POLICY REPORT
DEVELOPMENT AND BUILDING

	Date: September 19, 2000
	Author/Local: LChallis/7135
	RTS No.: 01671
	CC File No.: 5303

TO: Vancouver City Council

FROM: Director of Current Planning

SUBJECT: CD-1 Text Amendment - 289 Alexander Street

RECOMMENDATIONS

A. THAT the application by Brook Development Planning Inc., to amend CD-1 By-law No. 7652 for 289 Alexander Street (Parcel A, DL 196 & 4281, Plan LMP 30007) to allow use of ground floor units for “Artist Studio - Class B” and “Industrial Work/Live”, be referred to a Public Hearing, together with:

(i) plans received May 24, 2000;

(ii) draft CD-1 By-law provisions, generally as contained in Appendix A; and

(iii) the recommendation of the Director of Current Planning to approve, subject to conditions contained in Appendix B.

FURTHER THAT the Director of Legal Services be instructed to prepare the necessary amending by-law for consideration at Public Hearing.

B. THAT, subject to approval of the rezoning at a Public Hearing, the Noise By-law be amended as set out in Appendix C; and

FURTHER THAT the Director of Legal Services be instructed to bring forward the amendment to the Noise By-law at the time of enactment of the Zoning By-law.

C. THAT the Director of Current Planning be instructed to undertake a post occupancy review one year after the industrial work/live units are occupied.

GENERAL MANAGER'S COMMENTS

The General Manager of Community Services RECOMMENDS approval of the foregoing.

COUNCIL POLICY

On June 13, 1996 Council adopted Strategic Directions Regarding Industrial Work/Live which support consideration of this use subject to various criteria.

On September 10, 1996, Council amended the Zoning and Development By-law and the Artist Studio Guidelines to distinguish artist studios which do not involve industrial processes (Class A) from artist studios which do involve industrial processes (Class B), and to permit only Class B artist studios in industrial areas.

PURPOSE AND SUMMARY

This report assesses an application to amend the CD-1 zoning for 289 Alexander Street to permit “Artist Studio - Class B” and “Industrial Work/Live” uses in existing vacant ground floor units.

The site was rezoned to CD-1 in 1996 to permit 150 Artist Live/Work Studios with industrial uses, and a limited amount of commercial use on the ground floor. The applicant has had difficulty marketing the ground floor space and wants to expand the uses permitted there to include Artist Studio - Class B (without an associated residential unit) and Industrial Work/Live (including an associated residential unit) in addition to already permitted industrial uses.

Industrial Work/Live is a use that is currently not permitted, but staff recommend permitting the use on this site as a pilot project. Staff also recommend that a post-occupancy review be undertaken to evaluate the appropriateness of permitting residential use in conjunction with a variety of industrial uses.

Staff recommend that the application be referred to a Public Hearing, with a recommendation that it be approved subject to conditions.

DISCUSSION

Background: On November 5, 1996, this site was rezoned from M-2 to CD-1 to permit a mixed use building including artist live/work studios and industrial and a small amount of commercial use. At the time of the rezoning application (January 1995), the City was considering adoption of the Industrial Lands Strategy and amendments to the Artist Studio Guidelines. Staff evaluated the rezoning within the context of the objectives and rezoning criteria of the Industrial Lands Strategy. The revised artist studio policies were used to identify ways in which the application might better respond to the City objectives for artist live/work studios. Staff proposed that artist live/work studios could be supported given that industrial space was proposed for the ground floor, and that mitigation measures were proposed for achieving compatibility with adjoining industry. Furthermore, twenty-two affordable rental units were to be given to the City as a public benefit that would minimize the land value impact of the rezoning. Subsequent to the rezoning, the City purchased an additional eight units at below market value. The total value received by the City exceeded $2 million which roughly reflects the increase in land value resulting from the rezoning.

Use: The site is presently developed with a seven-storey building which includes 150 “Artist Studio - Class A” with associated residential units on the upper six floors. The artist live/work studios are divided with 30 units operated by the Core Artists Coop and the remainder owned individually. All 150 units form one strata corporation. The ground floor and mezzanine are developed with 15 units intended primarily for industrial use and are also included in the common strata corporation.

