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Council approves two Heights District development agreements for 184 affordable units and a community market hall
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Summary
The council approved disposition and development agreements for Site C (Palindrom/LATINO Leadership Northwest) and Site P (Related Northwest/Vancouver Housing Authority) that together will deliver 184 affordable units, a market hall emphasizing local and BIPOC retailers, and significant city land and financial support.
Vancouver City Council on Oct. 13 approved two disposition and development agreements (DDAs) that staff said will deliver 184 affordable housing units in the Heights District and a market hall with micro‑retail space prioritized for local and BIPOC‑owned businesses.
Staff presented two projects: Site C, developed by Palindrome in partnership with Latino Leadership Northwest, is a mixed‑use building with 104 affordable units serving households at 30–80% of area median income (AMI) and an on‑site market hall. Amy (development staff) said the project—s income distribution concentrates most units in the 50–60% AMI range, includes studios through three‑bedrooms and live‑work spaces along Divine Road, and would provide about 111 parking spaces.
Site P, proposed by Related Northwest in partnership with the Vancouver Housing Authority, is an 80‑unit family housing building serving households at 30–60% AMI (majority at 60% AMI). Staff said the site is being phased; the current DDA covers the family building, with a 51‑unit senior building to return to council at a later date.
City investments include discounted 99‑year ground leases, land valuation credits and direct contributions from the city—s affordable housing funds. For Site C staff cited a roughly $700,000 land value (net of lease discount), about $4.1 million from affordable housing funds, a $396,000 share of construction sales tax exemption and $463,000 in impact fee reductions — totaling about $5.6 million in city investment for that project. Staff said combined city investment across both projects exceeds $10 million, and estimated project costs of roughly $46 million (Site C) and $38 million (Site P), yielding leverage ratios of 7.25:1 and 5.9:1 respectively.
The ground leases carry deep rent discounts through year 40 (Site C: 90% discount first 20 years then stepped reductions; Site P/VHA: 95% discount for the 40‑year period), requirements for 40 years of affordability (staff said the city and developers intend perpetual affordability), and workforce and contracting targets including a minimum 20% of subcontractor contracting to BIPOC, women‑owned and emerging small businesses. Site C includes programmatic restrictions on the market hall: more than half the micro‑retail spaces must be rented to local and BIPOC‑owned businesses.
Construction for both projects is projected to begin in 2027 with completion by 2029. Councilor Paulson framed the project—s AMI levels in dollar terms to illustrate the intended residents (for example, 80% AMI for a family of four and 30% AMI figures cited during discussion) and moved to approve Site C; the motion was seconded by Councilor Stober and passed. Council later voted to approve Site P (motion by Paulson, second by Perez); both votes passed on voice votes with no recorded opposition.
Councilors asked staff to clarify ownership of single‑purpose entities used for development and confirmed Latino Leadership Northwest—s majority interest in the Site C limited partnership. Staff said additional ground‑lease paperwork and the formal ground lease form will return to council for review prior to closing.
