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Major development proposed at northern gateway to downtown Nanaimo

The project, which includes a hotel, towers and more than 700 homes, is among several major developments that have come before Nanaimo council in recent months.
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An artist's rendering of the Nanaimo Millstone Riverfront Project at 1 Terminal Ave. in Nanaimo. D'AMBROSIO ARCHITECTURE

A development including a hotel, towers and about 700 homes is planned for the northern edge of downtown Nanaimo.

The project, which has yet to go to public hearing, would replace the now-closed Howard Johnson hotel, some older buildings and a surface parking lot on a seven-acre site near the Millstone River.

Riverfront improvements, a park and a public multi-use trail are among plans for the property.

Nanaimo council gave second reading to the proposal on Monday.

Mayor Leonard Krog said the development would be “transformational” for the area. “That is a site that has cried out for redevelopment and improvement.”

It’s among several major developments that have come before council in recent months, illustrating the appetite for investment in Nanaimo, where there is a strong demand for housing.

The city has been growing at a rate of about two per cent annually and now has a population of close to 100,000.

In the first half of this year alone, the value of building permits reached $319 million, a record for those months. Of that figure, $238 million was for residential projects.

Last month, council heard that 16 new projects in various stages of approval would bring nearly 690 new housing units to Nanaimo’s downtown.

Earlier this year, a development plan for 42 acres in the Bowers district on Hammond Bay Road in the north end of Nanaimo was approved that could see up to 2,500 new homes when it’s built out.

Council also gave a green light to the Sandstone project on 726 acres in the south end of the city, which could yield 2,200 new homes as well as industrial and commercial uses.

The Millstone River proposal is bordered by the Millstone River to the northeast, Mill Street to the northwest, Comox Road to the south, and Terminal Avenue to the east.

Strongitharm Consulting Ltd. submitted the rezoning application on behalf of a numbered company for 444, 450, 500 Comox Road and 1 Terminal Avenue, and Brad Martin and Ralston Alexander for 55 Mill St.

Plans call for a six-storey hotel and conference centre to be constructed at the intersection of Terminal Avenue and Comox Road.

A total of 760 residential units would be allowed if the project was approved.

One of two 16-storey towers would be located next to Comox Road on the west side of the site. The other would be on the east side, near Pearson Bridge.

Two five-and-six-storey residential buildings would be built on the west side of the property near existing residential areas.

Two six-to-eight-storey buildings would go up in the central section of the property, while a three-storey townhouse project would be developed on the north part of the site on Mill Street.

About 10,000 square feet would be dedicated for commercial use.

The value of the project’s community amenity contribution would be $2.28 million, including a voluntary park dedication valued at $1.69 million, a staff report said.

Project master planner Franc D’Ambrosio of D’Ambrosio architecture + urbanism said the project is aimed at completing downtown Nanaimo, noting the development site has been identified as part of downtown.

He said previously that ­development costs would top $200 million.

The property was created by reshaping an island off the mouth of the original Mill Creek then filling it in for various uses, most recently in the 1970s.

Plans include a variety of housing types on a network of streets, with pedestrian paths, traffic calming and commemoration of the area’s Indigenous history.

The goal is to “leave behind a much richer landscape than we found,” D’Ambrosio said.

Council heard that eight tenants live in seven suites on the property, and Coun. Ian Thorpe told Strongitharm he “would not be comfortable” without a plan to relocate the residents.

Coun. Ben Geselbracht praised the vision for “such a central location.” “It is going to be great to eventually see something happen there.”

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