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“Dead space” proposed in New West after developer struggles to find tenant

A dental clinic is proposed in Sapperton after developer put "considerable" effort into attracting tenants
premiere
Premiere is a mixed-use building in Sapperton that includes 72 purpose-built rental units and ground-floor commercial space.

A New Westminster city councillor wants the city to make sure that Sapperton’s commercial area doesn’t lose spaces for local businesses.

At its Dec. 11 meeting, council received a preliminary report about a rezoning application for 408 East Columbia St., where an applicant wants to locate a dental clinic within an existing commercial retail unit. The space is located on the ground floor of the Premiere, a six-storey, mixed-use development that includes 72 purpose-built rental units.

A staff report said the proposed use would exceed requirements “for non-active uses” in the current zone, so a rezoning text amendment is required in order for a dental clinic to open in that space.

“A compromised approach has been proposed where one of the two remaining vacant units would be permitted to convert to non-active commercial, with additional design controls to maximize storefront transparency and locate more active components of the business (e.g. reception) at the front of the business,” said the report. “Staff consider this a reasonable compromise, balancing the need for active uses with the need to address vacancy and encourage new business in Sapperton.”

Other than the proposed dental clinic, other commercial tenants in the building will include Barcelos Chicken, Subway, and Manhas Pharmacy/Clinics.

Following a discussion about the proposal, council unanimously approved a staff recommendation to direct staff to work with the applicant to prepare a zoning amendment bylaw for the subject property for council’s consideration.

At council’s Dec. 11 meeting, Coun. Tasha Henderson expressed concern about the impacts that the cost of storefront spaces is having on small businesses.

“I'm admittedly worried about this trend, generally,” she said. “I think as we see a lot of older buildings be redeveloped in our retail areas, the reality is that these new developments are unaffordable, either for by lease for small businesses, or in this case, they're stratified. So, businesses have to purchase a unit.”

As new developments go up, Henderson said spaces in new buildings are often filled by chain stores. While Sapperton is the “health corridor”, she said there’s also a lot of retail and restaurants in the neighbourhood.

“If the only business that is able to afford these spaces are office use, it impacts the existing retail and restaurant industry in that space, because it's less vibrant, less people milling around and shopping up and down the street,” she said.

Henderson supported the staff recommendation but suggested staff could report back on tools the city may have to ensure the city is providing opportunities for small businesses to operate in retail areas that are going to be redeveloped over time.

“I think that it should be on our radar,” she said. “I think that the time to do something about the affordability of new units is during the development process, not afterwards.”

Demian Rueter, acting senior manager of climate action, planning and development, said this particular property owner has put forth a “considerable effort” to develop the tenant space.

“Having in this space been vacant for this length of time is concerning, and we have some sympathy for that perspective. It is a fairly difficult time in the retail market,” he said. “We do definitely attempt, as we were trying to do here, to try to encourage diversity of business uses.”

Coun. Daniel Fontaine said he has concerns about transforming what the city had hoped would be active retail space to “effectively dead space” on the street.

“There might be activities happening behind the door, but a lot of times, from a street perspective, if you have too much of this in a particular block it just had the unfortunate way of dulling a street activity,” he said. “So I think that's why council has really been pushing to have more street activation and more retail there that would provide a bit more life, patios, those kinds of things.”

Fontaine questioned how the proposal aligns with the city’s retail strategy.

Rueter said the city is trying to increase the amount of retail spaces within Great Street areas.

“Having an empty space is not great either,” he added.

Fontaine also expressed concern about “escalating rents” for commercial spaces in New West, which is resulting in some businesses leaving town.

“I know it's beyond control of staff; we have no rent controls on commercial, obviously,” he said. “But it's something to keep an eye open for it.”

Coun. Nadine Nakagawa said she’s willing to let this proposal go forward because it’s already built and the owner has tested the market. She said the retail strategy talks about things like smaller businesses, pop-up businesses and incubator spaces, and she wants to make sure the city’s building policy is aligned with that strategy.

“I would be interested in hearing if there is like any policy tool that will allow us to make sure that storefront retail especially is created in a way that it would allow for local businesses, small businesses, the type of businesses that support community,” she said. “Not to say that dental offices don't – teeth are important; but to make sure that other types of businesses can access those spaces.”

Mayor Patrick Johnstone agreed that council needs to have some further discussion about the policy side of supporting retail in sites that are redeveloped. While that is an important policy discussion for council, he doesn’t want it to get in the way of allowing the applicants of this proposals to be able to activate their site.

Coun. Ruby Campbell said the 2024 budget includes a proposal to fund a business growth coordinator in the economic development department, something she supports. She said that role would help in situations like this as it would support the implementation of the retail strategy, help local businesses expand, and work to retain existing businesses and attract new businesses to the city.

“You can't just have a retail strategy sit on the shelf, and then not actually do the work,” she said. “And I think this is a prime example of how that position can help.”