Agenda Index City of Vancouver

POLICY REPORT

TO:

Standng Committee on Planning & Environment Committee

FROM:

Director of Current Planning

SUBJECT:

Amendment to the Transfer of Density Policy for the First Shaughnessy District
 

RECOMMENDATIONS

GENERAL MANAGER'S COMMENTS

COUNCIL POLICY

The Transfer of Density Policy and Procedures allows transfer of density beyond the boundaries of a zoning district for heritage preservation in the following areas: DD, RM5A/B, C-3A, C5/6, HA-1/1A (Chinatown), CD-1, and C-3A zones. The First Shaughnessy District is not one of these areas.

Council has supported several pilot transfer of density applications in the Gastown area (HA-2) offering the opportunity to transfer density out of that area, and the Gastown Heritage Management Plan, now underway, is positively considering making this policy applicable for all sites in the area.

PURPOSE

This report recommends Council approve an amendment to the Transfer of Density Policy and Procedures to allow "A" category heritage sites in the First Shaughnessy District (FSD) to be eligible for transfer of heritage bonus density out of their area and to various Central Area zones including certain portions of C-3A. Density would not be permitted to be transferred into the FSD area from other areas. The revised Policy and Procedure would be as in Appendix `A'.

BACKGROUND

Council adopted the Transfer of Density Policy and Procedure in 1983 as an incentive to achieving certain public objectives. Conservation and protection of heritage buildings or sites listed on the Vancouver Heritage Register(VHR) is one of the objectives. Any site within the city is permitted to transfer density as long as the doner or recipient sites are not separated by a zoning boundary, or use, density or height district boundaries in an Official Development Plan and the rationale for the transfer is consistent with the public objectives set out in the Transfer of Density Policy. To date, no site within the First Shaughnessy District has taken advantage of the Transfer of Density option.

The policy limited the sites that can transfer density out of and between areas to the following zones: DD, RM5A/B, C-3A, C5/6, HA-1/1A (Chinatown), CD-1, and a portion of C-3A. These areas have highly discretionary zoning regulations and the development potential is greater than in other parts of the City. It is possible in these areas to find sites that can receive extra density with acceptable impacts on the quality of site development or on surrounding properties. In each case the extra density is carefully evaluated from an urban design and livability perspective, often involving rezoning.

Since the program began, 385,000 sq.ft. of heritage density has been transferred off 6 heritage donor sites to approximately 15 recipient sites in other zones. The transferred density has predominantly been taken up by additional floors in towers or, in one significant instance, by underground convention space. The program has been so successful that the "density bank" was empty last year, and only recently has grown to a balance of 41,000 sq.ft. with several other sites about to add density to the bank.

When density is permitted to be transferred, it is vested on a site, usually through a Heritage Revitalization Agreement (HRA) or, in earlier years, by the zoning, until a buyer is identified by the owner. The City is not party to the financial transaction, but records the debit and credit of density in the "Density Bank". The "Density Bank" is an informal recording procedure managed by the Planning Department (Heritage Group) and specifies the amount and location of density for sale at any one time. The buyer of the density is than responsible for finding an acceptable "receiver site", consistent with the City's Policies and Guidelines. Transferrable density can be either residual density permitted under the zoning but not yet realized on site and/or bonus density based on the cost of heritage restoration.

DISCUSSION

3838 Cypress Street

This site was the trigger that caused staff to consider expanding the Transfer of Density Policy in the First Shaughnessy District. A proposal has been submitted to retain the heritage "A" listed property in return for bonus density and zoning variances. The Heritage Advisory Commission and Neighbourhood Design Panel were consulted and supported the approach taken. When the neighbourhood was consulted, staff received a substantial amount of negative reaction to the proposal yet the incentive was justified from an economic and design perspective. Through this example, it was made clear that realizing the bonus on site would be unlikely and other incentives would need to be discovered in order to retain the building. A report will be presented to Council in the Fall outlining an HRA proposal to transfer density off this site in return for the designation and preservation of the "A" listed building. In preparing that report, further input from the community, neighbours and Council's advisory groups will be sought on the application of the now proposed transfer of density policy to that site.

