David W.

Love
for Allison Habkirk,
UVic ADMN 446
Assignment # 5

Report to Chief Administrative Officer

Town of Port McNeill
TO: Grant Loyer

FROM: David W. Love

DATE: Wednesday, April 13, 2005

SUBJECT: History of land use development practices in Port McNeill and their implications
for the future.

RECOMMENDATIONS:

That Council immediately create an Officer position “Director of Development Services”

and once filled, direct the incumbent to expeditiously devise comprehensive strategies for Official

Community Plan and community infrastructure renewal.

BACKGROUND:

Rationale:

This report is submitted pursuant to Council’s direction to produce a brief historical study

as a reference for Council, the Advisory Planning and Harbour Commissions, the Board of

Variance and residents. The direction to do so followed a January 26, 2005 Report To Council:

“Planning Concepts That Influenced Contemporary Land Use and Street Patterns in Port

McNeill”. Specifically, this study was to identify contemporary land use planning concepts in

common use elsewhere during each historical phase of development in Port McNeill so as to

validate or discredit the ‘Port McNeill policy’ of development used since incorporation (1966).

Methodology:

Historical population changes were reviewed and are provided in chart form (Annex A)

along with a short descriptive commentary. All municipal development plans were reviewed and

those relevant to this study were listed chronologically in Table form (Annex B). A comparative

analysis of these data was undertaken and the results depicted on a colour-coded conceptual

map (Annex C) that coincides with the colour scheme assigned to the plans used for the analysis

(i.e. those plans listed in Annex B).

1
David W. Love
for Allison Habkirk,
UVic ADMN 446
Assignment # 5

A pattern was discernable allowing historical development to be divided into five distinct

phases: Pre-incorporation; Rapid Growth; Consolidation; Infill; and Decline & the Future. It

was then possible to compare the ‘Port McNeill Policy’ to contemporary land use planning

methods popular elsewhere during the various phases of local development.

Finally, conclusions were drawn and future implications of past practices identified.

Scope:

Given the limited scope of this project, analysis was based upon readily available data

that provided the times at which council approved each development plan, not when each

development was completed or properties occupied. Therefore, there are slight time-related

inconsistencies (lags) between developments depicted on the conceptual map and development

of each property in fact. It is indeed possible to review primary data (building occupancy permits,

historical aerial imagery, development revenues/expenditures, council minutes, property tax

revenues, etc.) in order to make this study more definitive. However, as will be seen below,

development was orderly, sequential and occurred in small blocks of land as opposed to entire

neighbourhoods or the community as a whole. So, despite this cursory level of review, the

patterns are so obvious and sufficiently time specific there is a high degree of confidence that

greater detail will not vary either the validity or significance of the conclusions.

Conclusions:

The findings of this study are as profound as they are unexpected. A looming and

heretofore murky infrastructure problem has been brought into specific relief. Without a timely

policy response the financial well being of our community is in jeopardy. The ‘Port McNeill policy’

created this community and served it well for many years, but it appears to have failed in one

important respect and if not soon addressed the consequences could be calamitous.

DISCUSSION:

Introduction:

Development of Port McNeill has taken place over a period of more than half a century

and generally occurred in a clockwise pattern with its origin at the harbour. The downtown and

2
David W. Love
for Allison Habkirk,
UVic ADMN 446
Assignment # 5

civic areas evolved at its present approximate centre. The development ‘loop’ has not yet been

fully closed as another 12 hectares in the Pioneer Hill area (publicly owned) is zoned for future

development of 85 more residential lots. Additionally, the 60 hectares northeast of Cardena

(privately owned) could contain approximately 25 dwellings on 2.43 hectare (6 acre) sites at its

present rural zoning or as many as 500 homes if re-zoned to match existing typical densities.

The reader should be cautioned however: when looking at total land development

depicted on the map at Annex C, do not presume the resulting pattern was a deliberate design

somehow articulated many years ago. On the contrary, a dozen different municipal councils

approved nearly 50 different small-scale development plans (listed at Annex B) over a period

nearing 40 years. The apparent orderliness is not the result of a comprehensive plan, but a

consequence of the ‘Port McNeill policy’ – itself only a set of long-held attitudes and general

objectives rather than statutory- or academically-based community planning concepts. And

therein lay both the successes and the failures that must now be addressed.

The Pre-Incorporation Phase:

The history of Port McNeill is a modern tale of pioneering spirit, determination, good

ideas and good intentions. Knowing the history gives necessary context to this report and with

regret it cannot be fully recounted here. However, the ‘Port McNeill policy’ is central to this report

and its origin can be traced to one person: Walter Charles Koerner, Companion of the Order of

Canada, Member of the Order of British Columbia and honorary Doctor of Laws (UBC). Between

his retirement in 1973 and death in 1995 he became a noted philanthropist: he was the founding

Chair of the UBC Hospital, Honorary Life President of the Vancouver Art Gallery and Vancouver

Symphony Society, and the UBC Humanities and Social Science Research Library bears his

name. A member of a fourth-generation European lumber dynasty, he escaped Czechoslovakia

with his three brothers just prior to the Nazi occupation of 1939 (not a coward, he was decorated

for bravery in the Great War). The four brothers settled in BC and created the Alaska Pine and

Cellulose Company – after a name they invented for BC Hemlock so as to create a European

market for the previously underutilized wood.

