SUPPORTS ITEM NO.  2
                                           P&E COMMITTEE AGENDA
                                           JULY 27, 1995       

                                   
                                 POLICY REPORT
                                URBAN STRUCTURE

                                                Date:  July 12, 1995
                                                Dept. File No.:  PF

   TO:  Standing Committee on Planning and Environment

   FROM:     Associate Directors  of Planning, in consultation with General
             Manager of Engineering Services, General Manager  of Corporate
             Services, General Manager of  Human Resource Services, General
             Manager of Parks  and Recreation, Director of  Legal Services,
             and Manager of the Housing Centre

   SUBJECT:  Rezoning Inquiry - Grandview Highway and Boundary Road

   RECOMMENDATION

        A.   THAT Council advise the McLean Group that it would consider an
             application to rezone  10.93 ha (27 ac.)  at Grandview Highway
             and Boundary Road  for industrial and  highway-oriented retail
             uses,  with consideration  given  to  issues  raised  in  this
             report, and  with any  temporary staff  or consultant  funding
             requirements to be reported back to Council at the appropriate
             time;

        B.   THAT residential  as a separate use not  be further considered
             on this site;

        However, if Council rejects Recommendation B and wishes to consider
        residential, an alternative B1 motion detailing the process, timing
        and resources necessary is contained in Appendix A; and

        C.   THAT  a rezoning application  containing live/work use  not be
             considered unless the policy analysis of live/  work that will
             be undertaken in the context of the False Creek Flats overview
             planning indicates it is supportable on this site.

        However, if Council rejects  Recommendation C the following  is put
        forward as an alternative:

        C1.  THAT Council advise the McLean  Group that it would consider a
             rezoning  application  with  a  live/work   component,  to  be
             processed concurrently with the  policy analysis of  live/work
             that  will be  undertaken in  the context  of the  False Creek
             Flats overview planning.






   GENERAL MANAGERS' COMMENTS

        The General Managers of Community Services and Engineering Services
        note  that  this area  is  strategically  located with  respect  to
        transportation and access.  Industrial  and highway-oriented retail
        uses  are strongly supported  by these facilities,  and residential
        can   be   incompatible.      They   therefore   strongly   support
        Recommendations A, B, and C.

   COUNCIL POLICY

   Truck Routes and Residential Rezoning Policy

   On March 23, 1982, Council adopted a policy:

   "That  when planning  to rezone areas  for residential use,  the City be
   wary of potential  incompatibility with  truck routes;  that insofar  as
   possible new  or altered  residential zones be  located away  from truck
   routes; that in those cases where new or  altered residential zones must
   be located  adjacent to  truck route,  environmental protection such  as
   double glazing, noise berms, setbacks, etc., be required."

   Hastings Sunrise Plan

   On May 28,  1985, Council approved the Hastings  Sunrise Plan, including
   the goal "to maintain industrial viability" in the Lougheed and Boundary
   Industrial area, and consequent policies.

   Large Scale Retail Uses in Industrial Areas

   On November 24,  1987, Council adopted a policy  requiring CD-1 rezoning
   for any retail use larger than about 10,000 sq. ft.

   Still Creek

   On  April 24,  1990, Council  adopted  the Still  Creek CD-1  industrial
   zoning and guidelines  which retain and enhance the  open watercourse of
   Still Creek.

   Industrial Lands Strategy

   On March 14, 1995, Council  approved the Industrial Lands Strategy which
   calls  for the  Grandview/Boundary industrial  area to  be retained  for
   industrial use, other than the Grandview Highway frontage which is to be
   replanned for highway-oriented retail/industrial usage.




   CityPlan

   On June 6, 1995, Council  endorsed CityPlan, which provides a number  of
   directions relating to  land use, as  noted in the relevant  sections of
   this report.

   SUMMARY

   1.   Background

   A major  rezoning inquiry  has been  received from the  McLean group  to
   rezone a 10.93 ha (27 ac.) primarily M-2 zoned site at Grandview Highway
   and  Boundary Road  to industrial,  retail,  residential, and  live/work
   uses.   The site  is currently occupied by  industrial and service uses.
   It is  located in the  81.34 ha (201 ac.)  Grandview/Boundary industrial
   area, part of  a larger industrial  area that continues  4 km (2.5  mi.)
   into Burnaby.

   The adopted Industrial  Land Strategy (ILS)  policies would support  the
   industrial  and   highway-oriented  retail   components,  but   not  the
   residential or live-work.   However, in response  to Council's direction
   of July  1994 to  consider the  inquiry, when  it came  in, "on  its own
   merits,"  staff have completed a more  comprehensive land use evaluation
   based on the fundamental City goals, as well as data from the industrial
   studies and elsewhere.

