Latest news with #Wesgroup
Hamilton Spectator
24-05-2025
- Business
- Hamilton Spectator
Wesgroup proposes significantly more density at Coronation Park site to offset new Metro Vancouver fees, affordable housing
Wesgroup approached Port Moody council on Tuesday with a multi-pronged proposal to keep its long-planned Coronation Park development on track – including significant density increases, alternative financial securities, and support tied to a federal financing program. Spanning 15 acres, the development was set to include six residential towers between 26 and 31 storeys and 100,000 square feet of commercial space following council approval in 2023. Of the 2,587 units, 101 were set to offered as rentals. The May 10 delegation from Wesgroup follows a 2023 letter of intent the developer submitted to explore affordable housing options in exchange for increased density after concerns were raised about the complete absence of below-market units in the project. The proposal will require another OCP amendment and rezoning to allow for another tower to be built on site, as well increasing the height of three other towers. Dean Johnson, Wesgroup's senior vice president of development, said the amount of density is needed to offset costs related to recent increases to Metro Vancouver developer cost charges (DCCs) hurting the project's bottom line, and building market rentals under the Canada Mortgage and Housing Corporation's (CMHC) Apartment Construction Loan Program (ACLP). 'The CMHC's ACLP is the only viable path forward in today's financial environment,' Johnson said. 'We have two options in front of us: additional density to offset the cost, or decrease the amenity package we previously agreed to with the community. We do not want to go down that path.' Wesgroup's proposal would add an additional 35-storey tower, as well as 13 storeys on three other towers. In exchange, Wesgroup would convert one of the 26-storey towers fronting Ioco Road to 100 percent rental housing. Of its 288 units, 72 would be secured at below-market rates for 25 years. CMHC's $55-billion ACLP provides low-cost financing to developers in exchange for rental and affordable housing commitments. But the 2025 funds have already been claimed, and the 2026 intake window is nearly full. In order to qualify, Wesgroup needed municipal confirmation that Port Moody supports the project's alignment with CMHC affordability goals. While council only received the proposal for information, it unanimously approved the issuance of a 'comfort letter' needed to advance Wesgroup's application to the CMHC. Offsetting costs Shortly after Port Moody council approved Coronation Park in October 2023 , Metro Vancouver's Mayor's Council approved steep increases to regional DCCs, resulting in a $30 million in unplanned fees, according to Johnson. He said the DCC spike is a significant cost burden on the project, and without the added density, Wesgroup may have to scale back the amenity package approved for the development. 'There was a substantial increase – once in a lifetime, really, for many of us – and this cost is going to be something that we have to deal with on this project,' Johnson said. Additional density is also needed due to the value difference between market condominiums and market rental. Most of the additional square footage, however, is being used to offset Metro Vancouver's DCC increases, which account for approximately 77 percent of the increase in density. Johnson noted that one of the benefits of using the CMHC program is that both towers facing Ioco Road would be built simultaneously, while much of the density would be added in later phases of the project. Surety bonds Wesgroup's final request was for the city to consider accepting surety bonds as an alternative to letters of credit when developers post financial securities tied to development permits. A surety bond offers municipalities a secure financial guarantee that a developer will complete their obligations, while giving the developer more financial flexibility compared to traditional bank-issued letters of credit. 'Letters of credit tie up millions of dollars in equity,' Johnson said. 'Surety bonds are insured, regulated, and already accepted in municipalities like Burnaby, Surrey, and Vancouver.' He noted Wesgroup currently faces a $15.8 million letter of credit due in July, which it is seeking to defer until building permits are issued in March 2026. The company is still in the pre-sale phase and has not yet secured final project financing, making the immediate issuance of such a large letter of credit 'challenging,' Johnson said. Council response Coun. Haven Lurbiecki was sharply critical of the amount of density being proposed, and questioned whether the CMHC proposal was even related. She accused Wesgroup of 'shifting the goalposts' by asking the public to essentially subsidize an already massive project. Lurbiecki noted the original plan includes mostly studios and one-bedroom units at a time when the city needs affordable family-sized housing, townhomes, co-ops, four-plexes, and seniors housing. 'Anything but more condos,' she said. 'To even consider this request for more density, I just find it irresponsible and inexplicable.' Other councillors took a more supportive approach. Coun. Kyla Knowles welcomed the affordable housing plan and said the financial pressures facing developers must be understood if homes are to be delivered. 'We need homes. So let's build the homes,' Knowles said. 'If there's an extra $30 million in DCCs, you could say, 'Great, the developer makes less.' But that cost falls on end users.' She also supported Wesgroup's request to explore surety bonds as an alternative to letters of credit for financial security deposits. 'Financing has changed. It's gotten more challenging,' Knowles said. 'To not have any understanding of that means you are worsening the crisis.' Coun. Callan Morrison said he supported the comfort letter but wanted more information before weighing in on the broader density and financial deferral requests. 'I appreciate this is going to need a bigger discussion,' he said. Mayor Meghan Lahti emphasized the comfort letter was only to allow Wesgroup to begin its CMHC application – not an endorsement of all its future asks. 'We may support them sending in the application, but we may not support it at the end of the day,' she said. 'This is helping them get to the next step.' In principle, however, the mayor supported the rental housing proposal. 'If all things were equal, would we be supportive of a CMHC project happening on that site in the second tower? My answer is a resounding yes,' Lahti said. 'But obviously, there are multi-faceted levels of conversation that need to take place.' Staff will return with a report on the broader proposal – including the OCP amendment, rezoning, and requests related to financial securities and density.
