Plans are starting to fall into place for central Vancouver’s Heights District. A developer submitted designs for the first new building shortly before the Vancouver City Council approved a new funding mechanism which will eventually place a fee on property owners in the district to pay for ongoing maintenance. The council on Monday voted to approve a Heights Business Improvement Area, within which property owners will chip in to cover costs for services above what a city is ordinarily responsible for, according to a city staff report. The business improvement area is primarily bounded by MacArthur Boulevard on the west, Mill Plain Boulevard on the north and North Devine Road on the east, but also includes the former Vanco Golf Range property, the Vancouver Fire Department Station at the corner of Mill Plain and Devine and Northwest Community Church. The city owns most of the property in the improvement area, which includes the old Tower Mall, according to the city staff report. The city bought the Tower Mall property in 2017.

Property owners in the area prefer avoiding new additional costs associated with the improvement area, the staff report said. But “stakeholders understand the need for additional funding to maintain the enhanced improvements and amenities that benefit all property owners.” Patrick Quinton, economic development director for the city, said Monday the business improvement area will raise money to help cover a roughly $400,000 annual funding gap in maintenance and operations costs in the Heights District each year. “This is the challenge we’re trying to solve,” Quinton said. Quinton also said the city still needs to find about $71 million to cover infrastructure design and capital costs for the area. “We think the Heights vision has substantial public benefit for the broader community,” he added. “It does require us to bring to bear new tools that we haven’t used yet.”

City councilors expressed concerns that a new fee would be passed onto consumers and renters, even at the affordable housing projects proposed, while others thought the proposal needed amendments before it was approved. Ultimately, all but Councilor Sarah Fox voted in favor of establishing the improvement area. Meanwhile, one of the Heights’ developers, Palindrome, submitted its initial development ideas for the district’s Site C, a 1.29-acre parcel that sits immediately to the west of Devine Road. Palindrome proposed a four-story, 350-apartment building named Artifact, according to pre-planning documents. The planning documents also include a 3,700-square-foot building called Cohesion Market with room for small retailers and restaurants. Next door would be three live-work units, which include a deck that overlooks the block’s central plaza as well as Cohesion Market’s green roof. City officials last year chose Palindrome, as well as three other developers, to work on three of the city-owned sites in the Heights District. Palindrome expects to break ground on the project near the end of 2026, if it is approved, said Heather Boyd, vice president at the Portland-based Palindrome. Leasing could begin in early 2028.