The application proposes that the uses “Artist Studio - Class B” (without an associated residential unit) and Industrial Work/Live also be permitted on the ground floor.

This project represents a substantial market investment in the Downtown Eastside. It has been largely successful in terms of design and the artist live/work studios have now been sold and occupied. Unfortunately, the developer has been unable to sell or lease some of the ground floor industrial units. The proposed uses on the ground floor should result in the sale or lease of vacant units, which will add to the vitality of the neighbourhood and to the success of the building while providing industrially-oriented uses compatible with the surrounding industrial area. Staff therefore support the proposed Artist Studio use (without any associated residential unit) and the Industrial Work/Live use, described as follows:

(a) Artist Studio - Class B: Staff consider “Artist Studio - Class B” as an appropriate use because the higher impacts of this use are consistent with the industrial use intent for the ground floor. Staff also expect that by not permitting associated residential units, this would reinforce the work aspect of the use.

(b) Industrial Work/Live: Industrial Work/Live varies from Artist Studio Live/Work in that the residents are engaged in generally higher impact industrial activities and employees and sales may be permitted on site.

On June 13, 1996, Council adopted Strategic Directions for considering Industrial Work/Live which include:

· considering proposals on a CD-1 basis;
· limiting the number of units approved city-wide to 100 over 5 years;
· developing a simple Building By-law mechanism to permit some higher impact industrial processes with residential occupancy;
· limiting the number of occupants to two;
· requiring the design features that include adequately sized work areas, functional features (i.e., freight elevators, ventilation) for industrial use, and common building space for meetings;
· developing solutions to parking, loading and building security;
· monitoring projects, including a post-occupancy survey at least one year after completion;
· entertaining projects in three mixed use/industrial districts (Burrard Slopes IC-1 and IC-2, Cedar Cottage MC-1and Brewery Creek IC-1);
· entertaining projects in M and I districts, subject to criteria such as existing buildings only, rental only, maximum 1.0 FSR; and
· considering experimental projects in M and I sites in new construction, on strata title or rental units, subject to conditions such as appropriate public benefits and locational criteria.

Since Council adopted the Strategic Directions for considering Industrial Work/Live, there have been no proposals to pursue this use. However, staff expect that industrial work/live remains an attractive choice for operators of small businesses who are content to have their home environment co-exist closely with their work place in order to enjoy the economies and flexible schedule of a “zero commute”.

Staff consider this site as an appropriate location for a pilot project to test the success of Industrial Work/Live use because it is governed by a site specific CD-1 By-law which can be adapted for this new use, the ground floor units have been designed for industrial use and the development includes sufficient parking and amenities for residents.

In December 1998, a consultant study on Work/Live in Vancouver was prepared for the Planning Department. The study examined in detail the implications of this new building type and land use. Although the study has not been presented to Council for approval, its recommendations have guided staff’s evaluation of the proposed rezoning. The consultant study recommends various design features that should be considered for Industrial Work/Live use, including unit sizes, unit design, and storage. Amenity needs, parking and safety and security are also addressed. The study also suggests industrial uses that would be compatible with a residential unit and addresses concerns about the potential for illegal conversion of work space floor area to residential only.

(i) Unit Size: The existing individual units range in size from 44.4 m² (478 sq. ft.) to 342.0 m² (3,681 sq. ft.), generally allowing sufficient space for adequately sized work areas. The consultant study recommends minimum floor areas of 17.3 m² (186 sq. ft.) for the industrial work space and 29.7 m² (320 sq. ft.) for the residential component. All units, except one, exceed these minimum floor areas and the exception is only 2.4 m² (28 sq. ft.) below the recommended minimum unit size. The study also recommends a maximum unit size of 500 m² (5,382 sq. ft.) and, for units greater than 59.4 m² (640 sq. ft.), a maximum residential area of up to 50% of the unit area to a maximum of 125 m² (1,346 sq. ft.). Staff recommend that the minimum and maximum size for residential areas be applied to the industrial work/live units.

