Agenda Index City of Vancouver

URBAN STRUCTURE

TO:

Standing Committee on Planning and Environment

FROM:

Co-Directors of Planning, in consultation with the
Manager of Real Estate Services

SUBJECT:

Proposed High Technology Zone (I-3)

 

RECOMMENDATION

OR AS AN ALTERNATIVE

GENERAL MANAGER OF COMMUNITY SERVICES COMMENTS

CITY MANAGER'S COMMENTS

COUNCIL POLICY

Council approved the Industrial Lands Strategy in March 1995 which seeks to retain most of the city’s existing industrial land base for a variety of industrial and city-serving activities.

Council approved a new district zoning schedule (I-2) in November 1996 as an implementation measure for the Industrial Lands Strategy to better accommodate the needs of contemporary industry and to ensure compatibility of industrial areas with adjoining residential areas. Approximately 1000 acres were rezoned from M-1 or M-2 to I-2. The main features of the I-2 zone are:

Council approved the False Creek Flats Preliminary Concept Plan in June 1996 which identified areas within the False Creek Flats Industrial Area as a suitable location for a high amenity urban industrial park. This concept plan also identifies lands around the SkyTrain station at Main Street as suitable for office development. Council also approved, in July, 1998, a planning program for the Finning lands to prepare a concept plan and zoning appropriate for a high amenity urban industrial park.

The GVRD Livable Region Strategic Plan promotes the creation of more completecommunities through the development of a network of regional and municipal town centres supported by an appropriate level of public transit.

PURPOSE AND SUMMARY

This report responds to a July 23, 1998 Council motion requesting that staff prepare a new I-3 District Schedule for referral to Public Hearing which:

· includes a new definition of high technology which does not require the need for on-site manufacturing or distribution of products;

Recent studies have highlighted the importance of growth in high technology jobs to the local and regional economy. An ample supply of land is needed to provide choice for the diverse range of high technology industries. A “high technology job climate” can be facilitated in the City by creating a new industrial zone (I-3) that allows all types of high technology industry development rights similar to other industrial uses. This report contains a draft high technology district schedule and recommends referral to Public Hearing, along with lands to be considered for rezoning. This report further recommends lands that could be considered for owner-initiated rezonings to I-3.

This initiative will provide a large land supply near rapid transit, offering choices for high technology. The recommended zoning schedule responds to preferences expressed by high technology companies to reserve some areas in the city for high technology industries. The existing I-2 industry schedule has been used as a base for the new I-3 schedule. The I-2 schedule has been adjusted to help create an attractive high technology environment by not permitting some uses such as outdoor storage and car lots. Some industries that can potentially create odour or noise have been made conditional to ensure that their impacts will not discourage high technology industry from locating within this new zone.

This report recommends that a development cost levy district be established for the False Creek Flats area. A forthcoming report will make a similar recommendation for the Grandview/Boundary Industrial area. The DCL funds will be used to help pay for street improvements, stream daylighting/drainage, acquisition and development of parks, and sewer/water infrastructure that will help these areas transform from heavy industrial /distribution uses with low density employment levels to high amenity, high employment density areas.

There are some enforcement issues related to the new zone. Under the current industrial zoning schedules industrial uses build industrial space, ie laboratories, studios, production areas and ancillary offices are clearly marked in the approved plans. However, in this new zone, entire buildings will be built to office standards. It is important to the success of these zones that the space is primarily used for high technology uses and general office uses as permitted in the I-3 district schedule. The misuse of this zone could be to the detriment of the downtown and other commercial areas where office uses typically locate.

BACKGROUND

Concern has been expressed that some information technology firms are having difficulty finding sites in the city, especially larger companies that may have outgrown their space in the downtown. Some firms are looking for large floorplates that are not readily available in the commercial areas. In July 1998, Council considered a report that recommended the creation of a new zone for high technology. Upon considering this report, Council passed a motion requesting that staff prepare a new I-3 District Schedule
( High Technology Zone).

The City has a long established policy of concentrating higher density employment in the downtown and in other commercial centres well served by transit. The City also protects the industrial land base and building stock for industries that need production, storage, and loading space. One way to meet these planning objectives, is to expand the supply of land for information technology firms at locations well served by high capacity rapid transit. This will give more choice of location for information technology firms, especially those needing larger floorplates, while at the same time ensure good public transit access for employees and preservation of the bulk of the industrial land base.

