A committee will take a closer look at a proposal to convert a 60-townhouse complex located on Oakwood Avenue and Burns Street into condominium units as North Bay City Council members voted to refer the file back to the committee level.
Ahead of Monday's special meeting of the council, the City of North Bay's Planning Department recommended the council conditionally approve the proposal, according to the associated staff report. The project is still in the draft approval phase and the condominium conversion proposed by Bernard Divona on behalf of the property owner, SIREG Holdings (North) Inc., was to be open to discussion and voted upon Monday but those discussions will now take place in a committee setting.
Any approval is conditional upon SIREG entering into a condominium agreement with the City of North Bay. Each of the 60 converted condo units located in 11 separate buildings at 350 Oakwood Ave., in North Bay would go up for sale at less than $180,000 each, while allowing the existing tenants to purchase their home and also guaranteeing no change to their current rental arrangement. The fixed prices proposed by SIREG are $169,000 for 3-bedroom units and $179,700 for 4-bedroom units. The existing 60-unit townhouse-style residential development predominantly fronts Oakwood Avenue with some units along Burns Street.
See related: Proposal to convert townhouse complex to 'affordable' condos
While the Oakwood condo proposal will be scrutinized in a committee of North Bay City Council, Coun. Tanya Vrebosch also gave notice she will be bringing a motion forward to examine future condo conversions.
"There's nothing we can [really] do about Oakwood. It's based on the current Official Plan. Affordable home ownership isn't a bad thing, it's just not the right time. For those still living in those units, they are paying very affordable rent. By moving to condos, we will potentially — inadvertently — be part of renovictions or extremely high rent increases in a time where there are no other options and the cost of living is high."
In the past condo conversions mainly occurred for tax purposes, Vrebosch tells BayToday. "Taxes on a condo were significantly lower than those of a multi-residential unit. There were also other options for other places to move. Take the apartment building on Sixth Avenue, the one on the rock. When it transferred to condos, you didn't see mass evictions/renovictions."
Vrebosch confirmed she was going to vote against the proposal Monday evening before it was referred back to the committee level by a motion from Coun. Lana Mitchell that was seconded by Coun. Justine Mallah.
"You have to vote your conscience. I believe we need affordable home ownership, just not right now ... but knowing that it will most likely get appealed to the Land Tribunal, we would also have to pay for outside planning assistance as we would be voting against our own staff's decision.
"Let's look at the Official Plan and put something on there to consider the economic climate so that we have the option to say no in unprecedented circumstances."
SIREG "is proposing the creation of an investment vehicle through the condominium conversion process, per the report from Planning. SIREG's business model will allow investors to own individual dwelling units, which the current property owner (SIREG Holdings) would then rent out to tenants and manage on behalf of the investors ... SIREG further explains that the individual tenants would see no change to their current rental arrangement. Finally, it states that over the longer term, the individual units would be upgraded and improved."
Using a formula that takes into account recent local rental vacancy rates and whether the units qualify as affordable housing, City of North Bay staff recommend the draft approval.
"Affordable" housing is defined as:
1. housing for which the purchase price results in annual accommodation costs which do not exceed 30 per cent of gross annual household income for
'Low- and moderate-income households'; or
2. housing for which the purchase price is at least 10 per cent below the average
purchase price of a resale unit in the regional market area
Peter Carello, a senior planner, determined both definitions are met with this proposal.
"Condominium conversions have both benefits and drawbacks to a community," Carello writes in his report. "The downside is that there are rental units that are leaving the available rental housing stock. Having fewer available rental units could equate to having fewer housing choices for renters and could result in higher rental rates over time if new rental housing stock is not being developed.
"However, the conversion of these units into individually owned condominium units creates homeownership opportunities that may not otherwise be available within the community. There are a few examples of this type of housing choice elsewhere within the community. These properties seem to be successfully operating and their units often represent some of the most affordable homeownership opportunities in North Bay’s real estate market."
