POLICY REPORT
DEVELOPMENT AND BUILDING

TO:

Standing Committee on Planning and Environment

FROM:

Director of Current Planning

SUBJECT:

345 Water Street - Heritage Revitalization Agreement

 

RECOMMENDATION

GENERAL MANAGER'S COMMENTS

COUNCIL POLICY

Council approved a Transfer of Density Policy, amended most recently in July 1997, which permits the transfer of density from donor sites with heritage buildings to receiver sites.

In 1986, Council adopted the Heritage Register which lists the Greenshields Building in the "A" category. In addition, the building was designated by the Province in 1971.

Council has also approved the preparation of the Gastown Heritage Management Plan. The Plan will recommend a comprehensive set of incentives for Gastown buildings, including a policy for density bonuses and transfers. In advance of this plan, Council has agreed to support Heritage Revitalization Agreements for 211 Columbia and 65 Water.

PURPOSE

This report recommends approval in principle of a Heritage Revitalization Agreement (HRA) for the Greenshields Building (west half), located at 345 Water Street. It is proposed to secure the rehabilitation of the building and provide a density bonus of approximately 3900m2 (42,000 sq. ft.), provided that it is transferred off-site. If Council approves these recommendations, staff will prepare an HRA and a draft designation by-law for Council consideration at a Public Hearing.

BACKGROUND

Heritage Value: The Greenshields Building was constructed in 1901 for wholesale dry goods merchants Greenshields and Company. This brick clad building features Romanesque arches on the third floor and beautiful carved capitals over the ground floor piers - they depict heads of early Vancouver's different ethnic groups. The east and west halves of the Greenshields "Building" are actually two structures (339 and 345 Water), under different ownership for years. The two structures appear virtually seamless, due to the integrated facade and minimal changes to the original design. The entire "building" is in the "A" category of the Vancouver Heritage Register. It is a very significant building not only in Gastown, but within the city. With the change from warehouse to retail and manufacturing, the primary changes are found at the street level, with the introduction of retail storefronts. The interior is most unusual for a building designed as a warehouse in that all floors above grade are finished in maple flooring and there are pressed tin ceilings on all upper floors which are virtually intact. (A site plan and photo of the exterior is included in Appendix A.)

Description of Project: A development permit application has been approved with "prior to" conditions, which would permit the Greenshields Building (west half) to be used for underground parking, retail on the main floor and office on the upper three floors. The permit would also authorize exterior alterations and seismic upgrading.

Gastown Heritage Management Plan: The consultant team retained by the City has now completed its Draft Final Plan. It will be circulated for comments within the next few weeks, with the intent to have it completed by mid-June. Staff will then prepare theassociated report to Council for an early fall Council meeting. The report will discuss a variety of potential incentives: density bonuses, property tax deferrals and exemptions, grants for facade conservation, Building By-law considerations, and expedited permit processing. It is not intended that the preparation of this Plan would delay consideration of meritorious Gastown projects during the time the study was being undertaken.

DISCUSSION

Rehabilitation Work: Development application 405527 will permit a change of use of the upper floors from manufacturing to office. The retail shopfronts will be renewed with a simple contemporary design that will complement the heritage building in colour and hardware. Canopies will be provided for weather protection. The basement level will be made into underground parking with access off the lane. Seismic stability will be provided with steel rods fixed to a steel frame to fit around the existing openings. An allowance for this more expensive approach to seismic is provided in the proposed density bonus.

Heritage Revitalization Agreement: It is anticipated that the HRA will have the following provisions:
· secure the rehabilitation and continued maintenance of the exterior of the building as well as certain interior features (flooring and pressed tin ceilings);
· limit the on-site density to "as built";
· establish a heritage density bonus of approximately 3 900 m2 (42,000 sq. ft.) for transfer to a site(s) within the Central Area; and
· permit the City to install a heritage plaque on the building.

The estimated bonus amount has been determined on the basis of marginal cost premium (for retaining and upgrading the heritage building and specified interior components) plus consideration for the current weak market demand in Gastown. The marginal cost approach has been applied to the two other HRA projects in Gastown, as the residual approach has been found not to apply when there is no demolition contemplated (Gastown buildings being designated) and where there is no FSR specified in the zoning. The "percent premium" (for the current weak market) is provided for in the Council policy.

East Half of the Greenshields Building: As mentioned, the view of the Greenshields Building from Water Street gives few clues to the fact that it is two separate structures, under separate owners. The owners of the east half of the building have not indicated a wish to proceed with a similar upgrading and bonus programme at this time. Should the owners wish to do so, it is expected that a density bonus in the same range would likely be merited.

Health of the Density "Bank": When considering an HRA for the London Building on April 26, 2001, some Council members expressed concern about the health of the density bank and the effect the bonus density has on the bulk of downtown buildings. Staff share the concerns expressed and are tracking the creation and absorption of transferrable density noting that an oversupply of available density would reduce the square foot value and result in larger bonuses being required to off-set heritage costs. The Planning Department will be retaining a consultant to forecast the potential supply and absorption of transferrable density and make recommendations for managing the transfer policy so it remains an effective heritage conservation tool.

The following summarizes the current density bank situation:

TOTAL officially uncommitted and pending 290,530 sq. ft.

TOTAL unofficially available / pending 224,830 sq. ft.

The average annual absorption rate since 1993 has been 60,000 sq. ft. annually, noting that the Wall Centre absorbed 230,000 sq. ft. In consideration of the total amount in the bank and the annual absorption rate, the proposed density bonus of 42,000 sq. ft. for 345 Water Street is supportable.

Comments from GHAPC: On April 18, 2001, the Gastown Historic Area Planning Committee supported the application, noting the industrial appearance of the lane elevation, and the "clean design and proportioning" of the new storefronts. It urged the applicant to pursue seismic upgrading that would minimize impacts on the interior brick walls.

CONCLUSION

The proposed HRA would achieve the rehabilitation and re-use of this Gastown building, without any additions that would alter the original configuration. It would therefore assist in achieving both the retention of the built heritage fabric and revitalization of the historic Gastown area.

NOTE FROM CLERK: Appendix A is not available in electronic form - on file in the Office of the City Clerk.

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