Banff Housing Corporation’s long-term hope of developing lands on Cave Avenue is back on the discussion table again – two years after a stalemate with Parks Canada on land costs ended negotiations.
At a meeting Friday (March 9), BHC’s board of directors decided to get another land appraisal done by the end of June and negotiate with Parks Canada to acquire the lands by the fall.
“As a board we’re mandated to pursue any lands that may become available within the Town of Banff,” said Councillor Paul Baxter, chairman of BHC’s board of directors.
“There’s been a substantial investment in the Cave Avenue lands over time and the board agreed that we should make one last attempt at acquiring those lands.”
The plan to acquire and develop six lots on Cave Avenue is part of BHC’s 2012 business plan, which was approved at the board of directors meeting on March 9.
The on-again, off-again Cave Avenue project was off the table in 2009 when negotiations broke down between BHC and Parks Canada over factual errors in Parks Canada’s independent appraisal.
The unencumbered amount was $8.15 million, but because the condos would have been sold as below market housing and price restricted, the encumbered amount was just over $2 million – the price BHC would pay.
BHC, which found factual errors in the appraisal, indicated the real land value, unencumbered, was approximately $6.5 million, making the cost of the land to BHC just over $1.6 million.
In 2010, BHC advised Parks Canada it could not accept the valuation of the Cave Avenue property and negotiations for the acquisition of the lands ended.
Back then, the proposal for the Cave Avenue site included 33 units. The stacked row housing development was to include a mix of one- and two-bedroom units, more geared towards the first-time homebuyer.
Although preliminary design of the units has been completed, the BHC board would need to reconfirm that is still the direction they want to go and that the design firm continues to be interested in the development.
Baxter said the board would revisit the existing design of the units for the development if successful in acquiring the lands.
“What the development is, if we acquire the lands, would be up for debate,” said Baxter.
“We would also look for direction from the shareholder or housing needs study as to what we would put on any future lands, not just Cave Avenue.”
The goal of BHC – a not-for-profit developer incorporated in 1993 – is to provide homes within the community of Banff that are more affordable for Banff residents.
To date, BHC has built seven housing developments, which includes 173 units and 45 suites. Of the 173 units, 10 were originally price-restricted and two more have become so.
BHC has also acquired 10 additional units, of which resale is also tied to price controls, for a total portfolio of 183 housing units.
BHC’s 2012 business plan also indicates it will continue to monitor the market for the acquisition of land for home ownership or rental opportunities.
Earlier this year, the board expressed preliminary interest in three vacant lots for sale by Alberta Health Services on public service zoned lands on Banff Avenue.
