The City of North Vancouver is fast-tracking the redevelopment of North Shore Neighbourhood House and construction of an 18-storey affordable rental housing tower in Lower Lonsdale.
Council voted unanimously Jan. 22 to seek loans of up to $55.8 million to move up construction of Phase 2 of the redevelopment plan, along with two major park projects.
Council voted in 2021 to rezone the land at St. Georges Avenue and Second Street. Phase 1 of the project includes an 89-unit below-market rental housing project and 18,000-square foot seniors’ respite centre, which have already begun construction.
Phase 2, which includes a 30,000-square-foot new home for North Shore Neighbourhood House and 180 new non-profit rental homes to be built on top, wasn’t intended to start until 2028. But Hollyburn Community Services, which will build and operate the affordable housing, has asked the city to fast-track the project to begin in 2024.
“This new timing is expected to enable the housing provider opportunities to leverage senior government housing funding, and deliver 180 non-profit rental housing units to the city many years sooner,” a city staff report states.
No one from Hollyburn was available to elaborate on the plans.
North Shore Neighbourhood House has served the community’s children, seniors and vulnerable populations since 1939. The organization has used up “every inch” of space available to it on Second Street, and the 1967 building is reaching its end of life, Mayor Linda Buchanan acknowledged.
A Class D cost estimate from the city puts the price tag for the rebuild at $49.5 million.
Council has not yet had any public discussions on how its portion of the project might be paid for, but staff will now seek a loan from the Municipal Finance Authority, which offers low-cost financing for municipal capital projects.
If approved, council will have to decide in the future whether to pay the loan off within five years, or convert to long-term debt.
Council’s support for fast-tracking the project was unanimous, with council members acknowledging the importance of North Shore Neighbourhood House to the community and the dire need for affordable housing.
In their comments before the vote, council members suggested it was the financially prudent thing to do.
“It’s an opportunity for us to take full advantage of cost and scheduling efficiencies by having both of the phases moving forward simultaneously as well as avoiding construction cost escalations and taking advantage of financing programs,” said Coun. Angela Girard.
Mayor Linda Buchanan described Phase 2 of the project as a “one-in-a-generation opportunity” and the most significant investment in affordable housing on the North Shore in 20 years.
“People in our community deserve a Neighborhood House that meets their needs, and people working here deserve a place to call home at a price they can afford," said Buchanan. "Building partnerships and securing a clear financial path forward will be one of the most important and impactful moves of this council. It will never be easier and, as I said, it will never be cheaper than it is right now to advance this important piece of community infrastructure.”
The loan application includes another $4.3 million to complete the total revamp of Kings Mill Walk Park in the Harbourside neigbourhood. The plans include a plaza, an all-ages play area, an off-leash dog park, open greenspace and shoreline habitat restoration.
And the city is seeking $1.8 million for completion of a new “Oasis of Calm” urban park on the 1600-block of Eastern Avenue, one of the city’s densest areas with the least access to park space.
Barring any new outside funding, the debt could be serviced with a one-time 5.4 per cent tax increase, according to city finance staff.. As the city heads into its 2024 budget, staff are recommending that the increase be spread out over three years, starting with a one per cent levy in 2024.
