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Onni turned back after 'Mickey Mouse' offer

Library or no library, city councillors have directed city staff back to the negotiating table with Onni Group to rebuff the developer's latest and still contentious proposal to rezone the 60,000 square-foot Imperial Landing development on Steveston'

Library or no library, city councillors have directed city staff back to the negotiating table with Onni Group to rebuff the developer's latest and still contentious proposal to rezone the 60,000 square-foot Imperial Landing development on Steveston's waterfront boardwalk.

The idea of a waterfront library appeared to cool as the committee asked staff to explore a greater compensation package, including options that may or may not include a discounted lease for the imagined library.

Also at issue is whether Onni will agree to leave room for maritime businesses should a civic marina be planned for the site. Local retailers are also hoping limits are placed in order for their shops to remain viable.

The referral once again leaves city staff with a multiplicity of options to consider.

While seemingly still open to the concept of a library, Couns. Evelina Halsey-Brandt, Chak Au and Derek Dang did question if Imperial Landing is the best location for a library, as well as the best use of Onni's amenity contributions.

Coun. Harold Steves, a more decided proponent of the idea, said there is no plan to build the much-needed library elsewhere in the village, thus Imperial Landing makes sense.

But Steves took issue with Onni's most recent offer for the library, which was tantamount to an industrial zone rate and only for five years.

"They should be giving us a better deal than this Mickey Mouse offer," he said.

In order to install retail shops Onni needs to have the land rezoned from maritime uses (industrial) to commercial. Onni offered the city a community amenities package that includes $2 million and an average lease rate of $17 per square foot for a 13,000 square-foot building - one of six at the location.

Industrial lease rates run between $8-15, according to city staff, while commercial lease rates run between $25-40. The process of "lifting" land value typically requires an amenities/cash offer from a developer to the city.

"Basically what they've offered is not a discount," retorted Steves, noting Onni stands to gain millions of dollars from the lift.

"I don't think we've dealt with a company that's offered so little to the city in the past 20

years. We asked for the same deal as Ironwood and they didn't come close," said Steves.

At Ironwood, the city pays about $7 per square foot for the 12,500 square foot facility.

Onni told city staff that by leasing 13,000 square feet to the city it is effectively passing on 20 per cent of its zoning application.

That still isn't good enough for a group of retail workers in Steveston who, at the meeting, 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 (Onni) will demolish 15 businesses," said Tong.

"They just throw money at this. If that's the case, give the business owners $5 million," added Tong, a member of the Steveston Merchants Association, which has suggested the now empty development be limited to 25 per cent retail space. Notably, in its latest proposal Onni stated if that were to occur it would reduce its cash contributions.

Such a stance appears to be frustrating opponents, such as Tong.

That's because 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).

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.

Steves said one potential reason why no maritime-related businesses have expressed interest in Imperial Landing is because Onni is asking for commercial lease rates.

Coun. Bill McNulty said he supports the idea of a library and the process 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.

Because the planning committee doesn't involve all city councillors, the matter will now go to a general purposes meeting for everyone to vote on, in hopes of avoiding more back and forth proposals in what is now a decade-long saga.