Union Bay development proposal raising ire of residents

Leaning back to the past, a partnership that includes landowner Union Bay Industries is hoping to revive the tiny community’s history as a port on Vancouver Island’s east coast. 

But if recent history is any indication, the group will face vigorous opposition. 

The proposal in question would be built on 44.5 hectares of land owned by Union Bay Industries between Highway 19a and Baynes Sound, just north of Union Bay.

It would include the controversial Deep Water Recovery site at the north end of the property.

“We want to make it something that’s flowing with the community in conjunction with nature and the environment and supported by the community as well,” said Coastal Gateway Port CEO Mike Butler.

Coastal Gateway Port is partnering with Union Bay Industries and proposed to build a mix of housing and industrial uses on the site.

A press release from Coastal Gateway says it will include “up to 1,000 units of mixed-use housing for service members and local residents, along with a farmers market, resort, and other community amenities.”

When questioned about the seemingly disconnected location for navy and air force members on the Island, Butler said it is a good central location.

A major ship building and repair facility appears to be at the centre of the proposal.

“We used to build 9,000 ships in World War II,” Butler said. “Like that’s what Canada’s capacity used to be and now we’re outsourcing ship building capacity to foreign nations which is a huge amount of jobs lost, the steel and the industry that goes into that.”

He says there could also be a ship breaking or dismantling component on the site as well.

“Essentially the only time a ship would be dismantled is when it’s not safe to go back in the water. So the only time something would be dismantled would be under cover with it fully environmental standard facilities capturing and mitigating any environmental degradation,” he added.

The press release calls it “A New Era for B.C. Shipbuilding and Repair.”

“With more than 900 vessels in B.C. needing repair or replacement over the next decade, Canada currently has limited graving dock space to handle ships in disrepair. In 2024, Canada detained 82 vessels for safety and environmental issues—below the four per cent regional average under the Paris MoU. Expanding repair capacity in B.C. will help address such deficiencies faster and reduce environmental risks,” read the release.

The owner of the land Union Bay Industries currently leases out part of the property to Deep Water Recovery, a controversial ship dismantling company opposed by the community, on notice by the Province for polluting and being taken to court by the Regional District for land use bylaw infractions. 

So what does the community think about this proposal?

“I fail to see how this could work given everything that’s happened here in the past and it says it’s BC ready-made to work, well that site has been proven not to work,” said Concerned Citizens of Baynes Sound President Ian Munro.

He also says the port would require deep water which doesn’t exist in Baynes Sound.

“The only way you could have a deep water port here would be to dredge it out which we can’t imagine anyone allowing that to happen,” Munro added.

The Comox Valley Regional District is also weighing in on the proposal.

“What I can say is they haven’t approached Comox Valley Regional District yet and based on the history of that site I think it would probably be good for any companies that want to establish something there to engage with the appropriate levels of government,” said Area A Director Daniel Arbour.

The BC Ministry of Water, Land and Resource Stewardship would have an important role in any approvals going forward and released this statement Tuesday:

The Ministry of Water, Land and Resource Stewardship has not received any applications for shipbuilding or repair at any site within Union Bay. The former Crown land tenure held by Deep Water Recovery (lands file 0021050) at Union Bay was cancelled on July 4, 2025. 

Any continued use of Crown land by the company is therefore unauthorized. The Natural Resource Officer Service (NROS) within the Ministry of Forests is responsible for enforcement related to such unauthorized use and currently has an active investigation at the dewatering site.

The Province cancelled the Crown lease for Deep Water Recovery last summer.

“Crown lease is basically what allows them to operate on the water and have access to the uplands so without that they won’t be able to utilize that space or bring ships in, store ships or otherwise,” said Arbour at the time.

The Coastal Gateway press release says “the partnership is backed by local industry, unions, and First Nations,” but when CHEK News called K’omoks First Nation, it said it wasn’t aware of the partnership or proposal.

Butler says everything is in the very early stages and that plans and visuals are yet to come.

“We’re working on a community consultation process, we want to connect with every community member. We’re going to do some door knocking and get out and talk to them and listen to their concerns,” said Butler. “We want to connect with local businesses and really emphasize local job creation in the area.”

As far as going back to the area’s industrial past, Munro says it’s different now.

“We know a lot more now. We know a lot more about our environmental impact. We understand the years of coal and other industries here, what it can do to Baynes Sound,” he said.