Gibsons councillors agreed last week to endorse a price of $229,000 each for six affordable housing units planned for the Parkland subdivision.
The price was recommended by staff and would apply to 1,000-sq.-foot (90-sq.-metre) units in three duplexes on Payne Road in Upper Gibsons.
"It's a reasonable offer," planning director Andre Boel told council's committee of the whole on April 16.
The price was arrived at after years of talks between Town staff and the developer, who had been asked to provide five affordable housing units at a maximum sale price of $215,000 per unit when the land was rezoned for a higher density in 2008.
In his report to council, Boel said the original required price of $215,000 was logical before the economic downturn of 2008.
"However, in recent years," he wrote, "interest rates have been considerably lower, reflecting changes to the housing market and residential construction industry."
Coun. Dan Bouman said he was concerned the price might be too high.
"It may be that the value you've set here is entirely appropriate [but] as a council we've never discussed those dynamics," Bouman said. "It is an important consideration because right now the only opportunity for us to get affordable housing is a situation like this one."
Developer Blane Hage-dorn, speaking from the gallery, said a duplex unit in the subdivision that is similar to the proposed affordable units had a subject offer pending of $279,000.
"That's what we believe is the value," Hagedorn said. "We didn't agree with $260,000," the market value set by an appraiser last fall.
"This is a hell of a deal," he said. "I've done a lot of soul-searching on this and I'm going to take a big hit on the property myself, because the cost to construct is considerable."
Asked when he could expect to start construction on the units, Hagedorn said: "Give us customers, we'll build it right now."
Coun. Charlene SanJenko said she thought the price was right. "It is affordable for what you're getting in the location and the amenities of the complex," she said.
Coun. Gerry Tretick said the issue had dragged on long enough and Mayor Wayne Rowe said he agreed.
"We've been wrestling with this for going on six years now, and it's just ridiculous," Rowe said.
As part of the recommendation, staff will come back to council with a housing agreement, which will include rules for re-sale, and a bylaw for consideration.
Boel said the Town will likely adopt a point system to determine who can qualify.
In a separate application, the committee approved a staff recommendation to consider a single affordable housing unit for a proposed four-storey mixed commercial and residential development on Gibsons Way, next to the Petro-Canada service station.
Based on its 10 per cent requirement, the Town had originally asked for two affordable units in the 28-unit building. The applicant objected, however, because the site's zoning already allows for a three-storey building and two-thirds of the proposed residential units, Boel reported.
The reduction to one unit reflects the number of new units - eight - added through the lift in density after rezoning.