Staff also recommend that no more than two persons occupy the residential portion of the work/live unit. This limitation is consistent with regulations that pertain to residential units associated with artist studios.

(ii) Unit Design: The consultant’s study recommends that industrial work/live units should include features such as appropriate door widths [entry doors at a minimum of 1.6 m (5’ 4”) for units over 75 m² (807 sq. ft.) and 1.1 m (3’ 6”) for units less than 75 m²], loading bays and industrial standard electrical, plumbing and ventilation systems. The proposal’s existing ground floor units have already been designed to accommodate industrial uses and as a condition of design development (Appendix B) would include the features necessary for industrial type activities.

(iii) Storage: The consultant’s study considers storage as an important requirement for industrial work/live units and recommends a minimum of 5.7 m³ (200 cu. ft.) of storage space per unit. In most cases, the industrial units are large enough that the storage space can be incorporated into the unit. The development also provides additional storage space below grade to serve the smaller units.

(iv) Amenities: The consultant study recommends that a work/live development should include interactive space to assist the creation of a sense of community, security and well-being among residents. The building is designed around a central courtyard and includes some common spaces for meetings, recreation and support services.

During the original rezoning process, the applicant proposed a variety of workshops and amenity space for residents of the development. There have been concerns from the residents of the building about the quality of the amenity and workshop space provided by the developer (see Appendix E). In response to these concerns the developer has reached an agreement with the strata corporation and co-op to provide additional funds so the space can become functional. A condition of approval is proposed to ensure that the amenity and workshop space is finished and fitted, to the satisfaction of the Director of the Office of Cultural Affairs.

(v) Parking, Loading and Bicycles: The consultant study recommends that:

· off-street parking for industrial work/live use should be the amount specified in the Parking By-law for the manufacturing use [1 space for 93 m² (1,000 sq. ft.) of gross floor area], except a minimum of one stall per unit should be provided;
· loading should be in accordance with the provisions of the Parking By-law but not less than as required for manufacturing uses; and
· bicycle storage should be per the Parking By-law requirement for a residential use.

Engineering staff expect that the parking demand will be similar to Artist Studio and, until experience is gained with industrial work/live use, recommend a parking requirement of 1 space per unit for units less than 75 m² (807 sq. ft.) and 1.3 spaces per unit for units greater than 75 m². Because of the likelihood of a greater number of workers as the industrial work/live unit sizes increase, Engineering staff also recommend that the parking requirement for units above 121 m² (1,303 sq. ft.) be governed by the Parking By-law rate for manufacturing use, as recommended by the consultant study. Additional parking for visitors should be required, as for artist live/work use, at the rate of one space per 12 units when there are 12 or more units. The current development provides enough off-street parking to meet this requirement.

A bicycle parking requirement of 0.75 space per dwelling unit is recommended. This is the same requirement as residential units associated with artist studios.

(vi) Safety and Security: The consultant study recommends that because of safety concerns about industrial equipment and processes, living and working activities should take place in two separate, but adjoining spaces comprising one unit. The type of separation required will depend on the level of hazard and be determined at the Building Permit stage, although normally industrial work will require a fire rated separation between the work and live portions of the space.

The City of Vancouver Building By-law also considers the safety aspects of the proposed use. The Chief Building Official has reviewed this proposal and notes that the City of Vancouver Building By-law does not permit the combination of industrial and residential occupancy, except for Artist Live/Work Studios, and that the proposal will be required to demonstrate equivalent performance to current building code standards. In addition, the incorporation of industrial occupancies into a building designed primarily for residential and Class A Artist Live Work studios may require additional fire safety measures to be addressed. The Chief Building Inspector recommends that the applicant discuss this proposal and obtain acceptance for any equivalencies proposed from the Chief Building Official prior to enactment of the proposed rezoning. See Appendix E for more detail.

The study also recommends as a security issue that residential uses on the ground floor be oriented away from the street and sidewalk. Staff support this recommendation where feasible and have included it as a proposed condition of development approval (Appendix B).

