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Vancouvercenter developer seeks city’s OK on changes

Deadline extension, other allowances sought for project's fourth, final tower

By Justin Runquist, Columbian Small Cities Reporter
Published: January 24, 2015, 4:00pm
2 Photos
A rendering shows the fourth Vancouvercenter tower next to Esther Short Park.
A rendering shows the fourth Vancouvercenter tower next to Esther Short Park. Construction is slated to begin this year. Photo Gallery

Construction is set to begin this year on the final Vancouvercenter tower, currently the largest development project in downtown Vancouver. But first, the developer is seeking the city’s approval for several major changes to the plan.

In 2004, construction wrapped up on the first two phases of the 2.5-block property, located directly east of Esther Short Park between Sixth and Eighth streets. The final product was a collection of three brick towers — two six- and seven-story residential buildings with 224 apartment units altogether, and one 11-story tower with space for offices, retail and restaurants.

Beneath the towers lies an underground parking garage with 809 spaces for tenants and the public. And for several years, the unfinished southeast corner of the property has housed enclosed utility equipment.

Plans to complete the project with a fourth building — the South Tower — were in the works, but they stalled for more than a decade. Facing stingy lenders and an overbuilt market in 2009, Vandevco, the developer, asked for an extension on the deadline to begin construction.

The city granted the request, and moved the deadline back to July 1 of this year. According to Vandevco’s development agreement with the city, the company would be charged an $800,000 fine if it fails to start construction on time.

Now, Vandevco is asking the city for another extension, this time to Dec. 31. And the company hopes the city will also grant its request to lower the minimum number of stories and square footage for retail space in the design for the South Tower.

The Vancouver City Council will hold a public hearing on Vandevco’s proposal during its regular weekly meeting at 7 p.m. Monday at City Hall.

Planning for the project goes back more than 15 years. Since 1999, Vandevco has made several big amendments to the design, scaling back space for retail, offices and residential units in the fourth tower.

The current development agreement requires that the last tower have no fewer than eight stories with 10,000 square feet of retail space. Instead, Vandevco wants to lower the minimum number of stories to six and shrink its retail space requirement down to 2,200 square feet.

The plan would also include 110 residential units. With the new design, the company estimates construction would cost $13.5 million — a few million dollars less than cost under the current plan.

According to city staff reports on the project, Vandevco found an eight-story building would no longer be feasible, due to rising costs and increased code requirements. The six-story tower could be built with a wooden frame above two levels of steel and concrete, a design that would help cut costs.

The changes reflect local real estate trends with a greater calling for more living spaces in downtown, said Eric Fuller, the president of Fuller & Associates, a commercial real estate firm based in Vancouver.

“They’re building to what the demand is in our current market,” Fuller said. “Is there more demand for downtown? Yes. Is 110 too many units? No, I think that’s about the right size.”

Earlier this month, the council voted 7-0 to approve a package of property tax exemptions, including a 12-year exemption for the new South Tower. In the past eight years, the city has approved 12-year exemptions for the 15 West Apartments and Prestige Plaza.

Most of Prestige Plaza’s units have filled quickly since the place opened, and Fuller takes that as a sign of a growing demand for living spaces in downtown.

The final Vancouvercenter tower would be the largest new construction project in downtown since pre-recession years. Vandevco anticipates construction would end by early March of 2017.

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Columbian Small Cities Reporter