   2.   Land Use Evaluation

   City goals  and policies  support consideration  of rezoning  that would
   intensify  industrial  uses,   and  introduce  highway-oriented  retail,
   subject  to   further  discussion  of  issues  noted   in  this  report.
   Residential  use  is  not  supported   due  to  its  adverse  affect  on
   maintaining industrial viability on the site and in the area.  Live/work
   use has raised  broader policy  questions for the  City which are  being
   dealt with  in the context of  the False Creek Flats  overview planning.
   That  review  may   or  may  not  indicate  that   live/work  should  be
   accommodated on some  industrial lands in  the city, and if  so, whether
   this site is a likely location.  Staff recommend waiting for the results
   of that work before processing  an application involving live/work.  The
   site  is large  enough  that  industrial and  retail  rezoning could  be
   pursued on parts of the site, with live/work being phased in later.

   3.   Transportation Plan

   Any rezoning on this site would need to be closely co-ordinated with the
   Urban Goods Movement Study being undertaken by Engineering and Planning,
   particularly in respect to preserving transportation options.





   4.   Alternative Directions and Processes

   (a)  Industrial and Retail Use Rezoning

   An industrial and highway-oriented retail rezoning could be handled as a
   site-specific rezoning at the initiative of the owner--either a CD-1, or
   new  custom  district  schedules.    Processing  could  begin  when  the
   application is received,  using existing staff, and  would normally take
   10 to 12 months.  However, timing could be affected by work loads in the
   Land  Use and  Development  Division, depending  on decisions  made with
   regard  to completing enactments of major projects before November 1996.
   (A  report  may  be  forwarded  to  Council  on  this  matter  shortly.)
   Consultant assistance may  be needed on the rezoning,  but this would be
   reported to Council for approval at the appropriate time.

   The rezoning fee would be about $307,500 and would reflect Council's 50%
   cost recovery policy.

   As an alternative  to site-specific zoning, the proponent  may find that
   the  M-2 district  schedule revisions,  and  the new  Grandview frontage
   retail zoning permit the uses desired, and  may elect to have them apply
   to the site.

   (b)  Industrial, Retail, and Live/Work Use Rezoning

   Any  rezoning including  live/work should  await the  conclusion of  the
   live/work policy investigations  that will form part of  the False Creek
   Flats overview planning.

   (c)  Industrial, Retail, Live/Work, and Residential Use Rezoning

   Lastly, if Council wishes to consider adding residential use to the mix,
   along the lines  proposed in  the inquiry,  they would  direct staff  to
   undertake   an  initial   overview  planning   stage   for  the   larger
   Grandview/Boundary  area,  followed  by  processing  of  a  CD-1  zoning
   application.  Community Planning Division staff  would need to undertake
   the overview, but are committed until at least mid-1997.  Therefore, the
   overview  stage would require $78,000 in Contingency Reserve funding for
   temporary staff in  1995, as well  as approval for  $46,100 in the  1996
   budget.

   A subsequent  rezoning could  see up to  50% of  the cost  of processing
   recovered from normal rezoning fees, but would wait for available staff.
   Alternatively, it could proceed immediately  after the overview stage if
   Council chooses to accept 100% cost recovery  from the proponent.  Staff
   would  report back  for Council  direction  on this  at the  appropriate
   time.PURPOSE

   The purpose of this  report is to provide information and seek Council's
   direction on an inquiry by the McLean Group to rezone about 10.93 ha (27
   ac.) in the  Grandview/Boundary industrial area to CD-1  for mixed-uses.
   A land use evaluation is presented, together with alternative directions
   and processes that could be followed.

   BACKGROUND

   1.   Inquiry Background and Role of the Industrial Land Strategy (ILS)

   The McLean Group has met with staff on several occasions to
   review development possibilities for its site.  On May 1, 1995, a formal
   rezoning inquiry  was received  for a mix  of uses  (industrial, retail,
   residential, and live/work) at an overall density of  2.08 FSR.  Further
   details on  the inquiry are presented in  the discussion of the specific
   land uses, below.   Consistent with staff's advice to  the McLean Group,
   the rezoning inquiry  focuses on the desired land use mix and rationale,
   since this is the main issue at this time.

