It might have been one of the worst-kept secrets in the development industry, but Telus’ plans for a major new office tower at the corner of Richards and Georgia streets are finally known.
A high-energy press conference last Wednesday morning launched the project, which represents an investment of $750 million and will create a million square feet of office, residential and retail space in the city’s core. Westbank Projects Corp. will develop the project in partnership with Telus, which has christened the site Telus Garden on account of its significant commitment to environment-friendly technology. A minimum of LEED (leadership in energy and environmental design)- gold certification is planned for the project. Designed by Henriquez Partners Architects of Woodward’s fame, it will feature elevated forests and “sky gardens” producing organic veggies for local restaurants. The office tower in particular is flagged for LEED-platinum status, a first in Canada.
Westbank president Ian Gillespie said LEED platinum is possible for the office tower because of the presence of Telus as the anchor tenant, which eliminates the significant leasing commitments otherwise required for the project. The residential portion – 500 homes on 44 storeys (approximately the same height as the adjacent Scotia Tower) – will be LEED gold, but Gillespie said the aim is to over-deliver on that promise, rather than promise more but fall short.
The project will free 115,000 square feet for lease in Telus’ existing headquarters on Seymour Street.
Regarding a timeline for construction, Telus president and CEO Darren Entwistle said he wants to get started “as quickly as possible because I want to still be here when it opens.” Realistically, however, the rezoning process has only just started and will take about nine months. City councillors will decide on the proposal for the site later this year.
Several project details have yet to be finalized, including a purchase price for the city-owned parkade Telus is acquiring for the Georgia Street tower.
One of the key hurdles developers, and indeed municipal planners, face is engaging the community when bold new projects are planned. The process risks being panned as all show (the prompt start of construction of the trial bike lane on Hornby Street the morning after the vote being one example), while some community concerns might not be deemed in the best long-term interest of the city. Vancouver’s current director of planning, Brent Toderian, remarked in a presentation made as part of Simon Fraser University’s City Program shortly after coming to Vancouver in 2006: “Listening is key. … Agreeing is, certainly, a different thing.”
It’s a point not lost on Chris Vollan, vice-president, development, with Rize Alliance Properties Ltd., as the company engages with the community regarding its plans for the corner of Kingsway and Broadway in Vancouver’s Mount Pleasant neighbourhood.
Plans call for a 26-storey residential tower at Kingsway and East 10th Avenue as part of a mixed-use redevelopment set for completion in 2016. Rezoning is underway, and a community workshop on March 20 will invite discussion and feedback from neighbours regarding the project.
The tower’s height has already sparked concern among neighbours. It’s more than double the height of the 110-foot Lee building at Main and Broadway that has defined the neighbourhood’s skyline since 1912. But Vollan believes Rize’s tower could be seen as too short in 20 years given the city’s growth (this, in a neighbourhood dominated by nine-storey condos).
Some area residents have also been concerned at the odd timing of the fire that destroyed shops and studios that formerly occupied the Broadway side of the site in the wee hours of Christmas morning 2009 (an insurance report found no one at fault in the fire, which was traced to some electrical wiring).
Rize is also engaging in its own activities, talking with strata councils and businesses adjacent to the site, beautifying the Kingsway-Broadway corner and soliciting local entrepreneurs for rent-free, short-term storefronts on the site.
Vollan believes community concerns in neighbourhoods where rapid growth and redevelopment is occurring need to be dealt with openly and directly. Gaining the trust and respect of the community is as significant as ensuring the final project stands the test of time.
“You need to get it right the first time,” Vollan said.
Projects such as the Telus tower and Rize Alliance’s mixed-use project in Mount Pleasant will bring new commercial space to market in the future, but the BC Real Estate Association (BCREA) says 2011 is shaping up to be a strong year in itself.
The announcement by Telus, and another last week by Onni Group offering 90,000 square feet of space at Main and Terminal, underscore the strength of the market.
BCREA says its index of commercial real estate activity rose to 110.5 at the end of 2010, up from 100.1 two years ago. The most dramatic gains have been in recent months.
“[This] is a result of dramatically improved financial conditions, which helps explain the impressive surge in commercial real estate investment into B.C. last year,” the BCREA reports.
It foresees activity continuing to strengthen, but not limitlessly.
According to the report, “The rebound in these indicators may reflect more of a normalization than a signal of robust future commercial activity.”