Victoria council has approved a tax exemption to offset the cost of seismic upgrading for the Northern Junk condominium project, in hopes it will allow the developers to start construction.
On Thursday, council voted 8-1 in favour of the exemption, which Reliance Properties had said was key to being able to get started.
The tax break will work out to about $411,680 over the 10-year exemption period.
“The [tax incentive program] is the most materially significant way that we can support heritage buildings, and I’m happy to be able to support the Northern Junk buildings with this program,” said Coun. Jeremy Caradonna, who noted the buildings have been vacant as long as he has been alive.
“They’ve become a blight, frankly, to Old Town, and I think seeing them renovated and rehabilitated is going to breathe life into that part of downtown.”
The application for the tax exemption met all but one of the eight criteria — the addition will be four storeys and the criteria allows for the addition of only two storeys.
Coun. Matt Dell noted that it meets most of the criteria, however, saying he hopes the approval signals more flexibility in the tax incentive program. “This building needs to be built. It’s going to be a wonderful addition to downtown.”
The historic Northern Junk buildings near the Johnson Street Bridge will be incorporated into a six-storey mixed-use building with 47 residential units, commercial space, a waterfront walkway, a public alley and an elevator to connect the street to the waterfront.
The building, which is expected to cost $37 million to build and $4.3 million to seismically upgrade, will have residential units that range from about 400 square feet to 1,100 square feet, with four studio units, 30 one-bedroom units, nine two-bedroom units and four units with three bedrooms.
The Caire & Grancini Warehouse and Fraser Warehouse were built in the 1860s and are among the oldest buildings in Victoria.
They’re known colloquially as the Northern Junk buildings because they last operated as a scrap-metal recycling business, which closed in 1978.
Reliance has spent just over 13 years trying to win approval to develop the property.
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