   On July  26, 1994, when  the ILS was  tabled for public  review, Council
   resolved:

        "THAT the  Director of  Planning be  instructed to  consider a
        rezoning  inquiry  for  the McLean  property  at  Boundary and
        Grandview on its own merits and independent of the  Industrial
        Land Study;

        FURTHER THAT the Director  of Planning report to  Council upon
        receipt of the enquiry for this site."

   The  policies in  the  ILS, adopted  March 14,  1995, would  support the
   industrial and highway-oriented retail portions of the proposal, but not
   the residential or live/work components.

   In  this report,  while noting  the  relevant ILS  policies, staff  also
   present a  more comprehensive  land use review  for the  residential and
   live/work uses.   The  discussion returns to  underlying City  goals, as
   well as using  available data from the industrial  studies and elsewhere
   to draw conclusions for this particular site.



   2.   Site and Area 

   (a)  Location

   The site  is bounded by  Grandview Highway, Boundary Road,  Trans Canada
   Highway, Burlington Northern  Railway main line, and Skeena  Street.  It
   is part of the larger Grandview/Boundary industrial area running between
   Slocan and Boundary Road, and then  extending about 4 km (2.5 mi.)  east
   of Boundary  Road into Burnaby, as far as Burnaby  Lake.  (See Figure 1,
   page 7, and Figure 2, page 8.)

   (b)  Current Zoning

   The current zoning on the site is M-2 and Still Creek CD-1 zoning (which
   is M-2  with various  measures to protect  Still Creek).   M-2  allows a
   variety  of industrial uses  including heavy industrial.   An FSR of 5.0
   and  a height of 30.5 m  (100 ft.) are permitted  outright.  Most of the

   rest of  the area is similarly zoned, although  a portion on the western
   end is zoned M-1 industrial.

   (c)  Existing Situation

   The overall area [81.34 ha (201 ac.), 156 firms, 7,340 employees] is one
   of four major  industrial areas in Vancouver.   The land vacancy  in the
   area is about 3%, and the space  vacancy rate is 0.4%. Excellent street,
   highway,  and  rail   accessibility  have  contributed  to   the  area's
   predominant  use for  warehousing  and distribution,  and manufacturing.
   (See  Appendix  B for  land  use  statistics.)   Firms  include  Eaton's
   distribution  warehouse, Glenayre  high-tech  electronics firm,  Pachena
   Electronics,   Bendorff  Verster,   B.C.   Liquor  Distribution   Branch
   warehouse, and  Molson distribution centre.   Investment in the  area is
   ongoing. Most recently, the old 3.12 ha (7.7 ac.) Weston site north east
   of  the McLean site has been  subdivided for auto dealerships and strata
   warehousing.

   The area's  highway  exposure has  also  proved attractive  to  discount
   outlets such as  Price Club  and United  Buy and Sell,  which have  been
   approved under the M-2 as  wholesale with accessory retail.  A  rezoning
   for  a home  improvement centre at  2750 Slocan  was approved  at Public
   Hearing in October 1994.

   The  site itself  accommodates 68  licensed  businesses.   Based on  the
   proponent's data, there  are 614  employees.   About 8% of  the land  is
   vacant.  The largest  single user is Price Club  [+/- 3.64 ha (9  ac.)].
   Most of the rest is in various manufacturing, wholesale, transportation,
   and storage uses.  Some  recently vacated industrial buildings have been
   leased for movie  production studios.   Uses bounding  the site are  CAE
   machinery toFigure 1.  Grandview/Boundary Area and Site:  LocationFigure
   2.   Grandview/Boundary  Site:    Existing  Land Usethe  north;  various
   manufacturing, wholesaling  and storage firms  to the west,  and single-
   family residential to the south.

   LAND USE EVALUATION

   1.   Industrial Use

   (a)  Proposal

   The proposal is  for 93 550 m›  (1,007,000 sq. ft.) of  industrial, two-
   thirds "high-tech" and one-third standard.   (See Table 1 for statistics
   on  proposed  land  uses.)    The  focus  would  be  on technology-  and
   knowledge-based industries  and services, including  film studios, post-
   production  facilities, and software manufacturers.  Many of the current
   site users  are also proposed to  be incorporated.  The  proponent feels
   that  the  development is  an  opportunity to  attract a  number  of new
   industries  to the  city  due to  a good  location and  possibilities of
   synergistic relationships among  them.  They feel the  advantages to the
   city will be job creation and tax revenue.

