Planners finally put a price tag to the community-amenity contribution dollars the city won’t get as a result of Aquilini deciding to build rentals, not condos, in its 400,000 square feet of residential space in three towers around Rogers Arena.
Strangely, though, that wasn’t the topic of many questions at the public hearing last week. As I noted in my Globe story today, the local residents association said that they were okay with that as long as they did get the key amenities funded in the neighbourhood that they want: the Canucks practice rink that will function as a part-time community centre, the daycare, and the pedestrian skybridge over Pacific Boulevard.
It wasn’t clear to me, from listening at the meeting, how the loss of $35 million of CACs from the originally projected total of $125 million from all Northeast False Creek development will affect city plans for other amenities. Originally, there was talk of using amenity dollars to upgrade the Aquatic Centre. Perhaps that’s no longer an option? I’ll have to check.
Oddly enough, in spite of criticism from some groups about the lack of truly affordable rental units in the area (the Aquilini’s 614 will rental at standard rates for new apartments), most of the questions at the public hearing were about the new noise-bylaw standards the city is allowing in the area.
Instead of the usual 70 dBC limit that applies in the rest of the city, this area will allow 82 dBC measured from the roof of Rogers Arena (the usual maximum noise of a concert), although demanding that Aquilini ensure that the noise level in people’s living rooms is no more than 50 dBC and in their bedrooms, no more than 40 dBC. Buy your noise monitors now, future tenants!
28 responses so far ↓
1 brilliant // Jul 16, 2012 at 3:59 pm
Looking around there are several projects in Greater Vancouver showing up as rentals rather than condo, probably a good indication developers are betting on a sales slowdown. And thete’s nothing to stop these rentals from being turned into condos when the market improves.
2 Frank Ducote // Jul 16, 2012 at 5:23 pm
Noise is but one livability issue.The submission also shows a 4th tower ghosted in at the so-called entertainment plaza, presumably at a future stage of development. I wonder how all of this development is to “hit the ground” on postage stamp-sized lots, adjacent to zooming nasty dark roads, as well as the future eliminated viaducts.
My other question is whether the market rental is protected or if it could be operated as short-term rental, that is, like hotel rooms for entertainers, athletes and such. Anybody know?
3 jesse // Jul 16, 2012 at 5:45 pm
So $35MM is the amount the City forgoes from the “land lift”? Maybe I’m thinking about this the wrong way but if the City values the land less than current market conditions, decides the dwelling type in current market conditions is inappropriate in the long run, and considers that land prices might be somewhat overvalued, it was never $35MM in the first place.
4 Creek'er // Jul 16, 2012 at 9:56 pm
Terrible deal! A hockey rink is not going to be used by many in the community and there already is a pedestrian skybridge.
Condos are mostly rented as apartments anyway; total waste of 35$ million that could be put to more productive uses to benefit the community.
5 Richard Wittstock // Jul 16, 2012 at 10:01 pm
The decision to build rental as opposed to condo has to do with three factors:
(1) low/zero land cost (Rogers and Beach Towers) enabling the proforma to pencil in the first place;
(2) avoid City demand for land lift CAC $;
(3) income tax deferral as no taxable profit is realized in the short/medium term.
It has nothing to do with any speculation of a slowdown in the condo market. Aquilini knows they would have no trouble selling the homes at $650-700 per sq.ft. But rather than take the quick cash they are happy to hold a prime asset for the future. They don’t really need the money…it really is as simple as that.
Finally, the City’s law department will require a covenant on title prohibiting stratification. They usually ask for perpetuity. Might be a shorter timeframe, the shortest I’ve heard is 60 years.
6 Silly Season // Jul 16, 2012 at 11:35 pm
I agree Richard, on all points.
I understand that there is a City Hall planner who is in charge of the Aquilini file. She must be pulling her hair out. Though I’m sure many developers are applauding Francesco for basically telling the City to go jump in False Creek re: CAC’s. BTW: the Bosa’s recently converted a 200 suite rental building into condos. How does that work? I assume they escaped the CAC’s entirely?
@Frank Ducote. A most interesting question. There is an “executive suites” situ at the Rosely on Barclay. Was month-to-month rental when I lived there, then “converted” to short term (but far more lucrative) exec and holiday stay.
