Comox Valley Regional District

Background

Initiated in the early-2000s, the development project was enabled by rezoning the project area to Kensington Comprehensive Development Zone, along with adopting Development Permit Area and agreeing to a Master Development Agreement.

Union Bay Estates, formerly known as Kensington Island Properties, is a development project located at Union Bay (Electoral Area A – Baynes Sound – Denman/Hornby Islands). The development project covers 309 hectares (764 acres), and has the potential to create up to 2,889 dwelling units in the form of houses, secondary suites, carriage houses, townhouses, and apartments. The development also includes areas for commercial, institutional, recreational, and resort land uses.

Aerial Map of Union Bay Estates

Role of the CVRD

The Comox Valley Regional District (CVRD)’s regulatory roles within the Union Bay Estates development is focused on compliance with the signed Master Development Agreement, covenants and easements, zoning and development permits required.

The CVRD is also working to develop partnership agreements with Union Bay Estates and K’ómoks First Nation for the proposed Sewer Extension South Project. The proposed project will move wastewater from homes and businesses in Union Bay and Royston through a new sewer pipe where it will connect to the Comox Valley Sewer Service, creating a regional approach for the treatment of wastewater. This new regional system will also serve Union Bay Estates and K’ómoks First Nation Fee Simple and Intended Treaty Settlement Lands, for which development and economic growth will be an important part of reconciliation.

The CVRD is aware of the conditional foreclosure orders filed against Kensington Union Bay Properties Nominee Ltd., and entities associated with the relevant mortgages, affecting several parcels of land within the planned Union Bay Estates development area. The Sewer Extension South Project relies on partnerships and grant funding to help ensure project affordability to the community and to the partners. The CVRD is committed to working within the best of its ability to provide a regional sewage treatment solution for the communities of Royston, Union Bay and K'ómoks Fee Simple and Intended Treaty Settlement Lands. We respect that any solution must be cost effective for Electoral Area A residents and the K'ómoks First Nation, and the project team continues to be dedicated towards a path forward for this service.

For more information on the Sewer Extension South Project visit here.

Master Development Agreement

The Master Development Agreement is a restrictive covenant registered on the land title of all properties within the development project area. It was approved by the Comox Valley Regional District Board in 2010 and its registration was condition of adopting the Kensington Comprehensive Development Zone. Since then, the Master Development Agreement has been amended once (in 2017). The agreement details the community amenities that are to be provided at various stages and it includes standards and conditions to which infrastructure and development must adhere. The Master Development Agreement details the community amenities that are to be provided at various stages and it includes standards and conditions to which infrastructure and development must adhere. Specifically, some provisions within the Master Development Agreement include:

Improvements to the community water system,
Construction of a sewer system,
Donation of land for a fire hall,
Donation of land for a school,
Dedication of park space with the construction and maintenance of trails,
Affordable housing contributions,
Construction of a public assembly place, and
Transit system provisions.

The Master Development Agreement and Amending Agreement are intended to be read concurrently.

Details on the amendment can be found in the CVRD report dated December 8, 2017.

Zoning Bylaw

In 2010, the subject properties were rezoned to Kensington Comprehensive Development Zone (K-CD). The K-CD zone is divided into five Comprehensive Development Areas (CDAs).

Map of Kensington Comprehensive Development Areas (CDAs)

Map of Kensington Comprehensive Development Zone (K-CD)

Regional Growth Strategy and Official Community Plan

Under the Regional Growth Strategy (RGS) and Rural Comox Valley Official Community Plan (OCP), the project area is designated as a Settlement Node. The Settlement Nodes are part of the Core Settlement Areas where the RGS seeks to accommodate at least 90 per cent of growth within the Comox Valley in order to promote the efficient use of land and public infrastructure, provide densities supportive of alternative transportation choices, and achieve regional environmental benefits resulting from compact growth. Settlement Nodes (Union Bay, Saratoga Beach and Mount Washington) are areas where increased growth is anticipated provided new development is appropriately serviced (e.g. with water and sewer).

Development Permit Area

Development Permits are issued to authorize construction and subdivision. In some cases, DPs are required for land alterations. All development permit guidelines are listed in the Rural Comox Valley Official Community Plan. The following Development Permit Areas apply to various areas within the development project:

Development Permit	Area Requirements
Kensington Comprehensive	Necessary for construction of commercial or multi-family residential buildings and associated subdivisions; Requires consistency with design criteria detailed in Section 88 of the OCP.
Aquatic and Riparian Habitat	Necessary for development within 30 meters of a watercourse; Requires an assessment by a professional biologist with measures to preserve, protect, restore, or enhance identified environmentally sensitive areas impacted by the development; Guidelines in Section 80 of the OCP
Eagle/Heron Nest	Necessary for development in the vicinity of a tree with an eagle or heron nest; Requires an assessment by a professional biologist with measures that ensure the future viability of the nest site; Guidelines in sections 81 and 82 of the OCP.
Shoreline Protection	Necessary for development along the shoreline; Requires “softest” measures possible (e.g. softshore or greenshore approaches) as determined by professional coastal engineers and biologists; Guidelines in section 83 of the OCP.
Steep Slopes	Necessary for development on or adjacent to slopes in excess of 30% grade; Requires an assessment by a professional engineer for the purposes of protecting development from hazardous conditions; Guidelines in section 84 of the OCP.