   Table 1.  Proposed Land Uses (Square Footage and FSR)


           LAND USE             M› (SQ. FT.)             FSR
    Retail (big-box)         17 930 (  193,000)         0.16

    Industrial               93 550 (1,007,000)         0.86
    - standard               28 520 (  307,000)
    - high-tech              65 030 (  700,000)

    Residential             111 480 (1,200,000)         1.02
    - standard               89 184 (  960,000)
    - live/work studios      22 296 (  240,000)

    Community Facilities      4 645 (   50,000)         0.04

    TOTAL                   227 605 (2,450,000)         2.08

   (b)  Policies

   The  (ILS)  calls  for  the  Grandview/Boundary  industrial area  to  be
   retained for  industrial use.   An exception  is the  Grandview frontage
   which is to be rezoned for highway-oriented retail/industrial usage.

   A key  CityPlan  direction  with  respect to  economy  and  jobs  is  to
   "maintain industrial  areas" and to  "use existing  industrial land  for
   port  uses and  industries the  employ  city residents  or service  city
   businesses."(c)            Evaluation

   Staff feel that  the industrial proposal is supportable  for the reasons
   below.  Some  concerns are noted  that can be addressed  during rezoning
   discussions.

   First, the site has characteristics  that make it suitable for industry.
   It  has  particularly advantageous  highway  and  rail  access.   It  is
   convenient to the metropolitan area, the port and downtown.   Its street
   pattern  and  servicing  reflects  its  planning  in  the  1950s  as  an
   industrial  park,  and   with  modifications  are  still   suitable  for
   industrial redevelopment.

   Second,  in terms of  amount of industrial space  and potential jobs, as
   Table  2 shows,  the  proposal  is intensifying  both.   The  industrial
   studies did not propose  any specific targets but noted that  there is a
   strong   demand  for  industrial  space,  and  that  intensification  of
   industrial development  would  be needed  in  future.   (Mount  Pleasant
   industrial area presented in the table for comparison only.)

   Table 2.  Proposed Industrial Intensification


                                                          Mount
                   Current Site       Proposal            Pleasant

    Built Area     33 630 m›          93 550 m›           n.a.
                   (362,000 sq. ft.)  (1,007,000 sq. ft.)

    FSR            0.31               0.86                1.00
    Employees/ac.  23                 74                  100

   The  one  concern  staff  have  is  regarding  the   range  of  industry
   anticipated.    The   proposal  may  rely  too  heavily  on  "high-tech"
   tenancies.  While the ability to  provide for these is a benefit,  staff
   feel the development needs to be able to accommodate a range of types of
   city-serving and city-oriented industry.  This ensures that if tenancies
   change over  time,  as  usually  happens, the  site  remains  viable  as
   industrial.   While the "high-tech" businesses  may use space similar to
   office space, many other industrial users require the usual features for
   viability:   good truck access;  adequate parking; ground  access and/or
   loading  elevators; freedom  for 24-hour  operations,  with accompanying
   noise   and  lights;  special  spatial  configurations  such  as  higher
   ceilings, and  so forth.   Rezoning discussions  should ensure that  the
   appropriate provisions are made.
   2.   Retail Use

   (a)  Proposal

   The proposal includes 17 930 m›  (193,000 sq. ft.) of retail (.16  FSR).
   These  are described as wholesale/retail (or "small big-box") in nature.
   The proposal also mentions convenience retail for the proposed residents

   of the site.

   (b)  Policies

   The City  does not have  a comprehensive  retail strategy.   However,  a
   number of regulations and policies are relevant.

   Currently, M zones  restrict retail uses  to about 1 000 m›  (10,000 sq.
   ft.).   A CD-1  rezoning is  required for any  retail use  over 1 000 m›
   (10,000 sq. ft.), with consideration  being given to various criteria in
   evaluating the rezoning.

   CityPlan includes the following directions related to retail:

   - with respect  to neighbourhood centres "provide shops and services for
     neighbourhood residents..."; and
   - with respect to economy and jobs "make sure decisions about increasing
     retail  space  in  the  city  support  the  creation of  neighbourhood
     centres, strengthen the downtown, and protect industrial land."

   The anticipated new zoning for  highway-oriented retail on the Grandview
   Highway and Marine Drive frontages  will likely define permitted  retail
   by  type of goods, and possibly size of establishment, focusing on those
   which are not  appropriately located in a  local shopping district.   It
   will not,  however, permit all types  of what are commonly  termed "big-
   box" retailers.   Many  of these will  require individual  rezonings, as
   they do now.

   (c)  Evaluation

   Staff feel it is appropriate to give further consideration to a rezoning
   that includes  retail uses on this site, on the  basis of what is likely
   to be permitted in a new Grandview Highway frontage zone.

