Banff’s development appeal board has vetoed a controversial redevelopment and expansion plans for the Homestead Inn, sending the hotel owners back to the drawing board.
In its decision released Wednesday (June 24), the quasi-judicial board overturned a Municipal Planning Commission decision to give Fuji Starlight Express a development permit to tear down and redevelop the existing 27-room hotel into a new 63-room hotel.
Officials with the DAB say this was an unprecedented appeal for the Town of Banff, in terms of the size, evidence presented over two days of hearings, and the board’s lengthy deliberations.
“In reviewing and weighing the evidence, the board finds that the development permit application does not warrant approval,” said DAB chairwoman Barbara McNeil in the 25-page written decision.
“There are numerous deficiencies in the proposed development, the resolution of which will necessitate a redesign and resubmission of the application to the Town of Banff.”
In February, MPC approved a development permit for demolition and redevelopment of the Homesteads. Fuji, which also owns the Banff Park Lodge and Bow View Lodge, want to build a new hotel on their Lynx Street property covering five lots,
The hotel plans included an underground parkade accessed by the Bear-Lynx Street back alley, and a large lobby that would act as a public pedestrian walkway for people wanting to go from Bear Street to Lynx Street.
Two neighbouring businesses, including Arctos & Bird Management and Karago Investments, appealed the MPC decision based on many grounds and their appeals were heard over two days in early June.
Appellants raised concerns that commercial space should not be allowed above a second-storey and argued the development goes against the two-storey height rule in the Banff National Park management plan.
There were also concerns about variances granted to building height, and rear and side yard setbacks.
Other concerns related to pedestrian access through the lobby of the proposed hotel, as well as fears the development would increase traffic and have negative effects on the rear alley.
Officials with Fuji Starlight Express say they are disappointed with the decision.
“Fuji Starlight remains positive and undeterred in its commitment to redevelop the Homestead Inn site in the very near future,” said Frank Denouden, manager of the Banff Park Lodge, in an emailed statement.
“We will continue to work collaboratively with the Town of Banff and Parks Canada as we pursue design changes to address the issues.”
The development proposal covers five lots, with four of the lots located in the commercial accommodation (CA) land use district and one lot located in the commercial downtown (CD) district.
The DAB noted its decision was complex, particularly because of a clause in the Banff National Park Management Plan that indicates development in commercial downtown districts will not include new commercial development above the second storey.
The DAB concluded the Homestead’s application was for a new development, and therefore, a portion of the project’s commercial development in the CD district cannot exceed the second storey as a condition of any future development.
It can however, be developed for residential or other purposes.
The board found the portion of the Homestead’s development within the CA district is not affected by the clause in Banff’s management plan.
“The board does not view that the intent of this language was to affect any new hotel development above the second storey in the CA district,” they wrote.
“With the CD district, it is the board’s view that this clause is only intended to prevent any new commercial development – it was not intended to eliminate the possibility of residential or other development above the second storey.”
The DAB concluded no variance is needed for the roof, although variances for front and rear yard setbacks are approved for the purposes of entry canopies.
Variances for front and year yard setbacks were not approved for the purpose of accommodating building projects. As well, variances for rear yard setbacks in the north east corner that reduce available parking are not approved.
The board also determined the owners of the Homestead must subdivide lot 24 before any future development.
Directly to the south of the proposed new hotel, on one of the lots, is Melissa’s restaurant. The restaurant’s building footprint expands across a portion of lot 24. The hotel and restaurant are structurally joined, but have separate ownership.
The DAB also concluded the pedestrian walkway through the hotel’s lobby does not meet Banff’s design guidelines, noting it is not an enclosed arcade or public route.
“The proposed lobby is obviously not an arcade, as it constitutes the entrance for a single business,” they wrote.
“The board finds that a reasonable person would not consider, nor utilize, it as a public route.”
Gordon Rathbone, who represented Karago Investments, said the DAB’s decision emphasized the importance of public planning instruments, including the Banff National Park Management Plan and the Town of Banff’s land use bylaw.
“It reminds us all that these instruments are law and not just guidelines,” he said.
“Good public planning, particularly with regard to variances, must respect public space and concerns as well as private rights.”
Rathbone said he does have some minor concerns, including the DAB’s interpretation of the management plan when it came to commercial development in the downtown districts above the second storey.
“I do understand why they found it difficult,” he said. “It may properly be a matter of the Court of Appeal rather than the DAB.”
Rathbone also is concerned the board did not step in to deal with concerns about congestion in the alleyway, preferring to leave management and enforcement of that issue to the Homesteads and the Town of Banff.
“I don’t think it’s reasonable to exacerbate problems in the public realm, and then say the resulting problems are matter for management and regulation,” he said.
Peter Poole, of Arctos & Bird, also welcomed the decision.
He said he’s pleased the board upheld the national park management plan, which a previous court decision indicated trumps other planning documents. “This is a sign that the law is being upheld,” he said.
DAB members include public representatives Barbara McNeil, David Bayne, Christopher Wong, Scott McElhone, town councillors Brian Standish and Grant Canning and Parks Canada representatives Sheila Luey and Mark Merchant.