(vii) Type of Industrial Uses: Not all industrial uses are considered acceptable in conjunction with a residential unit because some are too hazardous. The consultant study suggests compatible industrial uses, such as light manufacturing and wholesaling as outlined in Appendix A, and staff recommend that the residential units be associated only with these uses.

(viii) Residential Conversion: Work/live is intended for residents to be able to live in a predominantly work-oriented environment. There has been a market tendency with artist live/work studios for some units to be converted illegally to residential only, a trend which runs counter to City aims for this use. Staff see this as a major issue surrounding live/work but expect that it may be less of an issue with work/live if the work and live areas are physically separated.

Staff also recommend a post occupancy review of this pilot project to ensure that the industrial work/live units include active industrial uses. The review would also look at aspects such as market uptake, types of work activity, profile of users, user satisfaction and success, and parking sufficiency.

CONCLUSION

Staff support the proposed rezoning which provides an opportunity to test Industrial Work/Live use on a site-specific basis. The proposal would provide the option of permitting Artist Studio - Class B, Industrial Work/Live as well as wholly industrial uses on the ground floor. Staff recommend that the application be referred to Public Hearing, subject to the proposed conditions of approval presented in Appendix B.

* * * * *

General Mgr./Dept. Head:	Report dated:   September 19, 2000 Author: L. Challis
Date:	Phone: 873-7135
This report has been prepared in consultation with the departments listed to the right, and they concur with its contents.
	Concurring Departments
	Permits and Licenses - John Robertson

R:\CC\REPORTS\COUNCIL\2000\001003\P2
mkp - September 11/00

APPENDIX A
Page 1 of 2

DRAFT AMENDMENTS TO CD-1 BY-LAW [361] NO. 7652

Uses: Add the following to the list of permitted uses [Section 2.1]

· Residential unit associated with the following industrial uses: Bakery Products Manufacturing; Brewing or Distilling; Clothing Manufacturing; Dairy Products Manufacturing; Electrical Products or Appliances Manufacturing; Food or Beverage Products Manufacturing - Class B; Furniture or Fixtures Manufacturing; Jewellery Manufacturing; Leather Products Manufacturing; Metal Products Manufacturing - Class B; Miscellaneous Products Manufacturing - Class B; Non-Metallic Mineral Products Manufacturing - Class A; Non-Metallic Mineral Products Manufacturing - Class B; Paper Products Manufacturing; Plastic Products Manufacturing; Printing or Publishing; Shoes or Boots Manufacturing; Software Manufacturing; Textiles or Knit Goods Manufacturing; Tobacco Products Manufacturing; Wood Products Manufacturing - Class B; Storage Warehouse; Courier Depot; Radiocommunication Station; Wholesaling - Class A; Wholesaling -Class B.

Conditions of Use: Add the following to Section 2.1.

· Ground floor uses shall be limited to Artist Studio - Class B, Residential unit associated with industrial uses listed above, General Office, Manufacturing Uses, Retail Uses, Service Uses, Transportation and Storage Uses, Utility and Communication Uses, Wholesale Uses, and Accessory Uses customarily ancillary to the above uses.

· A residential unit associated with industrial uses shall be a minimum size of 29.7 m². For combined residential and industrial units of greater than 59.4 m² (640 sq. ft.), a residential unit associated with industrial uses shall be a maximum size of up to 50% of the total combined residential and industrial unit area to a maximum of 125 m².

· No more than 2 persons may occupy the residential unit associated with industrial uses.

Parking: Add the following provisions to Section 5.

APPENDIX A
Page 2 of 2

· Off-street parking per Parking By-law, except that for an industrial unit with an associated residential unit (an industrial work/live unit) a minimum of one off-street parking space for industrial work/live units of 75 m² or less of gross floor area, 1.3 off-street parking spaces for industrial work/live units over 75 m² but less than 121 m² of gross floor area, one off-street parking space per 93 m² of gross floor area for industrial work/live units of 121 m² gross floor area or larger, and one additional space for 12 industrial work/live units on sites with 12 or more industrial work/live units must be provided.

