TOWNSHIP OF ESQUIMALT STAFF REPORT
MEETING DATE: July 7, 2025 Report No. DEV-25-029
TO: Council
FROM: Alex Tang, Planner and Bill Brown, Director of Development Services
SUBJECT: Official Community Plan Amendment and Rezoning Application - 1340 Sussex Street & 1337 Saunders Street
RECOMMENDATION:
Recommendation
That Council:
1. Give third reading to Official Community Plan Bylaw, 2018, No. 2922, Amendment Bylaw, 2025, No. 3157; and
2. Give third reading to Zoning Bylaw, 1992, No. 2050, Amendment Bylaw, 2025, No. 3158
Body
EXECUTIVE SUMMARY:
The applicant is proposing to change the Official Community Plan Proposed Land Use Designation from the current designation of 'High Density Residential' to a new land use designation of 'Commercial/Commercial Mixed-Use - Tall', and a change in zoning from RM-4 [Multiple Family Residential] to Comprehensive Development District No. 167. This change is required to accommodate the proposed 21-storey, 335-unit, purpose built rental residential building including 240 m2 [2583 ft2] of commercial space.
Evaluation of this application should focus on issues related to zoning such as the proposed height, density, massing, siting, setbacks, lot coverage, usable open space, parking, land use, fit with the neighbourhood, and consistency with the overall direction contained within the Official Community Plan.
BACKGROUND:
The applicant is proposing to change the Official Community Plan Proposed Land Use Designation from “High Density Residential” to a new Land Use Designation of “Commercial/Commercial Mixed-Use - Tall”. The proposed amendment would create this new land use designation to accommodate a commercial/residential mixed-use building with a height of up to 21 storeys.
The applicant is also proposing to amend the zoning from RM-4 [Multiple Family Residential] to Comprehensive Development District No. 167. This change is required to accommodate the proposed 21-storey, 335-unit purpose built rental residential building including 240 m2 [2583 ft2] of commercial space. The proposed development exceeds the densities set out in the Official Community Plan; consequently, the applicant is proposing community amenities in the form of a 1,718-square metre (~18,500-square feet) privately owned publicly accessible open space.
As the applicant wishes to assure Council that uses and development will be restricted and amenities provided, the applicant has voluntarily agreed to register a Section 219 Covenant on the titles of the subject properties in favour of the Township of Esquimalt providing the lands shall not be subdivided, built upon or used (as appropriate to the requirement, as drafted by the Township’s solicitor at the applicant’s expense) in the absence of all of the following:
• Lot consolidation prior to development as the proposed CD No. 167 Zone does not work unless the parcels are consolidated
• Privately owned publicly accessible open space with a minimum area of 1,718 m2 (Will also be secured through a Statutory Right of Way granted under Section 218 of the Land Title Act)
• Maintenance of the publicly accessible open space in perpetuity
• Provision of memberships for a shared vehicle service for all the residents
• Provision of a shared vehicle
• The building to be constructed to include twenty-three 3-bedroom dwelling units
• Contribution of $250,000 towards new traffic signals at the intersection of Esquimalt Road and Nelson Street
Chronology:
• June 17, 2024 - Application received
• October 9, 2024 - Design Review Committee
• November 4, 2024 - Council authorizes the circulation of the Official Community Plan Amendment
• November 19, 2024 - Advisory Planning Commission
• May 26, 2025 - Council gives 1st and 2nd reading
Advisory Body Recommendations:
Design Review Committee
• Members liked the balance between the massing and the green space.
• Members liked the inclusion of a public washroom in the park space.
• Members had concerns with the windowless bedrooms.
• The Design Review Committee resolved that the application be forwarded to Council with a recommendation of approval as the proposal is largely in keeping with the Official Community Plan with respect to density. The proposal allows for a public park and green space given the height of the building. Moreover, it provides additional commercial space.
Advisory Planning Commission
• Members had concerns with the lack of affordable housing provided.
• Members had concerns with the lack of accessible units provided.
• Members were concerned with the viability of the commercial space.
• The Advisory Planning Commission resolved that the application be forwarded to Council with a recommendation of denial as the application does not enhance the neighbourhood with valuable amenities nor significantly add commercial space for the requested zoning space.