   3.   Residential Use

   (a)  Proposal

   The inquiry proposes 89  184 m› (960,000  sq. ft.) of residential  space
   (.81 FSR).  (This represents about 950 to 1,000 apartment units, housing
   up to 1,500  people.)  The  units are intended  to appeal to  industrial
   employees, or to a demographic profile  similar to those employed in the
   area.   The  advantages cited  for  residential are  location of  living
   accommodation close to work, and affordability.

   (b)  Policies

   The City currently has available  zoning capacity for about 100,000 more
   people (about  65,000  units), mainly  in apartment  zones downtown  and
   along  arterials.   Beyond  this,  CityPlan calls  for  an "increase  in
   neighbourhood  housing  variety  throughout   the  city,  especially  in
   neighbourhood centres."  Additional ground-oriented housing is seen as a
   way to meet"...the changing needs of  current residents while preserving
   most of  the single-family neighbourhoods...retaining  industrial areas,
   and reducing the need to use a car for daily trips."

   The ILS concluded  that industrial use had greater merit than housing as
   a competing  use for  the remaining  industrial lands,  in light  of the
   three City goals:

   - promoting  economic vitality  through providing  jobs,  and a  diverse
     economy more capable of withstanding economic down- turns;
   - furthering  "access by proximity"  for commuters and  business service
     trips; and
   - responding to  social diversity  through ensuring a  range of  jobs to
     match the range of residents' skills.

   (c)  Evaluation

   Neither  CityPlan nor  the ILS  conclusions support  residential use  of
   industrial land.   The issue is whether to alter or make an exception to
   these policies  for this site.   The  answers to  several questions  are
   relevant in considering this:

   - whether the proposal for  an intermediate capacity transit  line along
     Broadway alters the  relative merits of housing and industry  as a use
     on the site;
   - whether residential can be combined with industrial in such a way that
     the industrial remains viable;
   - how  suitable the  site is  for residential,  and whether there  is an
     affordability advantage;
   - whether adequate parks and other public amenities can be provided; and
   - what the effect would be on the adjoining industrial area.


   (i) Access by Proximity

   The proponent feels that residential on the site near jobs would enhance
   access by proximity.   However, residents cannot be  restricted to those
   that work on or near the site.  They will work in many locations, and be
   similar to other Vancouver residents in their transportation usage.

   The ILS assessed  the comparative  "access by  proximity" advantages  of
   housing and  industry for Vancouver's  industrial lands.   The estimated
   number of  the auto-users  for an acre  of Vancouver  land that  remains
   industrial (with  the potential  residents living  outside the city  and
   commuting to jobs downtown) was the  same as if the acre were  converted
   to  residential (with  the jobs  going  outside the  city requiring  the
   employees to commute to them).

   This analysis  was based on  current transportation usage  (mode split).
   However, the results  would change if due  to the proposed  transit line
   along Broadway the  mode split for residents on this site were to change
   significantly.  Based  on experience, the  key factors  are the type  of
   transit  technology and whether the  station is within walking distance.
   If  light rail  is  installed,  rather than  rapidbus,  it could  likely
   significantly improve the mode split for people  within walking distance
   of a station.   However,  the distance to  the closest proposed  station
   (Boundary and Broadway) would be 500 to  900 m (about 3.5 to 6  blocks),
   with significant  slopes.  Since the site is not within the 400 to 500 m
   (about 2.5 to  3.5 blocks)  convenient walking  distance, regardless  of
   technology chosen  the mode split  for residents on  the site would  not
   likely   improve  significantly.    Therefore,  there  would  not  be  a
   significant "access by  proximity" advantage to locating  residential on
   this site.

   (ii) Viability of Industrial Combined with Residential

   The  proposal notes  that the  proposed "high-tech"  industry would  not
   create undue impacts for the future residents.  However, the residential
   would be located in the midst of a larger industrial and transportation-
   focused area.  While "smoke stack" industry is a thing of the past, many
   modern city-serving industries have 24-hour operations, noise, trucking,
   and lights.

   As noted during  the ILS studies, and  by related input and  delegations
   from industrial owners  and tenants, residents inserted  into industrial
   areas  often complain  about operations.    This makes  it difficult  to
   attract and  keep industrial  tenants.   In addition it  was noted  that
   rezoning  to higher  value  uses, such  as residential,  encourages land
   speculation, which  affects taxes  and lease terms  offered to  tenants.
   Both  these factors jeopardize industrial  viability.  (Both also relate
   toconsideration of live/work use, as discussed later in this report.)