Heritage Incentives in the First Shaughnessy District

The City of Vancouver Heritage Management Program offers a variety of incentives to owners of heritage buildings on the VHR in exchange for the rehabilitation of their buildings. Often, these are implemented through an HRA. These incentives are:

… Floor area bonuses,

… Zoning relaxations, ( ie. parking, height, setback, etc ),

… Subdivision variances,

… Transfer of density, and

… Waive of DCL fees.

The incentives that generate an economic benefit are evaluated in conjunction with Real Estate Services staff and the City's approach is to off-set the cost of heritage restoration through the incentives listed above. However, in some instances, it is difficult to realize the incentives granted on a site without adversely effecting either the heritage resource or the surrounding neighbourhood. What works most effectively is having the retention of a heritage site vested in the regulations of a zone. The recently adopted RT-7/8 zoning in Kitislano has been highly successful in retaining heritage sites as the zoning seriously limits the development potential if a VHR listed building is demolished. The O.D.P. for First Shaughnessy was adopted in 1983 and does not support the retention of heritage sites in a way that off-sets the market demands in the area. While First Shaughnessy District sites now enjoy most of the incentive options, recent history suggests that more assistance is needed. The addition of First Shaughnessy to the list of areas able to transfer density from a site out of their area will stave off losses being experienced in that area until a more comprehensive zoning review is completed. Such a review is complicated, must involve the public, could be controversial if it involves what is felt to be down-zoning, and will not be undertaken for some time because of other priorities.

Character Areas

The city has four major heritage character areas, namely: Gastown, Chinatown, Yaletown and First Shaughnessy. These areas have been identified as having a significant amount of buildings on the VHR, and a neighbourhood style still intact. They are important examples of Vancouver's early history and as such deserve to be protected and retained. Gastown and Chinatown have been added or are being considered for adding to the list of sites permitted to transfer density out of their areas and this is assisting property owners in the high cost of heritage restoration. The need to permit density transfers out of Yaletown has not arisen as land use incentives built into the HA-3 zoning have been effective in conserving the heritage buildings. The Official Development Plan for First Shaughnessy encourages the retention of First Shaughnessy Heritage Inventory sites but does not limit the development of a site should an owner decide to demolish a listed building. On the First Shaughnessy Heritage Inventory (January 1998), 120 pre-1940 character buildings were listed. In the past 5 years, 20 buildings have been demolished in First Shaughnessy that were on the First Shaughnessy Heritage Inventory; one of these being a "B" on the VHR. This report seeks Council's support for adding the First Shaughnessy District Character Area to the list of zones permitted to transfer density out of their areas as an incentive toward the preservation of the most significant heritage buildings in the district ie those in the "A" category of the Vancouver Heritage Register. Having done so, all four character areas will have provisions more suitable for heritage preservation.

VHR "A" Category Buildings

As mentioned earlier, the density bank is a highly successful tool in assisting property owners with the retention of heritage sites. The value of the bank is directly related to the market demand for the density. Too much density for sale will lower the value of the square footage and this has a direct effect on how many owners will be willing to except a density transfer as an economically viable incentive towards the cost of restoring a building. As a way of limiting the amount of square footage that would be generated for relocation to other communities, it is proposed that in First Shaughnessy only "A" category sites will be permitted to transfer density at this time; and, among these sites, designated buildings will not be eligible and maximum use of density on-site will be expected before transfer of density will be supported. It is currently estimated that density in First Shaughnessy has a value of 5 times the density in the Downtown Core. For example a bonus of 5,000 square feet in First Shaughnessy translates to 25,000 square feet for sale in the downtown area. For this reason, limiting the density from First Shaughnessy will assist in managing the transfer of density policy. In addition, "A" category sites generally have the most value for an area and are few in number. The cost of restoration can often increase as a consequence of the stature of the heritage resource. Therefore special consideration is needed for "A" buildings when calculating bonus incentives. There are 18 "A" category sites in First Shaughnessy that would be eligible for consideration of density transfers. That number would most likely be further reduced once more detailed information was submitted by an interested owner, wishing to be considered for a transfer of density. An assessment of the size of the original building, the heritage quality of the site including the garden and the impact of building bonus density on the site and neighbourhood would all factor into a sites potential to transfer density.

