Sunday, November 23, 2014

Island Pallet Demolition

Location of Island Pallets being demolished and old warehouse building foundation being removed, to allow for soil removal and replacement as part of the Wellcox property re-development.
Those piles of what looks like dirt of ??? is actually the shredded remains of all those pallets you once saw stacked up all along the chain link fence surrounding the property.
A very large 'jack-hammer' on the working end of an excavator, used to pulverize the concrete foundation of the old warehouse building on this site.
Tangled mass of reinforcing steel that once held together the foundation and supporting walls of the old warehouse on this site.


What was billed as a $500,000 demolition and soil removal and replacement project is well along on the site of the Island Pallet location on the Wellcox property on the downtown waterfront.

This is basically the only area the city can proceed with and make some use of on this downtown waterfront property which is primarily occupied by Seaspan and the ICF. Actually developing and using this piece of the property would be premature at this point based on the report presented by the South Downtown Waterfront Developement Committee, which completed an extensive study of the potential uses for this piece of property.

There are many hurdles to be overcome before this site comes close to reaching it's potential some of which include the perpetual rights of use licences held on this property by both Seaspan and ICF which basically gives these two firms control of 80% of this site.

The other expense taxpayers have taken on is the $7 million to replace the existing trestle which leads to the Nanaimo Port Authority properties. The other area of this property which could see use this coming year is the old Gadd site where Island Ferries is hoping to establish their downtown to downtown ferry service next spring.



  1. Ok what I am trying to understand is, does the city own the property or does Seaspan and ICF?

    The clearing project looks good though! It will be nice to see that piece of property restored and ready for development. Has there been any proposals as to what will/should/might be in the properties development future?

    All the best,

  2. The city does own the land. However, both Seaspan and ICF have perpetual 'rights of use licences' for which neither party pays rent. Seaspan does however pay about $30,000/yr. in taxes. Between the two of them they have the right to use nearly 80% of the entire property for as long as they wish, they same as if they owned it. Complicated? The place occupied by Island Pallet is now being cleared out, but any development on this part of the site is still down the road as they have not decided what to do with the rest of the property. The site where Island Ferries wants to locate their downtown ferry has to be assessed by the trestle/bridge that goes to the Assembly Wharf area, as you could not drive across the Seaspan/ICF controlled property to get to the ferry terminal under the present use agreement. In this case both ICF and Seaspan are in the drivers seat. I hope that clears it up?

  3. They don't pay own or pay rent but they have say over 80% of the property, how did the get a deal like that and why?

  4. Thanks Jim that does clear it up! What I don't get is the fact that council would agree to this arrangement. The point of a licence is to permit the use of something over a period of time, not indefinitely. Could council not pass a motion to have the access rights reviewed? Otherwise this is going to cause headaches... indefinitely.

  5. The area that Seaspan uses, is where they load and unload all that tired freight that comes through this terminal. The area is a beehive of activity when a barge of trailers comers over and are shunted around waiting to be picked up by tractors and delivered all over the Island from here. There is an amazing amount of freight moves through that yard. Not as much, but the ICF also moves rail freight from barge to rail links for the Island through here as well. Jointly they pretty much use most of that space at one time or other.



Your comment will appear after moderation before publishing,

Thank you for your comments.Any comment that could be considered slanderous or includes unacceptable language will be removed.

Thank you for participating and making your opinions known.