   (iii) Residential Suitability and Affordability

   As the proposal notes, the site offers excellent views northwards to the
   mountains for potential  residents (see Figure 3).   However, on balance
   the site is a difficult one for housing in a number of respects:

   - 24-hour impacts  from BNR  main line, Highway  401, Boundary  Road and
     Grandview Highway;
   - difficulties of effective integration  with adjacent neighbourhood due
     to the highway, steep slope, and retaining wall;
   - poor walking  access to  existing community  facilities, schools,  and
     local shopping; and
   - industrial uses on three sides of the site.

   The proponent feels that allowing residential on the site will have some
   advantages in terms of enhancing  housing affordability.  While the City
   normally  negotiates  for  some  non-market  housing units  in  a  major
   development such as this, most  of the housing would be  market housing.
   The  city has a  significant apartment-zoned capacity  available already
   Adding  zoned capacity will not  significantly improve affordability.  A
   developer  must cover costs  and earn a reasonable  profit, and will not
   bring units to market at a price less than needed to do this.  Given the
   costs of  residential development with adequate public  amenities, it is
   unlikely units would be sold for less than market prices.

   (iv) Public Amenities

   The inquiry proposal is not intended, at this stage, to provide  details
   of  public  amenities to  be provided.    It does  describe the  idea of
   providing on-site park space associated  with a restored Still Creek, as
   well  as  about 4  645  m›  (50,000  sq.  ft.) of  space  for  community
   facilities.
    
   A number of City policies relate to amenities.  The current  Still Creek
   CD-1  industrial  zoning  requires  any  development  (with  or  without
   residential space) to provide setbacks from the Still Creek watercourse,
   as well as landscaping of its banks.  The draft Greenways Plan calls for
   a city-scale Greenway corridor through  this site to link with Burnaby's
   trail  system.    In  addition,  the City  has  standards  and  policies
   regarding the  provision  of park  space, daycare,  and social  housing,
   depending on  the scope and  uses involved.  While  amenity requirements
   must be  considered and  negotiated during  any  rezoning process,  they
   doFigure 3.   Residential Suitabilitynot in themselves  provide guidance
   on the question of the
   appropriate land uses.

   (v) Effect on the Adjoining Industrial Area

   This site  is part of a larger industrial  area and is not significantly
   different  from  other  parcels in  the  area.   The  rationale  for any
   decision to  permit residential  here would extend  to other  sites, and
   would imply a change of direction for the entire area.

   Overall, regarding  residential use of  the site, staff feel  that there
   are serious disadvantages  in terms of maintaining  industrial viability
   on  the site  and in the  area as  a whole, while  there seem  to be few
   countervailing advantages.

   4.   Live/Work Use

   (a)  Proposal

   The  proposal  includes  22  296  m›  (240,000  sq.  ft.)  of  live/work
   accommodation (.21  FSR).   This would  accommodate people--artists  and
   others--who want  the opportunity  to combine  residence and  workplace.
   The proponent feels  this responds to  a trend toward increased  work at

   home.

   (b)  Policies

   Council recently decided to limit artist live/work studios in industrial
   zones to renovations of existing  buildings, with rental tenure only, up
   to a  maximum of 1.0 FSR  with time-limited development  permits.  Other
   types of live/work are  not permitted in industrial zones.   In areas of
   the city that are already  mixed-use (downtown, historic districts and C
   zones), Council has recently given  direction to staff to develop by-law
   and guideline  changes that would  allow general live/work.   These have
   not yet been brought forward.

   (c)  Evaluation

   Live/work  proposals  in  industrial  areas raise  a  number  of  policy
   questions which  are not limited to  any one site, and which  need to be
   addressed.  These are:

   - what the nature  of live/work (particularly industrial live/ work) is,
     and what market it would serve;
   - how much live/work the city needs to serve the market;
   - whether the  City can ensure  the live/work nature is  maintained over
   time,    and    does    not    simply    devolve    into   residential;-
     whether  residents of live/work in industrial environments are willing
     to  tolerate  negative  industrial impacts  (truck  and  rail traffic,
     noise, lights, etc.), and vice versa;
   - whether the impacts on land values in industrial areas can be limited;
   - whether live/work needs to be  located in industrial areas (or  can be
     accommodated in the mixed-use zones noted above, for example); and
   - if  industrial areas  are needed,  which locations  and how  much land
     should be used.