• Upon additional consideration, the applicant has decided to proceed without further amendments to the proposal.
ANALYSIS:
OCP ANALYSIS:
The proposed amendment to the Township’s Official Community Plan is to create a new Land Use Designation of “Commercial/Commercial Mixed-Use - Tall”. This new designation would accommodate a commercial/residential mixed-use building with a height of up to 21 storeys. Although the Official Community Plan does not regulate a building’s height, it provides guidance for how growth should occur.
The proposed development exceeds the acceptable density within the Proposed Land Use Designation of ‘High Density Residential’. The proposed development consists of a floor area ratio of 4.05 with a residential area ratio of 4.00. In areas with this land use designation, buildings with a floor area ratio of up to 3.0 may be acceptable. For densities greater than those set out in the Official Community Plan, the applicant is proposing community amenities in the form of a 1,718-square metre (~18,500-square feet) public park space and its maintenance in perpetuity.
OCP Section 3.3 Housing and Community identifies land lying north of Esquimalt Road between Admirals Road and CFB Esquimalt as an area for residential densification.
OCP Section 5.1 states a policy to ‘support the development of a variety of housing types and designs to meet the anticipated housing needs of residents. This may include non-market and market housing options that are designed to accommodate young and multi-generational families, the local workforce, as well as middle- and high-income households.’
OCP Section 5.3 Medium and High-Density Residential Development states an objective to support compact, efficient medium density and high-density residential development that integrates with existing and proposed adjacent uses.
Supporting policies in this section consistent with the proposed development include:
• Encourage new medium-density and high-density residential development with high quality design standards for building and landscaping and which enhance existing neighbourhoods.
• Prioritize medium density and high-density residential development in proposed land use designated areas that:
1. reduce single occupancy vehicle use;
2. support transit service;
3. are located within proximity to employment centres; and
4. accommodate young families.
• A mix of dwelling unit sizes should be provided in medium density and high-density residential land use designated areas to meet the varying housing needs of Esquimalt residents.
• Encourage the incorporation of spaces designed to foster social interaction.
• Encourage the installation of electric vehicle charging infrastructure in medium and high-density residential developments.
OCP Section 5.5 Age Friendly Housing states an objective to expand and protect seniors housing in Esquimalt to enable citizens to “age in place”.
Supporting policies in this section relevant to the proposed development include:
• Support and facilitate development of multi-generational housing, including in medium and high-density residential developments.
• Encourage child friendly developments that provide appropriate amenities such as outdoor play areas for young children that are well-separated from traffic circulation and parking areas.
• Encourage adaptable design for all dwellings created through rezoning.
• Encourage more accessible housing for people with mobility limitations on the ground floor of medium and high-density residential buildings.
Section 5.6 Family and Child-friendly Housing states an objective to address the shortage of family and child friendly housing in Esquimalt.
Supporting policies in this section relevant to the proposed development include:
• Encourage the provision of medium and high density commercial mixed-use developments designed for families with children.
Section 6.1 Commercial & Commercial Mixed-Use states an objective to encourage the development of a complete community where commercial enterprises serve the needs of area residents, local businesses, and visitors.
Supporting policies in this section relevant to the proposed development include:
• Encourage a mix of uses in the commercial/commercial mixed-use areas.
• In commercial mixed-use areas, buildings with a floor area ratio of up to 3.0 for the residential portion may be acceptable.
• Consider, where appropriate, development proposals with densities greater than those set out through density bonus of floor-space provided that the additional density results in the provision of community amenities deemed appropriate by Council for the benefit of the community.
• For the purposes of density bonuses, “amenities” may include but are not limited to:
1. Privately-owned, publicly-accessible open space;
2. Public Art;
3. Contributions towards the enhancement of public recreation facilities;
4. Contributions towards street and boulevard enhancements, including street furniture and decorative lighting;
5. Building to a higher step of the BC Energy Step Code than required under the Building Bylaw;
6. Group daycare and respite facilities for children and adults;
7. Preservation of heritage structures, features or assets;
8. Affordable housing units;
9. Special needs housing units;
10. Community gardens;
11. Enhanced green family play space for residents;
12. Public space improvements supporting and surrounding transit stations; and
13. Other as may be appropriate to the development proposal or surrounding community as deemed appropriate by Council.
This proposal includes a mix of land uses: 240 m2 of commercial space on the ground storey, 1,718 m2 of privately owned, publicly accessible open space, and 17,375 m2 of residential space. The provision of these additional land uses will support the residential density proposed and aid in developing a complete community.