3
David W. Love
for Allison Habkirk,
UVic ADMN 446
Assignment # 5

Coincidentally, in 1939 the first logging camp was founded in what became Port McNeill,

a location where BC Hemlock flourished. The principal employer was Pioneer Timber and in 1945

Walter’s ‘Alaska Pine’ purchased it outright. By 1950 he had become so successful he employed

over 5,000 British Columbians. Then in 1957 the entire operation became Rayonier Canada

giving Walter, its President and CEO, direct control of the forest licenses and private lands in the

vicinity of the Port McNeill camp – and making him the boss of pretty much every logger in the

area.1 Soon Cominco opened a copper mine at Benson Lake (20 km inland from Port McNeill)

and Empire Development Mining Company began iron ore operations at Merry Widow Mountain

(15 km to the south). They shipped their ore to market from a facility at the foot of what was aptly

named Mine Road (an integral part of present-day Port McNeill). In contrast to the seasonally

employed loggers, the mining employees worked year-round, but they too were housed in camp

dormitories and a few company-owned houses, some at the mine sites and others at “Beach

Camp”, just a short stroll along the ocean’s edge from the Rayonier camp at Port McNeill.

This was the genesis of the ‘Port McNeill policy’ of development. A product of European

history and forestry experience, Walter Koerner opposed the local practice of ‘get in, get the

timber and get out’ and the rudimentary camp system used to service it. He was more a steward

of the forest long before it was a popular practice and he was, for example, the first to hire a

European forester to study the viability of salvage wood on the North Island. He cared for his

employees too, gaining national recognition for the low frequency of accidents in his forest

operations. To him it made more sense to create long-term harvesting sites along the coast and

Queen Charlotte Islands and retain a stable number of skilled employees regardless of market or

seasonal conditions. This meant harvesting at sustainable levels and providing the necessities

and amenities that would encourage his employees to stay at a particular location. And from a

business perspective, it also made sense that if employees owned their own homes Walter would

no longer have to pay to operate the camps.

1
Soon after the incorporation of Port McNeill, IT&T bought Rayonier Canada and a few years later Walter retired. In 1980 Doman
Industries, BC Forest Products and Wonnock Industries jointly created Western Forest Products (WFP) and purchased Rayonier
Canada from IT&T. Then in 1989 WFP purchased Wonnock and BC Forest Products leaving Doman in control of WFP until Doman’s
insolvency several years ago. As Doman’s principal creditor, Brascan now controls all Port McNeill based WFP operations.

4
David W. Love
for Allison Habkirk,
UVic ADMN 446
Assignment # 5

So, in the case of Port McNeill, this approach meant development of roads and building

lots and supporting infrastructure that included water supply, storm drains and sewers. These lots

were sold to logging company employees at preferred rates and to miners and local merchants

for slightly higher rates.2 In addition, access to the infrastructure services was extended to the

growing commercial centre (for a fee, of course) located in parts of what are now downtown Port

McNeill. Of note is that the placement of roads and lots and the building of this pre-incorporation

infrastructure took place incrementally over several decades and was done by forestry engineers

on a cost recovery basis, not by civil engineers, community planners or private developers. Their

location and size were influenced by several common factors: they had to have been previously

harvested of merchantable timber, they had to be small enough to be affordable by young families

and singles alike, they had to be adjacent to each other to minimize the cost of providing services

and their elevation had to be high enough to allow the services to be operated by gravity. The

result of Walter’s work (as implemented by his area manager and staff) is depicted in red on the

attached map and greater detail is provided in the other annexes.

Contemporary Land Development Practices – Pre-Incorporation Phase:

In the early 1960s the BC government was aggressively developing the province’s natural

resources and as part of that policy amended the Municipal Act to allow for creation of “instant

towns”.3 As a result, “six new towns were developed and three smaller settlements were

expanded: Gold River, Port Alice, Mackenzie, Fraser Lake, Granisle, Logan Lake, Elkford,

Sparwood, and Port Hardy.”4 They shared two important traits: each was created or expanded in

conjunction with construction of a large, new industrial facility (milling or mining) as places to

house the employees of the respective facilities, and each was created by joint ventures between

a corporation and the BC government. Port McNeill, however, was not an “instant town” created

under this program or legislation. It was an existing logging and mining camp that evolved ad hoc

over some 25 years. Port McNeill had no industrial facility and was not created to support one.
2
See January 26, 2005 Report To Council: “Planning Concepts That Influenced Contemporary Land Use and Street Patterns in Port
McNeill”, pp. 2-4 for greater detail.
3
An excellent summary may be found in a best practices guide, “Transitions: Planning, Servicing, and Local Governance in BC’s
Resort Communities – Annex B”, Queen’s Printer, Victoria, 2004.
4
Ibid, p. 47. The District of Tumbler Ridge was created two decades later using the same ‘instant town’ principles.

