A proposed Grief Point condominium development has brought the issue of short-term tourist accommodations back to the forefront inside City of Powell River’s council chambers.
Developer Tod English and architect John Spick presented plans for phase two of English’s Pacific Point development to the city’s committee of the whole on Tuesday, September 13.
Phase two would see two neighbouring lots to the current Pacific Point Market, alongside Joyce Avenue and Tofino Street, developed into 21 units of luxury condos, 6,000 square feet of retail commercial space and additional commercial space.
English is looking for council to allow his property to be rezoned from commercial to mixed use.
City director of planning services Thomas Knight warned in his report to the committee that allowing the rezoning could potentially allow for those units to be rented out as short-term tourist accommodations though websites such as Airbnb.
The issue of these short-term tourist rentals was brought up last fall and continues to be an issue as the city faces increased demand for long-term housing.
“You, as council, have the decision to determine whether to go forward to allow these units to be residential, or residential with the potential of being tourist accommodation,” Knight told the committee.
English currently operates five units of short-term traveller accommodations above Pacific Point Market, which Knight said is allowed under current zoning bylaws.
Councillor CaroleAnn Leishman said she was impressed by the proposed condominium development, but shares Knight’s concerns about the proposed mixed-use zoning.
Leishman said the city has contracted a San Francisco technology firm to help track short-term accommodation providers in Powell River as council works on deciding how to approach the problem. A staff report on that is expected later this fall.
English said the five units above Pacific Point Market were originally created as long-term rentals, but when he was unable to find tenants willing to pay $1,500 per month, he turned to short-term accommodations as an alternative.
“Powell River’s rental market wasn’t there yet,” English told the committee. “There’s a big need in the community for a larger style, family-orientated [short-term rental] spot.”
English said he considers his current business as a boutique hotel, but he told the committee he has no intention of building 21 condominium units and then putting them up as short-term rentals.
“I have enough long-term assets in this community,” stated English. “I want to build them, sell them and provide a good spot for the community to buy their groceries.”
Knight told the committee that a comprehensive development zone would allow for everything mixed-use zoning does except for tourist accommodation.
English said the city should seek to tax people who provide short-term tourist accommodation, instead of “having to play the controller,” he said.
Leishman said having English’s development zoned as comprehensive development would just make it “very clear to everyone” that short-term rentals “would not be allowed.”
Marine Avenue is mixed-use zoning and nothing is stopping anyone from building a couple of extra floors and creating suites for short-term rent, said English.
English said if his new development is completed, it is doubtful the building’s strata council would allow for the short-term rentals.
“I’d bet the strata council in those $300,000 to $400,000 condos are going to say no to short-term rentals in the units,” he stated.
Knight said he recognizes the city is in need of more condos and other types of housing, but warned if the city does not put in “safeguards” with a comprehensive-development zone or a restrictive covenant on the building, there would be nothing stopping anyone from renting it short-term.
The issue of the land use and zoning amendments will be brought to an upcoming council meeting. Before changes are made, the city is required to hold a public hearing.
