Here are the highlights from the City Council meeting held on February 25, 2026. Read the full agenda and attachments for more details.
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Downtown vitalization local area plan – Phase 3 scope of work
Council considered the final phase of the Downtown Vitalization Local Area Plan (DVLAP), which has been underway since October 2024. Phase 3 will refine the draft plan and prepare it for adoption into the Official Community Plan. The plan will guide future growth and development in the downtown area, including land use, housing choices, building design, parks and public spaces, transportation improvements, servicing needs, and environmental management.
The draft scope outlines a comprehensive framework for shaping the downtown over the coming decades, including detailed direction for Harmston Park, mobility connections, infrastructure readiness, and public realm improvements. Phase 3 engagement will include direct discussions with K’ómoks First Nation, a public open house, online engagement, and a public hearing. The plan is expected to return to Council for adoption in Q2 2026.
Action:
Council directed staff to proceed with the Downtown Vitalization Local Area Plan – Phase 3 Scope of Work as presented.
Habitat for Humanity – Land disposition (2140 Lake Trail Road)
Council considered a proposal to transfer the City-owned property at 2140 Lake Trail Road to Habitat for Humanity Vancouver Island North Society for $1. The property was originally secured by the City in 2011 as part of a rezoning agreement, with the clear intention that it would be used to deliver affordable housing. Habitat has confirmed its continued interest in developing the site and intends to build three or four affordable ownership units under existing zoning.
If approved, the transfer would include public notice and the registration of a covenant on title requiring a minimum of three dwelling units to be constructed. Council also considered using funds from the City’s Affordable Housing Reserve to cover development cost charges, permit fees, and offsite servicing costs. The assessed value of the land is $316,000, representing the City’s primary contribution to the project.
Actions:
Council approved the transfer of 2140 Lake Trail Road to Habitat for Humanity for $1, subject to public notice requirements, registration of a covenant requiring a minimum of three dwelling units, and authorization for staff to complete the transfer. Council also directed staff to return with a report outlining confirmed development-related costs and to seek approval to use the Affordable Housing Reserve to cover those costs.
Provincial archaeological permitting and Indigenous engagement
Council considered a report outlining how the City manages emergency infrastructure repairs that may involve archaeological sites. Recent direction from the Province confirms that municipal permits cannot pre-authorize emergency works in advance. Instead, emergency repairs must follow site-specific or post-event provincial permitting processes. Staff noted that while the City remains committed to complying with provincial law, emergency situations can create operational challenges when immediate action is required to protect public health, safety, or the environment.
To address this, staff recommended a dual-track approach. The City will continue advancing required provincial permits while also engaging directly with K’ómoks First Nation to explore the development of an Emergency Infrastructure and Cultural Heritage Response Protocol. The proposed protocol would establish clear communication and coordination procedures during bona fide emergency events. It would complement — not replace — provincial requirements and would apply only in urgent situations.
Actions:
Council endorsed the dual-track approach, directed staff to continue advancing provincial archaeological permitting processes, and authorized government-to-government engagement with K’ómoks First Nation to explore development of an Emergency Infrastructure and Cultural Heritage Response Protocol.
K’ómoks First Nation – Request for letter of support (addition to reserve)
Council considered a request from K’ómoks First Nation for a letter of support related to an Addition to Reserve application for a 42.54-acre property on Piercy Road. The lands are currently owned by K’ómoks First Nation in fee simple and were originally acquired in 2001. The Nation is seeking to convert the property to reserve status to accommodate future community growth, housing, administrative functions, and economic development initiatives.
K’ómoks First Nation noted that existing reserve lands are nearing build-out or are constrained by environmental and access limitations. The Addition to Reserve process is administered by the federal government and requires letters of support from local governments as part of the application. The request aligns with reconciliation efforts and long-term community planning objectives.
Actions:
Council directed staff to provide a letter of support to K’ómoks First Nation for the Piercy Road Addition to Reserve application.
Water metering business case study – Executive summary
Council received an overview of the Water Metering Business Case Study, which examines what a universal water metering program could look like for Courtenay. The report confirms that residential water use — particularly outdoor watering during summer — is the largest contributor to peak demand. Seasonal water use is rising faster than population growth, placing increasing pressure on the system. Currently, single-residential homes are not metered, creating limited visibility into consumption and contributing to an estimated $1.7 million annual cross-subsidy within the utility.
The study identifies universal metering as the most effective tool to improve conservation, equity, and long-term financial sustainability. Three implementation pathways were presented: a phased and balanced rollout starting with meter-ready homes, a defined multi-year universal rollout, and a slower incremental approach focused on new construction and voluntary participation. The report introduces a staged Council decision framework — strategic direction, financial strategy, and implementation authority — to guide future decisions. No immediate implementation steps were approved.
Actions:
Council received the Water Metering Business Case Study – Executive Summary for information.