· Bicycle parking per Parking By-law, except that for a residential unit associated with industrial uses a minimum of 0.75 Class A bicycle spaces per dwelling unit must be provided.

APPENDIX B

PROPOSED CONDITIONS OF APPROVAL

(a) That, the applicant shall obtain approval of a development application by the Director of Planning, who shall have particular regard to the following:

(i) design development to include, where feasible, features, including appropriate door widths, loading bays, electrical, plumbing and ventilation systems, for industrial type development in industrial work/live units;

(ii) design development to orient residential uses on the ground floor away from streets and sidewalks where feasible; and

(iii) design development to provide a minimum of 5.7 m³ of storage space per industrial work/live unit.

(c) That, prior to enactment of the CD-1 By-law, the registered owner shall:

(i) obtain acceptance from the Chief Building Official for the Building Code equivalencies required for combining industrial and residential use; and

(ii) make arrangements, to the satisfaction of the Director of the Office of Cultural Affairs, for provision of improvements of a reasonable standard to the workshop and amenity area.

DRAFT AMENDMENTS TO NOISE BY-LAW NO.6555

Amend Schedule A by adding the following:

“361 [CD #] 7652 [By-law #] 289 Alexander [Approximate Location]”

ADDITIONAL INFORMATION

Site, Surrounding Zoning and Development: The site consists of one legal parcel with an area of 3 424 m² (36,857 sq. ft.) and is located on the northwest corner of Alexander Street and Gore Avenue. The site has a frontage of 61.1 m (200 ft.) and a depth of 69.8 m (229 ft.) along Gore Avenue. To the east of the site is another CD-1 zoned site developed with artist live/work studios. To the west is the Main Street overpass. CP Rail and Port lands to the north of the site are zoned Central Waterfront District (CWD). Portside Park is the principal use of this part of the CWD (Sub-area 4). Lands to the south of the site, across Alexander Street, are zoned Downtown-Eastside Oppenheimer District (DEOD) which permits light industrial uses, residential uses, and some commercial and other uses.

The existing development has a one-storey, double height podium of industrial floor space (0.76 FSR), a very small amount of space for retail or service use (0.03 FSR) and six storeys of artist live/work studios (3.71 FSR) in an L-shaped building fronting on Alexander Street and Gore Avenue. The total FSR is 4.50.

There are 150 artist live/work studios of which 120 studios are privately-owned strata units and 30 studios are part of a City-designated coop (Core Co-op) which provides affordable studios to low-income, working artists.

Proposed Development: The proposed rezoning would allow vacant units on the ground floor and mezzanine of the existing building to be marketed for Artist Studio - Class B and Industrial Work/Live use in addition to industrial and commercial uses.

Environmental and Social Implications: The proposed rezoning neither contributes to nor detracts from the objective of reducing atmospheric pollution.

There are no major positive or negative social implications to this proposal. There are no implications with respect to the Vancouver Children's Policy or Statement of Children's Entitlements.

COMMENTS FROM THE PUBLIC, REVIEWING AGENCIES
AND THE APPLICANT

Public Input: A notification letter was sent to 250 nearby property owners on June 8, 2000 and rezoning information signs were posted on the site on June 12, 2000. Seven phone calls were received from residents and one person came to City Hall to view plans. Concerns focused on the adequacy of the amenity space and common area workshops. Two letters and two e-mails expressing similar concerns were received from residents of the existing building.

On June 28, 2000, the applicant sponsored a public information meeting which was attended by three residents of the building and one neighbour. The principal concern of the building residents focused on the inadequacy of the amenity and workshop spaces. The residents felt that the developer had not provided finished spaces which met their needs. The neighbour was concerned about the loss of industrial space.

On September 7, 2000, staff received a letter from the Strata Council advising that they had reached an agreement with the developer pertaining to outstanding issues which included amenity building deficiencies and that the Strata Corporation and Core Co-operative support the rezoning application.

Comments of the General Manager of Engineering Services: The General Manager of Engineering Services has no objection to the proposed rezoning, provided that the applicant complies with conditions as shown in Appendix B.

