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The Bayview Development Project in regard to the Vancouver Island Rail Situation

This article summarizes the critical issues surrounding the City of Victoria’s handling of the rail corridor through the Bayview development project and its implications for regional rail restoration on Vancouver Island.


Arthur McInnis
Jan 17, 2025


Current Rail Organisations

There are two main organisations actively working to revive rail service on Vancouver Island:

1. Island Corridor Foundation (ICF) is the current owner and steward. It is a non-profit foundation composed of local governments and First Nations.  It owns and manages the Island Rail Corridor (formerly the E&N Railway). ICF has contracted the Southern Railway of Vancouver Island (SVI) to operate freight services on parts of the corridor.
   
   
2. Island Rail Corporation (IRC) is a private redevelopment proponent that is focused on revitalising and rebuilding the rail corridor. It aims to restore freight, passenger, and tourism rail service. It works with First Nations, governments, and private stakeholders to secure investment and deliver rail service across the Island. I have attended meetings with them in the Legislative Buildings. 
   
   

A Tale of Two Two Master Development Agreements

The City of Victoria has entered into two Master Development Agreements (MDAs) with the Bayview developer, both registered on the land title:

1. The 2008 MDA. The original MDA assumed a protected, continuous rail corridor through Bayview. It treated the rail corridor as a fixed constraint that development would work around, and it aligned with the long-standing public objective of reinstating active rail service on the Island Corridor.  It was defensible.
   
   
2. The 2025 MDA. The amended MDA prepared as part of the rezoning process at the developer’s request and approved by the City is not defensible. It changed the alignment and spatial treatment of the rail corridor and subordinated rail geometry, clearance, and operational integrity to accommodate building massing, roads, and public realm design. In short, the City sold the rail corridor out to keep the developer happy.  It sold out the public on many other aspects of the project but that is for another day (or book). 
   
   

The Practical Effect was Rail Sterilisation

The practical effect of the 2025 MDA changes is the functional sterilisation of the rail corridor. While the corridor may technically remain “on paper,” the following changes would seem to render rail reinstatement economically or operationally unviable: tightened curves, reduced setbacks, grade conflicts, encroachments and incompatible adjacencies. Did any of these factors come up in the City’s deliberations? Not to my knowledge.  This approach allowed the City to claim formal compliance with rail protection requirements while eliminating the practical possibility of restoring active rail service.

This approved change to the rail alignment matters both legally and institutionally because the City was in a dual role; that is as both a party to the MDA and a public authority.  It had fiduciary-like obligations to protect long-term transportation assets.  In my view it breached them and this was part of the original lawsuit against the City for misfeasance in public office. 

Why This Is Inexcusable

The City’s actions are particularly troubling given that two organisations are actively promoting rail return. With both ICF and IRC working to restore rail service, the City should have anticipated the need to protect rail infrastructure.  Once again, the original 2008 MDA already accommodated development while preserving the rail corridor. In fact, the old “Blue Bridge” with the rail line on it did not come down until 2012 – four years after the first MDA. 

How the City’s Actions Could Defeat Regional Rail Revival

The Bayview situation is not just a local planning failure, it is a potentially fatal blow to Vancouver Island rail restoration and the City of Victoria bears direct responsibility for suck holing; in short by:

1. Undermining years of regional rail advocacy. While ICF and IRC have worked tirelessly to restore rail service, the City quietly approved changes that will likely make rail operationally impossible through a key urban corridor.
   
   
2. Creating a precedent for rail corridor erosion. If Victoria can functionally sterilise its rail corridor while claiming to “protect” it on paper, other municipalities along the line may follow suit.
   
   
3. Gifting opponents a powerful argument. Critics of rail revival can now point to Bayview as evidence that rail restoration is impractical, using the City’s own planning decisions as proof.
   
   
4. Poisoning my trust and likely poisoning a much wider public trust. The Restore Island Rail Facebook group is now calling for you to “write your MLA and MP’s and perhaps even Focus Equities who owns the project and make it clear they need to protect the rail corridor.”  In so requesting they are asking for the province or the federal government to overrule our City Council.
   
   

Lastly, the City’s failure is especially damning because Victoria is the functional and natural end point for any restored Island rail service. If rail cannot transit into Victoria, then the entire regional project loses its primary destination and much of its economic rationale.  Well done Mayor and Gang of Five (Caradonna, Dell, Thompson, Loughton and Kim).  For all the progressives who support rail remember this next October.

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See also:

Index of articles regarding rail on Vancouver Island – CRD Watch Homepage

Index of articles, letters, and other material in regards to the Bayview/Roundhouse Property in Vic West. – CRD Watch Homepage

Historic Agreement Reached for Vancouver Island Rail just in time for Christmas! by Warren Skaalrud – CRD Watch Homepage