Real eState

Major developer asks to delay $10 million payment to Vancouver city hall

Published

1 year ago

June 7, 2023

Anthem Properties is asking Vancouver city council to allow them to defer a $10 million payment for the construction at this property at 1616 – 1698 West Georgia. Photo by Arlen Redekop /PNG

Anthem Properties, a major Vancouver developer, wants to delay a $10 million payment it owes city hall, citing “market uncertainty from recent interest rate increases, coupled with unprecedented increases in hard costs.”

A 33-storey tower with 127 market condos was approved by Vancouver in 2021 for the former site of a Chevron gas station on West Georgia Street near the entrance to Stanley Park.

When Vancouver’s previous council approved the rezoning, Anthem agreed to pay $26 million in community amenity contributions.The developer paid the first $15.6 million, as agreed, before council enacted the zoning bylaw. The remaining $10.4 million was to be paid before the city issued the first building permit for the property, or by 24 months after the enactment of the zoning bylaw, whichever came first.

Now, Anthem is asking for the second payment to be delayed and tied to a late stage of the building permit. The “outside date,” 24 months after the bylaw enactment, would remain the same.

Community amenity contributions are provided by developers to the city to pay for improvements in the area of the rezoning. The $26 million contribution for Anthem’s West Georgia project were earmarked for affordable housing, community facilities, firehalls, libraries, and child care in the West End. The outstanding balance is charged interest at the rate of prime plus two per cent.

Anthem declined to answer questions about the deferral request. In an email, an Anthem representative said: “We don’t have anything to add to the report to council.”

Council will consider Anthem’s request at a meeting next week.

The report going to council, which was made public Wednesday, notes that city planners sought direction from city hall’s risk management committee, which recommended accepting the proposal to delay the payment.

“Staff have carefully considered this request, and are of the opinion that accepting the modification would support the timely delivery of housing while ensuring satisfactory payment of the (contribution’s) outstanding balance,” the report says. It stressed the deferment would be on a ‘one-off’ basis and not change the city’s policy for community amenity contributions.Michael Geller, a Vancouver property developer and real estate consultant, says Anthem’s request might be a sign of things to come.

Today’s rapidly changing market conditions means a rezoning is approved in one environment, and then construction begins a couple of years later in a completely different economic climate, Geller said Wednesday, noting the Bank of Canada has just hiked its benchmark interest rate again.

“The fact that they’re asking for a deferment on the timing of the second instalment, to my mind, is quite minor compared to what others may be seeking, which is forgiveness or renegotiation,” Geller said.“There’s a lot of projects on the back-burner right now. No one should feel sorry for these developers, and I don’t mind saying that. But I do think it’s helpful to at least acknowledge these realities,” Geller said. “Interest rates have increased so much in a relatively short period of time and construction costs have increased.”

It is not unexpected or unusual for developers to seek to renegotiate conditions of prior approvals after the fact, as market conditions change, Geller said.

In 2020, the developers behind the massive project under construction at the former Oakridge mall proposed major revisions to their plans, seeking council’s approval for more density and swapping a condo building for market rentals, The Vancouver Sun’s Joanne Lee-Young reported at the time.

A note in the rezoning application explained the revisions would ensure the project “remains resilient and feasible in the light of current conditions such as changing approaches to retail, a changing residential market and the needs of our community.”

Vancouver’s previous council approved the proposed revisions from Oakridge developers Westbank and Henriquez Partners Architects last year.

Speaking Wednesday, Andy Yan, director of Simon Fraser University’s City Program, asked if requests like Anthem’s could set a precedent.

Anthem’s request illustrates “the changing economic tides for development in the city and how it is eroding the financial assumptions for market development projects,” Yan said. “But when those conditions change, how should the city react? If you consider the city a creditor on these projects, should they be flexible compared to the other creditors on these projects?”

“If the city extends this to Anthem, would Anthem extend this favour to their tenants?”The property at 1616-1698 West Georgia St. was home to a gas station, convenience store, a Pattison billboard, and parking lot. In recent years, the site had been a dog park while awaiting development.

Anthem was founded in Vancouver in the 1990s and has been active in dozens of markets in B.C., Alberta, and several U.S. states.

The company has more than 20,000 homes in its portfolio, nine million square feet of commercial real estate, and more than 34 square kilometres of land in western North America.

Anthem purchased the former Chevron location at 1698 West Georgia St., at the corner of Georgia and Bidwell, in 2017 for $72 million, Business in Vancouver reported at that time, citing Colliers vice-president David Taylor.

The future development, called Park by Anthem, is described on its website as “introducing a distinct perspective on life and luxury.”

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Real eState

Greater Toronto home sales jump in October after Bank of Canada rate cuts: board

Published

4 days ago

November 6, 2024

Anne Joseph

TORONTO – The Toronto Regional Real Estate Board says home sales in October surged as buyers continued moving off the sidelines amid lower interest rates.

