Staff Report to Council: Strata Title Conversion of Commercial Building at 2826 Bryn Maur Road

Staff Report to Council: Strata Title Conversion of Commercial Building at 2826 Bryn Maur Road

DATE

Thursday, May 18, 2023

DEPARTMENT

Administration

SUBJECT

Strata Title Conversion of Commercial Building at 2826 Bryn Maur Road

BACKGROUND

In 2022, the City of Langford purchased the commercial building at 2826 Bryn Maur Road (the “Building”). The Building has two upper units and one ground floor unit. Despite this construction, the Building has only two strata units on title.

The Building was purchased as a relocation option for Langford businesses located on properties identified by the City for intersection improvements and proposed projects for the downtown core. The City offered relocation to the Building to these businesses during acquisition negotiations so they could remain in Langford. One of these businesses, Pearson & Company Law Corporation (“Pearson”), did relocate to the Building.

Pearson agreed to sell its building, located at 1103 Goldstream Avenue, to the City in exchange for the City selling to Pearson one of the upper units of the Building. The City agreed on the condition that Pearson signed an “Option to Purchase” agreement, exercisable by the City, to buy the property back for a set price. The other two units in the building are occupied by two not-for-profit organizations, March of Dimes Canada (Sea-Isle Rehabilitation Services) and Vancouver Island South Film & Media Commission, as tenants of the City.

To sell Pearson a unit in the building to Pearson and keep ownership of the other two units, the Building needs to be re-classified with the Land Titles Office to be three strata units on title instead of two.

Subdivision Boundary adjustment

The City also purchased the property adjacent to the Building, 2832 Bryn Maur Road, to relocate the Goldstream Masonic Hall Association (the “Masons”) from 679 Goldstream Avenue. The City is constructing a new building at 2832 Bryn Maur Road with three ground units and one upper floor unit. The Masons have agreed to purchase at least the upper floor unit of the building once construction is complete. In order to build the new building and accommodate the above ground parking needed, the City plans to do a subdivision boundary adjustment with 2826 Bryn Maur Road to allocate a portion of the land from 2826 Bryn Maur Road to 2832 Bryn Maur Road.

COMMENTARY

Section 242 of the Strata Property Act (the “Act”) specifies that Council is the approving authority for the strata title conversion of a previously occupied building. When approving a strata title conversion, the Act states that the approving authority should follow the applicable requirements below:

(5) The approving authority must not approve the strata plan unless the building substantially complies with the following: (a) the applicable bylaws of the municipality or regional district; (b) applicable Nisga'a Government laws; (b.1) the applicable laws of the treaty first nation; (c) the building regulations within the meaning of the Building Act, except, in relation to a treaty first nation that has entered into an agreement described in section 6 of that Act, to the extent that the agreement enables the treaty first nation to establish standards that are different from those established by the building regulations.

(6) In making its decision, the approving authority must consider (a) the priority of rental accommodation over privately owned housing in the area, (b) any proposals for the relocation of persons occupying a residential building, (c) the life expectancy of the building, (d) projected major increases in maintenance costs due to the condition of the building, and (e) any other matters that, in its opinion, are relevant.

The Building was built in 1993 and staff have confirmed that the Building does substantially comply with our applicable bylaws. Staff have also engaged an architect to inspect the Building and provide a report to confirm that it substantially complies with the building regulations within the meaning of the Building Act.

FINANCIAL IMPLICATIONS

The City has a signed sale agreement with Pearson to purchase the strata unit for $350,000.00. The City also has a right to purchase this unit back once Mr. Pearson is no longer operating his business from there for the same amount, plus any increase in value as determined by BC Assessment.

LEGAL IMPLICATIONS

The strata titling and boundary adjustment processes that the city must follow are set out below:

1. Cancel the existing Strata Plan VIS3402 to wind up the existing strata,
2. Register the Subdivision Plan EPP123629 to adjust the boundaries of the two lots,
3. Register the new Strata Plan EPS8823 to strata title the existing building into three new strata units.

OPTIONS

Option 1

THAT Council:

1. Resolve to wind up the existing strata and authorize the signature of necessary documents to wind up Strata VIS3403; AND

2. Endorse the legal plan to create Strata Plan EPS8823 at 2826 Bryn Maur Road; subject to receiving confirmation from an Architect that the existing building substantially complies with the building regulations within the meaning of the Building Act.

OR Option 2

THAT Council: Take no action at this time with respect to the strata title conversion at 2826 Bryn Maur Road.

SUBMITTED BY

Daryl Minifie, AScT, Senior Land Development Technologist

Concurrence

• Leah Stohmann, MCIP, RPP, Deputy Director of Planning and Subdivision
• Cameron Edwards, Senior Building Official
• Donna Petrie, Senior Manager of Business Development and Events
• Matthew Baldwin, MCIP, RPP, Director of Planning and Subdivision
• Katelyn Balzer, P.Eng., Director of Engineering and Public Works
• Michael Dillabaugh, CPA, CA, Director of Finance
• Marie Watmough, Deputy Director of Corporate Services
• Braden Hutchins, Director of Corporate Services
• Darren Kiedyk, Chief Administrative Officer