Nanaimo’s council defers decision to support funding for Duke Point interchange project

Nanaimo’s council defers decision to support funding for Duke Point interchange project Published 2:30 pm Sunday, July 12, 2026 Nanaimo’s city council wants more information before deciding whether it will provide a letter of support for an application for...

Nanaimo’s council defers decision to support funding for Duke Point interchange project Published 2:30 pm Sunday, July 12, 2026 Nanaimo’s city council wants more information before deciding whether it will provide a letter of support for an application for federal funding for the proposed Duke Point Interchange project. Council decided at its meeting on Monday, July 6 to defer the decision to provide the letter to Seacliff Properties, the proponents of the Sandstone development that would see more than 2,000 homes constructed in southern Nanaimo, despite the fact that the deadline for submitting the application, along with the letter of support, to the federal-funding program is July 15.

Seacliff Properties is applying for funding assistance for the interchange project from the federal Build Communities Strong Fund. The interchange project would provide full-movement access/egress and servicing connections across the Duke Point Highway. In a letter to council, Georgia Desjardins, Seacliff’s vice-president of development, said the proposed interchange is a vital piece of infrastructure with regional benefits.

She said that, while the interchange is necessary to facilitate development of the Sandstone lands, it’s important to recognize that the majority of its long-term benefits extend beyond the project itself. “The interchange will improve access to existing and future employment lands, support growth at the Duke Point Port, improve regional transportation connectivity, facilitate movement of goods throughout Vancouver Island, and provide infrastructure capacity that will benefit residents, businesses and public agencies for decades to come,” Desjardins said. But Coun.

Ben Geselbracht said there is some confusion over whether Seacliff’s funding application to the Build Communities Strong Fund would compete with the city’s application to the program for funding for other infrastructure projects. He said he’d like to have clarity on that before he votes on whether to approve the letter. “It would be difficult for me to support this right now, and I’d defer this if it’s not a timing issue,” Geselbracht said.

CAO Dale Lindsay said staff is still in the process of learning about the funding streams in the federal-funding program. “When she’s talking to the feds, the proponent (Desjardins) is of the opinion that they’ve indicated that the three funding sub-streams don’t compete, but we have not had that same conversations so we can’t confirm at this point how they relate or whether they compete,” he said. “We can’t confirm without following up.”

Coun. Janice Perrino said she wants to make sure the city is not pursuing the same funding for other infrastructure projects that Seacliff is applying for before voting to provide the letter of support. “I’ve been in favour of supporting this, but if we’re going after the same funding for our projects then I’m not in favour, and I’m just not sure how to move forward on that,” she said.

Coun. Tyler Brown said he would also like to see more information provided, including how much funding Seacliff is applying for. “I think those are fair details to provide to a council before asking for a letter of support, so I’m happy to defer it to receive more information, and also give the proponent a chance to (talk to us),” he said “I understand she couldn’t be here and maybe that would have been useful, but as it stands now, I definitely can’t support this.”

Coun. Sheryl Armstrong said the Government of Canada’s website confirms that the funding program has separate streams for different applicants, and the city and Seacliff wouldn’t be in competition for the same funding. But Mayor Leonard Krog said more clarity is needed and suggested a council member make a motion to defer the issue to the next council meeting so more information can be provided.

It was pointed out that the deadline for applications is July 15, well before the next scheduled council meeting, and Seacliff requires the letter of support at the same time. Krog said he realizes that voting to defer the issue may kill Seacliff’s application “unless something dramatic happens.” “But I’m not prepared to take the risk of offering a letter of support for a project that will potentially be in competition with the projects that we’ve identified as a city that are important to us,” he said.

“We’ve already debated those at some length.” The motion to defer passed, with only Coun. Hilary Eastmure opposed.