The Resort Municipality of Whistler (RMOW) has (almost) agreed to enter into a new housing agreement with the developer of 5298 Alta Lake Road to allow for an increased maximum sales price per square foot for 21 employee townhouses.
In changes agreed to at the May 28 council meeting that received first and second reading, the developer of the units—which are part of a larger project on Nita Lake that received a development permit last year—can now charge $495.28 per square foot of space for the units when they are sold, instead of the initially proposed $425 per square foot.
Speaking to the item, the RMOW’s manager of planning, Melissa Laidlaw, explained staff supported the increase for a range of reasons, including the amount of time the project had taken to come to fruition, and the level of community amenities the developer was providing as part of the development, which was proposed back in 2018 under the RMOW’s "private sector employee housing initiative" to encourage private developers to offer employee housing.
“I note here that the $495.28 is less than unrestricted market value within the range of affordable options, and less than similar employee townhouses under the RMOW private sector employee housing initiative,” said Laidlaw.
Under the changes, the revised sales prices for the 12 two-bedroom units would go from $264,000-$294,000 to $308,000-342,000 (not all are the same size), while the price of the nine three-bedroom units would go from $643,000 to $750,000.
In giving background to the file, Laidlaw said the development offered significant community amenities to Whistler, it had been “a bumpy road” to get the project to where it is, and the construction costs had gone up over the years since it was first proposed.
“Unlike other development proposals in Whistler that are providing employee housing, this proposal is providing significant other amenities in addition to the employee housing, and the amenity investment is estimated at $3.5 million not including the employee housing, or the land value of the parkland dedications,” she said.
Those amenities include a Valley Trail extension, and significant parkland complete with infrastructure, a public washroom and more. The project also includes 11 units for tourist accommodation, and 11 residential units.
The public hearing process for the project saw delays, which lengthened the timeline and, as explained by Laidlaw, required the owner to carry their mortgage for longer, while amenities added to the development as time went on included a public washroom that further increased project costs.
During questions, Laidlaw said while a building permit had not been issued yet, the project had received a site alteration permit, so trees were being removed and the site was being prepared. The building permit application was also with municipal staff.
Councillors Cathy Jewett and Jeff Murl picked up on the maximum rate rooms could be rented out in the employee housing—which as initially proposed in the previous housing agreement, and left the same in the new agreement, was $800 a room.
Jewett said this seemed low, given the owners of the properties would be “carrying quite a mortgage,” and questioned whether it could be raised.
Murl also picked up on the number, noting that with an increased sales price the benefit was given to the developer, but with no raised rental price no benefit was going to the future owners who would be permitted to rent out spare rooms under the housing agreement.
To avoid deferring the entire decision to a later council meeting (and adding more time to an already delayed project), the RMOW’s general manager of planning, Dale Mikkelsen said the sales price was of primary concern to the developer in “allowing the project to remain viable … so we get the delivery of these 21 units.
“We felt … given the amount of amenity they’ve provided, and the time it’s taken to get to this point, it was a reasonable ask, and it was well articulated.”
He added changes to the rental rate had not been asked for, hence the oversight, and the developer would be looking for certainty around the sale price.
Eventually, council decided to give first and second readings to the housing agreement bylaw, and directed staff to review room rental rates to inform potential amendments for a third reading at a future meeting.
The project, on Nita Lake, has long been with the RMOW, with back and forth on the overall plans and community amenities, and significant public pushback. Whistler's mayor and council approved development permits at the end of last year.