COMMUNITY COMMENTS

In advance of Council considering this report, staff will be meeting with various advisory bodies and will hold a public information meeting for the neighbourhood. The advisory bodies include Vancouver Heritage Commission, First Shaughnessy Neighbourhood Design Panel and the Shaughnessy Heights Property Owners Association. Staff will report the conclusions of these meetings by memorandum prior to the Council meeting.

CONCLUSION

The Transfer of Density Policy is a viable incentive for owners of Heritage sites. The changes outlined within this report will add the First Shaughnessy District to the list of sites permitted to transfer density out of their area. The policy amendment will limit the transfer of density options in the First Shaughnessy District to only "A" category heritage sites as a way of managing the density bank while fostering preservation of the area's most treasured buildings. Density from other zones, will not be permitted to be transferred into the area.Once the probability of take-up as well as impacts are better understood, it may be possible to expand the opportunity to other heritage resources in the area. Staff will be monitoring the program and will report back to Council should significant concerns arise.

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APPENDIX A

DRAFTCity of Vancouver Land Use and Development Policies and Guidelines
Community Services, 453 W. 12th Ave Vancouver, BC V5Y 1V4 _ 873.7344 fax 873.7060
planning@city.vancouver.bc.ca

TRANSFER OF DENSITY POLICY AND PROCEDURE

Adopted by City Council January 25, 1983
Amended September 11, 1984, July 7, 1987, July 30, 1991, September 2, 1993,
December 8, 1994, April 2, 1996, and July 29, 1997, and July 27, 2000

Rezoning applications, or Heritage Revitalization Agreements in the case of (1) 1.(a) below, which involve the transfer of density from one site to another site will be considered, provided that such a transfer will assist in achieving one or more of the following public objectives:

(1) 1. (a) To preserve heritage buildings or site, listed on the Vancouver Heritage Register, particularly where it is demonstrated that residual and/or bonus density required for the buildings' rehabilitation cannot be used on the heritage site;
(2) (b) To create desirable public open space or park land;
(3) (c) To facilitate development in areas with mixed use zoning;
(4) (d) To achieve and improve urban design;
(5) (e) To help implement Council-approved view protection policy in Downtown South;
(6) (f) To help protect existing Single Room Occupancy Stock in Downtown South;

(7) 2. And provided further that in all cases the following limitations are respected:

on the character and context of the preserved building, or without an unacceptable impact on surrounding properties.
The following procedure is to be followed in applying the density transfer policy:

(1) 3. For transfers to achieve heritage objectives:

(iii) (c) Preference will be given to proposals which use heritage buildings for cultural, social, recreational and educational uses, especially when that use is historically associated with the building;

(2) 4. Developer reviews his proposals with the Director of Planning.

(3) 5. Developer makes formal application for rezoning or enters into negotiations for a Heritage Revitalization Agreement, with appropriate supporting material to indicate details of and rationale for the proposal and analysis of relevant impacts. In the case of a rezoning, the Director of Planning may require that the developer concurrently file a preliminary development permit application.

(4) 6. Director of Planning coordinates staff review of proposal in consultation with Engineering, Social Planning, Park Board staff as required, including whatever public review process he deems appropriate to the specific proposal, and may include consideration of a preliminary development permit application by the Development Permit Board and the Urban Design Panel.

(5) 7. Council considers the proposal and staff review at Public Hearing and gives decision.

(6) 8. Appropriate legal agreements are drawn up according to recommendations in staff review of proposal.

(7) 9. In the case of rezoning, Council enacts by-law.

(8) 10. In the case of rezoning, Development permit application process is followed as in CD-1 development sites.


Transfer of Density Areas* for Heritage Preservation

* incorporating CD-1 zoned sites within the area boundaries
** heritage density may be transferred away from but not into the HA-1, HA-1A and FSD Districts.
*** density may only be transferred off VHR "A" category sites within the FSD District

* * * * *

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