A proposed eight-unit condo development on Ogilvie Street is stirring uncertainty among members of city council.

"I am having a hard time with this one,” Coun. Kirk Cameron said Monday night as council discussed senior staffs' recommendation to approve the proposal by Narrow Gauge Construction.

Cameron said the project dovetails nicely with the city's goal of increasing density in the downtown core.

The design, he acknowledged, is encountering resistance from residents in the neighbourhood who feel it doesn't maintain the Old Town character, which is called for as a guiding principle in the Downtown Plan.

Cameron, who lives in that area, also pointed out the proposed development is right on the boundary where higher residential density is allowed.

"I have a hard time going against my instincts saying we need this kind of development,” said Cameron.

Mayor Bev Buckway said she too was torn.

The increased density achieves what the city is trying to accomplish, she said, while acknowledging the opposition to what one neighbour described in his address to council last week as a "big box” design.

"Basing your decision on the looks of a building is a tough way to make a decision,” the mayor said.

Narrow Gauge is proposing to replace two old single-family homes on separate lots between Sixth and Seventh avenues with one, seamless eight-plex.

The current zoning allows for a single-family home or duplex, though there are provisions for increased density through a conditional use application which must be approved by council.

Five conditional use applications have been approved in the last three years. Those include Habitat for Humanity's three-plex at the end of Wheeler Street near the clay cliffs.

Another conditional use application by Suat Tuzlak of the Alpine Bakery for a five-plex on a corner at Jarvis Street and Seventh Avenue seemed to coddle much more favour from council members.

Council is scheduled to vote on both applications Monday.

City manager Dennis Shewfelt reminded members of council the application by Narrow Gauge was not before them to negotiate design parametres or density levels.

The company, he said, has submitted an application consistent with what is allowed under city guidelines.

"It comes down to council having to make a tough decision, and whether or not there is a profit margin on six units or eight units, quite frankly, that is not council's concern.”

Shewfelt said if council votes down the proposal, it would be up to Narrow Gauge as to whether it wants to rework the project proposal and re-apply.

Council heard last week during the session for public input on both applications that the eight-plex would represent a departure from the Old Town character, add to traffic congestion and open the door to more of the same project applications.

As one large structure rising to just shy of the maximum 10-metre height restriction, the building would be more imposing and restrictive to sunlight and air flow than two separate buildings, said Mark Smith, who lives across the street.

City administration noted Narrow Gauge right now could legally build two duplexes to the maximum height, and to the maximum footprint allowed on the lot, without having to seek any special permission.

The design of the eight-plex, particularly the pitch of the roof and its angles, is meant to fit in with the Old Town character, council was told.

Narrow Gauge is also seeking permission to move the building closer to Ogilvie Street than what is normally allowed. That way, parking would be at the rear and traffic would flow from the laneway onto Sixth Avenue instead of Ogilvie, administration told council.

Both Cameron and Coun. Ranj Pillai said if Narrow Gauge could somehow lower the roof height and move the building back further on the lot to reduce shadowing, they'd be more comfortable entertaining the application.

Pillai said most of the downtown residents he's talked to are OK with the increased density, though they have issues with the design of the eight-plex.

There is also some concern about whether this type of high-density building applications are going to become the norm, he said.

Coun. Dave Stockdale said the application is not consistent with the OCP nor with the city's zoning bylaw. He suggested that is precisely why the company is seeking special permission to proceed.

On the other hand, said Stockdale, if Narrow Gauge would agree to a six-plex, built under the city's new affordable housing guidelines, the project would have his vote.

The councillor said the proposal represents a perfect opportunity to show how a private developer can build affordable housing, take advantage of the new incentives the city has set out for affordable housing initiatives, and still make money.

It is, after all, a conditional use application, Stockdale said, so why can't the city set down some conditions?

Conversely to the Narrow Gauge application, Tuzlak's proposal to build a five-plex rental development on a single lot to just shy of the maximum height, received a much warmer response from members of council.

While the proposal actually represents a higher density per hectare than Narrow Gauge's eight-plex, there was much more community support for that project, members of council pointed out.