Hmmm. They wouldn’t be thinking of that versus a trad hotel to service BC Place and/or a possible casino, now, would they??!
7 Silly Season // Jul 16, 2012 at 11:35 pm
Sorry, should read ‘The Roselyn’.
8 Silly Season // Jul 16, 2012 at 11:37 pm
Never post on a blog after a g+t. One more time: The Rosellen Suites.
9 David Godin // Jul 17, 2012 at 10:07 am
Could not airport flight path-grade windows and additional insulation address enough of the noise concerns to allow Rogers Arena to continue booking events at its current rate?
10 Joe Just Joe // Jul 17, 2012 at 10:39 am
To address David #9, they could’ve copied what was done at the YVR Fairmont but would’ve run into a different problem, the lack of opening windows works on a short stay airport hotel which has air conditioning but not so much on a residential tower. Also the issue here will likely not be the general noise as much as the bass notes which travel thru almost everything.
11 Michael Geller // Jul 17, 2012 at 11:00 am
As discussed on CKNW this morning, I too agree that the noise issue can be addressed with better quality windows and mechanical ventilation…noting most of the time, the noise will be no worse than in most downtown locations.
As for the ‘loss’ of $35 million in CAC’s, this reinforces the need for a more rational system of determining CAC’s. Personally, I find it unfortunate that the city will not collect CAC’s or DCC’s to offset the cost of required municipal services because this is ‘purpose built’ rental housing, but might have collected millions had these been condos, 40%+/- of which would have likely been rented out at very similar rents!
I hope others see the folly of this situation!
12 Joe Just Joe // Jul 17, 2012 at 11:55 am
Michael, given the location I think it’s safe to assume that rentals (if built as condos) would be closer to the 2/3rds mark at least for the first 5yrs and probably settle right around the 50% mark. That said your point stands.
13 Roger Kemble // Jul 17, 2012 at 11:58 am
Here’s a thought . . .
http://archrecord.construction.com/yb/ar/article.aspx?story_id=174843710
. . . Vancuver’s architects could well heed . . .
14 jesse // Jul 18, 2012 at 11:36 am
“They don’t really need the money…it really is as simple as that.”
How many times have I heard that one.
15 Roger Kemble // Jul 19, 2012 at 8:22 am
I don’t know what the fuss is about. For as long as I remember rental has been up there around 60% in the city.
Rental has always been a pejorative: renters embarrassed to admit until the Chinese hedgers and speculators distorted the market.
Rennie is too embarrassed to admit he’s floggin’ off your kids heritage: 90% of his hits from Guangzhou!
What do Gregor’s Taskers care? Michael G’s smile (leer) says it all. What with govt pensions they bought their roofs before the bubble.
I’m inboard jack!
16 pw // Jul 19, 2012 at 9:21 am
If developers start converting condo projects to rentals or delaying projects (for reasons having nothing to do with declining sales, needless to say) what impact will it have on the City’s budget? It seems to me the City is awfully accustomed to having this revenue flow in on a regular basis. The attitude that growth will continue uninterrupted for all eternity seems deeply entrenched.
With the economy already slowing, a decline in development will only magnify the problem. It happened in Ireland, Spain and all those bankrupt communities in California. I don’t know why it can’t happen here.
I wonder how a five percent increase in property taxes would go over. Or ten percent.
17 waltyss // Jul 19, 2012 at 9:58 am
The $35 Million in lost CAC is a real concern. I am with Michael Geller and believe the City should charge per unit or per square foot, some amount for parking spaces and let the market decide whether it should be rental or condo/rentals.
There is something about the Aquilini proposal that makes me nervous but I cannot put my finger on why and this council is so enamoured of rental and social housing that I really don’t trust them to vet it properly.
18 Roger Kemble // Jul 19, 2012 at 4:36 pm
I was out walking the park a few minutes ago and there was a camper van heralding a BC JOBS PLAN. A couple of attendants were handing out leaflets: a JOBS PLAN. They’ll teach you to whistle for a job.
Which bring me to Aquilini’s volte-face. My recollection of that name was of by-law infractions, in the early eighties, and accusations of slum-landlord! Does the leopard change her spots?