Recent studies on the outlook of the BC economy highlight the importance of the hightechnology sectors in providing new job growth. In recent years, growth in the high technology sector in BC has exceeded 20% per year. The City’s challenge is to ensure that there is ample zoned land and buildings to respond to the needs of this growing sector. A study carried out by the Provincial Government (Defining the British Columbia High Technology/Knowledge Sector in British Columbia, January, 1996) used a number of indicators to identify high technology industry, including advanced technology commodity lists, employment of scientists and other highly skilled labour, and expenditure on research and development. These industries make up about 3% of BC business establishments.

High technology employment embraces a wide variety of industry and service activities ranging from electronics manufacturing to software development. Some high technology businesses require industrial space while others require office space. Many types of high technology industry are well served by the city’s current industrial zones, such as manufacturing, biotechnology, and new media. However, there are opportunities for expanding the choice of location for some sectors, such as the information technology sector.

Information technology is a high technology use which differs from industrial uses in that these firms generally do not produce a physical product and therefore do not need production and storage space, or goods loading. Information technology firms generally have space requirements and worker densities similar to conventional office uses. Worker densities are usually around 200 square feet per employee in the information technology compared to about 600 to 1200 square feet per employee in other industrial sectors.

Employees in the information technology sector work at computers and produce a diverse range of products, ranging from PC software to software for machinery, or programming to aid in business systems. Many information technology firms have located in office buildings in the Downtown or Central Broadway (i.e., IBM, Seagate, Sierra Systems, Radical Entertainment) and they are a permitted use in all commercial zones. Some have located within industrial areas but in these cases, they are limited byurrent zoning to one third of the total floorspace, to a maximum of 1.0 FSR, as general office use. The proposed I-3 schedule permits Information Technology uses to 3.0 FSR

DISCUSSION

This section outlines the principles and proposed features of a new high technology zone. In preparing this schedule, city staff have drawn on the expertise of high technology zones in other jurisdictions and consulted with a broad cross-section of high technology firms and representatives from office/industrial development industry.

1. GUIDING PRINCIPLES FOR THE NEW HIGH TECHNOLOGY ZONE

2. PROPOSED I-3 SCHEDULE

The policy objectives behind this regulation were 1) to provide sites for a number of “back office” functions to locate in combination with industrial uses but not become the primary use, 2) to help industrial users make more efficient use of industrial land. For example, a firm could put their own manufacturing and ancillary office uses on one floor and the second floor could be built out as office space for a completely separate tenant.

3. PARKING AND LOADING

It is proposed that existing Parking By-law standards for all other uses in the I-3 remain the same as existing standards for the I-2 District Schedule. The Parking By-law makes provision for parking standards to be relaxed if an applicant can demonstrate that required number of spaces are not needed.

4. PROPOSED LOCATIONS FOR I-3 ZONE

5. IMPLEMENTATION

6. LIKELY IMPACTS OF THE NEW HIGH TECHNOLOGY ZONE

a) Impact on the Downtown and Commercial Areas

b) Impact on Industrial Activity

c) Impact on Property Taxes

d) Enforcement

Proposed uses will be checked upon application of a business licence It is proposed that the areas rezoned to I-3 be monitored and periodically checked by Property Enforcement Officers to ensure that the intent of the new zone is being respected. If concerns arise, these will be reported to Council with options for action.

CONCLUSION

The high technology zoning initiative will expand the choice of locations for certain sectors of high technology industry, primarily the information technology sector. It is recommended that the High Technology Zone be implemented by referring to Public Hearing the proposed zoning schedule to initially apply to 125 acres identified in False Creek Flats. For the Grandview/Boundary area, it is suggested that owner- initiated rezonings for areas located near proposed SkyTrain stations be guided by Grandview/Boundary Industrial Area interim rezoning policies contained in a forthcoming report.

ATTACHMENTS TO THIS DOCUMENT THAT DO NOT HAVE ELECTRONIC COPY ARE AVAILABLE ON FILE IN THE CITY CLERK'S OFFICE

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