Section 11.3.2 New Development states the following policies:
• Encourage developers to provide a variety of end of trip facilities for active transportation.
• Encourage bike lockers in multi-unit residential and commercial/commercial mixed-use developments.
Section 13.3.3 Building Energy Efficiency states the following policies:
• Adopt best practices based on evolving building technologies and materials.
• Encourage the adoption of passive, efficient, and renewable energy systems in new buildings and during building retrofits.
• Investigate options for encouraging developers to achieve high energy performance in new developments through such tools as density bonusing, expedited permit approval process, rebate of development fees, revitalization tax exemption, and other incentives.
• Pursue higher energy-efficiency performance in new developments, through the achievement of higher steps in the BC Energy Step Code as an amenity associated with rezoning.
Under Section 13.3.6 Passenger Vehicle Alternatives, the following policies are listed:
• Encourage the installation of electric vehicle charging infrastructure in all new multi-unit developments.
• Pursue the installation of electric vehicle charging capacity in new developments during the rezoning process.
• Encourage the inclusion of car share in new multi-unit residential developments.
Relevant Development Permit Area Guidelines to consider as it relates to the rezoning application include:
• New buildings should be designed and sited to minimize visual intrusion on to the privacy of surrounding homes and minimize the casting of shadows on to the private outdoor space of adjacent residential units.
• The size and siting of buildings that abut existing single- and two-unit and townhouse dwelling should reflect the size and scale of adjacent development and complement the surrounding uses. To achieve this, height and setback restrictions may be imposed as a condition of the development permit.
• Underground parking should be encouraged for any multi-unit residential buildings exceeding four storeys.
• Orient buildings to take advantage of site-specific climate conditions, in terms of solar access and wind flow; design massing and solar orientation for optimum passive performance.
• Build new developments compactly, considering the solar penetration and passive performance provided for neighbouring sites, and avoid shading adjacent to usable outdoor open spaces.
• In commercial, residential, or commercial mixed-use designated areas with taller developments, vary building heights to strategically reduce the shading on to adjacent buildings.
• Provide space for significant landscaping including varying heights of trees, shrubs and ground covers.
• Provide usable outdoor amenities such as seating, food gardens, mini-libraries, and play spaces in semi-public areas to enhance the experience of walking and recreating in the neighbourhood.
• Provide space for absorbent landscaping, including significantly sized trees on the site and by not allowing underground parking structures to extend beyond building walls.
The proposed amendment to the Official Community Plan aligns with the Housing Needs Report to accommodate the 20-year housing needs of the Township.
The Capital Regional District did not identify any issues with either the Core Area Liquid Waster Management Plan or the Capital Regional District Solid Waste Management Plan. In addition, the recently completed Sanitary Sewer Asset Management Plan did not identify any immediate capacity issues related to the wastewater treatment plant.
ZONING ANALYSIS:
Zoning Bylaw, 1992, No. 2050 does not currently contain a zone that can accommodate this proposed development.
Proposed Comprehensive District No. 167 includes the following provisions:
Residential Units: 335
Floor Area Ratio: 4.05
Lot Coverage (parking level): 84%
Lot Coverage above the First Storey: 43%
Commercial Floor Area: 240 m2
Building Height: 63 metres (21 storeys)
Off-Street Parking: 242 parking spaces
Bicycle Parking: 413 resident spaces, 2 commercial spaces, and 12 visitor spaces
Park Space: 1718 m2 (38.5% of parcel area)
PARKING ANALYSIS:
Parking: Parking Bylaw, 1992, No. 2011 requires 1.3 parking spaces per unit to be provided for multiple family developments.
This proposal incorporates 242 parking spaces to serve 335 residential dwelling units and 2 commercial units. Hence, the parking offered is less than the required amount of 446 parking spaces as required by the Parking Bylaw. It is noted that a new Parking Bylaw is currently being considered by Council.
The applicant is committing to transportation demand management measures of a shared vehicle in addition to memberships for a shared vehicle for all the units.
