Saanich council has granted a developer's request to delay the start of construction on a major rental housing project.

Nicola MPC requested a two-year extension on its development permit for 1555-1595 McKenzie Ave. which calls for a multi-storey, 384-unit apartment building with commercial space and one level of underground parking.

"As has been broadly communicated, the unprecedented rise in interest rates to combat persistent cost inflation created a notably challenging environment for the delivery of rental housing across Canada and therefore negatively affected construction starts," Josh Anderson wrote in a letter to the district on behalf of Nicola MPC Limited Partnership. "Given the scale of this project, the consideration of the economic environment is paramount for its financial viability and monetary policy conditions have improved, facilitating the project to proceed."

The initial development permit was issued in January 2023 and required the owner to substantially start development within 24 months. Council unanimously granted the extension Monday (Jan. 6) on the recommendation of staff.

"The development addresses key design guidelines by providing public outdoor and private amenity areas, ground-level commercial spaces ancillary to residential units, and streetscape improvements B´ÎÔª¹ÙÍøÍøÖ·“ all of which contribute to an active and human-scaled pedestrian realm," according to the report prepared by planning analyst Daniel Lake.

The developers say they have received financing approvals and completed the demolition of the former buildings on the site on the southwest corner of McKenzie and Shelbourne, with excavation expected to begin in March.