Nanaimo city officials are working on an offer to buy a right-of-way that will remove a barrier to development on the south downtown waterfront.
Seaspan Ferries finished moving its operations from its downtown location to Duke Point on Tuesday and the City of Nanaimo is working on an offer to purchase a portion of the company’s statutory right-of-way on the former Canadian Pacific Railway Company lands on Port Drive.
The City of Nanaimo bought land on the south downtown waterfront for $3.4 million in 2013, with the remainder of the value contained in the right-of-way that gives Seaspan Ferries exclusive use of the area for its operations.
Conversations about transferring the right-of-way began that same year as Seaspan considered moving operations to Duke Point, and in 2015 an MOU was inked that would see the city acquire 3.8 hectares of water and land under right-of-way.
It was anticipated to allow for redevelopment, a new road connection and control over what happens in the water lot.
Southern Rail of Vancouver Island would get the rest of the claim.
According to Bill Corsan, the city’s manager of real estate, the city owns the land, but can’t use it without the permission of Seaspan or purchasing some or all of the right-of-way, which covers most of the property.
The two parties had to figure out a purchase price and Corsan said he believes they are there. He said the city also has to confirm what areas of the right-of-way it needs. It’s currently designing a Front Street extension that needs to be completed and will sit down with Seaspan once it knows where that road will go.
“I think we’re close,” Corsan said. “I think we could be there in a couple months’ time anyway.”
Steve Roth, president of Seaspan Ferries Corporation, confirmed the company has moved its operations to Duke Point but said Seaspan tug-and-barge and Southern Railway continue to use the ramp for rail service into Nanaimo and the Island.
“It’s pretty exciting for us to go from two small facilities that had very outdated ramp structures, to move to a new state-of-the-art facility in Duke Point,” he said. “I think it shows a commitment of our company to draw trailer commercial traffic between the mainland and Vancouver Island, the mid-Island particularly.”
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