An excavator clears land primed to transition into two six-storey residential rental towers on Wallace St. (Ian Holmes/NanaimoNewsNOW)

By Ian Holmes

notable project

Construction starts on transformative downtown Nanaimo housing project

Apr 26, 2023 | 5:29 AM

NANAIMO — Construction is underway on a substantial rental housing development in Nanaimo’s downtown core.

A building permit awarded from City Hall last month resulted in crews on site this week, eventually leading to a pair of six-storey towers containing 195 residential market rental units at 235 Wallace St.

The development, branded as Telus Living, involves the communications company developing a 1.6 acre undeveloped lot bordered by Wentworth and Richards streets, adjacent to its central office on Fitzwilliam St.

Underground parking and a public plaza at Wallace and Wentworth streets are included, as is one ground level commercial retail unit, according to plans approved by the previous City Council in Aug. 2021.

The development involves housing options from studios to three bedroom units, which Telus estimates will house about 500 people.

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Telus Living development to be situated on Wallace at Wentworth. (City of Nanaimo/NanaimoNewsNOW illustration)

Height variances were approved by councillors to allow the project to proceed.

Mayor Leonard Krog applauded the project when the development permit was approved, calling it a sustainable way to provide more downtown density.

“You really want to be going up not out as a general proposition. It’s easier to service, easier to provide access, amenities can be closer,” Krog said at the time.

In a statement to NanaimoNewsNOW, Telus noted construction is expected to be finished by the end of 2025, which includes 44 studio, 102 one-bedroom, 43 two-bedroom and six three bedroom units.

Eighteen of the units are designed to support aging adults and those with disabilities, Telus stated.

Significant tax breaks

The City provided an enticing tax incentive for Telus to develop 235 Wallace St.

With the understanding that the buildings are operational by March 31, 2026, the development will qualify for the Downtown Revitalization Tax Exemption Program (DRTEP) for ten years.

The exemption would save Telus more than an estimated $250,000 a year, or in the range of $2.5 million in property taxes.

Councillors Tyler Brown and Ben Geselbracht were both opposed last fall to awarding the exemption.

Coun. Brown said he doesn’t see how this serves the community.

“Consistent with my previous position on this, I will be voting against it. It only serves the purpose of passing on increased profit to those building the buildings, it does not do anything other than that,” Brown said on Oct. 24.

The DRTEP program runs for a maximum of ten years.

It applies to all major renovations, additions, demolitions, rebuilds, and new builds in the downtown core with a construction value of at least $500,000.

Artist rendering of what Telus’ development in the evening from Wallace St. (City of Nanaimo)

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ian@nanaimonewsnow.com

On Twitter: @reporterholmes