Provincial loan for Walters Street Development questioned by BC Liberals

The residential development along Walters Street is nearing completion as a 75-unit building with units being sold for market value.

The original proposal, in early 2019, was for a 95-unit development, including some affordable units. That proposal would have required an OCP amendment, a zoning amendment, a housing agreement, a road encroachment agreement, and more.

At the time Merritt City Council questioned what exactly defines ‘affordable’.

Months later, the developer returned to Council with a new proposal.

“There were a whole lot of variances and changes on the last application. The council should note there is none on this one. It needs an OCP and zoning bylaw amendment, but if given those amendments it doesn’t need a single variance. Every parking spot is given, every ounce of green space that is required, bicycles, open space. It’s really rare to see it,” said Director of Corporate Services Sean Smith.

In July of 2019, the development was approved by City Council without any affordable units included.

Despite the removal of the affordable units, the BC NDP announced the project as part of their BC Housing Hub program as including affordable units, and approved a low-interest loan for the developer.

(From BC Government Press Release June 12, 2020)

On Thursday (April 15), Liberal House Leader Peter Milobar questioned why that loan was approved.

“Under that program, the developer of the Olympic Villas in Merritt received $16 million in low-interest loans from the NDP. The developer was supposed to build affordable rental units but instead the developer slashed the affordable rental units but still gets the loan,” said Milobar. “Why is this premier giving this developer $16 million to slash 20 affordable housing units out of his development.”

BC Attorney General David Eby responded with normal talking points before admitting he wasn’t aware of the situation.

“I’m not familiar with the specific development that the member is talking about. We don’t fund people to bring affordable housing out of development it’s just the reverse,” said Eby. “I’m happy to look into it.”

“Well that is a shocking lack of oversight by this government when it comes to how they loan money,” added Milobar. “The (NDP) announcement happened after the units were already slashed from the project. There is no net increase in affordable units in the Merritt area as a result of this loan.”