It is no surprise to me, that after nearly half a century, Vancouver developers are turning to rentals. Actually Vancouver’s condo market has been essentially rental for as long as I can remember: or more recently empty-with-the-lights-on to keep the natives happy.
Shelter unaffordability is a worldwide. Vancouver development can be likened to a cargo-cult were the natives expect largess to drop from the sky as off shore currency hedgers and speculators do there thing: the China coast being a hop-skip-and-a-jump away.
Gregor’s kitchen table consortium, Michael smiling on CKNW, have their solutions: another zoning category and Aquilini does them in over CAC’s.
No one dare mention the eleventh marble . . .
http://whatreallyhappened.com/WRHARTICLES/11thmarble.php
. . . for every dollar borrowed there is not enough in existence to pay the original back. It is called inflation, the less polite call it a ponzi and despite the best intentions we haven’t seen the end yet.
19 Bill Lee // Jul 19, 2012 at 7:31 pm
@Roger Kemble #18
Wasn’t that the days of Zen-and-Aquilini of the fabled ‘take out every second joist when inspectors leave’?
They have gone on to bigger things and have made a lot of money in other things which might have come out in the pending divorce settlement, but won’t.
Rentals can be changed into strata quickly as many in the early West End have found. It goes either way.
It is still unaffordable by the average barista or family income in the Lower Mainland.
There is a blog posting being past around about how the TV sit-com “Friends” could or could not afford their apartment based on BLS historical wage rates for various workers.
20 rico // Jul 20, 2012 at 6:42 am
Apparently this was approved yesterday. What I did not realize was it includes the previously approved office tower now under construction. So good bye office hello future condos….after a suitable waiting period of course….
21 Sean Bickerton // Jul 20, 2012 at 11:05 am
I think the headline is misleading. While it’s true there will not be any cash contribution, there is great value to the city in having affordable rental downtown for young people, who are crucial to a vibrant downtown.
More vibrancy makes a better quality of life for all of us, helps the local economy, and reinforces the Richard Florida affect necessary to attract creatives and those necessary to a 21st century economy.
Further, the STIR projects were far more costly, with huge subsidies offered to developers in addition to forgiveness of CACs.
So this rental housing is actually much cheaper in cost to the city than anything previously proposed under the city’s STIR program and it should be pointed out in the article.
The hockey rink/rec centre, community space and daycare are badly needed in the area. And the pedestrian bridge over Pacific will help reduce accidents and improve transit access to both stadiums/stadii.
It is for these and many other positive reasons that the False Creek Residents Association supported the development.
22 tf // Jul 20, 2012 at 12:29 pm
What a sorry hell this is going to be.
Three towers of rentals? Where on earth has that ever been a good idea? Thousands of people living in towers of shoeboxes surrounding 2 sports stadiums and a casino? Crowds moving in and out every month?
And this is going to be built, owned and managed by the most notorious slum landlords in the history of Vancouver!?!
I lived in one of the Zen-Aquilini buildings during the early-80s – they lobbied the government to remove rent controls and upon that success, they immediately raised the rents on some apartments by 70%. Seniors who had lived there for years were out on the street. Now that I think about it, that was my initiation into action for social justice.
The Aquilinis are not philanthropists. They are for-profit businessmen. This will not turn out well.
23 Bill Lee // Jul 20, 2012 at 1:00 pm
Re: TF tf // Jul 20, 2012 at 12:29 pm #12
Hmm, 300 moving trucks congregating around the Garage/Ice-Rink on the end/first of the month while games are on. Interesting picture.
Searching Zen Aquilini brings up dozens of first-search-page stories of troubles of those days including Vancouver Magazine’s “The Hellhole:
How the local weed known as Slumlordis Localis is holding Vancouver hostage”
By Michael McKinley published Dec 1, 2007
4 screens, though there is a single-page print button. vanmag.com/News_and_Features/The_Hellhole
And the poor man’s Hemingway, Gary Mason, scribes a rich man visiting his roots profile of young Francesco, though he has to mention his father Luigi and Giovanni Zen
“For some, the Aquilini name produced vague memories of a controversy back in the 1980s. A few Vancouver rental properties owned by Luigi and his then-business partner, Giovanni Zen, had become the subject of protests after the landlords jacked up rates in the rundown buildings. In recent years, however, the family name has been linked more favourably to philanthropic endeavours – multimillion-dollar donations to transform three hectares of Hastings Park into Il Giardino Italiano and to preserve 104 hectares of wetlands near Pitt Meadows, a community in which the Aquilinis own vast swaths of land.”
