Downtown Property Developments in Prince George

Projects that took place in downtown Prince George are identified in Figure 1 and described below.  These projects included civic facilities, social housing, and private housing.  The descriptions note many of the regulatory tools employed by the City to encourage development.

 

Figure 1.   Downtown developments in Prince George, since 2010.

Source of base map.

 

1. Seniors housing complex (2011)

A 36-unit seniors housing complex was built downtown at 1373 Sixth Avenue.  When the Commonwealth Health Centre purchased the old gaming centre, it also became owner of the airspace above the underground parkade.  As well, new owners also inherited an obligation to build multi-family housing in this airspace above the parkade.  These arrangements were part of an agreement between the City and the previous owners of the gaming centre.  This agreement is based on the city purchasing the parkade and, as part of this purchase, the owner had to build six townhouses.

 

2.  Wood Innovation and Design Centre (2014)

The Wood Innovation and Design Centre (WIDC) is a six-storey wood-construction building.  At the time it was built, it was the tallest wood building in the world.  WIDC is the home of the Master of Engineering in Integrated Wood Design program for the University of Northern British Columbia.

 

3.  Wood Innovation Research Lab (WIRL) (2018)

The UNBC Wood Innovation Research Lab (WIRL) is an energy-efficient building located next to the WIDC.  The new lab is a wood science and engineering research facility for the study of building tall, large-scale wood structures.  WIRL includes a wood conditioning and processing room, a lab, and classroom space.

 

4.  Marriott Courtyard Hotel (2018)

This development is a six storey, 174-room, hotel at Tenth Avenue and Brunswick Street, which includes a 3,600 square-foot space outfitted for a restaurant.  The development was valued at $35 million and includes convention space, a pool, and underground parking

Six years earlier, in 2012, the initial project was based on a 12-storey hotel and luxury condominium.  The proposed Delta Hotel was to have 151 hotel rooms, 34 condominiums, and a restaurant.  After a foundation was laid, the site sat dormant for two years.  “Construction started in September 2013 and then ground to a halt in March 2014.  It took a $3.2-million cash infusion from the city, using money from a Northern Development Initiatives Trust fund, and a 10-year tax exemption to get work started again in July 2016.”¹

In order to make the financial support work for the Marriott hotel development, some changes were required.  Whereas a develop can apply for only the RTE or Early Benefit Program, there were not enough funds in the EBP program to cover the possible full value of the RTE.  Consequently, the City asked NDIT to change the rules of the EBP program so that the two incentives could be combined to cover the full value.

 

Lheidli T’enneh Uda Dune Baiyoh “House of Ancestors“ (2018)
[not shown in Figure 1]

The former Odeon Theatre on Vancouver Street was purchased and renovated ($1.7 million) to create a new community hall and conference centre for the Lheidli T’enneh.  The facility offers full in house-catering.  The name of the building is Uda Dune Baiyoh, meaning “House of Ancestors.”

 

5.  Hyatt Place Hotel (2020)

The Hyatt Place Hotel is a 104-room modular building located at 585 Dominion Street.

 

6.  Park House condominiums (2020)

Adding permanent residents to the downtown core has been a centrepiece of downtown revitalisation for more than twenty years.  For this reason, the Park House residential development was hailed as a major accomplishment and turning point.  Like other downtown projects, this development also required a partnership with the City and financial incentives.

The Park House development, built by with A & T Projects Development Ltd., was based on a four-phase development with four four-storey 160-unit condo buildings.  The project has reduced to three buildings.  The first phase, with 37 units, was completed.  The remaining phases will have between 32 and 46 units but have not been started and do not appear to be advancing.  The project includes underground parking (see next item) with electric-vehicle charging stations.  If completed, the residential development would be home to 300 to 400 people.

This multi-family residential development was eligible for three financial incentives.

• Downtown RTE.  Exemption from portion of city’s property taxes for 10 years.
• Multi-Family RTE.  Exemption from portion of city’s property taxes for 10 years, if the development meets certain accessibility standards.
• Housing Contribution Program.  A $10,000 per unit subsidy.

Instead of a fourth condo building, the Park House development now includes space for a childcare centre to be operated by the YMCA of Northern BC.  In December, 2020, the city received $3.98 million from the Childcare BC New Spaces Fund and a Union of B.C. Municipalities to build the 85-space childcare centre.

 

7.  Park House underground parkade (2021)

The underground parkade for the Park House condominium project, located on Sixth Avenue near George Street, was built by A & T Projects Development Ltd. in partnership with the City.  The City owns the parkade, which serves as the foundation for the residential buildings and provides 289 underground parking stalls and 62 surface parking spaces.  The parkade is also the foundation for the proposed YMCA child care centre.  As per the agreement, 133 of the underground parking stalls are reserved for condo residents at a discounted rate for 50 years.  This parking subsidy is in addition to the incentives noted above for the residential development.  According to the City Manager, the value of the parking subsidy is expected to be $95,000 per year or $4.75 million for the duration of the 50-year agreement.

