FAQ - Economic and Employment Lands

No. The proposed zoning amendments do not increase the maximum building height or maximum density in the Old Town zone.

All new development in the Old Town area continue to require a development permit or heritage alteration permit that aligns with key City policies and guidelines such as the Official Community Plan, Old Town Design Guidelines and The Standards and Guidelines for the Conservation of Historic Places in Canada.

 If an applicant proposes a greater density or height in Old Town than what is currently permitted in the Zoning Bylaw, the process would be the same as it is today.

 Victoria’s heritage program is among the strongest in British Columbia. Heritage in Old Town is protected in many ways:

• Approximately 100 properties in Old Town are Heritage Designated. Heritage designation provides the strongest legal protections, preventing demolition and inappropriate alteration.
• Old Town is also within a Heritage Conservation Area. This means that any property on the Heritage Register requires a heritage alteration permit for exterior alterations. Applications are evaluated against the same policies and guidelines as heritage designated sites.
• For properties with heritage merit but no heritage status, City policy encourages designation as part of adaptive reuse projects. The City also typically seeks designation of register properties when reviewing development applications.

The recently directed actions support Old Town’s economic health and heritage by permitting additional employment-focused uses (light industrial, veterinary clinic and laboratory) that can occupy existing spaces as well better support the adaptive reuse of heritage buildings.

The tax exemption for hotel uses further encourages the upkeep of heritage buildings for visitor accommodation, which can offer new customers for nearby businesses located in other heritage buildings.

These actions are part of a limited, near-term suite of solutions to support Victoria’s economy. The OCP also directs the renewal of the City’s heritage program. This long-term initiative has not yet begun.

Yes, the proposed zoning amendments to the Central Business District (CBD) would increase the maximum density for non-residential properties from 3.0:1 FSR to 5.5:1 FSR in the CBD-1 Zone[CM3]  and from 4.0:1 FSR to 5.5:1 FSR in the CBD-2 Zone. The densities for development that includes residential uses will remain unchanged in the CBD zones

These amendments align with  the density envisioned in the Downtown Core Area Plan. 

The zoning changes would help to increase certainty for an applicant by having pre-defined zoning regulations, which reduces risk, and shortens the development timeline. It also helps improve the current window of opportunity for hotel development in the near-term and supports development of a variety of employment spaces in the CBD over the long term.

Floor Space Ratio (FSR) is a metric used in planning and development to describe how much total floor area can be built on a site relative to the size of the lot. It can also be considered density. Density can be expressed in the built environment in many ways – no two buildings with the same FSR look exactly alike. 

There are a variety of buildings in the Central Business District that are around 5:1 FSR already, including:

The Atrium Building, approved at 5.0:1 FSR

 Photo source: jawlproperties.com

The Magnolia Hotel approved at 4.6:1 FSR.
 Note it is in Old Town, rather than in the Central Business District.

 Photo source: destinationgreatervictoria.com

The Rotunda Building (six storeys) was approved at 3.7:1 FSR
 750 Pandora (taller building) built as part of the same development was approved at 5.88:1 FSR.

 Photo source: jawlproperties.com

These actions are part of a limited set of near-term solutions to support Victoria’s economy. The OCP also directs other actions related to economic health, including renewing the plans for the downtown and the harbour, as well as ongoing economic planning. Stay tuned as this process is developed.

The Revitalization Tax Exemption is intended to spur new hotel development as a strategy to realize economic revitalization in a time of challenging economic conditions and to help address a scarcity of hotel rooms and increasing demand for visitor accommodation. 

Economic conditions are currently making office and high-rise residential development unviable, and this creates an opportunity for hotel development downtown and throughout key nodes in Victoria. However, even hotel development viability is challenged by high construction costs. Analysis indicates that a Revitalization Tax Exemption can help overcome this viability challenge and spur new hotel construction, making it an especially timely and effective strategy for economic revitalization in Victoria.

The Greater Victoria Hotel Development Report estimated that significant direct and indirect economic revitalization effects will result from the creation of 2,000 new hotel rooms. This includes 2,760 direct and indirect jobs, $85 million in annual wages, $100 million in annual visitor spending and almost $50 million in annual tax revenue to various levels of government. Assuming the Official Community Plan goal of 1,500 new hotel rooms is achieved, approximately three quarters of this estimated economic revitalization effect stands to be realized within Victoria. 

The tax exemption program is designed to have little to no effect on all other taxable properties. 

The tax exemption will exempt a new hotel development or expansion from the increase in municipal taxes that result from an increase in property value. This means the hotel property would continue to pay property taxes proportionate to the value of the property before the hotel development or expansion.

Taxable properties will continue to pay what they would have paid if no hotel was developed until the tax exemption expires. Once the exemption expires the hotel property starts contributing the full municipal tax amount.