   The  answers  will  come from  the  recently-approved  overview planning
   process for  the False  Creek Flats, since  the broad  city implications
   will be  addressed in  that work.   Staff  note, however,  that even  if
   issues of definition, impacts  and enforcement can be solved, it  may be
   that  live/work would  be  supportable only  on a  very small  subset of
   industrial lands  in the city.   The broad  policy questions need  to be
   answered  before considering any  rezoning for  live/work on  this site.
   However, because this  is a  large site,  it would be  possible for  the
   proponent to move forward on the industrial and retail rezoning on parts
   of the site, leaving the question of live/work until later.

   CITY TRANSPORTATION PLAN

   City  Council  has   recently  approved  undertaking  an   overall  City
   Transportation  Plan  to proceed  over  the  next year  or  more.   They
   instructed staff to move ahead faster with an Urban Goods Movement Study
   to identify the  demand and need for policies  and facilities to support
   the movement  of goods.   The  Study will  be citywide,  but will  focus
   particularly on  the False Creek  Flats, where overall replanning  is to
   occur.  This  site is located at the east end  of the Grandview corridor
   that ends  in the  Flats.   Any rezoning  process would  need to be  co-
   ordinated with the Study to recognize:

   - the need to reserve any rights  of way through or at the edges  of the
     site, including those related to the Grandview corridor;
   - the transportation demands generated by new land uses; and
   - the possible impacts of transportation measures on possible residents,
     and vice versa.

   ALTERNATIVE DIRECTIONS AND PROCESSES

   The  land use evaluation  based on  City policies  and goals  supports a
   major redevelopment of the site  for industrial (high-tech and standard)

   and some highway-oriented retail.   However, on balance, the addition of
   residential  is not recommended.   Live/work could be considered, noting
   that  it raises  broader City  policy questions  that would  need to  be
   resolved before referral of any live/work proposal to Public Hearing.

   Given  all the  possible  land  use  directions,  staff  have  developed
   alternatives for processing any rezoning on this site.

   1.   Industrial and Retail Use Rezoning

   To pursue a  mix of industrial and  retail uses, the owner  could either
   initiate a site-specific rezoning, or could proceed under the soon-to-be
   revised M-2, and upcoming Grandview frontage district schedule.

   (a)  Site-Specific Rezoning

   This could be a  CD-1 rezoning, noting that staff may  conclude that one
   or  more conventional  zoning  schedules  may suffice.    The choice  is
   largely  an administrative  one, depending  on the  exact nature  of the
   proposal and what  regulatory controls the City needs.   In either case,
   the issues raised in the  industrial and retail sections of this  report
   would need to be resolved.  Appendix C contains some land use principles
   to  guide the  work.   Normal aspects of  form of  development, traffic,
   parking, and  public benefits would  also be the subject  of discussions
   with the applicant.

   While  linkages with  the Urban  Goods Movement  Study would  be needed,
   there  would  otherwise   be  minimal  planning  work  in   the  overall
   Grandview/Boundary industrial area.  An overview planning stage prior to
   the zoning processing would not be required.

   Main staff  responsibility would lie  with the rezoning planners  in the
   Land Use and Development Division (LUDD), with advice from the community
   and industrial planners.  A rezoning of this magnitude would take  10 to
   12 months.  However,  the timing might be affected by the  timing of the
   Urban Goods  Movement Study, as  well as by  LUDD work loads  and timing
   commitments on  other rezonings.   (Discussions  are currently  underway
   regarding resources  for major  rezonings seeking  enactment before  the
   1996 election.  Council may be receiving a report on staffing needs.)

   Some consultant assistance may be required on industrial sub-markets and
   Still Creek  reclamation, but staff will  report back on this  later, if
   necessary.

   Based on the current fee schedule, the rezoning application fee would be
   about $307,500  for a CD-1 zoning.  This  would represent about 50% cost
   recovery for processing  a CD-1, as per Council's policy  in setting the
   fee schedules.(b)               Existing Zoning Schedules

   It is anticipated  that the M-2  zone will be  revised later this  year,
   making a number of non-industrial  uses outright and available at higher
   density  than  the current  1.0  FSR  (e.g.,  film and  post  production
   studios, laboratories, and motor vehicle sales/rentals).   The study for
   highway-oriented  retail  zoning  along portions  of  the  Grandview and
   Marine frontages  is scheduled  to  begin later  this year,  with a  new
   zoning  schedule anticipated by fall 1996.  These new regulations may be
   congruent  with  the  proponent's  industrial  and   retail  development
   objectives.  If so, it might be  advantageous to wait, and  have the new
   zones put in place on the relevant portions of the site.

