One of Richmond’s most politically charged developments is set to go to a public hearing this October.
A majority of city councillors have agreed to let the public weigh in on a proposal by Onni Group to rezone Steveston’s Imperial Landing, to allow a 32-unit hotel, and retail and office space.
On Monday, councillors discussed the merits of the proposal at a committee meeting. They agreed the deal should be put to the public, which has shown diverging views on what to do regarding the quagmire that began in 2012, when Onni built six buildings under maritime zoning but quickly asked to rezone the property to more lucrative commercial uses after the fact.
Since 2013, the City of Richmond and Onni have been in negotiations, leaving residents to mutter over the situation as they walk by the nearly vacant structures in what is Richmond’s crown jewel of waterfront space.
At committee, Richmond’s general manager of planning and development Joe Erceg stressed that “this has been a very difficult negotiation.”
At the root of it is determining how much the land value will increase due to rezoning, which would likely usher in new retail shops, offices, a bank and a grocery store, according to the proposal.
The city’s independent consultant Site Economics determined the “land lift” would be $5.5 million, whereas Onni’s assessment by Coriolis Consulting pegged the lift at $4.1 million.
City staff and Onni settled on an increase of $4.8 million, with Onni agreeing to pay half of this.
The $2.4 million offered by Onni is actually less than the $3 million it offered two years ago, although only because the cost of retrofitting the hotel units ($3.2 million, according to Onni) eats into the profitability.
A staff report noted this was Onni’s “best offer” despite noting that the city typically receives 100 per cent of the land lift when it allows developers to rezone for density.
Couns. Ken Johnston and Carol Day said the offer didn’t seem like enough money.
Coun. Harold Steves was bolder in asking for upwards of $6-8 million.
“We need a much better evaluation of the uplift of the property,” Steves told the Richmond News.
Steves said there needs to be enough money on the table to contribute to the construction of a marina. He said a new marina would benefit Onni in the long run. He also said the hotel should only be allowed if there is a plan for a marina.
Considering the offer and without adequate information on a marina, Day and Steves voted against sending the proposal to the public.
Coun. Bill McNulty said sending the proposal to a public hearing would not mean the city has to take it.
Mayor Malcolm Brodie said council’s greatest hesitation so far is the contribution amount.
Onni Executive Vice-President Chris Evans told the committee that Steveston merchants are “generally” on board with the proposal as the 23,000-square-foot hotel significantly eats into the retail options for the site.
“There’s good viability with this hotel,” said Evans, noting the company is “confident” in its ability to manage the hotel.
The Steveston Merchants Association called the plan a “reasonable compromise.”
Brodie said he hopes to hear opinions from the public, but at first glance he doesn’t see the hotel having the “trappings of a major hotel.”
He noted the units will have kitchenettes and could be offered for up to 90 days.
“I think it’s a viable application. We should get public input on it,” said Brodie.
