The City of Nelson will provide $100,000 in funding to support the Railtown Housing Project.
The six-storey, 55-unit mixed-use housing development, planned for the vacant lot at 85 Baker St., will be owned and operated by the Railtown Housing Society, created by the Nelson and District Chamber of Commerce specifically for this project.
City councillors voted on Tuesday, Oct. 7, to contribute $35,000 toward capital construction costs through the city’s Affordable Housing Fund and $65,000 from the Downtown Waterfront Reserve Fund.
Council passed a bylaw earlier this year requiring the society to pay for site improvements such as sidewalks and landscaping.
The housing society had agreed to cover up to $750,000 for that work, but later determined that amount was insufficient, prompting a request for an additional $100,000.
“When they costed what the local service area bylaw covers, it exceeds the $750,000 that we’ve agreed to create a local service area bylaw for,” said CAO Kevin Cormack.
“Basically, this $100,000 will get them to what they estimate the cost to do that work is, which includes the landscape and the lighting, the sidewalks, the road, etc.”
The society also asked the city to provide in-kind services to support engineering inspections.
However, Development Services Director Natalie Andrijancic recommended against the request, citing limited resources, lack of policy, daily monitoring demands and the need for specialized equipment the city does not have.
“Our engineering staff resources are limited, and staff do have concerns about setting a precedent with providing these services,” she said.
“These inspections would involve daily detailed site monitoring as well as specialized equipment that we actually do not have in-house.”
Council voted to decline the request for in-kind staff support but indicated the society could revisit the issue once it has a clearer sense of the supports needed.
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