Developer granted another $10M fee payment extension by Vancouver City Council

2021 artistic rendering of 1616-1698 West Georgia Street, Vancouver. (Kohn Pederson Fox/Chris Dikeakos Architects/Anthem Properties)

Local developer Anthem Properties will receive a second deferral of the remainder of its cash community amenities contribution (CACs) payment to the City of Vancouver in exchange for the previous rezoning approval to build a luxury condominium tower in downtown Vancouver.

Following the recommendations of City staff, Vancouver City Council approved the deferral today in a 9-2 vote, with ABC councillors Peter Meiszner and Rebecca Bligh rejecting the move.

This additional concession provided by the municipal government is for Park Georgia at 1616-1698 West Georgia Street — the redevelopment of the former Chevron gas station site at the southeast corner of the intersection of West Georgia Street and Bidwell Street. This 33-storey tower will generate 127 condominium homes on a site that borders the Coal Harbour and West End neighbourhoods.

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Prior to the enactment of the rezoning in April 2022, Anthem Properties had already paid 60% of the cash CACs — $15.66 million of the total cash CACs payment of $26.1 million.

In June 2023, City Council provided the developer with an initial deferral of the remaining $10.44 million due, which delayed this 40% sum payment to the earlier of two years after the enactment of the rezoning bylaw (April 2024) or the issuance of the Stage 2 building permit. Typically, the remaining 40% of the sum is due at the issuance of the Stage 1 building permit.

Site of 1616-1698 West Georgia Street, Vancouver. (Kohn Pederson Fox/Chris Dikeakos Architects/Anthem Properties)

2021 artistic rendering of 1616-1698 West Georgia Street, Vancouver. (Kohn Pederson Fox/Chris Dikeakos Architects/Anthem Properties)

The outstanding balance of $10.44 million is charged with 9.4% interest (prime + 2%), with interest payable to the City on quarterly instalments until the full amount is paid.

With today’s second deferral, the deadline to pay the remaining 40% is now extended by nine months to December 31, 2024 (instead of April 25, 2024) or at the issuance of the Stage 3 building permit, whichever is earlier.

Anthem Properties’ reasons for the second extension request are similar to the reasons they provided last year for the “one-time” extension due to “market uncertainty from interest rate increases, slow condo market sales/conditions, coupled with unprecedented increases in hard costs.

During today’s deliberations, Templar Tsang-Trinaistich, the Issues Manager for the City, told City Council that City staff has checks and balances for considering such rare requests, including checking the developer’s pro forma for the project.

Tsang-Trinaistich says the interest paid to the City is just over $250,000 every quarter. He adds that based on City staff’s review, Anthem Properties is making a genuine attempt to realize their project.

“It’s no small change to pay, but they see the benefit of doing that and letting their project to continue to advance,” said Tsang-Trinaistich.

“I would suggest this developer is trying to proceed. They are actively pursuing permits on the ground and trying to market the project.”

Construction site of the Park Georgia tower. (Daily Hive)

Construction site of the Park Georgia tower. (Daily Hive)

In supporting the decision for a second extension, ABC councillor Sarah Kirby-Yung said the developer has an obligation to pay the remaining 40% regardless if the project goes ahead, and regardless of whether the housing tenure changes to secured purpose-built rental housing.

She says the municipal government is in need of the CACs payment to help cover the $500 million annual infrastructure deficit, including the cost of supporting the renewal of West End facilities such as Vancouver Aquatic Centre and the West End Community Centre. She adds that the highest CACs payments can only be generated by market condominium uses, not rental housing and social housing.

“I would be a lot more concerned if there wasn’t literally a hole in the ground, and construction wasn’t underway. We’ve seen projects put on hold or cancelled, but not as often when you’re actually digging,” said Kirby-Yung.

Conversely, Mesizner believes there is a risk that providing Anthem Properties with a second deferral for this project could set a negative precedent for other projects across Vancouver.

“This is a strata condo building versus a rental building. Of course, we’re collecting CACs, but I feel this is quite a large development company we’re talking about here, and they have the financial resources to move forward,” said Mesizner.

“I think it’s important that we keep our eye on the ball, and we ensure this housing gets delivered. I do have concerns that additional deferrals [for this project will] trigger additional deferrals across the city.”

City Council approved Anthem Properties’ rezoning application for the project in April 2021.

2021 artistic rendering of 1616-1698 West Georgia Street, Vancouver. (Kohn Pederson Fox/Chris Dikeakos Architects/Anthem Properties)

2021 artistic rendering of 1616-1698 West Georgia Street, in relation to future developments in the area. (Kohn Pederson Fox/Chris Dikeakos Architects/Anthem Properties)

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