5
David W. Love
for Allison Habkirk,
UVic ADMN 446
Assignment # 5

The land was purchased from its corporate owner by a group of local residents who were

determined to incorporate as a municipality. One may conclude, therefore, that during the Pre-

Incorporation Phase there was no discernable influence by contemporary community planners.

What existed by 1966 was due to Walter Koerner’s attitudes toward forestry and the needs of his

employees as he saw them. It was what it was: inexpensive, sparse and without grand design.

Rapid Growth Phase – 1966 to 1979:

During this phase of development the population of Port McNeill grew by nearly six times

and residential development approvals by the fledgling village council followed suit - eventually.5 It

must be understood, however, this was not a case of “build it and they will come”. As noted above

the provincial government was rushing to develop natural resources. In the early 1960s it created

a new forest tenure system that on the North Island made the existing private land holdings and

remaining Crown land a contiguous timber management area. With the granting of numerous new

licences and increased allowable annual cutting volumes, the companies were assured of long-

term sustainable operations. This created a steadily increasing demand for employees as

operations grew to meet the newly anticipated levels of long-term harvesting – and led, naturally,

to increased demand for housing from those who settled in the area to take-up the new long-term

jobs. And because the annual cut was set and technology known, the eventual number and type

of jobs was predictable and the respective incomes reasonably identifiable. However, community

growth happened incrementally over a period of about 13 years (see Annex B and note the dates

of the various plan approvals) and occurred at a pace set by corporate expansion, not on a

schedule that could be either affected or reliably anticipated by council.

During this period council was composed of business people. They were mindful of debt,

financial risk and their role as community builders, but admittedly had no specialized knowledge

or experience with community governance. Therefore, they were prudent and generally only

approved a development when and if specific demand existed. And as a survey of Annex B will

demonstrate, they did so, on average, several times each year and for developments numbering

5
See Annexes A and C.

6
David W. Love
for Allison Habkirk,
UVic ADMN 446
Assignment # 5

one or two dozen dwellings each time. This prudence stood them in good stead when later in the

mid-70s both mining operations shut down permanently and the employees left. Fortunately the

loss was offset because the BC Forest Service had located its district office in Port McNeill and

MacMillan-Bloedel Ltd had decided to base its regional timber operations here as well.

By 1970, with a newly adopted zoning bylaw in place, the municipality began its long-

standing relationship with the same consulting civil engineer it continues to use today. This added

good quality technical advice to the prudence and orderliness already practiced. It allowed for

municipal infrastructure to be planned before each development was approved and provided the

opportunity for it to be designed appropriately for the local conditions.6 Geology, climate,

topography and length of service runs were important considerations in determining the cost of

each development and varied significantly from most urban engineering considerations (to be

discussed further below). And these factors had to be weighed against the occasionally

contradictory considerations of the then matured ‘Port McNeill policy’:

• create permanency by expanding private land ownership for homes and businesses;
• refuse to sell land to groups who sought social status with large lots or special amenities;
• approve only developments that reflected the level and variety of local incomes;
• zoning that made allowance for costs of wood frame construction versus mobile homes;
• try to ensure an ocean and mountain view from all lots; and
• having observed the evolution of ‘fiefdoms’ in nearby Port Hardy, they resolved to create
a blend of properties that reflected the proportionate needs of the entire community and
to reject demands by special interest groups.

The consulting engineer recently described this phase of development as incremental

with the location and size of each development “sketched on the back of an envelope whenever

there was enough demand to fill one and I was asked to design the services, road layouts and lot

sizes. It normally worked out pretty well”.7 Note the absence of private developers, architects,

Geographers and out of area design consultants. This phase is depicted in pink on the map

(Annex C) and can be characterized as having been totally micro-managed by council.

6
See Annex D – Development Technical Design Factors in Port McNeill.
7
From an interview with John Motherwell of Motherwell and Associates, March 25, 2005.

7
David W. Love
for Allison Habkirk,
UVic ADMN 446
Assignment # 5

Contemporary Land Development Practices – Rapid Growth Phase:

So, as can be seen, despite the potentially misunderstood name assigned to this phase

of development, Port McNeill was certainly not an “instant town” as defined above. Each of them

was designed instantly and along the lines of Kitimat, their successful predecessor (created a

decade earlier). “A planned community, Kitimat's modern design was adapted by Clarence Stein,

one of the foremost town planners of the day, from the garden city ideals of Ebenezar Howard.

The garden city concept flourished during Britain's industrial revolution, and was actively

promoted by Howard, who wanted to provide a community for factory workers that was filled and

surrounded by park-like settings and greenbelts”.8 This was obviously not the case in Port McNeill

as it was neither instant nor created by a comprehensive design concurrent with a new industrial

facility. In fact, in recent interviews with a member of the founding council and Port McNeill’s long-

time civil engineer, both asserted that the first time they heard of the garden city concept,

Clarence Stein or Ebenezer Howard was during the interviews of this past month.9

Consolidation Phase – 1980 to 1990:

This period saw the population grow by only 172 people (140 of whom were children or

teens) as the sustainable level of employment was reached in the existing local industries. But, in

the first several years of this phase the number of approvals for single and multiple family homes

increased the total by a further 25% to satisfy demand remaining from the Rapid Growth Phase.

