Nanaimo council moves to hire engineer, impose deadlines to fix building permit delays

Key facts

• Nanaimo city council voted to hire one additional development engineering technician for a department of four, which currently has two vacancies.
• A developer submitted a development permit on Oct. 14 and is still waiting eight months later for a decision.
• cited staffing shortages, lack of accountability, and need for better technology as reasons for slow progress.
• Coun. Ben Geselbracht proposed a motion for an accountability framework including a tracking dashboard, regular updates, and target timelines.
• Kathy Whitcher of the Vancouver Island Construction Association called delays 'an invisible tax on housing and business investment.'
• Ottawa ranked first in Canada and eighth globally for Gen Z residents in a Remitly survey, scoring 68.77 out of 100.

Eight-month wait for a permit spurs council action

A developer who submitted a permit application for a three-story industrial building on Jordan Avenue in north Nanaimo last October is still waiting for the city to request alterations. Karl Binder of the Mid Island Business Initiative, the developer behind the project, told a governance committee that such delays are typical. 'It’s a common event unfortunately. It’s the same for most developers right now. We’re all in the same boat. Unfortunately there’s just not enough staff. There’s not enough accountability,' Binder said.

Industry leaders warn delays drive up housing costs

Four industry representatives addressed Nanaimo’s Special Governance and Priorities Committee last week, describing permit delays as the biggest barrier to housing construction. Kathy Whitcher, a director with the Vancouver Island Construction Association, said: 'The industry's message is clear: the biggest barrier today is not just costs. It's time, uncertainty and delays.' She added that carrying costs, financing pressure, redesigns and inflation automatically raise project costs the longer they sit in the approval system, calling the added expense 'an invisible tax on housing and business investment.' Rory Kulmala, CEO of the Vancouver Island Construction Association, noted that the problem has worsened over years and is not unique to Nanaimo, but that the city’s processes must improve to reduce costs on much-needed housing.

Council approves new hire and internal service agreements

After hours of deliberation, council approved a series of recommended changes, including hiring one additional development engineering technician. The department currently has four positions, two of which are vacant. Council also voted to introduce internal service agreements to define roles, responsibilities, turnaround timelines and communication protocols across the city’s development approvals processes. identified staffing shortages, lack of accountability and outdated technology as key reasons for the lack of progress in the five years since a major review of the permitting system.

Councillor pushes for accountability framework with deadlines

Coun. Ben Geselbracht has given notice of a motion to establish an accountability framework on top of the approved changes. His proposal includes a dashboard to track permit applications, regular updates to the governance committee, and target timelines for different permit categories. 'The motions are really just set to set an accountability framework,' Geselbracht told CBC News. 'Because at the end of the day, we do want to reduce the necessary delays and lower the cost and try to get more housing built in this community.' The motion will be considered at a future council meeting.

Ottawa tops Canadian cities for Gen Z, but Nanaimo struggles with housing

While Nanaimo grapples with permit delays, a global survey by financial services firm Remitly ranked Ottawa as the best place in Canada for under-30s, placing eighth worldwide with a score of 68.77 out of 100. Ottawa beat seven other Canadian cities in the top 50, including Calgary (21st), Halifax (22nd), Montreal (28th), Edmonton (35th), Toronto (39th), Vancouver (43rd) and Victoria (49th). Canada had eight cities in the top 50, second only to the United States with 14. The survey ranked 250 cities on nine categories including rent affordability, youth unemployment, safety, LGBTQ+ equality, broadband speed, nightlife cost, quality of life and average net salary. Ottawa, once dubbed Canada's 'most boring city,' hired a 'night mayor' in 2024 to liven up its social scene.

Next steps: Council to vote on Geselbracht’s motion

Nanaimo city council will vote on Geselbracht’s accountability motion at an upcoming meeting. If passed, the framework would set specific timelines for implementing the 2021 report recommendations and establish standards for how long the city can take to process different sections of a permit. The industry will be watching closely: developers say delays add carrying costs, require redesigns and amplify inflation, making housing more expensive. With two vacancies still open in the engineering department, the new hire alone may not be enough to clear the backlog.

The bottom line

• Nanaimo’s building permit delays can stretch eight months or more, adding costs that developers pass on to homebuyers.
• Council approved hiring one engineer and introducing internal service agreements, but a full accountability framework is pending a vote.
• flagged staffing, accountability and technology issues, yet little progress has been made in five years.
• Industry leaders describe delays as the top barrier to housing, calling the added costs an 'invisible tax.'
• Ottawa’s high ranking for Gen Z livability contrasts with Nanaimo’s housing challenges, highlighting uneven urban development across Canada.