It’s the largest development ever proposed in Saanich, the University Heights Redevelopment Concept.
On the corner of Shelbourne Street and Mackenzie Avenue, the $230 million development plans include 550 new rental spaces, a daycare centre, EV charging stations and more than 100,000 new square feet of retail space.
READ MORE: Proposal envisions hundreds of rental housing units, commercial space at University Heights
Construction was set to begin in the Spring of 2021 according to the development company, Wesbild, but those plans are now put on hold after a dispute with one of the mall’s tenants: Home Depot.
“We were really looking forward to it, and to be honest, it’s really disappointing,” said Saanich Mayor Fred Haynes, who says the entire council is also disappointed.
In the proposed plans of the redevelopment, Home Depot and its parking lot will not be touched. They are set to remain the exact same while the construction is done on the other parts of the mall property.
The dispute is over a clause in the lease stating that the building supply store has the right to use the shared parking spaces in the rest of the mall, but that is where the new daycare facility is set to be built.
According to Wesbild, Home Depot is demanding a 10,000 square foot expansion of the store, and $5 million in compensation for breaking the terms of the lease.
“The financial considerations they’ve asked for, in our opinion, aren’t feasible. We think they need to reflect on that because this is a rental project. Saanich needs this development,” said Steve Forrest, senior vice president of Wesbild.
“We do think Home Depot is a valued asset as an anchor tenant, but they need to reflect on what are reasonable terms within the expansion.”
Haynes says this demand made in late-August is a curveball in the eleventh hour.
“Home Depot is an American company, it’s not concerned with local,” said the mayor. “They’re a 230-plus store empire and they called at the very last minute, over insurmountable issues, almost in a sense of extortion.”
And Saanich residents, who were looking forward to the new amenities at the University Heights location are also feeling let down.
“I’m very disappointed. Especially in this case, where we have a real community amenity being brought along. It’s ironic being held up by a home-improvement store,” said Saanich resident Edward Pullman.
More than the loss of amenities, he’s disappointed the rental units might not be built.
“We have a housing crisis in the region, and the only way we’ll get the vacancy right above three per cent is to build more rentals,” said Pullman.
In a statement to CHEK News, Home Depot said, “The Home Depot has had a consistent position during our good faith discussions with the developer, since 2017, which includes a parcel of land that the developer is not legally permitted to develop. The Home Depot remains in favour of the ongoing development of the area to best serve its residents, and we will continue to work with the city and Developer.”
But Webild says it has addressed all of the Home Depot’s concerns at the beginning stages of the development and says this latest news of HomeDepot’s demand was disappointing.
“We’re hoping we can find a balanced resolution but we’ve had no other option other than to put it on hold,” said Forrest.
For now, the two parties are at an impasse and the future of the project is in jeopardy.
Rebecca Lawrence
