ADMINISTRATIVE REPORT

Date: April 17, 1998
Author/Local: RAJ/7082
CC File No. 6007

TO:	Standing Committee on Planning and Environment
FROM:	Director of Central Area Planning, in consultation with the City Engineer and Director of Legal Services
SUBJECT:	New Trade and Convention Facilities Development Agreement and Eastlands ODP: Schedule and Resources

RECOMMENDATION

A. THAT an accelerated schedule, outlined in Appendix A, as requested by Greystone Properties for processing the necessary development agreement for `Portside' and for processing an Official Development Plan on the adjoining `Eastlands' be endorsed, subject to confirmation from the Province that Greystone will be proceeding to Stage Three .

B. THAT the resources identified in Appendix B to undertake this work be approved at total cost of $901,000.

C. THAT Greystone Properties be required to pay for estimated processing costs, 65% at the time of applications submission (first payment) and 35% within 30 days of Council approval of the development agreement and Official Development Plan (second payment).

D. THAT cost estimates, for work to be completed, be reviewed prior to receiving the second payment and adjusted, as necessary, with Greystone paying all adjusted costs.

E. THAT Greystone Properties be advised that, while the City will endeavour to meet the requested schedule, approval of this report and receipt of processing fees does not oblige the City to comply with the proposed time frame or approve a development agreement or ODP.

F. THAT any costs or losses to the applicant which may result if the development agreement and/or the Official Development Plan are not completed or the schedule is not met are to be borne by the applicant and the City will therefore bear no responsibility.

CITY MANAGER'S COMMENTS

The City Manager RECOMMENDS approval of A to F.

COUNCIL POLICIES

· Central Waterfront Port Lands planning and approval process (1992);
· Central Waterfront Port Lands Policy Statement (1994);
· In Stage One (1996) of the New Trade and Convention Facilities Review Program Council endorsed the three site proponents proceeding to Stage Two with conditions for evaluation of Stage Two proposals;
· In Stage Two (1997), Council endorsed submission to the Province of the City staff's evaluation of Greystone's Stage Two proposal including conditions to be addressed in Stage Three;
· Central Area Plan (1991);
· Views Policy (1989 with subsequent amendments); and
· Cost Recovery Policy (1992) - Any recommendations for increased staff or enhanced programs be accompanied by recommendations for matching cost decreases or related revenue increases.

SUMMARY

City Council has identified the New Trade and Convention Centre Facilities Program as a high priority. Greystone Properties has requested an accelerated schedule for Stage Three of the Program. This report recommends an accelerated schedule and a dedicated City team to process two applications concurrently - for Trade and Convention Facilities (the Portside site) a development agreement application, and for the Eastlands, an Official Development Plan application. Processing work would occur over the next year. The total cost of all City resources to undertake the processing work is estimated at $901,000. It is recommended that all costs be paid by the developer, consistent with City cost recovery policy.

PURPOSE

This report seeks Council's approval of an accelerated schedule and resource needs to process:

· a Development Agreement (similar to a CD-1 zoning) for new trade and convention facilities on the `Portside' site (lands immediately east and north of Canada Place); and

· an Official Development Plan (ODP) on the adjacent `Eastlands' (lands between Portside site and Portside (CRAB) Park).

Council approval would be subject to the Province confirming that Greystone will be proceeding to Stage Three of the New Trade and Convention Facilities Review Program.

BACKGROUND

Appendix C is a site context map of the Central Waterfront Port Lands with Greystone's Stage Two proposal. Stage Two proposal statistics are also included.

In 1992, the City and Port negotiated a cooperative planning and approval process, which included the following stages:

· Policy Statement;
· Development Agreement (the equivalent of zoning); and
· Detailed Development Approvals (the equivalent of development and building permit approvals).

In 1994, City staff completed, with subsequent Council and Port approval, the Central Waterfront Port Lands Policy Statement.

These two initiatives provided the process and policy context for specific proposals to be considered including Seaport Centre, Ballantyne Pier and Stage One and Two of the New Trade and Convention Facilities Review Program.

Stage One of the New Trade and Convention Facilities Review Program, the purpose of which was to select suitable sites for new trade and convention facilities, was completed in April 1996 and resulted in the City and Province endorsing three site proponents (Greystone Properties, Marathon Realty and Concord Pacific Developments). Numerous site and community context conditions were endorsed for evaluation of Stage Two proposals.

The purpose of Stage Two was to determine the `preferred' proposal, based on the proponent's response to a more detailed development program and response to the Stage One conditions. There was one Stage Two submission, from Greystone Properties. The Province assessed financial aspects while the City evaluated site and community context aspects, including urban design, impact on adjacent communities, transportation and infrastructure, public amenities and benefits and emergency servicing. The City staff evaluation team concluded the Greystone proposal was a viable and positive concept with some issues to resolve. Numerous conditions were identified for evaluation of a Stage Three proposal. A copy of the Stage Two `Site and Community Context' Evaluation can be obtained from the City Clerk's Department.

