ADMINISTRATIVE REPORT

Date: November 12, 1998

Authors/Local: RSegal/7476

YMcNeill/7582

RTS No. 00301

CC File No. 5051

TO:	Vancouver City Council
FROM:	Director of Community Planning, on behalf of Land Use & Development
SUBJECT:	Heritage Designation and Amendment to the Heritage Revitalization Agreement for 1232 Richards Street

RECOMMENDATION

A. THAT the property at 1232 Richards Street, listed on the Vancouver Heritage Register in the “B” evaluation category, be designated as a protected Heritage Property.

B. THAT Council approve amending the Heritage Revitalization Agreement so as to increase the transferrable density by approximately 583 m² (6275.57 sq. ft.), and decrease the figure reflecting on-site density to 4.9 FSR.

C. THAT Council instruct the Director of Legal Services to bring forward for enactment an amendment to the Heritage By-Law and a By-law to authorize amending the Heritage Revitalization Agreement.

GENERAL MANAGER’S COMMENTS

The General Manager of Community Services RECOMMENDS approval of A, B and C.

COUNCIL POLICY

Council Policy states that heritage designation will be a prerequisite to accepting certain bonuses and incentives on a heritage site.

Council Policy on transferring density states that preservation of the heritage building is a prerequisite to transferring bonus density to another site.

Downtown South Guidelines state that floor to floor heights in towers not exceed an average of 10 feet.

PURPOSE

The purpose of this report is to obtain Council approval to designate the former Canadian Linen Building at 1232 Richards Street (now part of the development known as The Metropolis) amend the applicable Heritage Revitalization Agreement to reflect an additional 583 m² (6,275.57 sq. ft.) available for transfer to other sites, and to inform Council of the intent of the Director of Planning to approve an amendment to the Development Permit that reflects this change.

BACKGROUND

(a) Heritage Designation:

In May, 1996, Council at Public Hearing approved a Heritage Revitalization Agreement calling for a heritage density bonus of 1.4 Floor Space Ratio (FSR) for the retail/residential development at 1232 Richards Street in exchange for retention and restoration of the Canadian Linen Building. Designation of the Canadian Linen building was not sought at that time. Since then, Legal Services has determined that the Development Permit Board’s authority to transfer heritage bonus density (up to 10% of the receiver site FSR), requires designation, not just a Heritage Revitalization Agreement. This report seeks to rectify this oversight by designating the heritage building. In due course, Vancouver Charter and Heritage By-Law amendments will be brought forward to provide greater flexibility in the agreements.

(b) Amendment to the Heritage Revitalization Agreement:

The preliminary development application for the now completed Metropolis project was first submitted in January, 1996 by Stuart Howard Architect. At the time the application was being processed, the Planning Department was expecting to recommend to Council an amendment to the Downtown Official Development Plan (DODP) to “double count” the area of double-height volumes in residential loft developments. Staff advised the applicant to adopt this floor area calculation method in anticipation of this amendment. The applicant accepted this advice and consequently the development permit for this project now includes floor space for the open-to-below, double-height areas in 84 units, amounting to some 872.29 m² (9,389.5 sq. ft.).

In October, 1997, rather than double counting, Council adopted amendments to the Downtown South Guidelines, incorporating a “10 ft. floor-to-floor averaging” formula (refer to Appendix A). This allows some latitude for loft units without as severe a “penalty” as double counting all open-to-below areas.

DISCUSSION

(a) Heritage Designation:

In addition to simplifying the process for transferring the density, designation of this 1928 Art-Deco style building will add further protection as afforded under the Vancouver Charter. In simple terms, designation carries with it statutory duties embodied in the Heritage Conservation Act (HCA), as opposed to a HRA for which the duties are contractual, undertaken through legal agreements. The City’s power to correct a breach of statute is stronger than when facing a breach of contract. For this and other reasons, staff have adopted a policy of designating all buildings that also propose an Heritage Revitalization Agreement. (See Appendix E for discussion on heritage merits of the building)

(b) Amendment to Heritage Revitalization Agreement:

Subsequent to Council’s adoption in October, 1997 of the amended Downtown South Guidelines, The Metropolis’ developer requested that the “10 ft. floor-to-floor averaging” formula contained in the Guidelines be retroactively applied to this development. Applying this formula, 583 m² (6,275.57 sq. ft.) of the double-height areas contained within The Metropolis would no longer be double counted in the floor space, resulting in an FSR reduction for the now completed project from the originally approved 5.12 to 4.90. The applicant proposes that this floor area deleted from the building be added to the banked transferrable density, noting that the total FSR for the site, including the heritage bonus of 1.4 FSR approved by Council, would remain unchanged at 6.40.