Under the proposed Parking Bylaw, the applicant is providing more than the number of required parking spaces as detailed below:
42 Studio x 0.5 = 21
141 1-Bedroom units x 0.6 = 85
152 2-Bedroom/3-Bedroom units x 0.8 = 122
335 x 0.1 = 34
240 m2 of commercial space = 6
Total = 268
Car share vehicle and dedicated parking space (-5% of residential) = -13.1
Car share memberships for all the units (-10% of residential) = -26.2
Total with transportation demand management measures = 228
TENANT ASSISTANCE POLICY:
In accordance with the Township’s Tenant Assistance Policy, the applicant has appointed a third-party tenant relocation coordinator to assist tenants in the relocation process.
This includes:
• Ongoing communication with tenants
• Rental compensation
• Moving compensation
• Relocation assistance
• Additional assistance to vulnerable tenants
• Right of first refusal
Tenants were first notified by the applicant in writing on June 20, 2024, regarding the proposed redevelopment. The first meeting with the tenants was held virtually on July 24, 2024, followed by one-on-one outreach to tenants. To date, 90% of the tenants have been responsive to the coordinator and the tenant support team’s outreach. The team has continued to reach out to the remaining 10% to provide updates and offer support. Tenant relocation support is voluntary and individualized based on each tenant’s housing needs and unique situation. As of June 20, 2025, 50% of the tenants have relocated. All eligible tenants who have relocated have also received their rental and moving compensation at move out. Most of the tenants have been relocated to market rental buildings while some have been relocated to non-market and low end of market rental housing. The majority of these tenants have elected to stay in the Capital Regional District and have been relocated within the region. The coordinator is continuing to work with the remaining tenants as these tenants have chosen to reside in the apartment buildings until the development proposal is approved. Moreover, the applicant is providing periodic updates regarding the development application and reminding tenants of the available relocation support.
OPTIONS:
1. That Council give third reading to Official Community Plan Bylaw, 2018, No. 2922, Amendment Bylaw, 2025, No. 3157 and to Zoning Bylaw, 1992, No. 2050, Amendment Bylaw, 2025, No. 3158.
2. That Council postpone consideration of Amendment Bylaw No. 3157 and No. 3158 pending receipt of additional information.
3. That Council defeat Amendment Bylaw No. 3157 and No. 3158.
COUNCIL PRIORITY:
Housing
FINANCIAL IMPACT:
There are no financial implications associated with this proposal.
COMMUNICATIONS/ENGAGEMENT:
The applicant held a public information session on October 29, 2024; the notice for which was mailed to properties within 400m (1312ft) of the parcel. On June 23 and 24, 2025, notices were mailed to tenants and owners of properties within 100m (328ft) of the subject property to inform them of the Public Hearing scheduled for July 7, 2025.
TIMELINES & NEXT STEPS:
Should Council give third reading to Amendment Bylaw No. 3157 and No. 3158, staff would coordinate with the property owner to ensure that a S.219 Covenant is registered against the property title in priority to all financial encumbrances before returning the bylaw to Council for consideration of adoption.
REPORT REVIEWED BY:
1. Bill Brown, Director of Development Services, Reviewed
2. Ian Irvine, Director of Finance, Reviewed
3. Deb Hopkins, Director of Corporate Services, Reviewed
4. Dan Horan, Chief Administrative Officer, Concurrence
LIST OF ATTACHMENTS:
1. Appendix A: Official Community Plan Bylaw, 2018, No. 2922, Amendment Bylaw, 2025, No. 3157
2. Appendix B: Zoning Bylaw, 1992, No. 2050, Amendment Bylaw, 2025, No. 3158
3. Appendix C: Aerial Map
4. Appendix D: Architectural Drawings, Site Plan and Landscape Plan
5. Appendix E: Green Building Checklist
6. Appendix F: Transportation Impact Assessment
7. Appendix G: Construction Impact Assessment and Tree Management Plan
8. Appendix H: Developer’s Public Consultation Summary
9. Appendix I: Developer’s Community Outreach Summary
10. Appendix J: Public Input
11. Appendix K: Draft Section 219 Covenant
12. Appendix L: Draft Statutory Right of Way
13. Appendix M: Staff’s Presentation
14. Appendix N: Applicant’s Presentation