   2.   Industrial, Retail, and Live/Work Rezoning

   Staff recommend  not processing a  rezoning with  a live/work  component
   until the policy investigations of live/work that will be ongoing in the
   False Creek Flats overview planning  are complete--about six months.  As
   previously noted, it is possible for the proponent to move  ahead faster

   with rezoning  proposals for the  industrial and retail portions  of the
   site, and pursue live/work rezoning later if appropriate.

   Council could direct staff to process a rezoning that includes live/work
   use concurrently with the policy investigations.  This would likely be a
   CD-1 application.   Processing and resourcing would be  as discussed for
   the CD-1  above.   Timing  would  be linked  to  the False  Creek  Flats
   process.  Staff do not recommend this approach.  Reviewing this rezoning
   while  simultaneously conducting the  Flats overview and  processing the
   Trillium  live/ work application  introduces a level  of complexity that
   would be very difficult to handle.

   3.   Industrial, Retail, Live/Work and Residential Rezoning

   This type of mixed-use project would  be of the same order of  magnitude
   as the Joyce/Vanness area and the Arbutus Industrial Lands,  with a more
   complex use mix.   It has  implications as a  precedent for the  broader
   industrial  area, and would require some  comprehensive planning for the
   entire  area prior  to processing  a rezoning  for the  particular site.
   This initial  overview planning would  include the site and  the broader
   81.34  ha (201 ac.) Grandview/Boundary industrial area, recognizing that
   other  sites   would   have  similar   development   opportunities   and
   expectations.  Appendix C includes  principles that would guide the land
   use aspects  of this planning.   It is  anticipated that the  public and
   owner consultation process would be extensive.
   At the end of this stage, staff would report to Council with:

   - general directions on land uses and locations;
   - general directions for form of development;
   - concepts   for  an   area-wide   access   system  and   transportation
     requirements;
   - concepts to meet utility requirements, including sewer and water; and
   - a general  public benefits strategy covering issues of parks, schools,
     daycare, social housing, and so forth.

   Subsequent  to the overview planning stage,  a CD-1 rezoning application
   for the site could be processed.

   The overview phase  would take  6 to 8  months.  The  processing of  the
   rezoning can be expected  to take 10 to 12 months to Public Hearing.  If
   the zoning  is approved,  enactment and  follow-up implementation  would
   follow, and are variable in their timing.

   The lead on this work would be  taken by the Community Planning Division
   (CPD), with  appropriate advice from  LUDD and  the industrial  planner.
   Substantial  time  would also  be  required  from  Engineering and  Law.
   Participation from the  Housing Centre, Parks, and Social Planning would
   also be needed.

   CPD staff are fully committed for 1995.  In 1996, it  is anticipated CPD
   staff will  priorize a  number of projects  already approved  by Council
   (e.g.,  Port Lands  Study, completion  of "let-go"  areas) and  CityPlan
   implementation  in  neighbourhoods.   If Council  wishes to  pursue this
   program,  temporary staff  and other  resources will  be needed  for the
   overview  planning  stage.   An  approval  of  $78,200 from  Contingency
   Reserve  would  be  required for  1995,  as  well  as approval  of  1996
   expenditures.  (See Appendix D for cost estimates.)

   For the subsequent rezoning, Council could proceed under the current 50%
   cost recovery mechanism,  beginning processing when staff  are available
   (possibly   mid-1997,   depending  on   completion   of  other   items).
   Alternatively, as with  the False Creek  Flats rezonings, Council  could
   offer  to allocate  new  resources  to allow  the  proponent to  proceed
   immediately  after the  overview stage,  but  before existing  staff are
   available, provided there is 100% City cost recovery from the proponent.
   Staff  would  recommend  that  this  decision  be  brought  forward  for

   Council's consideration at a later date, when the overview is complete.




   CONCLUSION

   Staff's  evaluation of a mixed-use rezoning proposal  for a 10.93 ha (27
   ac.) site  at  Grandview  and  Boundary concludes  that  industrial  and
   highway-oriented retail can  meet City policy objectives, and  should be
   considered  in  any rezoning  on  the site.    Staff  feel the  proposed
   residential component  is not consistent  with City policies  and goals,
   and do  not recommend it.  The proposed  live/work use presents a number
   of  broad policy  questions, which  will be  answered through  the False
   Creek  Flats  overview planning  process.   That review  may or  may not
   indicate that live/work should be  accommodated on some industrial lands
   in  the city, and, if so,  whether this site is  a likely location.  The
   option to consider live/work in a rezoning at this time is therefore put
   forward for  Council's consideration  noting that  the policy  questions
   would  need  to be  considered  before  reaching  a conclusion  on  only
   rezoning analysis.

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