In consideration of this developer having proceeded in good faith, and noting The Metropolis has met or exceeded all heritage and Downtown South development expectations, staff believe the Downtown South Guidelines formula now in force should be applied to this development, as requested. As stated above, the total density, including heritage bonus, would remain unchanged from that previously approved at 6.4 FSR, but that portion of FSR charged to the completed building would be lowered from 5.12 to 4.90, thereby increasing the banked transferrable density from 3 386.9 m² (36,457 sq. ft.) to 3 969.9 m² (42,732.57 sq. ft.). This increase would be achieved through an amendment to the Heritage Revitalization Agreement and covenant describing the transferable density.

With respect to the potential for filling in of double height volumes, staff note that 289.29 m² (3,113.93 sq. ft.) of double counted area would still remain in the tower to allow for this potential. Staff further note that as the individual units are larger (720 to 1,100 sq. ft.) and contain much smaller open-to-below areas then that in the 1238 Seymour Street development, where open-to-below area constituted 60% of the lower floor area of the unit, there is much less potential or incentive in The Metropolis to close in the double height space. In addition, the overall size, layout and finishes of The Metropolis make it less likely residents would wish to expand their lofts. (Refer to Appendix B, photos of unit interiors). The developer has submitted a letter (Appendix C) stating that, to his knowledge, no infilling of double-height volumes has occurred in any units. Staff conclude that, unlike 1238 Seymour Street, difficulties with illegal filling in of lofts is unlikely to occur in The Metropolis. (Refer to Appendix D for elevations of the new tower.)

CONCLUSION

The Planning Department recommends that Council approve the designation of the Canadian Linen Building and the amendment to the Heritage Revitalization Agreement to reflect an additional 583 m² (6,275.57 sq. ft.) available for transfer to other sites.

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HERITAGE VALUE OF 1232 RICHARDS STREET

At a Public Hearing on May 14, 1996, Council approved the Heritage Revitalization Agreement for 1228 Richards Street (renamed to 1232 Richards Street). Portions of that discussion are included below, as required under Section 594(5)a-e, of the Vancouver Charter which stipulates procedures for designating a site.

Heritage Value: Constructed in 1928-29, the building was designed in the Art-Deco style by local architects Townley and Matheson and is listed as a “B” category on the Vancouver Heritage Register. A concrete structure with a plastered finish, this industrial building has been a positive addition to the neighbourhood since it was constructed. The use has remained consistent until today and the building has been occupied by one owner, Canadian Linen Supply Company. Alterations occurred in 1932, 1947 and 1974 . The original water tower was removed but the boiler-room chimney is still intact.

Community Planning Objectives: The DD zoning dictates that retention of heritage buildings and streetscapes be one of the principles behind the zoning. The Downtown South Guidelines further support this direction by requiring development to build upon the area’s existing heritage character. Design Guideline requirements in the area stipulate that new towers should have a “podium” base, in order to better relate to the human scale of the street. The retention of the heritage building serves to provide that “podium”.

Use: The proposal seeks to rehabilitate the building by changing the use to retail. This use would be compatible with the building’s design and scale along the street edge. In addition, retail use will supply a need in an area that is quickly becoming developed as a residential community.

Condition and Economic Viability of the Site: Real Estate Services reviewed the proposal and determined that the bonus density and relaxation of allowable retail floor area, is full and fair compensation for the costs incurred in retaining and restoring the heritage building and providing long term protection.

The owners have retained the building in good repair to this date. The restoration includes the retention of the original 1928 structure and the 1947 additions, specifically the concrete exterior wall, the original roof wall and the smokestacks. The window frames were kept and the glass replaced. The 1974 addition was removed. The smoke stack was retained and used as signage.

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(c) 1998 City of Vancouver