After that, residential approvals (depicted in yellow in the Annexes) ceased altogether for eight full

years.10 Application of the ‘Port McNeill policy’ carried-over into this phase, but with one notable

difference, and a significant new task was added.

During this phase council approved four single-family developments (Woodland Drive

extension, Woodland Crescent, Haddington at Quatsino and an extension to Beach Drive), two

townhouse developments (Mine at Kingcome and Chelan cul de sac) and a large strata plan

mobile home property (corner of Mine Road and Betts Boulevard). Council continued to ensure

8
From a summary of the history of Kitimat at http://www.bellsalaska.com/kitimat.html
9
From interviews with Gerry Furney, present-day mayor and founding council member and John Motherwell of Motherwell and
Associates, Consulting Engineers Ltd.
10
Recall the earlier explanation of ‘lag’.

8
David W. Love
for Allison Habkirk,
UVic ADMN 446
Assignment # 5

that an appropriate mix of dwellings was approved and that the same consulting engineer

designed the necessary expansion of municipal roads and services. However, this phase was

distinct because in each instance parcels of land were sold by the municipality to private

developers rather than completed in the former fully ‘hands-on’ approach used by earlier councils.

Despite this more distant management style, the only developments approved were those that

satisfied local needs: there were more families and also more singles who could afford to own a

modest home rather than rent. Simple observation verifies the form and style of housing, layouts

and lot sizes remained consistent with what had been approved during the Rapid Growth Phase.

In other words, no latitude was given because of professional stature, real or perceived ‘special’

social status, or for design or fashion statements by private developers – that is to say, ‘fiefdoms’

were still completely shunned.

The reason council became more distant from the details of residential development was

because it had become increasingly busy with commercial and civic development activities. By

this time there was secure employment and extensive land ownership by local residents making

the future of Port McNeill much less tentative. So in that sense at least, the ‘Port McNeill policy’

had been quite successful. In the late 70s and early 80s the Island Highway had been completed

and Port McNeill was becoming an increasingly important transhipment point. The downtown was

expanding, the regional hospital was built and the old recreation and education facilities located

on the edge of downtown were outgrown. During this period three new schools were built on the

upper plateau (two in the middle of ‘the loop’), as were playing fields, a ball diamond, a track and

field facility, tennis courts, an arena, a curling rink, an outdoor swimming pool, the medical clinic

and the Regional District office. In addition, other municipal services required attention or some

form of consolidation. The water supply system needed more capacity (wells) and the theretofore

gravity operated sewer system now required pressurization at lower elevations by installing a

pumping station at Beach Drive. A large percentage of the municipality still had open drainage

ditches, few streets had a sidewalk (let alone two) and the street lighting system remained

inadequate. Some residents wanted the harbour developed, others wanted the tiny airstrip paved,

9
David W. Love
for Allison Habkirk,
UVic ADMN 446
Assignment # 5

some wanted animals controlled and still others wanted hanging baskets and flowering

boulevards planted downtown.

Port McNeill was growing-up. While they were heady times and many amenities long

demanded by the public were finally being provided, new revenue flow from further residential

development was nearing its end. The nature of development during the Consolidation Phase

took large amounts of public money (and widespread volunteer efforts), yet revenue to off-set

construction and operating costs was insufficient as it came from user fees – something elected

officials tend to set too low and are loath to increase. Concurrent with this substantial spending on

amenities the residential tax base stopped expanding…

Contemporary Land Development Practices – Consolidation Phase:

This phase can be characterized as one that saw the last of rapid growth and what now

seems a very fortuitous lull in overall community growth. By 1990 the community was rightfully

proud of the scale and extend of the civic facilities that had been completed, but little progress

was made with the “hard” services: sidewalks, curbs, enclosing drainage ditches, water supply

and sewer. While demand had finally been met for the amenities, the less glamorous technical

services were left generally untended. So, the Rapid Growth Phase created residences and the

infrastructure needed to service them, and the residential development lull of the subsequent

Consolidation Phase when desired amenities finally ‘caught-up’ to long time demand.

It would serve little purpose to provide a retrospective of planning concepts popular

elsewhere during the 80s, except to demonstrate what could have been done and to explain in

greater detail that the local approach to community planning was unconventional. That would not

be productive, but this theme of successive development will be returned to in the analysis below.

Infill Phase – 1991 to 1999:

Population began to grow again in the early 90s, peaked at 3,082 in 1997 then began to

slowly decline, falling below 3,000 again by the turn of the century. Harbour development and

private initiatives increased tourism-related activities and there was increased employment from

growth in the aquaculture industry. However, the introduction of new provincial government

10
David W. Love
for Allison Habkirk,
UVic ADMN 446
Assignment # 5

environmental policies in the mid-90s reduced forest industry activity and was the reason for the

net decline in population – demonstrating the continued local reliance upon and lack of local

government influence over the single most important employer: the forest industry.

Interestingly, Port McNeill demographics began to change during this phase and that

affected the style of the few housing developments that were approved (green in the Annexes).

