Two years after buying a bankrupt mega-development near Victoria, Vancouver-based Onni Group has unveiled scaled-down plans for a mixed-use core in Colwood.
Onni’s plans for the 12.5-acre site include about 150,000 square feet of retail and commercial space, as well as nearly 300 residential rental units.
“It’s really, really good to see activity getting underway. It’s been a sore sight in everyone’s eyes, with it sitting there empty and non-active,” said Colwood Mayor Carol Hamilton.
The Colwood Corners lot was to be the site of an ambitious $1.2-billion project with 16 high rises and a large retail mall. Construction was halted in spring 2013 after the developer, League Assets, ran out of money.
Ownership of the property — now a large hole in the ground with concrete foundation work — was transferred to Onni from a League Assets subsidiary for $17.5 million in a deal approved by B.C. Supreme Court.
Onni’s plans show one-to five-storey buildings.
The site already hosts London Drugs and Coast Capital Savings, and Onni has advertised plans to host grocery and liquor anchors.
City staff will review the development application for the property, and council will vote on rezoning or other density changes, if required. Colwood Coun. Gordie Logan, chairman of the city’s planning and land-use committee, welcomed the inclusion of rental housing.
Canada Mortgage and Housing Corp. put the capital region’s vacancy rate at about 0.6 per cent in October, the most recent data available.
A survey by rental search service Padmapper showed tenants in Greater Victoria are paying the third-highest rents among 25 major Canadian cities. The median rent for a one-bedroom suite in May was $1,100.
Logan said councillors are also hoping for diversity in retail tenants, attractive design and pedestrian-friendly walkways. “A positive thing, from our viewpoint, is they started removing all the old signage for Capital City Centre, which means they’re serious.”
Onni has also purchased the bankrupt former Wyndansea development, a 360-acre waterfront parcel near Ucluelet on Vancouver Island’s west coast.
Listed in 2009 at $37.9 million in a court-ordered sale, Onni paid $7.95 million for it in January 2015. The site is zoned for multi-family, retail, a hotel and a golf course. “We are still working through our plans for that site,” said Onni vice-president of acquisitions, Kevin Carpenter.
