Transformative development begins construction in downtown Victoria | Daily Hive

Transformative mixed-use development begins construction in downtown Victoria

Concept of the Douglas & Caledonia project in downtown Victoria. (Musson Cattell Mackey Partnership/Chard Development)

Construction is officially underway on a landmark redevelopment at the northeast corner of the intersection of Douglas Street and Caledonia Street in downtown Victoria, which promises to transform an under-utilized site into significant rental housing, commercial, and public space uses.

This is a mixed-use redevelopment of the 1962-built Capital City Centre Hotel at 1961 Douglas St. and the former White Spot restaurant building at 710 Caledonia Ave., situated just west of the Save-On-Foods Memorial Centre arena.

The critical mass of density and active uses is expected to help revitalize the struggling northern area of Victoria’s city centre.

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The “Douglas & Caledonia” project is a joint partnership between Vancouver-based Chard Development and BC Housing, with the provincial government specifically supporting and covering the cost of a major below-market rental housing component.

douglas & caledonia victoria chard bc housing

Site of the Douglas & Caledonia project in downtown Victoria. (Google Maps)

Existing condition:

Concept of the Douglas & Caledonia project in downtown Victoria. (Musson Cattell Mackey Partnership/Chard Development)

Future condition:

Concept of the Douglas & Caledonia project in downtown Victoria. (Musson Cattell Mackey Partnership/Chard Development)

There will be 21-storey and 22-storey secured purpose-built market rental housing towers owned by Chard, and a 16-storey secured purpose-built below-market rental housing tower owned by BC Housing.

“This big project is more than just tall buildings. It’s about creating attainable homes, opportunities, and spaces where people can connect and thrive,” said Christine Boyle, the B.C. Minister of Housing and Municipal Affairs, in a statement. “Through meaningful investments and partnerships, we are helping build a stronger, more inclusive downtown Victoria for everyone who lives and works in, and visits, the community.”

In total, the project will generate 505 secured purpose-built rental homes, including 372 market rental units by Chard and 133 below-market rental units — with rents 20 per cent below market — by BC Housing. To achieve the below-market rental housing component, the provincial government is providing $73 million in construction financing and an $8-million grant from the BC Builds program.

More than a third of the units are sized for families, defined as units with at least two bedrooms; the overall unit size mix is 58 studio units, 268 one-bedroom units, 142 two-bedroom units, and 37 three-bedroom units.

Victoria Mayor Marianne Alto said the development supports one of the city’s top priorities: increasing housing options for residents. “I’m excited construction is underway on a project that invests in the future of our evolving community with 500 new homes and more amenities and services downtown,” she said.

Concept of the Douglas & Caledonia project in downtown Victoria. (Musson Cattell Mackey Partnership/Chard Development)

As for the active commercial uses, the project will incorporate over 60,000 sq. ft. of retail, restaurant, co-working office, and other commercial spaces within its lower levels. This includes the anchor business of a 34,000 sq. ft. Thrifty Foods grocery store.

There will also be a third-level childcare facility for 44 kids, with 4,800 sq. ft. of indoor space and about 3,000 sq. ft. of outdoor play space.

The various ground-level commercial uses will further activate 8,600 sq. ft. of public plaza space, which will feature an integrated water feature, a whimsical slide from an upper plaza area to a lower plaza area, seating areas, and some landscaping.

“We’re excited to continue providing much-needed housing to Victoria in partnership with BC Housing on this mixed-use project at Douglas and Caledonia,” said Byron Chard, president and CEO of Chard.

“This project reflects our shared commitment to expanding housing options and delivering new community amenities to meet the needs of this growing area.”

Concept of the Douglas & Caledonia project in downtown Victoria. (Musson Cattell Mackey Partnership/Chard Development)

To support the expected transportation demand, the complex will offer 242 vehicle parking stalls and over 600 secured bike parking spaces.

The project’s architectural firm is Musson Cattell Mackey Partnership. Construction is anticipated to reach completion in 2029.

Nearly five years ago, at the height of the pandemic, the provincial government acquired the hotel for its rapid conversion into temporary supportive housing — a measure to help address homeless encampments — and the redevelopment potential into significant permanent housing over the longer term. The White Spot permanently closed due to the immediate pandemic impacts, and the provincial government’s acquisition deal for the land assembly of the hotel and restaurant properties was worth $25 million.

Previous redevelopment concepts considered incorporating some strata market ownership, condominium housing, and additional commercial space.

The project is related to a new permanent supportive housing building being constructed immediately to the north at 722 Discovery St., which will enable individuals currently living in the temporary supportive housing uses within the hotel to relocate and remain in the general area. Construction on the standalone supportive housing building began earlier this year and is expected to reach completion in 2027.

Both the Douglas & Caledonia and supportive housing projects are east of Reliance Properties’ plan to pursue the Capital Iron Lands project — a 6.7-acre Victoria Inner Harbour waterfront redevelopment of high-density residential, commercial, and public space uses, and a new home for the Art Gallery of Greater Victoria.

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