Whitehorse Daily Star

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LAND IN LIMBO – A Whitehorse man has applied to have 11 Tarahne Way in the Whistle Bend subdivision rezoned in a way that would permit a 40-unit townhouse development instead of an apartment complex. City staff are against the proposal. Inset: RANDY AUDETTE

City staff oppose townhouse development zoning

City staff have recommended that council turn down a proposal to rezone a property in Whistle Bend that would allow for a townhouse development rather than the apartment housing it’s zoned for.

By Stephanie Waddell on May 30, 2018

City staff have recommended that council turn down a proposal to rezone a property in Whistle Bend that would allow for a townhouse development rather than the apartment housing it’s zoned for.

City staff typically recommend council move forward to first reading on most rezoning applications, which moves it to the public hearing phase. In this case, however, it was recommended that council defeat it at first reading.

Randy Audette applied to rezone 11 Tarahne Way from Comprehensive Residential Multiple Family 2 (RCM2) to Comprehensive Residential Multiple Family (RCM1) to build a 40-unit townhouse development.

“The existing RCM2 zone allows primarily apartment development,” Mélodie Simard, the city’s manager of planning and sustainability services, stated in a report to council.

“Mr. Audette has stated that he does not wish to construct apartment units as he believes they are not marketable in Whistle Bend.”

Under the zoning, RCM2 allows for only apartments and residential care homes as principal uses. It’s meant to be a high-density, energy-efficient multiple housing zone with a minimum density of 50 units/ha.

Meanwhile, the RCM zone is meant to be more of a medium-density zone that also fits with lower-density housing types.

The RCM zone allows a wider variety of housing types, such as fourplexes, townhouses, and apartments, at densities of 25 to 50 units/ha.

RCM lots in Whistle Bend are typically located on streets with adjacent single-family and duplex lots.

As Audette told council in a presentation at the beginning of Monday night’s council meeting, his plans may actually result in more people living in the area than an apartment complex would.

It’s expected his three-bedroom townhouse units would each house an average of 3.5 people.

At 40 units, that would see approximately 140 people calling Audette’s development home.

Meanwhile, an apartment complex would likely see 50 two-bedroom units created, housing an average of two people per unit. That means about 100 people would live there.

Thus, Audette noted, the townhouse development could actually allow for greater density.

He explained he recently purchased the land over the counter after not getting any sites in the most recent land lottery in Whistle Bend.

Audette is a contractor who’s been working in the Yukon for nearly 30 years. He said he has employees as well as their families who would be impacted if the project doesn’t go ahead.

“I feel obligated to keep my guys employed,” Audette said. If the rezoning doesn’t happen, he added, he’ll have to postpone development on the site.

He explained he’s talked to about three local realtors who have told him the demand for apartment-style housing in Whistle Bend isn’t there in the same way it is for townhouses.

Audette noted that apartment-style housing is in more demand where there are commercial developments nearby.

Condos are being sold downtown – including two developments that are seeing pre-sales.

However, such a development in Whistle Bend doesn’t have the convenience of nearby shops and services that the downtown sites do.

Until there are such developments nearby in Whistle Bend, Audette said, he doesn’t expect the demand for apartment units to be there.

Simard, though, noted there’s a commercially-zoned lot nearby along with bus service.

“In the Whistle Bend Master Plan, the subject area was ‘housing mix B’, high density housing,” Simard said.

“The RCM2 zoning applied to this lot was intended to provide apartment-style housing adjacent to a commercially-zoned lot and Casca Boulevard transit stops.

“The original concept for Whistle Bend included a neighbourhood population of 10,000 people and 3,500 units,” Simard added.

“Through the master planning process, the population was refined to 8,000. Since that time, numerous multiple family sites have not been developed to their maximum density.

“Continued reduction to the overall number of units will have an impact on the success of the commercial and transit viability, as well as the vision as a sustainable neighbourhood.”

Simard also noted that a site plan for the townhouses has not been submitted to the city. That has created some uncertainty as to whether 40 units would be feasible.

