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$2B Sandstone development in Nanaimo will rise over two decades

Grant Cameron
$2B Sandstone development in Nanaimo will rise over two decades
COURTESY CITY OF NANAIMO — The $2 billion Sandstone development will include approximately 2,200 homes of various types. It will also have up to 125,000 square feet of commercial space and possibly three million square feet of industrial space. The project will also include 200 acres of new park space as well as green areas.

Plans are moving forward for a massive, mixed-use, master-planned development called the Sandstone on 294 hectares in the south end of Nanaimo, B.C., that will include homes and multi-family buildings, commercial and industrial space as well as plenty of new park space and green areas.

The development, expected to cost $2 billion, will be built over two decades. It is the single biggest project of its kind in the history of the community.

Nanaimo council recently voted in favour of a zoning bylaw to permit residential, industrial and mixed-use development in the area. Before giving final approval, the city is awaiting clarification on how provincial legislation that may permit up to six units on single-family lots will affect the situation.

Municipalities covered by the legislation like Nanaimo may permit additional density if desired, but cannot have bylaws that allow for fewer permitted units than the provincial legislation stipulates. Further clarification will be needed before the bylaw can be considered for final adoption.

When final approval is secured, work will start on preparing the land and sites for infrastructure to support the projects.

Presently, the project is to include approximately 2,200 homes of various types. Sandstone will also have up to 125,000 square feet of commercial space and possibly three million square feet of industrial space. The project will also include 200 acres of new park space as well as green areas.

The homes proposed include 800 single residential dwelling units, 500 townhouse dwelling units and 900 multi-family residential dwelling units.

Nanaimo, like other cities, is in the midst of a housing crisis. An earlier study showed the city is also short of industrial land and, if more supply is not added, it will only get worse due to projected growth.

The area to be developed is several parcels of property on the southernmost boundary of the city in the area of Duke Point Highway, Cedar Road and the Trans-Canada Highway. The properties are adjacent to the Nanaimo Regional Landfill and the Snuneymuxw First Nation No. 2 Reserve. All of the properties are currently undeveloped and have varied terrain such as steep slopes, water and wetlands.

The surrounding neighbourhood is varied and includes single residential dwellings in the Chase River and Cinnabar Valley area, mobile home parks to the north, large residential and agricultural lots to the west and south, an undeveloped tract of land, agricultural land and land used for industry.

Seacliff Properties Ltd. of Vancouver is developing the project. Two-and-a-half acres will be dedicated to the City of Nanaimo and a five-acre site is to be dedicated to the school district in the Cinnabar Valley Neighbourhood Precinct.

According to Seacliff, Sandstone presents “a unique opportunity to create a new comprehensively planned yet diverse and unique development that provides for a wide range of land uses.”

A master plan for Sandstone was adopted in 2021.

The developer states it will become “a gateway for the south side of Nanaimo, with a major focus on providing new economic and business growth through the creation of a substantial new industrial and employment node, while also offering additional commercial, retail and residential opportunities.”

A report prepared by city planner Caleb Horn indicates staff are supportive of the rezoning application and mitigation measures that will be taken. Where technical studies have identified development constraints and impacts, a master development agreement will be secured as a condition of rezoning approval to ensure the necessary improvements and amenities are provided.

“The timing of the ultimate buildout is expected to be phased and long-term (i.e. 20-plus years), subject to market conditions,” Horn states in the report. “No details on phase ordering have been determined at this time.”

At a recent public hearing on the megaproject, some area residents expressed concerns about the impact on traffic. A staff report notes as Sandstone develops, it is expected to be a significant contributor to the growth of traffic in the area, and there will be degradation of the level of service.

“If Sandstone were to fully buildout over the next 20 years with all mitigation measures in place, significant congestion during rush hour means the queues for the highway signals could extend to the next intersection and delays could be substantial,” the report states, and “if the mitigation upgrades are not constructed, the reductions in service will be experienced sooner and will ultimately lead to lower levels of service and more delay.”

However, Georgia Desjardins, director of development at Seacliff Properties Ltd., said in a letter to Jeremy Holm, director of development approvals at the city, that it is difficult to predict modal shifts, changes in transportation habits, use and patterns over the length of time it will take to complete the Sandstone project.

“Changes in transportation habits are driven by a number of factors, including changes in surrounding land uses, implementation of active transportation infrastructure, increased transit opportunities in an area, and general changing attitudes to transportation as influenced by matters such as climate change and rising costs,” she wrote.

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