Contaminated Site Remediation
Portions of the project area were formerly used for in the coal industry. With their consulting engineers, the owner has conducted identification and soil management work to address remediation. The owner has applied to the Ministry of Environment and Climate Change Strategy for a certificate of compliance under section 53 of the Environmental Management Act.

Provincial Government

The provincial government is involved in approving several aspects of the development project:

Agency	Jurisdiction / Role
BC Ministry of Transportation and Infrastructure	Subdivision approvals Access permits and structures permits Works or activities on or under public road rights-of-way (including infrastructure)
BC Ministry of Environment and Climate Change Strategy	Sewage treatment Contaminated site remediation
BC Ministry of Water, Land and Resource Stewardship	Water Sustainability Act (works in and about a stream)
BC Ministry of Forests	Heritage Conservation Act Alteration Permits (archaeological sites)

First Building Permit (Non-Residential)

The owners have submitted an application for the project’s first building permit. It is a proposed commercial building, labelled “Discovery Centre”, that is intended to be used as a real estate sale centre and restaurant. The building is located within CDA-3 of the Zoning Bylaw’s Kensington Comprehensive Development Zone and received a Kensington Comprehensive Development Permit (File DP 5A 19). The CVRD Building Services is currently reviewing this application.

First Subdivision

In this rural area, applications for subdivision are submitted to the office of the Provincial Approving Officer within the Ministry of Transportation and Infrastructure (MoTI). The owners have submitted their first subdivision application (MoTI Files 2018-02274 and 2020-02520). The CVRD works with MoTI to ensure subdivisions are consistent with the MDA, zoning, and other regulations. This proposed subdivision is located within CDA-2 of the Zoning Bylaw’s Kensington Comprehensive Development Zone and received a Kensington Comprehensive Development Permit (File DP 13A 19 and DP 16A 21) and a separate Aquatic and Riparian Habitat Development Permit (Files DP 5A 21 and DP 6A 21). The owners have installed some infrastructure in anticipation of subdivision approval though several MDA requirements must still be provided, including construction of a sewer system, transfer of a school site lot, transfer of Parks and Trails (Remainder), and an affordable housing contribution.

To construct a sewer system, the owner has submitted an application to the Ministry of Environment and Climate Change Strategy. The proposed sewer system involves seasonal discharge of up to 1,875 cubic meters per day of treated municipal sewage to Hart Creek during the months of October through May with storage and reclaimed water use during the rest of the year. The status of the application can be viewed using the Tracking Number 370094 or Authorization Number 109314.

Wastewater

The Kensington Comprehensive Development Zone requires all lots be connected to a community sanitary sewer system. The Master Development Agreement includes standards and conditions that the sewer system must meet. As there is currently no community sanitary sewer system in this area, the developer is currently pursuing solutions to satisfy this obligation.

Potable Water Servicing Agreement

A Potable Water Servicing Agreement was signed by the former Union Bay Improvement District and Kensington Island Properties in 2017. The agreement details the developer's commitment of the land for the Union Bay Water Treatment Plant and new firehall, and for funding the expansion of the Water Treatment Plant.