“Based on what has been developed elsewhere in Whistle Bend, it is likely that a townhouse development at 11 Tarahne Way would yield 25-35 units,” Simard said.

Council won’t vote on whether to move forward with the rezoning until next month.

Coun. Dan Boyd expressed some reservations about the recommendation it be defeated at first reading.

“We do have a demand for the townhouses, row housing,” Boyd said.

A case could be made for the rezoning, he argued. The neighbourhood is still without the commercial conveniences that can create demand for apartment style housing, Boyd noted.

Coun. Roslyn Woodcock, however, highlighted the building of the Yukon government’s $150-million extended care facility. Such housing in the area may be sought by employees of the new facility, she added.

Questioned by Coun. Rob Fendrick, Simard acknowledged that council could approve this rezoning and add more apartment-style housing zones in future phases of Whistle Bend.

Simard also pointed out that this lot sits on a major roadway in the neighbourhood.

Next month, if council opts to move forward with first reading, the public hearing on the proposal would be held July 9, with a report coming forward July 16 and second and third readings proceeding July 23.

Mayor Dan Curtis was absent from Monday night’s meeting, with Fendrick serving as acting mayor.

Comments (14)

Up 2 Down 3

Private business will do what in their interest and the City on Jun 2, 2018 at 3:08 pm

will either accept or decline the change in planning. Market conditions in Whitehorse for rental units are very high and has been for many years now. WE need more rental units in the City.
We especially need economical rental rates for low income earners. There are solutions to this problem and will write a piece with some new ideas. Wilf Carter

Up 7 Down 2

Reluctant Renter on Jun 1, 2018 at 10:05 am

ISO: Titled lot you can put a trailer or smaller - not tiny - home on that can be connected to municipal services. Why are there no plans for another Arkell neighbourhood?

Up 4 Down 7

Real Eyes Realize on May 31, 2018 at 8:02 pm

Of course the realtors would want more townhouses... more townhouses = more commission, DUH. The entire city would be nothing but ugly condos if they had their way.

Up 7 Down 1

Joe on May 31, 2018 at 7:46 pm

Stop changing the zoning. While I agree realtors are most aware of the current housing markets, trends and housing forecasts, the solution is not to change the zoning. Leave the zoning alone in respect of those who actually plan around zoning. FYI if you do change the zoning the lot should go to tender again to give everyone the chance to get in on that property. Not fair otherwise.

Up 10 Down 0

Elf on a Cliff on May 31, 2018 at 4:13 pm

This isn't a developer problem, it's a math problem and unless heavily subsidized no business would enter such a loosing proposition. It's a tough spot for the city, because of course they want different types of housing supply to support the demographics that exists here. But, despite best of intentions, the "market" can't currently bridge the gap.

On this property say a developer wants to build an apartment (for rent) building with 12 one-bedroom units at 700sq. ft. each and 42 two-bedroom units at 900sq. ft. each. That's about 50,820 sq. ft. including a ~10% allocation for common space like halls, stairs, utility and such. Keeping to current codes for efficiency, envelop, sound-proofing, fire breaks and such could average $225/sq. ft. just to construct - that's about $11.5 million and at current mortgage rates could be $88,000/mth just to carry the mortgage (15 year amortization) - then there's insurance, taxes, utilities, o&m, etc.

A property manager could not make these numbers work and be anywhere near the range of affordable housing. Keeping to the limits of affordable rents here would be in the range of ~$1000/mth for 1br and $1250/mth for 2br plus utilities. At full occupancy this would generate a gross cashflow of $64,500/mth. This represents a net loss over $20,000/month just on the mortgage alone.

The math doesn't start to work until either the cost of construction comes down to $175 / sq. ft. and/or we accept that rents must be higher and we have to look to solve affordability on the wage, access, employment side of things. On paper this project would need in the order of $3-4million in subsidy to support affordable apartments for rent in this market.

So, the city can opt to leave the zoning as is, but the reality is that outside of a government funded social housing initiative it won't likely get developed - not for market rental at least.