In June 1997, Council endorsed the submission of the City staff evaluation to the Province. In November 1997, the Province announced their decision to select Greystone Properties as the `preferred' proponent to proceed to Stage Three.

ANTICIPATED APPLICATIONS

Submission of an initial Portside Development Agreement application and an Eastlands Official Development Plan application is expected in May.

Leading up to the applications submission, senior officials from the City, Port, Province and Greystone have addressed general process aspects of the Development Agreement including how subdivision, environmental approvals, development applications and building permits on Port of Vancouver lands would be handled. Conclusions of these discussions will be reported separately to Council.

For the purposes of scheduling and resource needs identified, it is assumed all of the normal steps of a mega-project CD-1 zoning and subsequent approvals would apply.

Portside Development Agreement Application

This application will be the equivalent of a CD-1 zoning application for the Portside site (including the expanded trade and convention facilities, Marriott Hotel, civic plaza, SeaBus link and retail space, and also including the extension to the Canada Place pier (to accommodate a third cruise ship berth and public open space).

It will also include the equivalent of a development permit application for the existing Canada Place pier where most changes are internal, or relate to connections between the existing pier and proposed new development to the east and north.

Eastlands Official Development Plan Application

In the Stage Two evaluation, City staff advised Greystone that more clarity would be required on the future of the Eastlands, both from the perspective of how the Portside proposal could impact the Eastlands (e.g., integrating the two developments, provision of infrastructure and impact on overall development potential) as well as how the two sites would fit into the broader community context (e.g., impacts on and integration with Gastown, Downtown Eastside and Portside Park).

In addition, Greystone Properties and the Port have confirmed that proposed financial arrangements between them include Greystone having the right to develop the Eastlands. Both parties seek, as soon as possible, confirmation of the development potential of the Eastlands. Greystone will, therefore, be submitting an Official Development Plan application for the Eastlands at the same time as the Development Agreement application. (It is noted that initially, in December 1997, Greystone suggested the Eastlands site proceed with the equivalent of a CD-1 zoning application. City staff advised it would not be possible to complete this kind of application in the same time frame as the Portside Development Agreement because of the additional level of detailed planning and analysis required. It is anticipated, subject to Council approval of the Official Development Plan, that Greystone would proceed with the equivalent of CD-1 zoning(s) of the Eastlands in 1999 thereby confirming the development potential.)

While this will add more complexity to the process, the additional and earlier clarity provided will be beneficial to all parties, including nearby communities.

PROPOSED SCHEDULE (APPENDIX A)

Due to the high priority of the new trade and convention facilities program, staff have endeavoured to address the accelerated process requests of Greystone and the Province. Greystone has indicated they wish to begin site preparation work in the Spring of 1999. Fast tracking is feasible given the substantial amount of work undertaken by Greystone in Stages One and Two and the extensive City assessments which provide clear direction leading into Stage Three. It is also feasible if a dedicated staff team is assembled to undertake the work on a priority basis.

Appendix A illustrates the proposed schedule for both applications and will include the following elements:

·
process steps, including staff assessment, public consultation, revised applications and reports to Council will proceed on a parallel basis - the Portside Development Agreement and Eastlands Official Development Plan proposals will be dealt with at the same time;
· both applications would first be submitted as `initial' applications with an early round of assessment and public consultation followed by revised applications;
· staff will commit to schedule targets based on the applicant delivering defined submission components by mutually agreed deadlines; and
· the City will endeavour to meet schedule targets but cannot guarantee compliance due to unforeseen aspects, including changes or delays to the submissions and revised submissions.

It is anticipated that if initial applications are submitted early in May and key targets are met through the process, it should be possible to reach a Public Hearing in December. It is also clear that if the initial submissions are delayed past mid-May, it will not be possible to reach a Public Hearing in December.

In order to meet a Spring 1999 date for site preparation work, it will be necessary to advance as much of the subdivision, development and building permit application work as is possible. Staff continue to explore how this can be done in a way which:

· does not prejudge development agreement (zoning) stage decisions;
· is efficient (detailed agreements should not be drafted early in areas of uncertainty);and
· is undertaken completely at the risk and expense of the applicant.

Greystone and the Province continue to explore ways to further accelerate and compress the overall project schedule. Greystone is also exploring alternatives to an ODP submission on the Eastlands. If the nature of the submissions change, the schedule, staffing and costs to be fully recovered from Greystone will change accordingly.

PUBLIC CONSULTATION

While extensive public consultation occurred in Stage One, the Stage Two evaluation of site and community context aspects was undertaken by staff with very limited community input.

Stage Three will broaden public consultation again in a manner consistent with the Stage One consultation and consistent with Mega-project zoning applications. The following components are proposed:

· notification of community groups, business organizations and interested individuals;
· three open houses/public meetings in June to introduce the applications and solicit initial feedback;
· presentation material and model displays;
· staff and applicant representatives attending regularly convened community and business group meetings;
· City Web-site, Faxback and E-mail communications;
· after revised applications are received, open house(s) and public meeting(s) (as required); and
· targeted consultations on specific issues, such as low-income housing impacts, transportation and employment.

