A project that will transform a corner of Victoria’s Old Town has cleared its first city council hurdle.
Council has voted unanimously to move forward a six‑storey, 79-unit rental project at the corner of Government and Chatham streets, just north of Chinatown.
Mayor Marianne Alto said the development is expected to blend into the surrounding buildings while protecting a 116-year-old building on site.
“Being able to sort of rehabilitate that and showcase it in the design is very special,” she said.
The developers are seeking heritage designation for the 1908 two-storey building, known as the Sam Kee Laundry building, although they don’t have concrete plans for it.
The Edwardian-era building, which faces Chatham Street, was built as a residence for Peter Levelle, who emigrated to Canada from Scotland in the 1880s. The building was converted to a laundry in 1935 as part of the Sam Kee Company.
In 2021, council approved the neighbouring Spencer Block project, a 278-unit mixed-use rental residential building that is under construction.
That project will wrap around the adjacent building and the two will be connected via the underground parking facility. Both are owned by Nicola Wealth Real Estate.
The new six-storey project, which will have commercial space on the ground floor, will replace what is currently Victoria Automatic Transmission.
A rezoning will remove site-specific regulations that only permit automotive-repair uses within the Old Town District 1 Zone and increase the permitted density.
Alto said concerns were raised about the lack of parking on site, as the new project proposes only 13 dedicated parking stalls rather than the required 54, but alternative transportation measures should be adequate.
The developers will have to provide one electric car-share vehicle, 70 car-share memberships and $100 driving credits, extra large bike-parking spaces, a bike-repair station and B.C. Transit passes.
The developers have noted additional parking will be available under the Spencer Block project when it is completed.
“Of course, there’s not enough parking by conventional standards,” Alto said. “But on the other hand, I think council is wrapping its head around the fact that this part of town is fairly easily accessible with public transit and walkable.”
The proposal, which will come back to council Oct. 17 for the first readings of the bylaws and approval of the development permit, underlines the changes envisioned for that area of downtown.
The city has plans for what it calls an arts and innovation district in the north end of downtown that anticipates more residential buildings mixed with light industry, arts and cultural buildings and a strong Indigenous presence.
Last month, council approved a tax exemption program for the Esquimalt and Songhees First Nations as an incentive to redevelop the Rock Bay lands that have been idle for years.
The city hopes to increase the vitality of the area — about 7.5 acres controlled by Matullia Holdings, a company owned by the nations — with a mix of light industrial, marine, commercial, office and retail uses as well as publicly accessible gathering spaces.
Reliance Properties has a plan to redevelop seven acres around the Capital Iron store.
That project, to be built out over the next decade or so, includes more than 500 residential units, commercial and office space and a potential new home for the Art Gallery of Greater Victoria on the property, which includes 400 feet of waterfront.
“It will be interesting to see how things develop over the next five to 10 years,” said Alto.
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