TOWNSHIP OF ESQUIMALT STAFF REPORT
MEETING DATE: July 21, 2025 Report No. DEV-25-030
TO: Council
FROM: Alex Tang, Planner and Bill Brown, Director of Development Services
SUBJECT: Rezoning Application and Housing Agreement Bylaw - 1007 Arcadia Street
RECOMMENDATION:
Recommendation
That Council give three readings to Housing Agreement Bylaw, 2025, No. 3156 and to Zoning Bylaw, 1992, No. 2050, Amendment Bylaw, 2025, No. 3155.
Body
EXECUTIVE SUMMARY:
The applicant is requesting a change in zoning from RS-1 [Single Family Residential] to Comprehensive Development District No. 166. This change is required to accommodate the proposed 6-unit townhouse residential building.
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.
Staff is supportive of the application as the proposal is consistent with the use and density within the Proposed Land Use Designation.
BACKGROUND:
Context:
Applicant: Kahlon Developments
Owner: 1449934 B.C. LTD., INC.NO. BC1449934
Designer: Adapt Design
Property Size: Metric: 848 m2 Imperial: 9127 ft2
OCP Present Land Use Designation: Low Density Residential
OCP Proposed Land Use Designation: Townhouse Residential
Existing Land Use: Single-Family Residential
Proposed Land Use: Townhouse Residential
Surrounding Land Uses:
North: Single-Family Residential
South: Single-Family Residential
East: Single-Family Residential
West: Single-Family Residential
Chronology:
• October 23, 2024 - Application received
• March 12, 2025 - Design Review Committee
• June 17, 2025 - Advisory Planning Commission
Advisory Body Recommendations:
Design Review Committee
• Members thought that the townhouse use was appropriate.
• Members suggested that the garbage and recycling area be shifted to the rear.
• Members suggested design changes to the building façade facing Arcadia Street for increased visual interest.
• Members desired greater area for plantings.
• The Design Review Committee resolved that the application be forwarded to Council with a recommendation of approval as the proposal of townhouses are an appropriate use of the property and location.
• In response to the committee’s comments, the applicant amended the front façade, moved the garbage area to the rear, and added an area on the northern edge for plantings.
Advisory Planning Commission
• Members liked the below-market residential unit.
• Members liked the amount of parking provided.
• The Advisory Planning Commission resolved that the application be forwarded to Council with a recommendation of approval as the implementation of these new housing components fit well and meets the evolving character of the neighbourhood.
ANALYSIS:
OFFICIAL COMMUNITY PLAN ANALYSIS:
OCP Section 5.1 states a policy to consider new townhouse residential proposals with a Floor Area Ratio of up to 0.70, and up to three storeys in height, in areas designated Townhouse Residential on the “Proposed Land Use Designation Map,” provided the design responds effectively to both its site and surrounding land uses.
The proposed development is consistent with the Proposed Land Use Designation of ‘Townhouse Residential’. The proposed development consists of 6 units and a floor area ratio of 0.8. For densities greater than those set out in the Official Community Plan, the applicant is proposing community amenities in the form of one non-market townhouse unit to be sold and maintained at below-market rate.
Moreover, there exists another 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 5.2 Low Density Residential Development states an objective to strive for redevelopment and infill development that improves and enhances the appearance and livability of neighbourhoods and the community as a whole.
Supporting policies in this section consistent with the proposed development include:
• Proposed redevelopment or infill within present low density residential land use designated areas should be built to high quality design and landscaping standards and respond sensitively to existing neighbourhood amenities.
Section 5.4 Affordable Housing states an objective to encourage a range of housing by type, tenure and price so that people of all ages, household types, abilities and incomes have a diversity of housing choice in Esquimalt.
Supporting policies in this section relevant with the proposed development include:
• Consider bonus density, parking relaxations or other development variances where a development proposal includes affordable, special needs or seniors housing. This may apply to market and non-market housing, and mixed-use proposals. A housing agreement may be entered into between the Township and the owner.
• Encourage the provision of missing middle housing types such as two-unit dwelling (duplexes), townhouses and small lot infill as one avenue to address housing affordability.
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 surround uses. To achieve this, height and setback restrictions may be imposed as a condition of the development permit.
• 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.
• 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.
ZONING ANALYSIS:
Zoning Bylaw, 1992, No. 2050 does not currently contain a zone that can accommodate this proposed development.