The initial budget of the parkade was $12.61 million.  The final cost was $22.46 million, which is 78% more than the expected cost.  The cost over-runs were attributed to design changes and unexpected costs.  The major design changes were related to ground water.  Although it was fully known that the underground parkade is located in a flood zone with fluctuating ground water levels.  After it was determined that the initial design failed to address risks to public safety and liability for possible damage, a permanent dewatering system was installed.  The size of the parkade was also increased to cover the full parcel.  Unforeseen costs include the following: increased construction costs for labour and materials; structural changes to the foundation; relocating a major fibre optic cable; removing several buried foundations and oil tanks; higher-than-expected costs for the roof waterproofing membrane; mechanical, electrical and fire suppression systems; retaining walls and fencing; and other expenses.  When related projects are included, such as connecting the parkade to the city’s district energy system, upgrading water and sewer in the immediate area, the total cost of the project to the City was $34.16 million.  These related projects were approved by Council in March, 2019, under a separate budget process.

In addition to the exceptional cost over-runs, members of City Council raised serious questions about staff authority to authorise the extra costs without Council approval and whether city staff misled Council about the true costs of the parkade.  See Appendix A below for more details.

 

8.  Fire Hall No. 1 (2021)

The City’s old and out-dated fire hall is located in the city’s downtown core near City Hall.  However, this facility, which was built in 1956, was deemed inadequate to meet the city’s needs and plans were developed to build a new facility on the outside the downtown core, near the YMCA on Massey Drive near Carney Street. City residents approved $15 million debt financing via a referendum held in 2017.  The development was completed at $2 million over budget, which was attributed to the need for a building larger than proposed to accommodate a fire dispatch centre and additional space in the mechanical room.

 

9.  Public library (2021)

In May, 2019, City Council approved a $3.95-million budget for a new entrance at the downtown main branch of the Prince George Public Library.  This amount is $1.28-million more than the initial cost in late 2017.  In addition to increased construction costs for labour and materials, design changes included the following: an extra staircase; relocation of fire department connections; the elevator was extended to the upper floor; and the entry lobby was increased to 1.5 storeys.  The final cost was $230,000 over the 2019 budget, pushing the total cost over $4 million.

 

10.  Student housing (2021)

A student housing development, with underground parking, was built at 1404 Patricia Blvd., next to the public library and the new Marriott Courtyard hotel. Construction started in 2019 with completion expected in summer 2021.  Like the Park House condominium, this development is a key step toward downtown revitalisation by having more residents in the downtown area of the City.

The building is a six-storey, wood-framed structure with 205 units.  The small units, described as self-contained “micro-units,” are less than 29 square metres (312 square feet).  To accommodate this project, the City rezoned the parcel with special considerations.  The project also qualified for the Downtown RTE and Multi-Family RTE.

 

11.  Canfor Leisure Pool (2022)

Based on engineering reports, due to the age of the facility and its infrastructure, the old Four Seasons Pool required over $10 million in repairs and upgrades to meet current safety standards.  Alternatively, the City proposed building a new pool at an estimated cost of $35 million.  In October, 2017, residents approved the City’s proposal to borrow up to $35 million to build the new pool.  The total cost of the project $39.1 million, which included the purchase ($4.5 million) and razing ($2.5 million) of the Days Inn hotel.  Provincial and federal funding contributed $10 million.  The Regional District of Fraser-Fort George contributed $750,000.

The new pool has the following features:

• A six lane, 25-metre lap pool.
• A four lane, 25-metre teaching pool with warmer water and shallow depth.
• A leisure pool with a lazy river, beach entry, and play features.
• A large waterslide with a run-off lane.
• Ninja Cross obstacle course (additional cost of $500,000)
• Dedicated male and female change rooms, as well as a large universal change room.
• Sauna and steam room

The new pool uses the Downtown Renewable Energy System to heat the pool, which reduces greenhouse gas emissions by 95 per cent compared to heating it with natural gas.

Construction started in July, 2020, and completed in fall 2022.

Canfor Corporation signed a five-year naming rights agreement for $75,000 per year.

 

12.  BC Housing (2022)

There are two new BC Housing developments in the City’s downtown.

A residential development for social housing will be built at the corner of First Avenue and Ontario Street.  The development will include 50 units of supportive housing and 50 units of rental homes for low-income people.  Partners for this project include BC Housing, Northern Health, and the City.  Northern Health will provide services including a needle exchange and safe injection site, community outreach and mental health services, and primary care for both residents and the public.

BC Housing purchased the National Hotel, located on First Avenue.  The building was converted to 27 units of supported housing and opened to new residents in 2022.  On-site staff will provide support services including meal programs, life and employment skills training, and health and wellness programs.

 

13.  Quebec Street House (2023)

Quebec Street House is a four-storey, 36-unit apartment building that includes bachelor, one- and two-bedroom units.

 

APPENDIX

This appendix refers to two news articles from the Prince George Citizen that are related to the cost over-runs of the Park House underground parkade.  Both articles provide insights to the political process between Council and staff, as well as accountability.

Kurjata, Andrew. “A parkade has gone $22M over budget and it’s shaking up city hall in Prince George, B.C.” CBC News, January 14, 2021.

Williams, Arthur. “Mayor told of parkade cost increase in 2018,” Prince George Citizen. January 18, 2021.