Vancouver city planners are endorsing a deal for a downtown rezoning involving the old Royal Bank Tower.

Under the trade, the developer will pay for the heritage conservation of the Royal Bank Tower in exchange for the city’s approval of a new 28-storey building beside it.

The application was filed architectural firm MCM Partnership on behalf of Permanent Enterprises Limited.

The rezoning area is at the northeast corner of Hastings and Granville streets.

The Royal Bank Tower is at the western portion of the site. The eastern portion of the area is vacant. The entire site is addressed as 619-685 West Hastings Street.

“In this case, the applicant/landowner proposes to conduct voluntary seismic upgrades and partially conserve the heritage building’s exterior facades in exchange for obtaining the rezoning approval for the adjacent lot and no other compensation is sought or will be provided,” city staff member Theresa O’Donnell wrote in a report to council.

O’Donnell’s report is among the materials included in the agenda of city council on Tuesday (March 10).

Appendix B, which provides conditions of approval for the rezoning application, states that the owner will enter into a heritage restoration covenant with the city, which will include conditions to “require the conservation of the exterior of the heritage building at the cost of the owner in exchange for obtaining the increased development potential” of the eastern portion of the site.

According to O’Donnell’s report, no changes in density are proposed for 675-685 West Hastings Street, which is the location of the bank tower.

“The heritage Royal Bank Tower is proposed to be retained as is,” O’Donnell wrote.

The heritage preservation of the skyscraper is estimated to cost at least $9.6 million.

“Assessment of this rezoning application has concluded that the proposed land uses, density and height are supported and that, if approved, the project will contribute toward Vancouver’s job space and economic development objectives, as well as toward the City’s heritage objectives,” O’Donnell wrote in her report.

According to O’Donnell, the application “helps achieve City economic policies through the creation of new office and job space in the Central Business District”.

“The retention of the Royal Bank Tower and heritage designation of its exterior furthers City heritage objectives,” O’Donnell continued.

The Vancouver Heritage Commission supports the application.

A statement of significance prepared by Donald Luxton and Associates states that the Royal Bank Tower was completed in 1931.

“The Royal Bank Tower is significant as an example of the westward movement of Vancouver’s financial district,” the statement notes.

The document recalled that the city’s financial district was originally centred around Gastown.

“The bank’s regional offices were located in the tower for more than four decades, until they moved to the new Royal Centre development in 1973,” the statement notes.

Also, the Royal Bank branch on the main and lower floors of the tower has “remained in place since its opening and represents the company’s enduring relationship with the site”.