5 screens in BC Business magazine
bcbusinessonline.ca/2008/10/09/francesco-aquilini-vancouver-canucks
Mac Perry does a profile mentioning that they put the squeeze in Montreal too.
“Their property-development schemes in Montreal routinely exceed $100-million annually. A half interest in Halifax-based Pacrim Hospitality Services has them owning or managing 30 hotels across Canada, including Vancouver’s Holiday Inn Express. Their 2,205-hectare Golden Eagle property north of Maple Ridge and east of the Pitt River includes what may be the world’s biggest blueberry growing and processing facility, a slightly smaller cranberry operation, two 18-hole golf courses and hundreds of hectares of land for residential development.”
in the Vancouver Sun November 2, 2006
“Rags-to-riches tales started in Italy and India:
Luigi Aquilini’s half-century in Canada embodies the rags-to-riches dream that has been –and remains — a target for generations of immigrants.
canada.com/story_print.html?id=faa5369c-d09b-48d0-8fb6-8041beec4e0b
And also on the first-search-page (my we are lazy today in the rain) a mention in Victoria in Hansard as MLA Gary Lauk debates Bill 19 on Residential Tenancy.
.leg.bc.ca/hansard/33rd2nd/33p_02s_840410a.htm
24 tf // Jul 20, 2012 at 6:09 pm
Living under the governance of the BC Liberals for the past 11 years, I’m used to seeing back-room conspiracies. The approval of these towers looks like a part of another back-room deal …
One of the high profile cheerleaders for the removal of the Viaducts is Larry Beasley. A previous Vancouver city planner, Beasley was vice-president of Aquilini Development for 3 years and is now Senior Development Advisor to Concord Pacific Developments.
Does something smell a little tainted here?
I’d be interested to see the business plan for how 3 rental towers can make good business sense.
25 jaymac // Jul 20, 2012 at 6:16 pm
So if the annual property tax intake in the City is $570 million, as written in a recent article by Paul Sullivan an appraiser, and the City is foregoing on receiving $35 million on development charges, this is the equivalent of a 6% raise in property taxes. From where else will the money come to pay for all the civic improvements required by this development?
Is my math right?
26 Stephanie // Jul 21, 2012 at 5:16 pm
No, the leopard does not change her spots. The Aquilinis are currently busy displacing the long-term tenants of this recently-acquired building:
http://metronews.ca/news/vancouver/234247/east-side-tenants-protest-extraordinary-rent-increases/
Meanwhile, I am increasingly suspicious that “Sean Bickerton” is actually a bot. “Vibrancy”? “Richard Florida affect (sic)”? Come on. The Aquilinis started sucking up to this toothless neighbourhood association ages ago, and it’s been clear for quite some time that they were willing to support anything as long as they got a lot of buttering up and their ice rink. Thus goes “neighbourhood activism” in Vancouver.
27 tf // Jul 21, 2012 at 7:31 pm
I have great admiration for residents who are empowered to stand up and speak for their neighbourhood’s interests but the False Creek Residents Association has become a major voice in support of the development of towers which has a big impact on the gentrification of the bordering Downtown Eastside.
Starting with the 5-10 towers of CityGate, the False Creek South Neighbourhood Association morphed into the large umbrella organization that “represents the interests of all residents around the creek” including CityGate, Yaletown, the so-called Crosstown (when did this actually become a neighbourhood?), and now the Viaducts and rental towers at Rogers Arena.
The Association represents a large area of the inner city and has a very high percentage of tower/condo dwellers. I’ve been told that the top priority for Strata owners “has to be resale value” and I don’t think “resale value” has a strong connection to affordability or community.
With the scales weighted in favour of property value and tower development, the Association can’t be the only voice listened to.
Thanks Frances, for allowing more than one comment on the story, I’m interested ~
28 Frank Ducote // Jul 22, 2012 at 2:54 pm
I think Sean has recently moved out of the ‘hood or at least the Abbott street area. If so, I look forward to not reading anything more of his fawning support for Aquilini and other things related to this company, at least for awhile.
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