$55M payment approved to axe social housing in future Vancouver tower | Daily Hive

$55-million payment approved to remove social housing in future Vancouver tower

Revised concept of The Curv at 1059-1075 Nelson Street, Vancouver, with the completed Butterfly tower also depicted. (WKK Architects/Bravia Group)

To better ensure the financial and economic feasibility of the Curv tower project, Vancouver City Council has approved the developer’s request to alter the public benefits strategy associated with the project, specifically the affordable housing component.

The development site is located at 1059-1075 Nelson Street — near the northeast corner of the intersection of Thurlow and Nelson streets — in downtown Vancouver’s West End neighbourhood. It will be built on the same city block as the newly completed Butterfly tower.

When City Council initially approved The Curv’s rezoning in June 2020, the 60-storey tower was to include 102 social housing units within the lower levels, 50 secured purpose-built market rental units within the middle levels, and 328 strata market ownership condominium homes within the upper levels.

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The inclusion of social housing in this condominium project is based on the original prescriptions and stipulations of the City’s 2013-created West End Plan, which was created during a time when the condominium market was particularly strong, with the City strategically looking to tap into such projects to fulfill major public benefits, including major cash community amenity contribution (CAC) payments.

1059-1075 Nelson Street Vancouver The Curv tower

Revised concept of The Curv at 1059-1075 Nelson Street, Vancouver, with the completed Butterfly tower also depicted. (WKK Architects/Bravia Group)

However, with the sustained weaker condominium market demand, high borrowing costs for construction financing, and steep market inflation of construction costs, along with other economic headwinds, the City has provided projects in the West End with new flexibility.

In March 2023, the City made permanent a previous temporary policy to provide Thurlow Street corridor sites within the West End the flexibility to pursue secured purpose-built market rental housing projects with a minimum 20% below-market rental housing component. This was deemed a more feasible alternative than the previous prescription for condominium-primary projects with requirements for 25% inclusionary social housing and cash CACs.

Then, in September 2024, the Rezoning Policy for the West End was revised on a temporary basis to reduce a condominium-primary project’s inclusionary social housing requirement from 25% to 20%. This would apply to specific areas of the West End through the end of 2026.

Shortly after, in November 2024, Bravia Group, the Montreal-based developer behind The Curv, applied to change its rezoning to align with the September 2024 policy changes that provide projects with more flexibility.

Earlier this week, during a public hearing, City Council approved The Curv’s proposed revisions, including a new cash payment by the developer of $55 million to the City to remove the on-site obligation of 102 social housing units in the tower’s lower floors.

Instead, the social housing floor area will become additional secured purpose-built market rental homes — increasing the number of market rental units from 50 to 176.

The approved changes also enable the number of strata market ownership condominium homes to rise from 328 to 357.

There will be no changes to the project’s floor area size or the overall architectural building form, but the revisions enable the enclosure of the east and west balconies of the tower — a step deemed necessary to achieve the tower’s optimal performance for a Passive House green building design. When the project was originally approved in 2020, it was billed as the world’s tallest Passive House building.

Revised concept of The Curv at 1059-1075 Nelson Street, Vancouver, with the completed Butterfly tower also depicted. (WKK Architects/Bravia Group)

“We actually haven’t seen any of the social housing inclusionary projects move forward. So in September, we brought a policy report to Council to seek amendments to the West End rezoning policy to enable a cash in lieu option. And really the reason for that is there was no ability of these projects financially to deliver the social housing requirements that were initially envisioned in the West End Plan,” City staff told City Council during this week’s public hearing.

When asked by City Council, City staff said the forthcoming $55-million new cash payment to the municipal government by Bravia Group could be directed toward other social housing projects. For example, the $55 million could be leveraged into a much larger social housing project in partnership with the federal and provincial governments.

Pre-sales for The Curv began in 2023. The tower is designed by WKK Architects and Arcadis.

According to the developer’s website, a 2029 completion is anticipated for The Curv. When complete, it will match the 586 ft. height of the adjacent Butterfly tower by Westbank.

Revised concept of The Curv at 1059-1075 Nelson Street, Vancouver, with the completed Butterfly tower also depicted. (WKK Architects/Bravia Group)

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