As our communities continue to evolve, so too must our approach to urban planning.

The challenges surrounding CRU9, a commercial unit at Park West, Keltic’s signature mixed-use community in North Vancouver’s Lions Gate Village, highlights the growing need for zoning flexibility to ensure commercial spaces remain responsive to both market conditions and neighbourhood needs. 

Located just east of the Lions Gate Bridge, Park West offers residents and visitors an urban-style lifestyle in a connected, transit-oriented setting. CRU9 is an 11,800-square-foot retail unit within a larger 46,000-square-foot commercial promenade designed to serve the surrounding community with shops, services, and everyday amenities. 

Originally zoned to accommodate a grocery store, CRU9 remains vacant. despite considerable investment and ongoing efforts to secure a food-store operator. The unit was pre-sold for $8.9 million; however, after two years of unsuccessful attempts to find a suitable operator, the original investor rescinded the deal. 

At the request of the District of North Vancouver (DNV), Keltic invested an additional $2.5 million and spent nearly 10 more months enhancing the space in hopes of attracting a branded grocer. These efforts were made to comply with a pre-defined zoning requirement established by the District more than a decade ago. 

However, the local retail landscape has evolved significantly. Within a one-kilometer radius, several grocery stores have opened, creating an oversaturated market. Despite months of marketing and a price reduction to $7.5 million, the unit remains unoccupied. 

Residents and brokers alike have begun asking why the space cannot be repurposed for other essential community functions, such as a food court, medical clinic, pharmacy, childcare centre, or financial institution. These alternative uses could activate the space, better serve the neighbourhood, and align more closely with today’s market conditions. 

Despite genuine interest from prospective tenants, including healthcare providers, financial institutions, co-working operators, fitness studios, and liquor retailers, the current zoning restrictions preclude these Uses. 

The cost of inflexibility 

When large-scale commercial spaces sit vacant, the impact extends beyond lost revenue. These vacancies represent missed opportunities for local businesses, service providers, and residents who would benefit from a broader range of amenities in the area. 

Park West’s original development permit was approved over five years ago, during a time when including a grocer aligned with broader planning objectives. Today, consumer patterns, tenant needs, and leasing conditions have changed. Yet without the ability to adjust zoning, CRU9 remains restricted to a single, increasingly unviable use. 

A collaborative approach to unlocking potential

This is not a call to remove oversight, it’s a call for collaborative, responsive planning. Municipalities and developers must work together to evolve zoning frameworks in step with community growth, enabling adaptive, mixed-use solutions that reflect both economic and local realities. 

In this case, the DNV’s recent decision to vote on a change of use request for the CRU is a meaningful step in the right direction. However, changes like this should be easier to navigate for both cities and developers. Prolonged delays can create cost burdens that significantly impact a project’s feasibility, ultimately driving up the cost of housing. 

At Keltic, we’re committed to building thoughtfully designed spaces that reflect how people want to live, work, and connect. That includes partnering with local governments to align with community goals, while also advocating for greater flexibility when it’s clear that original planning assumptions no longer serve the public interest. 

CRU9 presents an opportunity to rethink what this space could become: a healthcare clinic providing essential services, a wellness studio promoting community health, or a co-working hub supporting local entrepreneurs. Each of these options has the potential to activate the space, generate jobs, and add vibrancy to the Park West community. 

Building for today, and tomorrow 

As we navigate rising construction costs, changing commercial demands, and evolving resident expectations, we must equip our communities with planning tools that are as adaptable as the people who live in them. 

Let’s work together to ensure that North Vancouver’s commercial districts are not only well-conceived but also resilient, responsive, and ready to meet the needs of the future.