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Victoria offers tax relief to encourage Rock Bay development

Esquimalt and Songhees First Nations will get an up-to-10-year property tax exemption to redevelop the lands
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The Esquimalt and Songhees First Nation lands at Rock Bay, as seen from Bay Street. ADRIAN LAM, TIMES COLONIST

Esquimalt and Songhees First Nations will get an up-to-10-year property tax exemption as they redevelop their Rock Bay lands at the north end of downtown.

Victoria council moved ahead this week with its Rock Bay Site Revitalization Tax Exemption Bylaw to help the nations develop land that has been idle for years. “This is a unique opportunity to showcase the possibilities of reclamation, and also to make tangible, significant demonstration of our support and collaboration with the nations,” said Mayor Marianne Alto, after council unanimously endorsed the bylaw, which still needs final approval.

The bylaw is meant to offset the costs associated with planning and development, while encouraging interim use of the land until redevelopment can begin.

“We certainly worked very collaboratively with the representatives from the nations to try to achieve something or put something in place that was achievable for them, in alignment with their vision,” said Susanne Thompson, the city’s chief financial officer.

The city hopes to increase the vitality of the area — with a mix of light industrial, marine, commercial, office and retail uses as well as publicly accessible gathering spaces — as well as increasing economic opportunities for the Songhees and Esquimalt First Nations.

The bylaw started life in 2022 at the behest of then mayor Lisa Helps, who argued it would recognize the importance of economic development as reconciliation in action, and would support the city’s objectives for the revitalization of the unused area.

The nations took title to 4.5 acres of their traditional lands in Rock Bay from B.C. Hydro in 2022.

The land is adjacent to three acres of waterfront the two nations acquired from Transport Canada in 2016.

The site, which at one point was home to Victoria Gas and B.C. Electric — predecessors of B.C. Hydro — was behind barriers and out of the marketplace for years, as B.C. Hydro spent about $128 million and 12 years to remediate what was one of the most contaminated sites in the country.

Matullia Holdings, a company owned by the nations, has been considering all options for the site.

The company has said the lands could be developed into a downtown university site, an arts and cultural district or a tech hub.

Representatives of Matullia, the Songhees First Nation and Esquimalt First Nation could not be reached for comment this week.

In a document produced by Matullia and released in December 2023, a broad vision for the “Matullia Innovation District” was laid out that envisioned “a place for the Songhees and Esquimalt Nations — one that advances reconciliation, celebrates history, supports Indigenous economic prosperity, and restores the land in harmony with the values of the two nations.”

The document noted the site was historically a place of gathering and trade for the nations and now represents an opportunity to leverage the land for the economic empowerment of the nations.

“We are determined to achieve these goals through local hiring, training programs, and collaborative business practices, benefiting our community and contributing to the growth of the entire neighbourhood,” the nations wrote, adding central to the work is a commitment to restoring and revitalizing the natural environment.

The early concept for the site suggests as many as 11 buildings ranging from three to six storeys in height, landscaping, parking and natural areas.

It leaves open the possibility for retail, high-tech office space, marine industrial use, cultural space and light-industrial use.

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