Hamilton Spectator
01-05-2025
- Business
- Hamilton Spectator
Port Moody cooking up mandatory food-recovery rules for new grocery stores
Port Moody is serving up a fresh strategy to combat food waste. On April 22, council unanimously voted for staff to develop a policy that would require all new grocery stores to partner with food-recovery charities in an effort to tackle food waste, support food security, and reduce greenhouse gas emissions. Mayor Meghan Lahti, who introduced the motion, said the best way to ensure participation of future grocery stores is to require it from the outset. 'This is something that I believe that we need to get behind,' she said. 'I'm happy to hear that there are other participating grocery stores in the city, but I know that it took a lot of work and a lot of time and effort to get them on board.' The practice of grocery-food recovery involves rescuing surplus edible food that would otherwise be discarded, and redirecting it to charities and non-profits. The proposed policy would require partnerships be formed between grocery stores and organizations looking to redistribute food – such as Coquitlam's Food Link Society – during the planning stages of new developments. The benefits of such a policy are wide-ranging, according to the motion. Besides providing meals for residents struggling with food access, the policy aims to reduce methane emissions from landfilled organics and cut disposal costs for businesses. Nicole Blades, a coordinator with Food Link Society in Port Moody, said the organization's local distribution centre collects approximately 1,000 kilograms of recoverable food every Sunday from four local grocery stores, which is then distributed to 100 households. In total, the organization collects from 28 grocery stores, feeds 107,000 people, and reduces 4.5 million pounds of CO2 emissions annually, according to Blades. She said if government can create policies that regulate corporate waste, groups like Food Link Society can save valuable staff resources and focus on delivery, distribution, and public education. 'It's a lot of food, and it's also a lot of administrative work,' Blades said. 'The policy will help balance the division of labour.' Port Moody currently has three major developments in the pipeline that include grocery stores – Wesgroup's Coronation Park site, Edgar Development's Portwood community, and the PCI Development's transit-oriented tower project. The motion is drafted to align with council's strategic plan by promoting healthy community development and advancing climate change mitigation. Coun. Samantha Agtarap said she supports any way council can change habits to better utilize food resources, and suggested council should encourage all food-based businesses to enact similar practices. She referenced data from Global Food Waste Statistics showing that just 25 percent of the food wasted globally each year could feed 870 million people, while also pointing toward 2018 Statistics Canada data indicating 1.2 million Canadian children live in food-insecure households. 'I still don't think people understand the sheer volume of food that's wasted,' Agtarap said. Coun. Amy Lubik praised Food Link Society's work in the community, and was also supportive from both a climate and equity perspective. She said council should be helping foster connections to non-profits and reducing their administrative costs. 'Feeding over 100,000 of our neighbors per year is incredible, especially in such a time when people are having trouble making ends meet,' Lubik said. 'This just makes sense.' Following council's decision, Lubik introduced a motion for staff to report back on options to incentivize low-cost cooperative and ethnic grocery stores in development proposals. While council cannot mandate these types of grocery stores in new developments, Lubik said they can encourage them through policy directives or the sustainability checklist.
