The former Jean Burns site has been a blatent eye sore in the heart of downtown Nanaimo since a March 2016 fire. Now, the City is hoping to attract rental housing to the site through a new development. (Image Credit: Jordan Davidson/NanaimoNewsNOW)

By Alex Rawnsley

bc builds

Rental housing desired for Nanaimo’s former Jean Burns building

Feb 19, 2026 | 5:38 AM

NANAIMO — A long dormant eyesore in the city’s downtown is again being presented as a blank canvas for the development community.

The City of Nanaimo is looking to partner with a qualified developer through the BC Builds program, to transform the former Jean Burns building site at 6 Commercial St. into “a landmark mixed-use rental housing project”, according to official documents.

To boost engagement with interested parties, the City is offering a 60-year-lease at no cost for the developer, provided they meet “criteria consistent with BC Builds objectives.”

“The City recognized an opportunity to partner with BC Builds to create new housing for middle‑income workers by making underutilized City‑owned land available for development while still achieving this mixed‑use vision for the site,” Laura Mercer, general manager of corporate services told NanaimoNewsNOW.

The City is hoping to partner with a developer to transform the Jean Burns property at 6 Commercial St. into a medium-incoming housing complex. (Image Credit: City of Nanaimo)

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BC Builds aims to encourage rental housing development for middle-income households by providing low-cost construction financing for applicable projects

Among the criteria is to provide housing for households whose incomes range from $90,560 to $143,900 for studio and one-bedroom units, or $146,270 to $212,240 for two bedroom or larger units.

The successful applicant must be prepared to break ground within 12 to 18 months of approval.

Bids will be evaluated through a scoring matrix focused on financial and technical viability, nature of the proposed development and history of the firm(s) involved.

“The program requires that participating municipalities contribute city owned land at little to no cost, and that the site be eligible for long‑term leasing to create a mortgageable interest for the development partner,” Mercer added. “Under this model, the City would retain its fee‑simple ownership, while enabling a minimum 60‑year lease to facilitate project financing.”

An online information session is scheduled for Feb. 26, while the submission deadline is April 28.

Current zoning of the site permits a three to six-storey mixed-use building with rental housing available on upper levels, coupled with ground-floor commercial units.

The City of Nanaimo purchased the former Jean Burns site in July 2021 for an undisclosed price, and was part of move to secure land along Terminal Ave. for a transit exchange.

Potentially creating a public plaza for the site, an idea floated by the City shortly after buying the property, was abandoned following significant public pushback.

A large fire flattened the building in March 2016 and it was subsequently demolished late the following year.

Private sector interest in re-developing the property was tested in 2023 with the City asking for expressions of interest from qualified candidates.

Submissions were reviewed in the fall, however no project materialized from the entries.

“While we appreciate the interest that was shown, none of the proposals aligned with the long‑term vision for 6 Commercial Street,” Mercer said of the process. “Our planning policies identify the highest and best use of the site as a mixed‑use development with ground‑floor commercial space and multi‑family housing above.”

The City had initially planned a public plaza for the site, however early public input in 2021 suggested the idea was extremely unpopular.

Sitting largely empty for years, the so-called ‘hole in the ground’ is poised for redevelopment. (Image Credit: Jordan Davidson/NanaimoNewsNOW)

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