TOWNSHIP OF ESQUIMALT STAFF REPORT
MEETING DATE: September 14, 2026 Report No. DEV-26-039
TO: Council
FROM: Alex Tang, Planner and Bill Brown, Director of Development Services
SUBJECT: Development Variance Permit Application - 899 Esquimalt Road
RECOMMENDATION:
Recommendation
That Council approve Development Variance Permit No. DVP00189 for the variance requested to accommodate the lease of unit 101 [Strata Lot 68] of 899 Esquimalt Road for the purpose of a temporary leasing office as outlined in Staff Report DEV-26-039 and instruct staff to issue the Development Variance Permit once the S.219 Covenant is registered on title.
Body
EXECUTIVE SUMMARY:
The applicant is proposing to lease unit 101 [Strata Lot 68] of 899 Esquimalt Road for the purpose of a temporary leasing office for a care retirement residence to be built at 817 Esquimalt Road. The applicant needs a variance to Zoning Bylaw, 1992, No. 2050, 67.107 (6) (a) to reduce the required minimum area dedicated to Health Clinic use to allow for this temporary leasing office.
BACKGROUND:
On June 28, 2017, the Township received a rezoning application for a 13-storey building at 899 Esquimalt Road. The Design Review Committee had concerns with the height of 13 storeys and recommended approval with one of the conditions being the reduction in height to conform to the Official Community Plan. In response, the applicant amended the proposal to consist of 12 storeys.
On May 15, 2018, the applicant’s amended 12-storey proposal was presented to the Advisory Planning Commission. The applicants also clarified their density bonus amenities to include:
• Provision of 40 rental housing units at 20% below market rate at an off-site development in the Township of Esquimalt.
• Design, construction and provision of a kayak dock.
• Provision of 5 free publicly available electric vehicle charging stations.
• Built Green Canada Silver certification.
• Burial of the hydro lines directly in front of the proposed development on Esquimalt Road; and
• Construction and provision of a new bus stop on Esquimalt Road.
Although the commission had concerns with the height, the Advisory Planning Commission resolved to forward the application to Council with a recommendation of approval as they thought that the density bonus amenities provided were comprehensive.
Subsequently, the applicants amended the amenities to provide a medical clinic in lieu of the sub-market rental housing. On May 27, 2019, the applicant’s proposal was considered by Council before a Public Hearing was held on July 8, 2019. Council recommended that the applicant conduct further consultation in a collaborative process with the neighbours before returning to Council.
After the applicant’s public consultation process, this proposal was amended to 10 storeys and had second reading of the bylaw rescinded, amended and read anew by Council on November 4, 2019. A second Public Hearing was held on November 25, 2019, in which Council gave third reading. On January 20, 2020, the amendment bylaw was adopted with the S.219 Covenant signed and registered on title.
The applicant is now proposing to lease unit 101 [Strata Lot 68] of 899 Esquimalt Road for the purpose of a temporary leasing office for a care retirement residence to be built at 817 Esquimalt Road. This is not currently allowed as per Section 67.107 (6) (a) of Zoning Bylaw, 1992, No. 2050; hence, the applicant is requesting a variance to accommodate this:
Chronology:
• July 22, 2026 - Application received
• August 18, 2026 - Advisory Planning Commission
Advisory Body Recommendations:
• This application was considered at the regular meeting of the Advisory Planning Commission held on August 18, 2026. Members sought clarification regarding the duration of the lease and the required Health Clinic use after the 1-year lease.
• Members had concerns regarding the reduction to the provided amenity.
• The Advisory Planning Commission resolved that the application be forwarded to Council with a recommendation of approval, subject to the registration of a Section 219 Covenant on title, as the temporary use is not anticipated to result in a significant land use impact and the covenant would preserve the long-term health clinic amenity.
ANALYSIS:
ZONING ANALYSIS:
The applicant requires a variance to Zoning Bylaw, 1992, No. 2050, 67.107 (6) (a) to reduce the required minimum area dedicated to health clinic use to allow for this temporary leasing office.
The applicant is proposing the following variance:
Zoning Bylaw, 1992, No. 2050, 67.107 (6) (a) - Size of Commercial and Residential Spaces: A 91-square metre decrease to the requirement that the minimum Floor Area dedicated to Health Clinic or facility use shall not be less than 370 square metres [i.e. from 370 square metres to 279 square metres].
The bylaw stipulates that 370 square metres (3983 ft2) must be dedicated to Health Clinic or facility use. As unit 101 is part of the 370 square metres dedicated towards Health Clinic use, the applicant is proposing to temporarily reduce the amount of 370 square metres to allow for the temporary leasing office.
In addition, the applicant will register a Section 219 Covenant that states that the reduced floor area for Health Clinic use for the purpose of a temporary leasing office will be for a duration of 1 year. After this period, the applicant will be required to dedicate that area to the use of a Health Clinic.
Amendment bylaw No. 2963, as adopted by Council in 2020, ensures that the development at 899 Esquimalt would provide a minimum of 370 square metres for Health Clinic or facility use. Moreover, it would ensure that the area be dedicated to Health Clinic use beyond the required subsidized lease term of 10 years. The intent of this bylaw is for 370 square metres to be dedicated to Health Clinic use in perpetuity and its deviation would be reducing the quantity of the amenity provided. Presently, the applicant has secured a lease for a medical clinic for 166.3 m2 (1790 ft2) and is seeking to lease 91 m2 for a leasing office for a care retirement residence to be built at 817 Esquimalt Road.
Staff is supportive of this variance to accommodate the lease of unit 101 [Strata Lot 68] at 899 Esquimalt Road for 1 year. Notwithstanding the recommendation, the expectation is that unit 101 [Strata Lot 68] and the rest of the commercial space will be used for Health Clinic use in the future.
OPTIONS:
1. That Council approve Development Variance Permit No. DVP00189 for the variances outlined in Staff Report DEV-26-039 and instruct staff to issue the Development Variance Permit once the S.219 Covenant is registered on title.
2. That Council deny Development Variance Permit No. DVP00189 with reasons.
COUNCIL PRIORITY:
Healthy and Engaged Community
Diversified and Thriving Economy
FINANCIAL IMPACT:
There are no significant financial implications.
COMMUNICATIONS/ENGAGEMENT:
For the Development Variance Permit application, notices were mailed to owners and tenants of properties within 50 metres (164 ft) of the subject property on August 28, 2026.
TIMELINES & NEXT STEPS:
Should Council approve Development Variance Permit No. DVP00189, the applicant can lease 91 m2 of the commercial space at 899 Esquimalt Road for the use of a temporary leasing office for a duration of one year.
REPORT REVIEWED BY:
1. Bill Brown, Director of Development Services, Reviewed
2. Deb Hopkins, Director of Corporate Services, Reviewed
3. Ian Irvine, Director of Finance, Reviewed
4. Dan Horan, Chief Administrative Officer, Concurrence
LIST OF ATTACHMENTS:
1. Appendix A: DVP00189
2. Appendix B: Aerial Map and Comprehensive Development District No. 120 Zone
3. Appendix C: Applicant’s Description of Proposed Use
4. Appendix D: Main Storey Plan
5. Appendix E: P1 Storey Plan
6. Appendix F: Applicant’s Presentation
7. Appendix G: Draft S. 219 Covenant Terms
8. Appendix H: Correspondence