the vast majority of letters to Mayor and Council are opposed to the project as currently envisioned at 2195 Gordon Avenue.
The proposed site
The 1.76 acre site for the proposed housing development is located at one of the most unique and valuable sites in West Vancouver- It is at 2195 Gordon Avenue just east of Kiwanis and north of the recreation centre. It was acquired in 2014 by DWV for $16 million.
The building project- Spot zoning
The project is for construction of two six storey buildings and one eight storey building- 167 units of below market rental housing (subsidized by 30 % to 70% of market rent) In addition, there will be and 50 units of strata condominium. The project also includes 3,000 square feet and 1,000 square feet of outdoor space on the ground floor of one of the rental buildings.
There is no Local Area Plan in place for Ambleside Town Centre so this is yet another example of spot zoning by this Mayor and Council.
The consultation process
The consultation process conducted by DWV was flawed. It presupposed the best use for this unique and valuable site was for subsidized housing (70% of market rental, stated above) to be targeted towards moderate income people, including workers and families. It was largely related to the mass, height and character of the proposed development and the desired mix of subsidized rental units versus strata condominium units.
The consultation process never provided to residents possible alternative uses for this unique and valuable site. (e.g. possible uses for this site from retaining as parkland, allowing for future Community Centre expansion, maximizing financial value by development of strata condominiums to provide funds for other initiatives etc.).
The consultation process never advised residents of the $80 million value of the Gordon Avenue site if zoned for strata condominiums. This very important fact was only provided when questions were asked by residents. This important fact was not included in public presentations to Mayor and Council or the public, (though clearly the Mayor and Councillors were fully aware of this.
DWV in proposing this project never surveyed business, school board or DWV employees as to whether this below market rental would meet their needs and help retain or attract employees to West Vancouver. (The income qualification levels mean that long term care employees, retail, restaurant etc. employees would not be eligible- most employees that would be eligible are well paid DWV employees).
DWV never conducted a thorough survey of DWV rental accommodation on the market today- they looked at Apartment rentals only (1.2% vacancy last year per CMHC) and did not look at the large number of privately owned apartments, townhouses, single family homes etc. available for rent. We know that there are many new rental units coming onto the market in the next 12-24 months in DWV and at west side of North Vancouver. We also know that since COVID 2019 the rental vacancy rate has increased throughout the lower mainland.
The financial implications of the proposed project
DWV in their presentations tell residents that they have a revenue objective of $26 million on this project (essentially from sale of 50 strata condominium units).
So this sounds great – DWV gets revenue of $26 million and 167 of subsidized rental units with no ongoing future costs to DWV.
If it sounds too good to be true it is.
The real facts are as follows- DWV purchased the site in 2014 for $16 million. So with project as envisioned by DWV makes a gain of $10 million. However the land zoned for strata condominiums has a value of $80 million (per DWV last year and no updated appraisal available) – so DWV is giving up an opportunity to gain $54 million. Essentially the plan is to invest $54 million in 167 subsidized rental units- that works out to $323,000 per unit or $3,400 per property tax payer in DWV.
In addition to the foregoing DWV will also lose future property tax revenues from this valuable site. This could work out to an all in subsidy per rental unit of $400,000.
We also know (only because members of the public asked) that DWV faces in excess of $200 million in the next decade to replace ageing facilities. DWV acknowledges that it faces a funding shortfall and does not currently have dedicated reserves for this purpose.
We know that DWV is facing ongoing financial challenges with COVID 2019- Is it responsible knowing the major unfunded costs we face to embark on a project where we are giving up $54 million of value to provide subsidized rental units.
And indeed-targeted for those earning more than many residents of DWV?
Graham McIsaac is a long-time citizen of the District of West Vancouver
Not at the present!
I am strongly opposed to the Gordon Avenue project. Please reconsider your plans.