Although the number of children and young adults remained fairly constant, long-time residents

were aging and their incomes growing,11 which led to demand for modern, more substantial

homes. Council approved eight new residential developments during this phase (only one of them

after 1995). Seven were properties sold to private developers with council retaining final design

approval: one was a mix of modular and single-family framed houses, two were of townhouses

and four were of single-family rather high-end houses. Each of these in-fill developments was of

approximately one dozen homes or less. The remaining development of the eight was at the end

of the ‘loop’ and was designed by the municipality. It contained approximately three-dozen full-

sized lots, all sold at auction, and council retained final approval of each house plan.

Generally, this was a phase of home upgrading at many levels and allowed for decreased

dependence upon rented accommodations.12 There was also an effort made to repair aging

roads, construct sidewalks and curbs and decrease the number of open drainage ditches, but

overall it was sporadic and had the air of ‘patchwork’ about it, despite the Transportation budget

accounting for a large percentage of total annual municipal spending. During these years

substantial sums were spent on ill-planned and ill-advised airport development.13 It remains

incomplete and is leased to the local flying club while the municipality continues to spend $25,000

per annum to maintain it. The only revenue comes from leasing property to a commercial

helicopter firm – which, of course, has little use for runways. This phase can be characterized as

11
Port McNeill’s median family income is 25% percent higher than the provincial rate with average home owners’ costs 15% below
the provincial median and nearly half of those in BC’s large urban centres: BC Stats.
12
By the 2001 census the total reported rented dwellings (occupied) had fallen to 33.5% of total dwellings in Port McNeill – about
half a point lower than the provincial average.
13
During the 1990s Port McNeill spent many hundreds of thousands of dollars on airport development (without a business plan or
public input) while Transport Canada was in the lengthy and much publicized process of devolving existing regional airports to local
governments. Port Hardy has been the location of such an airport since WWII and as part of the devolution process was scheduled to
acquire a fully functional and modern commercial airport a scant ten minutes’ flying time away from Port McNeill.

11
David W. Love
for Allison Habkirk,
UVic ADMN 446
Assignment # 5

one when the resident population shifted their demand to other forms of housing and as a missed

opportunity to further consolidate municipal infrastructure.

With the exception of a small strata townhouse development approved by council in

1999, this phase was the ‘last hoorah’ for the ‘Port McNeill policy’. A consulting firm was hired and

produced an Official Community Plan in 1997 – which in historical terms proved to be moot since

the only development approved since the OCP was adopted remains completely empty.

Contemporary Land Development Practices – Infill Phase:

Halfway through this phase the ‘Port McNeill policy’ was superseded by the new OCP.

Regardless of any intent by the past three councils to resurrect the former or comply with the

latter, neither ‘plan’ has had a positive effect since both are flawed and have been well and truly

overtaken by events. The ‘Port McNeill policy’ was never a comprehensive community planning

process and this point will be expanded upon in the next section. But for now we will look at the

present OCP – a document that embodies a contemporary planning concept (called New

Urbanism) that is tremendously inappropriate to our needs.

The authors of the eight-year-old OCP are members of a city-based Planning and Urban

Design Division of a civil engineering consulting company. They have impressive experience

working with private developers to create and market URBAN NEIGHBOURHOODS.14 In their

field, success is measured by volume of sales within a market area containing hundreds of

thousands of urbanites and they create neighbourhoods so their marketers can quickly sell the

properties to a specific demographic. In ‘Port McNeill policy’ terms, they are in the business of

designing and selling fiefdoms. We should not expect them to be expert in making plans that will

achieve the desired goals of an entire second-generation remote, rural community such as ours.

For example, prior to beginning the OCP process a survey of community desires resulted in the

following responses: fill-in ditches, make road improvements, beautify the community, clean-up

litter, landscape public areas and build sidewalks.15 Local residents expressed the view that these

were important social objectives. All the items have an on-going cost and all would require policy

14
Aplin & Martin Consultants Ltd., Surrey, BC.
15
Port McNeill OCP, p. 18.

12
David W. Love
for Allison Habkirk,
UVic ADMN 446
Assignment # 5

decisions by council. Why then, were they not addressed in the policy goals of the OCP, which is

the primary policy instrument of a local government?

Also, urban designers have no prior connection to the land they develop and once the

sales are complete they have no continuing responsibility for the longevity of their design. They

concern themselves with recovering the cost of connecting their developments to municipal

systems and services, but have no vested interest in the long-term viability of the local

infrastructure. For example, the OCP authors encouraged development of downtown commercial

buildings with residences above (a typical New Urbanism theme). They do not, however,

acknowledge that increasing the residential density there will increase the sewage volume in an

area below 15-metre elevation. Any increase in volume at that level will require new sewage lift

stations when it has long been the local policy to take best advantage of gravity in the municipal

‘wet’ systems. Even worse, a non-pressurized sewage system has a lifecycle of 50-80 years, but

a pressurized system needed to deal with the increased volumes may be expected to last only 25

years. Parts of the downtown sewage system are 60 years old. Their adherence to a ‘foreign’

development concept could cost our community much if we blindly follow the recommendations.

