Staff Report to Council: Remedial Action Order for 2748 Peatt Road

EXECUTIVE SUMMARY:

The City retained an independent firm, WSP Canada Inc. (WSP), to undertake review of the geotechnical works related to the foundation structure for the development at 2748 Peatt Road and 2745 Scafe Road, known as the Scene, and legally described as LOT A, PLAN EPP118666, SECTION 5, ESQUIMALT LAND DISTRICT, EXCEPT AIRSPACE PLAN EPP129237 PID: 031-671-659; PLAN EPP129237, SECTION 5, ESQUIMALT LAND DISTRICT, AIR SPACE PARCEL 2 PID: 032-223-579 ; and PLAN EPP129237, SECTION 5, ESQUIMALT LAND DISTRICT, AIR SPACE PARCEL 1 PID: 032-223-561.

During the course of its review, WSP has identified immediate concerns with the structural integrity of the shoring wall of the southern portion of the lot abutting 2752 Peatt Road.

Staff are recommending a remedial action order requiring the owner to mitigate the safety risks and nuisance in accordance with WSP’s recommendation (i.e., the shoring wall be buttressed with granular backfill within two weeks, with the backfill grade matching the driveway elevation and achieving a stable slope not steeper than 1.5~2H:1V (depending on the fill used)), failing which the City will take action to do the remediation.

BACKGROUND:

January 24, 2022, Council adopted Bylaw No. 2009 which rezoned the properties now addressed as 2748 Peatt and 2745 Scafe Road to allow for the development of two high rise towers on the site, one 24 storeys and a second 18 storeys including a common podium. The site was excavated under an excavation permit issued January 25, 2023 and shoring was installed. Since the excavation there has been little progress on the site development. In April 2025, a foundation permit was issued and in October of 2025 some minor footings were poured.

As part of a review of the documents provided with respect to the foundation, the City became aware of at least two different opinions from separate engineering firms with respecting the suitability of the proposed design in relation to the soil conditions. This raised concerns and the City retained WSP to conduct a peer review investigation of the geotechnical engineering.

COMMENTARY:

Council may impose remedial action requirements in relation to hazardous conditions with respect to an artificial opening in the ground where council considers there is an unsafe condition. The order may require the owner to “fill it in” or “otherwise deal with it in accordance with the directions of council or a person authorized by council.” Council may also impose remedial action requirements in relation to nuisances.

WSP has recommended that the shoring and wall be buttressed with granular backfill within two weeks, with the backfill grade matching the driveway elevation and achieving a stable slope not steeper than 1.5~2H:1V (depending on the fill used) and staff are therefore recommending that council make a remedial action order requiring the work to be completed by no later than February 25. This timeline is shorter than the 30-day minimum set out in section 76 of the Community Charter; however, there is a provision for shorter timelines set out in section 79 where council considers there is a significant risk to health or safety if action is not taken earlier.

While the legislation provides for a 14-day period during which reconsideration may be sought, this timeline can also be shortened, and therefore the developer will be notified that they must apply for reconsideration before February 19th. Given WSP’s identification of a real risk of the excavation shoring and wall failing, if heavy trucks or emergency vehicles access the neighbouring strata site, there are reasonable grounds for Council to consider there to be a significant safety risk if action is not taken earlier than the standard 30-day timeline. This conclusion is supported by WSP’s recommendation that the remedial work be completed within two weeks or 14 calendar days.

In the event that the work is not completed within the required timeframe, the City will be in a position to step in immediately and undertake the work through a contractor. Any costs incurred by the City in carrying out the remedial work would be recoverable from the owner, either as voluntary payment of invoices or by adding the amounts outstanding as of December 31 to the property taxes as taxes in arrears.

FINANCIAL IMPLICATIONS:

While there are financial impacts in the short term, all amounts incurred are recoverable.

LEGAL IMPLICATIONS:

The City has the authority impose a remedial action order in these circumstances and to collect any amounts expended from the property owner.

STRATEGIC PLAN ALIGNMENT:

• 5 – Good Governance.

OPTIONS:

Option 1

THAT Council declares the property having civic address of 2748 Peatt Road and 2745 Scafe Road, known as the Scene and legally described as LOT A, PLAN EPP118666, SECTION 5, ESQUIMALT LAND DISTRICT, EXCEPT AIRSPACE PLAN EPP129237 PID: 031-671-659; PLAN EPP129237, SECTION 5, ESQUIMALT LAND DISTRICT, AIR SPACE PARCEL 2 PID: 032-223-579 ; and PLAN EPP129237, SECTION 5, ESQUIMALT LAND DISTRICT, AIR SPACE PARCEL 1 PID: 032-223-561 to be a hazard pursuant to Section 73(1) and Section 73(2) of the Community Charter, due to the real risk of the excavation shoring and wall failing if heavy trucks or emergency vehicles access the neighbouring strata site ;

AND THAT Council impose a Remedial Action Order in the form as attached, subject to any revisions recommended by legal counsel;

AND

THAT Council direct that pursuant to Section 79 of the Community Charter the time for compliance be shortened to a completion of February 25, 2026, due to the significant risk if action is not taken immediately and direct Staff to advise the property owner that the period for request of reconsideration is also shortened to 12 o’clock noon on February 19, 2026;

AND

THAT Council direct staff that if such remedial action is not completed by the Property Owner by no later than February 25, 2026, the City, by its staff, contractors and agents, will enter the Property to complete the required work at the Owner’s expense pursuant to Section 17 of the Community Charter.

OR Option 2

THAT Council receive this report for information and direct staff to come back with more information as it becomes available.

SUBMITTED BY:

Marie Watmough, Director of Legislative & Protective Services

Concurrence:

• Melisa Miles, Manager of Legislative Services
• Donna Petrie, Senior Manager of Communications & Economic Development
• Leah Stohmann, RPP, MCIP, Director of Community Planning and Development
• Katelyn Balzer, P.Eng., Director of Engineering and Public Works
• Michael Dillabaugh, CPA, CA, Director of Finance
• Marie Watmough, Director of Legislative & Protective Services
• Braden Hutchins, Deputy Chief Administrative Officer
• Darren Kiedyk, Chief Administrative Officer

Attachments:

• Attachment 1 - WSP Canada Report dated February 11, 2026
• Attachment 2- Draft Remedial Action Order