Almost as if to squeeze blood from a stone, city councillors have directed city staff back to the negotiating table with Onni Group to rebuff the developer's latest contentious proposal to rezone the 60,000 square-foot Imperial Landing development on Steveston's waterfront boardwalk.
And as local merchants once again voiced their displeasure, the idea of a waterfront library cooled.
In order to install retail shops Onni offered the city a community amenities package that includes $2 million and a five-year discount (totalling about $500,000) on a lease for a 13,000 square-foot building — one of six at the location — to be used at the city's discretion.
At a planning committee meeting on Tuesday, a group of retail workers in Steveston made it clear it was not giving up on its fight against the rezoning application.
Peter Tong, owner of the Pharmasave on No. 1 Road, made an impassioned plea to councillors on the committee.
"None of us are raking it in. They will demolish 15 businesses," said Tong.
"They (Onni) just throw money at this. If that's the case, give the business owners $5 million," added Tong.
Onni had built the waterfront portion of Imperial Landing knowing it was zoned for maritime purposes (intended to preserve Steveston's connections to the marine industry). The developer has since consistently claimed there is no market for such purposes and now wants to lease the buildings to retail businesses instead. Onni hired a business consultant, which claims there is a need and desire for more retail shops in Steveston.
Tong said Onni understood what it was doing from the beginning.
"Onni has not done enough to seek maritime tenants. …They didn't build this to look like mixed-marine. They built this to look like retail," said Tong, noting he set up his pharmacy in Steveston three years ago with the understanding Imperial Landing would not be open to retail shops, and in particular, a supermarket such as Nesters.
Existing Steveston retailers in the area want limits on the rezoning.
The Steveston Merchants Association, to which Tong is part of, has previously suggested the now empty development be limited to 25 per cent retail space. In its latest proposal Onni stated if that were to occur it would reduce its cash contributions.
At the meeting, Coun. Harold Steves raised several flags with Onni's latest bid, noting Onni would be making tens of millions of dollars by upgrading the zoning. Current industrial (including maritime) lease rates go for $8-15 square foot, annually, while commercial land is leased for $25-40 per square foot, annually. He said one potential reason why no maritime-related businesses have expressed interest in Imperial Landing is because Onni is asking for commercial lease rates.
Onni consultant Danny Leung said Onni's five-year discounted lease rate is about tantamount to offering an industrial rate; on average it works out to $17 per square foot for the entire 13,000 square foot building, which would be the only one suitable for a proposed library, according to city staff. The report noted various landlord-tenant agreements (maintenance etc.), which could alter the value of an agreement, had yet to be determined.
A staff report presented to the committee noted a new library in Steveston requires at least 13,000 square feet. A theory floated at April's planning committee meeting is that the existing over-utilized 4,000 square foot library at Steveston Community Centre would become an expanded gym, as the books would then move to the boardwalk at a possible cost of $3.6 million.
Concerned with having nothing to show for after five years, Steves said he would at least want reduced lease rates for the city for 20 years.
"One of the reasons for putting in the library is (to ensure) something doesn't go commercial," Steves told the committee.
But the idea of a library at Imperial Landing cooled significantly at the meeting with councillors Evelina Halsey-Brandt, Chak Au and Derek Dang questioning if it's the best location as well as the best use of Onni's amenity contributions.
Coun. Bill McNulty said he supports the idea of a library and said the process, on the whole, must be done with caution and diligence.
"I'm in no rush to redevelop (Imperial Landing). We get one shot and once we do it there's no turning back," said McNulty. adding if any rezoning does occur it should address the kinds of businesses that can operate on the boardwalk.
One concern previously raised by the committee, as it relates to rezoning the land to commercial uses for perpetuity, is that a civic marina could be built in the future, thus lending a need for more maritime-related businesses. Staff noted a study is underway.
For various legal reasons staff did not recommend an idea from the committee to impose a clause whereby the zoning changes could be reversed in the event of an increased interest from maritime-purposed businesses.
Because the planning committee doesn't involve all city councillors, the matter will now go to a general purposes meeting for all councillors to vote on, in hopes of avoiding more back and forth proposals in what is now a decade-long saga. The process could take another two months for Onni to submit a better proposal.
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