First residents moving into new downtown Nanaimo rental complex

A total of 145 units in the main building of the complex opened Friday, May 1, while the remainder will come at a later date, once construction in the second building is complete.

On-site amenities for residents include a fitness centre and rooftop patio, while a commercial space will be featured in the smaller building still under construction.

Bhatia said rents range from $1,500 per month to $3,500.

“We’ve got a whole span from about 343 square feet for the smaller units all the way up to 1,108 square feet for the larger three bedrooms.”

Nanaimo is the first project to be completed under the TELUS Living initiative, which takes existing property owned by the telecommunications company and repurposes it into housing.

A similar, albeit smaller, build in Sechelt is nearing completion, while applications are in place for rentals in Victoria and Vancouver.

Bhatia said “opportunities” exist in a wide range of Island communities, including Parksville, Duncan, Port Alberni, and the west coast.

Considerable tax incentives

As part of the approval process through the City of Nanaimo in 2021, TELUS applied for and received a 10-year property tax exemption for the project, totaling up to $2.5 million.

Pushed through the Downtown Revitalization Tax Exemption Program (DRTEP), the benefit was a notable factor in TELUS’ decision to proceed with the project, Bhatia said.

“There are a few other municipalities that are doing that to incentivize development in their downtown. Kamloops recently adopted the same policy, as has Edmonton. It’s not only a benefit for the community from a housing perspective but also the improveability of our sites…as well as the retail character for businesses around our sites.”

Mayor Leonard Krog supported the tax incentives in 2021 and remains in favour of them now, not only for the TELUS building but also for others in the works.

He said he campaigned in 2018, when he first ran for Mayor, to try and add 5,000 residential units in the downtown core.

“We have units that are going to be occupied through the weekend…the second phase is going to add more and the small commercial space. If the tax break got it over the finish line, and I think it’s fair to say it probably did, it’s great.”

He said each proposal is examined on its merits, with incentives in place for developers to bring the right type of project to the city’s downtown.

Krog added there are no guarantees incentives, or lack thereof, make or break a project.

“I think this is an example of where if it didn’t make it work, it certainly helped to make it work, and it’s worth it. The businesses in this community that will be the beneficiaries of the residents of this building, the commercial units that are available, and the new businesses that will start up are all a positive thing.”

He also said this project, in addition to two other major residential builds on either side of the Terminal Ave. corridor, are key components to revitalizing Nanaimo’s downtown core and its entry gateway.

“In order for businesses to survive, in order for people to invest, they need a population, and so these housing projects in and of themselves on their own are a huge incentive for redevelopment by private owners along the corridor.”

A further 163 units are nearing completion on Wallace St., at the Campbell St. intersection, while a trio of six-storey buildings are planned for Chapel St., across from the Nanaimo Courthouse, and would total 157 units.

TELUS owns an adjacent property to the new rental buildings, with Bhatia saying they will continue to look at all their real estate holdings to see how they can best use the land, in cooperation with local public and government consultation.

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by Alex Rawnsley

First residents moving into new downtown Nanaimo rental complex

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