Developers of Wellburn’s site to get three-year tax exemption
Victoria city council has come up with a compromise that would give the developer of the former Wellburn’s grocery store site a three-year property-tax break as it works on seismic upgrades and heritage restoration as part of a new development.
Against the advice of city staff, council voted 7-2 to exempt portions of the 1050 Pandora Ave. site from property taxes for three years.
A city staff report had recommended council decline the application, as it meets only a few of the nine criteria required for the tax incentive program.
The program, which can offer a break on property taxes for up to 10 years, is designed to help developers preserve heritage elements of buildings while they perform seismic upgrading.
Coun. Matt Dell said the development, known as the Parkway project, deserved more flexibility due to the complexity of the work.
“I think sometimes, especially in this economic climate, we need to make sure that we’re giving a little bit of flexibility on some of these programs,” he said, suggesting the developers have gone above and beyond with the work to restore heritage facades. “I think it’s going to make a meaningful difference to that part of the neighbourhood.”
Jeremy Caradonna acknowledged the risk in approving the tax break for projects that don’t meet the criteria, as other developers may want the same treatment. “But when I stand back and think about that, that means that there are proponents out there who are willing to work on heritage buildings,” he said, noting those projects are more complicated and expensive than traditional development.
“I think it behooves us to send a signal to the development community for all those proponents who are willing to work on heritage, that we are willing to be supportive, even if it sometimes means recognizing that not all the criteria will be met.”
Dave Thompson and Chris Coleman were the only councillors to vote against the tax break. Both said that rather than approving the tax break for developers that don’t meet the required thresholds, the city should work on amending the criteria for the tax policy.
“If we don’t like the policy, then we should change the policy,” said Thompson.
Coleman said the only saving grace of giving a tax break to a project that meets only three of the nine criteria is that the city gets a rental building partially restored for heritage value.
“That may give solace to some, but I’m really struggling with this one,” he said.
The project, at the corner of Pandora Avenue and Cook Street, was approved in 2020 and includes plans for 105 rental units and commercial space at grade.
A city staff report said while the project does bring needed rental housing and has heritage designation, construction began before the tax-incentive application came to council, developers excavated below the original building foundations and they intend to build higher than allowed, among other problems.
The report noted more of the existing structure was removed than initially discussed, and said the lack of retention was not justified through a seismic assessment that should have occurred at a much earlier stage in the tax-incentive program process.
When the project was approved in 2020, council was told it would preserve about 50 per cent of the historic building while incorporating six- and four-storey additions, a café, underground parking and 105 apartments.
The original Parkway Apartments was a two-storey, Edwardian-era mixed-use building designed by architect William Ridgway Wilson in 1911.
Wellburn’s Market, which occupied the ground floor, was one of its earliest tenants.