STAFF MANAGEMENT AND RESOURCES

A dedicated team approach is proposed to undertake the required complex application processing within an accelerated schedule. This will be the fastest process of this type ever attempted by the City. It is proposed the dedicated team (Technical Committee) report to the Mega-projects Steering Committee consistent with established Mega-project management.

A separate project account will be established which Departments will draw from to meet their staffing and other resource commitments.

Appendix B indicates the positions required from each of the involved departments. Consistent with Mega-project zonings, the Planning, Engineering and Law Departments need to commit significant resources as follows (staff resources are indicated in `person-month equivalents):

Planning Department

Planner III level (12 months) - To cover coordination of both application processes and provide project management for the Portside application.

Planner II level (8 months) - Provide project management for the Eastlands Official Development Plan application and urban design expertise for both applications.

Planning Analyst level (12 months) - Undertake planning-related analysis and manage public consultation for both applications.

Planning Assistant level (8 months) - Technical level and public consultation support for both applications.

In anticipation of filling these positions, the Community Services Group first looked at redeploying existing staff where feasible (e.g., areas where there has been a drop in application volumes). Some redeployment can occur (e.g., limited development planner and zoning planner contributions) but not enough to create 8- and 12-month full-time positions. The senior planner for the project will be an existing senior planner who has been fully involved in the project from the beginning. This is essential because of the complex nature of the work, the tri-level government negotiations and the confidential nature of key aspects. The Planner III level position will be created to cover the previous work assigned to the seconded planner.

The three other positions will be classified and posted as full-time temporary positions. Community Services will continue to examine work volumes and fee revenues, and redeploy staff in the future as circumstances dictate.

Other Planning Staff (total 7 months) - Subdivision, zoning, development application and graphics provide required expertise and link to `downstream' applications. In these cases where critical specialist expertise is required but cannot be provided without disrupting service to other high priority applications or projects, funds from the approved budget will be applied to backfill positions, as required. This approach would be available to all departments.

Engineering Department

Engineering Coordinator ( 8.5 months) - provide overall coordination of Engineering evaluation of the project.

Transportation Engineer (6 months) - provide required expertise for all transportation related aspects.

Other Staff (8.5 months) - provide required expertise in other Engineering Services areas including infrastructure, lands survey and legal agreement aspects.

Law Department

Solicitor (19 months) - provide required expertise in drafting and reviewing legal agreements and direction on Port/City approval processes.

Other Departments

Other departments critical in processing the applications include: Housing, Parks, Social Planning, Health, Fire, Police, Permits and Licenses, and Finance (from 2 months to 6.5 months each) - specialist contributions are required from these departments.

Program Management and Better City Government

The management approach proposed is consistent with Better City Government and the Development and Building Review principles and practices as follows:

· it builds on the successful multi-departmental team approach also applied in Stages One and Two of the New Trade and Convention Facilities Review Program;
· the Team is maintained (as much as possible) through the various stages of the process; and
· traditionally `downstream' components of the process (i.e., development and building permit application issues) are addressed earlier with staff responsible for these areas participating earlier.

BUDGET AND COST-RECOVERY

Estimated City costs for components of the proposed process are as follows:

RESOURCES/EXPENSES	PORTSIDE	EASTLANDS
Staff (total direct and allocated): · Planning · Engineering · Law · Other Departments	176,443 136,989 157,352 127,849	79,023 28,809 18,512 50,763
Other Expenses: · Overtime · Public Consultation · Office Space · Public Hearing	15,000 20,000 12,000 3,000	5,000 10,000 12,000 2,000
Community Services Overhead	5986	1771
City Support Services	29932	8855
SUB-TOTAL	$684,550	$216,734
TOTAL	$901,284

In accordance with City policy, it is proposed Greystone reimburse the City for all application processing costs. 65% would be payable at the time of application submission (first payment) and 35% within 30 days after Council approval of the development agreement and Official Development Plan (second payment). While the Mega-project fee schedule provides for a 50%/50% approach, 65%/35% is proposed in this case as it more accurately reflects when the work will be undertaken with an accelerated process.

It is also recommended that due to the uncertainties and changing scope of this complex project that prior to receiving the second payment, cost estimates for work yet to be completed be reviewed and adjusted, as necessary, with Greystone paying all adjusted costs.

It is noted that the proposed fees or costs to be recovered are the equivalent of what would be paid under the Zoning and Development Fee By-law for a CD-1 zoning on the Portside site and a minor amendment development application for Canada Place.

It is further noted that Subdivision, Development Application and Building Permit Application costs and charges have not been included and Greystone will be required to pay those fees (or charges in lieu of fees) in accordance with applicable fee schedules when these applications are submitted.

CONCLUSION

In response to the high priority of this project and a request from Greystone Properties, staff recommend an accelerated schedule with a dedicated City processing team. Consistent with City cost recovery policy, staff recommend Greystone Properties pay all City processing related costs.

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(c) 1998 City of Vancouver