East Van housing development cancelled over cash dispute with city

An integrated social service andresidential housing development slated for East Vancouver is now dead, according to the builder and social service agency behind the project.

NancyKeoughof The Kettle Societyand Daniel Boffo of Boffo Properties say theKettle Boffo Project proposed for the northwest corner of Commercial Drive andVenablesStreet is no longer economically feasible because of cash demands made by the City of Vancouver.

"I'm more than disappointed," said Keough, the executive director of the mental health service agency."We had everything going for us the project paid for itself with no cost to the taxpayer.I don't know where we go next."

According to Boffo, the deal breakerwas an additional ask of between $6 million and $16 million in cashby the City of Vancouver in community amenity contributions (CACs).

CACs are negotiated between the city and developers when land values increasethrough rezoning that allows for greater density.

Kettle Boffo argued that it shouldn't be subjected to a CACbecause it was already set to deliver in-kind social and public benefits worth $39 million in the form of 30 supportive housing units and an expanded Kettle Drop-In Centre.

"I'm deeply disappointed after seven years and all the work," said Boffo."The deal breaker ultimately landed on the CACrequirement that the city put forward at the 11thhour. We couldn't afford that."

The City of Vancouver says it too is disappointed, butthat Kettle Boffo is partly at fault, because it never submitted a CACapplication, which would have started formal negotiations over how much value should be returned to the city.

"Weencouraged [Kettle Boffo] many times to submit a formal application," said city spokesman SadhuJohnston. "So, it felt like for a long time that they weren't in with both feet and that there was doubt about the project."

"If the city is going to offer a rezoning to a developer, and the developer is going to get a certain amount of cash out of that ...it is the intention of the citythat 75 per cent of that value comes back to the community in public benefits," he said.

The Kettle Boffo Project had been approved for a 12 storey tower with 200 units of market housing and18,000 square feet of retail space.

Boffo said he felt frustrated at times with the city approval process he described as "chasing moving goal posts."

"Ithink it's reflective of the flawed approach and process unfortunately that surrounded the CAC negotiation," he said."Itneeds to be looked at more closely if project like ours have any chance of moving forward in the future."

Keoughsays ultimately it's the vulnerable people who are desperate for housingand services that are losing out.

"Our centre is bursting at the seams," she said. "It also means 30 people won't have homes that should have been built by now in my opinion. People are spending years on the waiting list. We haveseniors who are living in hotel rooms and down the street and in parks on Commercial Drive."

"Quite frankly, I'm shocked that [Kettle Boffo] hasn't been able to happen."

With files from Justin Mcelroy

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