Their concept or ‘style’ of development is an interesting circular argument, perhaps an

irony, when applied to a community such as ours. New Urbanists created Seaside, Florida, the

city where “The Truman Story” was filmed. It is the most famous example of a rural community

façade designed to replicate life in a small rural community, and then marketed as offering the

‘sense of community’ lost by residing in the big-city. But this type of development is actually

located amid urban sprawl and has not proven successful in the long-term (i.e. a year or two after

the developers have departed with their fees). So, here is the situation: urban developers are

creating replicas of fictitious rural communities and they then try to sell them to other urbanites by

asserting that living there will make them feel like they have returned to a place they have likely

never experienced. And we, here in Port McNeill, a real rural community with desires and values

beyond the experience of all these people, hired some of them to create our OCP. Wow.

13
David W. Love
for Allison Habkirk,
UVic ADMN 446
Assignment # 5

There is much more to community development than building houses. Even slight

knowledge of our own local history readily demonstrates the truth in that by helping us see the

imperatives we expressed during the Consolidation Phase – a period when unsatisfied social

desires were met – versus the Rapid Growth Phase that focussed primarily upon housing while

ignoring (with good reason perhaps) those other things. Both the ‘Port McNeill policy’ and our

present OCP were bound to fail because they both lacked breadth of thought. A comprehensive

community plan must concurrently address development in all its forms: social, economic,

cultural, public services, etc. And it must do so within the context of our own community, not by

using a contemporary planning concept applied by urban designer/planners who make a guess at

who we are and whose motivation is to package it for sale to someone else. For example, neither

of the two approaches attempted thus far has paid attention to the unique demographics of Port

McNeill. Our aging population was referred to above as being a factor during the Infill Phase.

Aging is also occurring at the provincial and national level, too, but addressing it could add further

stability to our community if were to just include it in our plan.

Province-wide, persons over age 65 are 13.6 percent of the total population and it is

common knowledge that the percentage is growing. In Port McNeill it is a mere 4.2 percent.16 As

our local population ages and retires they will as a group become at least partially replaced by

new workers from outside our community. If it remains true that our economy has a reasonably

fixed level of employment and that is what precludes overall population growth, would it not be in

our interest to retain our ‘home-grown’ retirees? Were we to achieve the provincial average of

retirees it would equate to an increase of 9.4% or 270 people. And even if retirees only came in

couples, the increase in population would mean a need for some 135 more households – an

increase of more than 12 percent – by simply encouraging folks who already live here to remain

here.17 And if we decided to make Port McNeill into a retirement destination it could be possible to

attract more than twice the provincial average. Annex E identifies other rural BC communities that

have done just that. The questions are, do we want to and if yes, how?

16
See Annex E.
17
Total existing households is 1,075: BC Stats.

14
David W. Love
for Allison Habkirk,
UVic ADMN 446
Assignment # 5

Answering those questions properly should be done as part of the process of updating

our OCP. But studying another increasingly popular contemporary land use planning concept

could quickly help determine if it is a viable objective. It is called ‘gated communities’ and they are

tremendously popular among BC retirees. This is not to advocate gated communities in Port

McNeill. They tend to be controversial because they restrict access to otherwise public areas and,

because they are private property, they tend to be discriminatory by segregating people by

income or other social differences. This would certainly be inconsistent with the ‘Port McNeill

policy’ that avoided ‘fiefdoms’ and has served us well. What would be useful to us though would

be to study why gated communities are so popular with retirees and determine if we have or

could develop those attributes here. For example, they are reportedly popular because of traffic

calming effects and improved security. Neither is an issue here. Perhaps it’s worth a try.

In any event we require a new and comprehensive Official Community Plan. It should be

created with substantial public input and the process should be a completely local endeavour.

And as the above examples imply, urban development models do not directly apply to us, but

they do contain elements that could be learned, adapted and used locally. We just need look.

Decline & Future:

Port McNeill is on the precipice of a financial disaster. Regardless of any model used by

us or by our consultants, our planning has consistently ignored one thing: infrastructure renewal.

Life-cycle management is a tool used by both business and public administrators. Any

large organization spends substantial funds on tangible capital assets and it is a simple fact that

those resources depreciate in value, wear out with use and eventually need to be retired or

replaced. We have never practiced life-cycle management in Port McNeill and have, in fact,

always recorded our tangible capital assets at their purchase cost without ever depreciating their

value with time. Conducting this brief study has made it apparent both those things must change.

Most of our community’s capital assets have past or will soon reach the end of their life-

cycles. The colour scheme used in Annexes B and C were selected to conceptually demonstrate

the urgency with which they must be treated. The red area is the most worrisome because the

15
David W. Love
for Allison Habkirk,
UVic ADMN 446
Assignment # 5

assets located there are past time for renewal and could suffer catastrophic failure at any time.

Areas coloured pink are assigned the next level of urgency, since their life-cycles will end within

the scope of the municipal five-year financial plan. Those in the yellow areas will reach the end of

their usefulness before 2015 and those within the green areas within a decade and a half. This

admittedly general analysis refers to municipally owned roads and the water supply and drainage

and sewer systems.

