Parks Canada has released land to the Town of Banff to build affordable 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 the Banff Housing Corporation by the federal government for $550,000. The Town of Banff also owns lands on Banff Avenue slated for residential housing.
There are conditions on the release, including that the units be rented at below market rates in perpetuity, construction incorporates green building practices and Parks Canada gets first crack at some units for staff.
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.”
Banff’s rental vacancy rates have been hovering around 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.
There are no details yet on exactly what’s planned on the sites, nor the associated costs of high-density developments.
Sharon Oakley, the Town of Banff’s housing sustainability coordinator, said the Deer Street development would likely be the first one to go ahead. It involves the demolition of an existing 10-unit complex.
If all goes according to plan, she said, it would the Town of Banff’s hope to start on a project next fall.
“The first step will be community consultation around what it all will look like,” she said, noting no designs have been done.
“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.”
According to Parks Canada, the estimated market value of the Deer Street land and improvements is $20.9 million and the market value of Cave Avenue lands and improvements was estimated to be $13.8 million.
Public Works and Government Services Canada (PWGSC) authorized Parks Canada to release the lands. The release fee for Deer Street was $550,000 and the release fee for Cave Avenue was a nominal fee of just $1.
Dave McDonough, superintendent of Banff National Park, said release fees are based on the conceptual proposal submitted to Parks Canada and PWGSC by the Town of Banff for review, and on a lease that imposes restrictions on the use of the land.
He said the 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 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.”
The Town of Banff has $9.3 million on the books for 2016 for housing development.
The Town will borrow the money to build the housing and the debt will be repaid through revenues generated from rent.
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 in 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.”
