Parks Canada has released 12 parcels of land to the Town of Banff to build affordable, multi-unit rental housing to deal with the tourist town’s housing crisis.
Six lots on Deer Street and six lots on Cave Avenue were released to Banff Housing Corporation by the federal government for $550,000. The Town of Banff’s share of demolition costs for existing buildings on both sites is about $250,000.
The Town, which hopes to build on Deer Street first, intends to finance purchase, demolition and construction costs by borrowing. It is also in discussion with the provincial government on options for creating a more affordable development.
Town officials say the Town of Banff has a goal to build 100 rental units by 2018 to deal with the housing shortage, which studies estimate to be anywhere between 450 and 700 housing units by 2022.
“I’m elated about this news. To see Parks Canada and the Town of Banff come together to start to create real solutions for our housing crisis is very rewarding,” said Mayor Karen Sorensen.
“Housing has been a challenge for a very long time and we’re starting to put real tactics in place to make a real difference on the housing crisis. We’re not talking about it anymore, we’re doing something about it.”
As part of the first step, town council on Thursday (Dec. 17) directed administration to come up with a detailed financial forecast for an affordable housing development on the Deer Street lots through debt financing.
It also approved $165,000 in debt financing to allow administration to start public consultation, geotechnical investigation, slope stability analysis, site survey and civil engineering analysis for the construction of housing on the Deer Street lots.
Sharon Oakley, the Town of Banff’s housing sustainability coordinator, said the Deer Street development is an easier build because of the lots. It will involve the demolition of an existing, empty 10-unit complex.
If all goes according to plan, she said, the Town of Banff hopes to start on a project next fall.
“The first step will be community consultation around what it all will look like,” said Oakley.
“We plan to do open houses, talk to the neighbours, talk to the community. It’s a community issue and we want to be very transparent.”
Banff’s rental vacancy rates have been hovering at about zero for the past few years, when a healthy vacancy rate is considered to be between three and five per cent. Banff also has very high rental costs.
In fact, a bedroom for rent in a Banff home was listed for $1,500 earlier this year.
Based on an economic prosperity strategy, a housing needs study and a community housing strategy, the Town of Banff seeks to develop 100 rental units over the next three years, with the private sector expected to build 300 in the coming years.
The parcels are located at 535-547 Deer Street and 145-155 Cave Avenue. The purchase price for all parcels is $550,001, approximately 89 per cent under the market-assessed value of $6.7 million.
The release fee for Deer Street was $550,000 and the release fee for Cave Avenue was a nominal fee of just $1.
Parks Canada has set conditions on the release of the lands, including the units be rented at below market rates in perpetuity, that construction incorporates green building practices and Parks Canada gets first crack at some units for park staff.
Dave McDonough, superintendent of Banff National Park, said release fees are based on the conceptual proposal submitted to Parks Canada and Public Works and Government Services Canada by the Town of Banff for review.
He said release fees are determined by appraisal, which is done by Public Works and Government Services Canada, and are linked to the type of housing use that the land will be used for.
“This is such a good news story and it’s great to work with the Banff Housing Corporation and the Town of Banff to help with the housing shortfall,” said McDonough.
“It’s really an exciting opportunity to help maintain the sustainability and viability of the community.”
Sorensen said housing is a community issue.
“I want to stress the fact that housing is a community issue, land is scarce and we have a shared responsibility to build a range of housing for a range of citizens in existing neighbourhoods,” she said.
“We know densification is a smart growth principle and we need to start adjusting expectations and policies around what kind of housing is required in order for housing opportunities to remain affordable for all people here.”
The Town also had previous plans to develop high-density rental housing on land it owns on the 300 block of Banff Avenue. The two lots, at 338 and 340 Banff Avenue, were purchased by the Banff Housing Corporation.
“We still own those lots on Banff Avenue and it’s certainly in the mix of options,” said Oakley. “Once we do community consultation and determine the actual needs, we will assess that.”
Councillor Stavros Karlos said there is no bigger issue than housing that affects the quality of life of Banff’s residents and the economic viability of the resort town.
“A high quality standard of life is needed to live and work here,” he said at last week’s council meeting. “I believe the Town of Banff will build high quality and well managed housing units.”
With files from Tanya Foubert