Up 11 Down 0

Bandit on May 31, 2018 at 3:34 pm

Maybe the COW should give Mr. Audette a $500,000 incentive for this. It seemed ok for NVD ? Oh boy I forgot about the membership only privileges. Good Luck Randy, they change zoning for everyone else. And by the way, I am also a Whistlebend Resident and really wouldn't look forward to an apartment building as a welcome mat to the neighbourhood.

Up 11 Down 4

Luncher on May 31, 2018 at 2:20 pm

Couple of thoughts;
A contractor shouldn't buy a lot knowing they won't be following the zoning, a developer of apartment complex's should have bought that one.
Asking a realtor's advice on anything is ridiculous!
It is important to be able to rezone land but largely only land that has been in private hands for a number of years or at least developed as originally planned and deemed worthy for another purpose.
Builders should not be tossing around stats as though they have any idea of what they are talking about...100 vs 140???? because I have a crystal ball in my tool box...
Council need to vote this down or risk losing whatever voter confidence they have left.
Asking a realtor for advice....

Up 8 Down 0

Resident on May 31, 2018 at 2:18 pm

Just a reminder, the vast majority of zoning variances are requested by private individuals. Due process itself is not an endorsement. I believe the standard among councillors is to allow the request to go to second reading for the public hearing, unless the request is bananas. You can hate constant spot-zoning but yelling at council for allowing due process doesn't help anything. Go to the public hearing and yell at the project for being stupid.

Up 12 Down 1

My Opinion on May 31, 2018 at 1:19 pm

If you want apartments then what you are angling for are "The Projects" 1950's through the 1970'S this was done in all the big cities as an answer to affordable housing and created huge areas in the cities with no prospects for employment or land ownership. Apartments are not healthy for people.

If you want affordable housing then build someplace people can buy nice new Mobile Homes, great starter homes and very affordable. Starting at about 120k. Take away the barriers to Home Ownership, don't create them.

Up 10 Down 3

My Opinion on May 31, 2018 at 1:13 pm

What makes anyone think that Contractors "Can or Will" build apartments that they will have to be Landlords for the next 25 Years just to get their money back and break even. It is a ridiculous concept in this day and age and just won't happen. A contractor builds a development this year as a condo and sells it out, and can build another as soon as the capital is returning. They will only build one apartment before they are financially done. That is why Condos were developed. Without them all construction would come to a stop as all capital would be tied up. This is the problem with Bureaucrats getting in the middle of this stuff.

Up 9 Down 2

Reality check on May 31, 2018 at 8:30 am

Maybe I don't get something here, but:

- Why is the city rezoning properties all the time?
- Why putting a zoning in when it gets changed anyway (throughout the entire city area, not only Whistle Bend)?
- Wouldn't it make more sense to get rid of the zoning altogether and everybody can build what they want? (The city does it already...)
- Is it just to upset the citizens or only to show "the power"?

Oh, now I get it: The money is calling for the real estate agents and of course, property taxes to spend even further beyond the budget...

Up 9 Down 0

YukonMax on May 31, 2018 at 7:46 am

"City staff have recommended that council turn down a proposal to rezone a property" Really? These decisions rest with the "STAFF"!
So, it would be beneficial for any contractor to make sure they know someone on"STAFF" and never mind the proper process. How much does this cost? Just saying...

Up 9 Down 6

BnR on May 30, 2018 at 5:25 pm

And people wonder why there are no apartments in town.
Because exactly this. And we'll never get any more apartments if they cave to developers who buy these lots with zero intent of following the zoning, because they KNOW the council will cave.
Oh well, more power to Randy if he can get his way.

Up 10 Down 7

Whistle_Bender on May 30, 2018 at 3:40 pm

Q: If Audette didn't expect the demand, then why did he bid on the lot?

A: Because he assume he could get COW to roll over on the rezoning to suit his needs.

I live in WB and can tell you that not just WB in dire need of apartments (lower ownership/rental costs) but the entire city and territory are in need of entry level and lower cost housing options.

Mr Audette, don't use your workers as pawns in this enterprise, if you can't build what is required within that zoning, hand the land back and someone else will develop it.

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