Comments of the Director of the Housing Centre: “The Director of the Housing Centre notes the substantial public benefit provided by the developer in the form of the 30-unit Core Artists Live/Work Housing Co-operative. This is a good example of the integration of affordable housing, including housing for low-income artists, into a market development. The project was innovative in terms of location and mix of uses, as well as in terms of housing integration, and, to the extent possible, the City should assist in ensuring the project is a success. The Director of the Housing Centre supports the rezoning proposal as it should ensure that the ground floor is occupied and not left vacant, and that the ground floor uses will be compatible with the residential uses above and the industrial uses nearby.”

Comments of the Chief Building Official: “The literal requirements of the City of Vancouver Building By-law, Number 8057, do not permit the combination of industrial and residential occupancies unless the use is intended for Artist Live/Work Studios. Based on our understanding of the proposed project, it is intended to provide residential suites within a portion of a building which would be classified as an industrial major occupancy under the Vancouver Building By-law.

In accordance with Subsection 2.5 of the City of Vancouver Building By-law, the Chief Building Official may consider acceptance of a request for an equivalent to a Code requirement. Equivalencies are intended to provide building designers with the flexibility to cope with unusual or difficult situations and incorporate new technology in their work. In order for the Chief Building Official to accept the equivalent, it must successfully demonstrate an equivalent level of performance required by the Code. The equivalent must address issues related to fire and life safety as well as structural requirements of the Vancouver Building By-law. Due to the unique nature of this proposal, it is recommended that the applicant discuss this proposal and obtain acceptance from the Chief Building Official prior to finalization of the subject rezoning.”

Comments of the Director, Office of Cultural Affairs: Cultural Affairs staff support the change of use to Artist Studio - Class B (without the ancillary residential) as this use is compatible with the balance of the building and the arts community continues to express the need for legal, affordable industrial artist studios. There is, however, some concern that the addition of more artists to the building will tax the existing amenity, a common area workshop, and staff recommend that as a condition of rezoning, the common area workshop be finished and fit-up to a reasonable standard, to the satisfaction of the Director of the Office of Cultural Affairs.

Comments of the Applicant: The applicant has been provided with a copy of this report and has provided the following comments:

“Unit Size: (i) The recommended maximum residential area of 50% should be applied as a general guideline, rather than a rigid condition. Some permitted uses, such as jewellery manufacturing or leather production may not require

extensive work areas.

CD-1 By-law - Appendix A
(i) Uses: The list of permitted uses should be expanded to permit Photofinishing or Photography Laboratory (per I-3 zoning).

We note that Item (a) under Proposed Conditions of Approval - Appendix B will be the responsibility of the purchasers at the time they finish these shell units, rather than by the current Applicant.”

APPLICANT, PROPERTY, AND DEVELOPMENT PROPOSAL INFORMATION

APPLICANT AND PROPERTY INFORMATION

Street Address	289 Alexander Street
Legal Description	Parcel A, DL 196 & 4281, Plan LMP 30007
Applicant	Brook Development Planning Inc.
Property Owner/Developer	Pemcor Development Corporation

SITE STATISTICS

	GROSS	DEDICATIONS	NET
SITE AREA	3 424 m²	n/a	3 424 m²

DEVELOPMENT STATISTICS

	DEVELOPMENT PERMITTED UNDER EXISTING ZONING	PROPOSED DEVELOPMENT	RECOMMENDED DEVELOPMENT (if different than proposed)
ZONING	CD-1	CD-1
USES	Artist Studio, Residential Unit associated with Artist Studio, Office, Manufacturing, Retail, Service, Transportation and Storage, Utility and Communications, Wholesale. Commercial uses (office, retail, service) limited to 250 m² (2,691 sq. ft.)	Residential Unit associated with industrial uses, Artist Studio, Residential Unit associated with Artist Studio, Office, Manufacturing, Retail, Service, Transportation and Storage, Utility and Communications, Wholesale.	n/a

(c) 1998 City of Vancouver