Port Moody council is open to taking a further look at a proposal by Bold Properties for a condo project it wants to build next to the former Barnet Hotel site that it had rejected at first reading last Dec. 3.
But councillors want a little more information before waiving the usual six-month waiting period for reconsidering projects it has declined.
At council’s meeting Jan. 28, Mayor Rob Vagramov called a new pitch for the 163-unit project by Bold’s president, Tommy He, “significantly better” than the one council rejected.
That proposal would have required the city to defer $3.7 million in development cost charges and amenity contributions to help finance second mortgages for middle-class households earning up to $155,000 a year that are participating in a new BC Housing affordable home ownership program (AHOP).
The program, which was launched through BC Housing’s Housing Hub in 2018, effectively reduces the cost of a new home to eligible purchasers by 10% through a second mortgage that is interest-free and payment-free for 25 years, and can be applied to their downpayment. The mortgage is repaid, along with a percentage of any increase in equity, when the units are resold or the loans mature.
He called the program, which he wants applied to all 163 units in his project, “an investment for the city.”
But a majority of councillors balked at the city’s financial exposure.
On Jan. 13, He sent a letter to council indicating Bold has been working with BC Housing to further adapt its proposal. The company is offering to dedicate about 572 square metres of its property along Clarke Road for road improvements and the construction of a multi-use pathway in return for the acquisition from the city of a portion of St. Andrews Street so it can complete the parcel of property to allow construction to proceed.
In his letter, He said the cost to the city for such a swap would be $465,000. He also said his company would take a $4-million hit to its profits by supporting the affordability program.
“We are willing to hear and make necessary modifications to fine-tune this project,” He said in his letter, adding he’s hopeful council would consider allowing staff to reopen his file before the six-month waiting period expires.
Vagramov said he wants further investigation by city staff of the cost implications of the proposed land swap before he’s comfortable proceeding.
“I’m still on the fence about the revised proposal,” he said.
Coun. Zoe Royer said she was encouraged by the new initiative, saying, “It would be good to continue the conversation.”
During the initial debate about the project, councillors Meghan Lahti and Diana Dilworth said the development would help address an oft-forgotten demographic — the middle class — in Metro Vancouver’s housing affordability crisis.
“This is a type of affordable housing we need to focus on,” Lahti said.
