If all goes smoothly, the Riverstones affordable rental housing development could start construction as early as this summer.
District of Squamish council gave its enthusiastic support by giving initial approval to a series of bylaws at a council meeting Tuesday (March 17). The bylaws include municipal commitments to fund off-site service costs and waive development cost charges (DCC) for the project's 39776 to 39780 Government Road location.
A public hearing on proposed Riverstones development is scheduled for Monday April 6 at 7 p.m.
The municipal concessions were made because John Dietrich, Riverstones proponent, said building affordable rental housing is not profitable. But with government partnerships, it works.
"It not a high profit project. In fact, compared to the amount of risk, this is not a great project at all," Dietrich said.
It costs roughly the same amount of money to build a rental apartment as it does to build a condo. The rental investor must wait decades to recoup land and construction expense said Dietrich.
The property will be restricted to rental units only for 20 years and the rents are capped at a maximum of $975 for a two-bedroom unit
"We know there is a need for rental housing in Squamish and the whole objective is to keep the local construction industry going," Dietrich said.
The crux of the Riverstones Development rests with a grant application to BC Housing's endowment fund for up to $3 million.
Meanwhile, council is waiving up to $520,900 in municipal fees to ensure the project is financially viable for the developer. According to a staff report, the proposal to waive DCC's and carry off-Site service costs is unique. There is no precedent for this level of municipal participation in Squamish.
To protect their investment, council passed a motion that fees be refunded with interest if the project is sold or ceases to be purpose-built housing at any time.
"We are making this decision because it serves as a significant incentive not to take the project out of the rental pool," Gardner said. "We have to look at this as a business transaction."
The housing agreement bylaw also includes a clause that gives the district the right-of-first refusal, giving the district an ability to own the project if at any point it is for sale.