The typical life-cycle of our municipal roads is 20-25 years. Annex B provides a list of

development plan approval dates. All roads constructed during the Pre-Incorporation and

Consolidation Phases now fall within the timeframe for failure. There are many variables that

affect the actual need for complete replacement – type of roadbed, drainage, loading, etc. – and

their utility could possibly be extended by repairs alone. But the point is all these roads urgently

require detailed surveys so replacement and/or repair costs can be determined and capital

funding allocated in the applicable timeframe.

The life-cycle of our water system is 30-40 years and many of its original fixtures and

piping are at the end of their reliability. More worrisome than potential failure, pressure drops or

replacement cost are the implications of the new Drinking Water Protection Act. This carries very

considerable capital intensive statutory and civil liabilities that have not yet been quantified.

Sewer life-cycles vary depending upon whether the system is non-pressurized or

pressurized. In the former instance the components should last 50-80 years. In the latter the

period is reduced to 20-25 years. Our system was designed to drain by gravity and collect in the

vicinity of Beach Drive then feed out to sea via a sewage outfall. Originally the system was non-

pressurized, but that was changed in the early 1980s when it was determined the portions of the

system below 15 metres of elevation required pumping and changed again when the new sewage

treatment plant was installed at an elevation greater than 50 metres elevation. This means that

imminent failure should be anticipated anywhere in the downtown, Beach Drive, Broughton Blvd,

Haddington Cr, Grenville Pl and Cedar St areas. And because all sewage must pass through the

web of piping in these areas (leading to the original outfall location), any failure will affect every

16
David W. Love
for Allison Habkirk,
UVic ADMN 446
Assignment # 5

single property using the municipal sewer system. Increased use due to community growth will

exacerbate the problem.

Conclusion:

The unfortunate truth is that more than two-thirds of existing tangible capital assets were

created within our first two phases of development (Pre-Incorporation and Rapid Growth). They

will, therefore, generally reach the end of their usefulness in the same time-compressed period

within which they were built. The timeframe for failures is based upon extensive industry

experience and while subject to local conditions and other variables, only detailed engineering

surveys can determine the actual requirements and approximate costs of necessary renewal.

This form of management is applicable to every municipal service dependent upon capital assets:

buildings, vehicles, curbs & sidewalks, drainage systems, parks etc.. And regardless of the

service or facility, we failed to plan for renewal or maintain the existing capital assets despite the

availability of the statutory, administrative and financial tools needed to do the job. That is the true

legacy of using the ‘Port McNeill policy’ beyond the time when creating a community became

superseded by the need to sustain it. Continuing to divert cash flow to residential development at

unrealistically low prices in order to attract permanent residents must no longer occur at the

expense of maintaining and renewing our existing capital assets.

Our capital resource management system must be rationalized and the pending costs

addressed before the much-needed OCP update can be implemented. There is no sensible and

responsible alternative.

RECOMMENDATIONS:

That Council immediately create an Officer position “Director of Development Services”

and once filled, direct the incumbent to expeditiously devise comprehensive strategies for Official

Community Plan and community infrastructure renewal.

17
David W. Love
for Allison Habkirk,
UVic ADMN 446
Assignment # 5

Annex A: Port McNeill Population Changes Since Incorporation

On February 18, 1966 some 436 souls were incorporated as the Village of Port McNeill.
There were approximately 100 families, who lived principally in company owned housing, with the
balance of the population comprised mainly of “single men” living in company owned
bunkhouses.

From Incorporation to the early 80s the population grew by nearly six times to 2,546. The
village had become a town with approximately 650 privately owned homes built or planned and a
further 300 rental dwellings (either mobile homes, townhouses or apartments).

During the next half-decade the population grew only slightly to 2,718 and saw little new
residential development, but there were reasonable opportunities available to any resident who
wished to transition from rental accommodation to ownership.

By the mid-90s there had been slight growth to 3,052 with several new developments
created or planned. They provided approximately three-dozen single-family homes, a similar
number of townhouses and half a dozen modular homes, but there were no new purpose-built
rental dwellings.

Over the past ten years the population has decreased to and stabilized at 2,900. There
have been no new housing starts in the past three years. Generally, the residents with the means
and desire to own now do and those wishing to upgrade may do so readily. There are 725 owned
dwellings and 350 rentals available. An informal survey of rental owners indicates there is a 5%
vacancy rate in townhouses and an apartment vacancy rate of approximately 25%. Average
gross owners’ payments and average gross rental payments are $150 and $100 per month
respectively below the equivalent province-wide average rates.

