A transit exchange is forging ahead along Terminal Ave., despite some objections being raised by nearby residents and businesses. (City of Nanaimo)

By NanaimoNewsNOW Staff

downtown development

Top Stories of 2023: Plenty of change underway, or planned, for downtown Nanaimo

Dec 14, 2023 | 11:06 AM

NANAIMO — Despite ongoing challenges, Nanaimo’s downtown core looks substantially different, both in reality and in vision, than it did 12 months prior.

A new hotel, more solidified plans for Commercial St., upgrades underway along Terminal Ave., suggestions on the former Jean Burns site and a new fast ferry service were all key steps for the often maligned area of the community.

While there is still considerable distance to travel in many of the key developments, including both the Jean Burns site as well as Commercial St. re-designs, substantial ground was made throughout the year.

Redesigning Commercial St.
A phased approach to changing the layout and flows of Commercial St. took some concrete steps forward in 2023.

Commercial St. is poised for a phased redesign beginning in 2024, allowing for more events and attractions to make their way downtown. (Alex Rawnsley/NanaimoNewsNOW

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The City released detailed designs of their vision for a more pedestrian and events-friendly space in October, featuring wider and more accessible sidewalks and curb-less streets better suited for events such as the Commercial St. Night Market.

“If you take a walk down Commercial St. as it stands today you can see there’s quite a variety of surface finishes that have been used over the years and this mix of finishes creates sort of a disjointed and kind of a tired look to the area,” James Knight, the City’s capital project management specialist said at the time.

Barring a change in will from Council, Commercial St. will begin redevelopment in phases with the first work to occur up the hill between Chapel and Skinner St.

Work will also tie in with a planned raised Pride crosswalk at Bastion St. as well as upgrades to Diana Krall Plaza which are in the initial discussions.

The pride crosswalk at Bastion St. and Commercial St. is set for an overhaul. It will be raised from the road surface to slow traffic, while also getting an updated design. (City of Nanaimo)

Money will be a big factor in how soon, or how much, gets completed in the coming years.

Roughly $5.8 million was projected for the first two phases, with around a third of the total already budgeted for.

Another $4 million was put towards the re-development through the Growing Communities Fund from the provincial government.

The total project is expected to take until around 2030 to complete, with designs for future phases still to be finalized.

The first phase of work was scheduled to go out to procurement in November and December 2023, ahead of an early 2024 construction start.

Bird’s eye rendering of the future downtown transit exchange. (City of Nanaimo)

Bus exchange pushes ahead, despite opposition
Perhaps the most contentious aspect of development in downtown Nanaimo this year was progress on a new transit exchange opposite Port Place Shopping Centre on Terminal Ave.

Construction is poised to start next year on the off-road sheltered exchange behind the Queen’s Hotel.

The City believes the facility is a step towards better downtown safety and security by drawing a steady flow of people in and out of the area throughout the day and evening hours.

“…improves passive surveillance and increases activity in the area, which naturally displaces that social disorder,” Bill Sims, general manager of engineering and public works, said in September.

Additional lighting and street amenities will be tied in with upgrades to underground infrastructure as part of the project.

Opponents of the idea believe the facility will lead to more social disorder and crime in an area already overburdened.

“We’ve been warning, warning and warning that this area is already hard hit by social disorder, and with five bus shelters and a public washroom, you’re going to have trouble,” Kevan Shaw of the Victoria Crescent Association, said.

The exchange is slated to be built on three lots purchased by the City in 2021. A 2018 study of the area revealed those blocks along Terminal Ave. was the preferred spot for a transit exchange among the three investigated.

Known among locals as ‘the big hole in the ground’, design options for the former Jean Burns building site are set to take steps forward in 2024. (Alex Rawnsley/NanaimoNewsNOW

Jean Burns Building plans
The hole in the ground in the city’s downtown remained largely unchanged through 2023, however steps were taken to do something with the prized location.

The City called for expressions of interest from the development community regarding the site, which has sat vacant since a fire in 2016.

Four submissions were received through the two month process in the late summer, with Council originally due to be presented the ideas in November. No such presentation has occurred yet.

The property is zoned for residential and commercial uses with a mixed-use, five-storey building envisioned by the City.

It would include both ground floor commercial with residential suites above.

Construction crews are scheduled to be working along Terminal Ave. until the spring, not only doing underground work but also surface lighting, park enhancements and more. (Alex Rawnsley/NanaimoNewsNOW

Terminal Ave. upgrades
Construction continues on Terminal Ave. with underground infrastructure to be paired with redesigned park space, better street lighting, sidewalks and bike lanes.

The approximately $7.3 million project is revamping the area between Esplanade and Commercial St. in partnership with the provincial government.

New traffic signals at the three lighted intersections will also be able to better communicate with each other, providing a smoother flow of traffic through the corridor.

Crews are expected to be on scene daily through to the spring.

Animation of what the footprint would look like for the Howard Johnson Hotel site. (City of Nanaimo/NanaimoNewsNOW animation)

Howard Johnson Hotel go and stop
The future of the former Howard Johnson Hotel at the corner of Terminal Ave. and Comox Rd. appeared secured in May, as Councillors overwhelmingly approved a massive development for the abandoned site.

A 7-1 vote for third reading of a zoning bylaw provided the green light for an overhaul, which would eventually see multiple residential and commercial buildings constructed including a pair of 16-storey high rises.

However continued objections from Snuneymuxw First Nation have, at least temporarily, derailed the project.

Councillors deferred final adoption of the zoning bylaw in October, then again Dec. 4 as they await ongoing negotiations between the province and SFN.

Further meetings are scheduled in January between the two groups.

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