Banff's $50M Housing Project Faces Uncertainty After Partial Appeal Win

A proposed $50-million apartment development that would replace four houses with 95 apartments on Banff's Lynx Street has received a ruling partly in its favour over balcony restrictions the developer argued were essential to the project's future.

Banff’s Development Appeal Board partly granted an appeal by Banff Caribou Properties, changing the approval conditions for the four-storey building at 316-322 Lynx Street.

The board allowed rear balconies up to 1.6 metres deep on the second, third and fourth floors, according to the town's posted decision summary. Detailed written reasons for the decision were not included in the package reviewed by Bow Valley Insider.

At the Oct. 8 hearing, the board also confirmed previously approved exceptions for front-yard balconies. It allowed third- and fourth-floor rear balconies to project up to 1.6 metres into the required setback, the minimum distance between a building and the property line.

The developer had requested permission for fourth-floor rear balconies to extend 2.0 metres into the required setback, but the board allowed 1.6 metres.

The Municipal Planning Commission approved the project Aug. 19 with conditions. The developer appealed conditions related to balcony projections and private outdoor amenity space.

Why the developer appealed

In an amended written submission received Oct. 7, Banff Caribou Properties said the variances, or exceptions to the town’s development rules, were essential to the project.

“Without the requested variances, this scheme does not work,” the submission said.

The company said complying with the restrictions would compromise the design, quality and comfort of the building to the point that the project would not proceed. Private balconies would make apartments more comfortable, it said, and the distance from neighbouring buildings justified the projections.

Keeping balconies inside the required setbacks would require a smaller building footprint, reducing floor area and the number of apartments, the company argued.

Replacing private balconies with a large shared amenity area would also reduce space for courtyard landscaping and increase the potential for disruption to residents and neighbours, the company said.

Why town planners opposed the changes

Town planning staff opposed the rear-yard balcony variance. The town’s planning report said upper-floor setbacks are meant to reduce the visual impact of taller buildings on the street and nearby properties.

Staff also questioned whether the site had unusual characteristics that made compliance unnecessarily difficult. At the hearing, development officer Emma Sanborn explained that a site's advantages do not necessarily mean the developer would face undue hardship by following the town's rules.

What this means for Banff's housing supply

The proposal comes as Banff faces an estimated shortage of 700 to 1,000 homes, Town of Banff communications director Jason Darrah said in an Oct. 13 email to Bow Valley Insider. He said the gap has persisted for decades.

The Banff Housing Action Plan increased the amount of housing permitted on residential land and introduced development incentives. More than 800 homes are now at various stages of the development-permit process, Darrah said.

However, that figure does not represent completed housing. Darrah cautioned that many projects could take years to reach construction, while others may never proceed, including when applicants withdraw.

Asked about occupancy and affordability requirements for the Lynx Street project, Darrah pointed to Parks Canada’s eligible-residency requirements, which apply to tenants in Banff National Park. His response did not identify project-specific rent restrictions or staff-only occupancy conditions.

While the appeal ruling changes the project's approval conditions, it does not itself authorize demolition or construction. According to the Town of Banff, a separate building permit is required before work can begin.

It also remains unclear when construction could begin or how much the apartments would cost to rent.

Banff Caribou Properties had not responded to requests for comment, including questions about its response to the ruling, construction timing and proposed housing arrangements.