The board said 6,658 homes changed hands last month in the Greater Toronto Area, up 44.4 per cent compared with 4,611 in the same month last year. Sales were up 14 per cent from September on a seasonally adjusted basis.

The average selling price was up 1.1 per cent compared with a year earlier at $1,135,215. The composite benchmark price, meant to represent the typical home, was down 3.3 per cent year-over-year.

“While we are still early in the Bank of Canada’s rate cutting cycle, it definitely does appear that an increasing number of buyers moved off the sidelines and back into the marketplace in October,” said TRREB president Jennifer Pearce in a news release.

“The positive affordability picture brought about by lower borrowing costs and relatively flat home prices prompted this improvement in market activity.”

The Bank of Canada has slashed its key interest rate four times since June, including a half-percentage point cut on Oct. 23. The rate now stands at 3.75 per cent, down from the high of five per cent that deterred many would-be buyers from the housing market.

New listings last month totalled 15,328, up 4.3 per cent from a year earlier.

In the City of Toronto, there were 2,509 sales last month, a 37.6 per cent jump from October 2023. Throughout the rest of the GTA, home sales rose 48.9 per cent to 4,149.

The sales uptick is encouraging, said Cameron Forbes, general manager and broker for Re/Max Realtron Realty Inc., who added the figures for October were stronger than he anticipated.

“I thought they’d be up for sure, but not necessarily that much,” said Forbes.

“Obviously, the 50 basis points was certainly a great move in the right direction. I just thought it would take more to get things going.”

He said it shows confidence in the market is returning faster than expected, especially among existing homeowners looking for a new property.

“The average consumer who’s employed and may have been able to get some increases in their wages over the last little bit to make up some ground with inflation, I think they’re confident, so they’re looking in the market.

“The conditions are nice because you’ve got a little more time, you’ve got more choice, you’ve got fewer other buyers to compete against.”

All property types saw more sales in October compared with a year ago throughout the GTA.

Townhouses led the surge with 56.8 per cent more sales, followed by detached homes at 46.6 per cent and semi-detached homes at 44 per cent. There were 33.4 per cent more condos that changed hands year-over-year.

“Market conditions did tighten in October, but there is still a lot of inventory and therefore choice for homebuyers,” said TRREB chief market analyst Jason Mercer.

“This choice will keep home price growth moderate over the next few months. However, as inventory is absorbed and home construction continues to lag population growth, selling price growth will accelerate, likely as we move through the spring of 2025.”

This report by The Canadian Press was first published Nov. 6, 2024.

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Real eState

Homelessness: Tiny home village to open next week in Halifax suburb

Published

2 weeks ago

October 24, 2024

Anne Joseph

HALIFAX – A village of tiny homes is set to open next month in a Halifax suburb, the latest project by the provincial government to address homelessness.

Located in Lower Sackville, N.S., the tiny home community will house up to 34 people when the first 26 units open Nov. 4.

Another 35 people are scheduled to move in when construction on another 29 units should be complete in December, under a partnership between the province, the Halifax Regional Municipality, United Way Halifax, The Shaw Group and Dexter Construction.

The province invested $9.4 million to build the village and will contribute $935,000 annually for operating costs.

Residents have been chosen from a list of people experiencing homelessness maintained by the Affordable Housing Association of Nova Scotia.

They will pay rent that is tied to their income for a unit that is fully furnished with a private bathroom, shower and a kitchen equipped with a cooktop, small fridge and microwave.

The Atlantic Community Shelters Society will also provide support to residents, ranging from counselling and mental health supports to employment and educational services.

This report by The Canadian Press was first published Oct. 24, 2024.

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Real eState

Here are some facts about British Columbia’s housing market

Published

3 weeks ago

October 17, 2024

Anne Joseph

Housing affordability is a key issue in the provincial election campaign in British Columbia, particularly in major centres.

Here are some statistics about housing in B.C. from the Canada Mortgage and Housing Corporation’s 2024 Rental Market Report, issued in January, and the B.C. Real Estate Association’s August 2024 report.

Average residential home price in B.C.: $938,500

Average price in greater Vancouver (2024 year to date): $1,304,438

Average price in greater Victoria (2024 year to date): $979,103

Average price in the Okanagan (2024 year to date): $748,015

Average two-bedroom purpose-built rental in Vancouver: $2,181

Average two-bedroom purpose-built rental in Victoria: $1,839

Average two-bedroom purpose-built rental in Canada: $1,359

Rental vacancy rate in Vancouver: 0.9 per cent

How much more do new renters in Vancouver pay compared with renters who have occupied their home for at least a year: 27 per cent

This report by The Canadian Press was first published Oct. 17, 2024.

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