Port McNeill Population

(Source: Stats BC 2004)

3500
3000
2500
2000
Total
1500
1000
500
0
1966 1971 1976 1981 1986 1991 1996 2001 2004
Year

18
David W. Love
for Allison Habkirk,
UVic ADMN 446
Assignment # 5

Annex B: Port McNeill

Town Plans Depicted on Map (Annex C)
Plan Number Date Verbal Description
16819 Jan 64 Broughton, Beach, McNeill, Cedar, Haddington, Grenville

20489 Sep 67 Broughton W., Cedar N., Haddington W., Cypress, Pine, Bayview
20325 Feb 68 Extension of Beach to East
24282 Mar 71 Bayview, Pine, Quatsino, North of High School
24688 Aug 71 Strata Townhouses, Quatsino, Pine, Mountview
24789 Sep 71 Haddington, Bayview East extension
25252 Feb 72 Kingcome West
25282 Mar 72 Grenville East, Broughton, Dalewood Inn, PM Trailer Park
25251 Sep 72 Campbell, Haddington, Kingcome, RCMP/Firehall
27224 Feb 74 Haddington East extension to Cardena
27425 May 74 Campbell, Chelohsin S&E, Cassiar
27481 Jun 74 PM Trailer Park
27582 Jul 74 Haddington, Mountview Pl., Mountview Cres
27707 Aug 74 Haddington East, Woodland West, Englewood
27918 Nov 74 Mountview complete, North Kingcome
2964-RW Sep 75 Camosun Cres, North side Chelohsin, East side McNeill
29082 Dec 75 Chelohsin between Camosun Cres loops
30063 Nov 76 Catala complete
30679 Jun 77 Cardena Eastern two-thirds
30693 Jun 77 Haddington, Cardena Western one-third
30399 Jul 77 Woodland West of Englewood
31127 Nov 77 Chelohsin, Camosun West, Chelan, Argus to Mine/Betts Strata
31288 Dec 77 RCMP Station, Campbell, Haddington
31403 Feb 78 Kingcome East, Mine/Campbell to Hospital
951 Jun 78 Kingcome extension East past Englewood
32781 Jun 79 Brockton, Kingcome North
2180-R Dec 79 Intersection Campbell/McNeill

33880 Jun 80 Mine/Kingcome – Townhouses

34446 Sep 80 Woodland Dr and Woodland Cres
1071 Sep 81 Strata Townhouses foot of Chelan
37050 Nov 81 Woodland extension to Mine
37722 Mar 82 Haddington/Quatsino intersection
1182 May 82 Bare Land Strata Mobile Homes Betts/Mine
38253 Jun 82 Beach extension to East
40155 Oct 83 Chelan/Argus/Mine

53203 Oct 91 Beach East extension

54871 Aug 92 Sunset Place
59975 Oct 94 Kingcome/Mine NW corner development
60692 Feb 95 Betts West side, Camosun West end, Pioneer Hill at Betts
3829 Sep 95 Townhouses Mid South Kingcome
62256 Nov 95 Northland development
62477 Dec 95 Jordan Place
4739 Jan 99 Townhouses, Campbell/Mine Road

19
David W. Love
for Allison Habkirk,
UVic ADMN 446
Assignment # 5

20
David W. Love
for Allison Habkirk,
UVic ADMN 446
Assignment # 5

Annex D: Development Technical Design Factors

(Source: John Motherwell)
Geology, climate, topography, distance between developed properties had costs that at times
conflicted with the objectives of the ‘Port McNeill policy’ (i.e. keep property development costs low
to encourage as much land ownership as possible in order to create permanency).

1. Geology: underlying the shallow topsoil is consolidated glacial till, a soil type so hard and
impermeable it is impossible to use private wells or septic systems, so for development to
occur it required the municipality provide these services to all residents.

2. Climate: Annual and daily extreme rainfall in Victoria, for example are 841.4mm and
92.8mm respectively. In the temperate rainforest of the North Island annual and daily
extreme rainfall is 1808.2mm and 153.8mm respectively. While the annual rate was not
an engineering issue, locating a large number of residential lots per unit area (i.e. high
density) on the impermeable soil with such high daily rainfall extremes, results in runoff
surges that require a more robust and high volume drainage system than average. It
would be preferable to develop large lots (closer to 10,000 sq/ft than the usual 7,500) so
that the remaining topsoil and foliage would dampen the surge effect.

3. Topography: Port McNeill is located on three distinct natural terraces ranging in

elevation from several metres along Beach Drive to more than 75 metres at Mine Road
where the town water tower is located. The original pre-incorporation design of water,
sewer and drainage systems depended upon gravity and were therefore relatively
inexpensive to operate. However, in 1982 it became necessary to pressurize the sewer
system for properties below the 13 metre level and this is a significant cost factor in any
future development or expansion below this elevation.

4. Distance: The greater the distance between properties, the more expensive the cost to
install and maintain municipal infrastructure such as water, sewer and drainage systems
and streetlights, roads and sidewalks, etc.

21
David W. Love
for Allison Habkirk,
UVic ADMN 446
Assignment # 5

Annex E: Port McNeill, BC

Present Population and Future Implications
(Source: BC Stats)

Age Distribution by Percent of Population

40.0%
30.0%
20.0%
10.0%
0.0%
0 - 14 15 - 24 25 - 4 4 45 - 64 65 +
Age Groups

% of Port McNeill % of BC

Example Resident Populations Over Age 65

(BC Provincial Total 13.6%)

4500
4000
3500
3000
2500
2000
1500
1000
500
0

%Over 65 Total Population

22