Approved Planning Applications

- In May 2024, on behalf of the property owners, McElhanney Consulting Services submitted an application for a Kensington Comprehensive Development Permit regarding a proposed development of a portable wastewater treatment plant, as well as an application for an Eagle Nest Development Permit regarding land alterations (road building leading up to the treatment plant site).
- The Kensington Comprehensive Development Permit is issued to make the development proposals consistent with the relevant guidelines found in section 87 of the Official Community Plan. This application was considered by the Electoral Area Services Committee and the Advisory Planning Commission. The Kensington Comprehensive Development Permit (DP 9A 24) was issued on July 16, 2024.
- The Eagle Nest Development Permit is issued to make the development consistent with the relevant guidelines found in section 1203 of the Zoning Bylaw. In support of this application, the owners provided a biophysical assessment prepared by a Qualified Environmental Professional. Approval of Eagle Nest Development Permits is delegated to CVRD staff when following the recommendations of the Qualified Environmental Professional. This Eagle Nest Development Permit (DP 10A 24) was issued on July 18, 2024.
- On February 21, 2019, Blue Sky Architecture submitted an application for a Kensington Comprehensive Development Permit on behalf of the developer.
- The Kensington Comprehensive Development Permit was triggered by the proposed construction of a building. The proposed works include construction of two buildings connected by a covered walkway to be used as a real estate sales centre and a café/deli. The proposed development is within Comprehensive Development Permit Area 3 (CDA-3).
- The applicant is working with the Ministry of Environment and Climate Change Strategy (Environmental Emergencies and Land Remediation Branch) to address contamination issues associated with the former industrial use of the lands. As per Section 557 (2) of the Local Government Act, a development permit cannot be issued until the applicant receives a release letter from the Director under the Environmental Management Act.
- On May 16, 2019 the CVRD received a release letter from the Ministry of Environment which allows the development permit to proceed through the review process.
- The development permit was heard by the Area “A” Advisory Planning Commission (APC) at its June 11, 2019 meeting. The purpose of the APC is to review the application and provide advice to the area director, Daniel Arbour. The minutes from the meeting can be found here.
- The development permit was heard by the Electoral Area Services Committee (EASC) at its July 15, 2019 meeting. The staff report and minutes can be found here.
- The Regional Board approved the development permit at its July 30, 2019 meeting. The minutes can be found here.
Map of Subject Property
- On July 12, 2019, McElhanney Consulting Services submitted an application for a Steep Slopes Development Permit on behalf of the developer. The proposed works include land clearing, grubbing and minor regrading of a steep slope located on Lot 2.
- A Steep Slopes Development Permit is required if land alteration is proposed within 7.5 metres of a steep slopes (defined as an area with average slopes greater than or equal to 30 per cent for a vertical distance of three metres or more or slopes designated as hazard lands by a professional engineer with experience in geotechnical engineering).
- In August 2019, the BC Ministry of Environment & Climate Change Strategy granted a permit (Approval in Principle) that allows the developer to begin the contaminated site remediation. With the Approval in Principle in place, development permits are able to proceed through the CVRD review process (development approvals were previously on hold).
- In November 2019, the Steep Slopes Development Permit was approved to allow land alteration (land clearing, grubbing and minor regrading) within 7.5 metres of a steep slope.
Map of Subject Property
- On February 6, 2019, McElhanney Consulting Services submitted an application for an Aquatic and Riparian Habitat Development Permit on behalf of the developer. The lands on the west side of the Island Highway are not subject to this application.
- An Aquatic and Riparian Habitat Development Permit is required if site alteration is proposed within 30 metres of a watercourse (Hart Creek and Creek 2).
- The proposed works include land clearing, grubbing, contaminated site remediation, site grading, removal of a concrete structure and related site works outside of the Streamside Protection and Enhancement Area (SPEA). The SPEA for Hart Creek and Creek 2 is established by the Provincial Riparian Areas Protection Regulation (RAPR).
- The application has been reviewed and accepted by the Ministry of Forest, Lands and Natural Resources Operations and Rural Development (FLNRORD). FLNRORD is responsible for reviewing RAPR assessments to ensure compliance with the RAPR methodology.
- In August 2019, the BC Ministry of Environment & Climate Change Strategy granted a permit (Approval in Principle) that allows the developer to begin the contaminated site remediation. With the Approval in Principle in place, development permits are able to proceed through the CVRD review process (development approvals were previously on hold).
- In November 2019, the CVRD approved the Aquatic and Riparian Habitat Development Permit.
Map of Subject Properties
- On June 1, 2021, McElhanney Consulting Services submitted an application for an Aquatic and Riparian Habitat & Eagle Nest Development Permit on behalf of the developer for work within CDA-2 .
- The purposes of this Development Permit is the protection of the natural environment, its ecosystems and biological diversity. Its applicable areas are those areas within 30 metres of a watercourse (Hart Creek, Creek 2, and the shoreline) and within the vicinity of eagle nests.
- This Development Permit requires a Qualified Environmental Professional review any land alterations within the applicable area and provide recommendations to protect identified habitat values. Similarly subdivision design is reviewed to ensure proposed lots and infrastructure do not conflict with those habitat values.
- In support of this application, the applicants submitted a Biophysical Assessment and Riparian Areas Protection Regulation (RAPR) assessment report by a QEP and a Rainwater Management Plan by a professional engineer.
- The RAPR assessment report was a continuation and expansion of the assessment report submitted in DP2A19 (above) . It was reviewed and accepted again by the Ministry of Forest, Lands and Natural Resources Operations and Rural Development who is responsible for ensuring compliance with the RAPR methodology.
- This Development Permit was approved on June 30, 2021.

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