Proposed Comprehensive Development District No. 166 includes the following provisions:
Residential Units: 6
Floor Area Ratio: 0.80
Lot Coverage: 42%
Front Setback: 3.0 m
Norther Interior Side Setback: 4.98 m
Southern Interior Side Setback: 3.0 m
Rear Setback: 6.0 m
Building Height 10.8 m (3 storeys)
Off-Street Parking: 7 parking spaces
Usable Open Space: 7.5%
PARKING ANALYSIS:
Parking: Parking Bylaw, 1992, No. 2011 requires 2.0 parking spaces per unit to be provided for townhouse and low-density apartment zones. Parking areas are required to be constructed to meet the standards for manoeuvring aisle dimensions and associated parking stall dimensions detailed in Part 14, Table 2, of the Bylaw.
This proposal incorporates 7 parking spaces to serve 6 townhouse dwelling units. Hence, the parking offered is less than the required amount of 13 parking spaces as required by the Parking Bylaw. It is noted that a new Parking Bylaw is currently being considered by Council.
Under the proposed Parking Bylaw, the applicant is providing more than the number of required parking spaces as detailed below:
6 Townhouse Dwelling Units x 0.5 = 3
6 x 0.1 Visitor Parking Spaces = 0.6
Total = 4 (3 residential and 1 visitor)
HOUSING AGREEMENT BYLAW:
The property owner and the Township wish to enter into a Housing Agreement that would include the following provisions:
• A minimum of 1 dwelling unit will be provided at 80% of market value.
• Resale purchase price of these sub-market units must not exceed the previous sale price multiplied by the Core Consumer Price Index for Victoria.
o Resale purchase price of these sub-market units must also not exceed 80% of current market value.
• Qualified buyer criteria include:
o Person that has not owned a home for at least 5 years
o Resident of the Capital Regional District for at least 1 year
o Person with an annual gross household income not exceeding the 75th percentile for families with children (Middle Income Limits) as determined by BC Housing from time to time. For 2025, this figure is $201,030
o Person that intends to use and occupy the unit as their principal residence
• Rentals of these sub-market rate units are prohibited except in the case of hardship as determined by the Township.
If Council gives three readings to the Housing Agreement Bylaw, once the bylaw is brought back for consideration of adoption, Township representatives will then proceed to execute the document and register a Notice of the Housing Agreement on the title of the subject property.
OPTIONS:
1. That Council give three readings to both the Housing Agreement Bylaw, 2025, No. 3156 and the Zoning Bylaw, 1992, No. 2050, Amendment Bylaw, 2025, No. 3155.
2. That Council postpone consideration of Amendment Bylaw No. 3156 and No. 3155 pending receipt of additional information.
3. That Council defeat Amendment Bylaw Nos. 3156 and 3155.
COUNCIL PRIORITY:
Housing
FINANCIAL IMPACT:
There are no financial implications associated with the proposal.
COMMUNICATIONS/ENGAGEMENT:
The applicant held a public information session on March 8, 2025; the notice for which was mailed to properties within 100m (328ft) of the parcel. Staff confirm that the applicant has provided the required submissions [Appendix G]. On May July 7, 2025, notices were mailed to tenants and owners of properties within 100m (328ft) of the subject property notifying them of Council consideration of 1st Reading held on July 21, 2025. The Township of Esquimalt has received public input relating to this application [Appendix H].
TIMELINES & NEXT STEPS:
Both the Zoning Bylaw, 1992, No. 2050, Amendment Bylaw, 2025, No. 3155 and the Housing Agreement Bylaw, 2025, No. 3156 will come back to Council for adoption at a later date once all requirements are satisfied.
REPORT REVIEWED BY:
1. James Davison, Acting Director of Development Services, Reviewed
2. Kristi Bilodeau, Manager of Finance, Reviewed
3. Deb Hopkins, Director of Corporate Services, Reviewed
4. Dan Horan, Chief Administrative Officer, Concurrence
LIST OF ATTACHMENTS:
1. Appendix A: Housing Agreement Bylaw, 2025, No. 3156
2. Appendix B: Zoning Bylaw, 1992, No. 2050, Amendment Bylaw, 2025, No. 3155
3. Appendix C: Aerial Map
4. Appendix D: Architectural Drawings, Landscape Plan, and Site Plan
5. Appendix E: Arborist Report
6. Appendix F: Green Building Checklist
7. Appendix G: Developer’s Public Consultation Summary
8. Appendix H: Public Input
9. Appendix I: Staff’s Presentation
10. Appendix J: Applicant’s Presentation