POLICY REPORT
DEVELOPMENT AND BUILDING

Date: March 25, 2002
Author/Local: Hlavach/6448

RTS No. 02625

CC File No. 5051

P&E: April 11, 2002

TO:	Standing Committee on Planning and Environment
FROM:	Director of Current Planning
SUBJECT:	310 Water Street - Heritage Revitalization Agreement

RECOMMENDATION

THAT Council endorse, in principle, the use of a Heritage Revitalization Agreement to assist in the rehabilitation of the "C" listed Taylor Building at 310 Water Street, with the following terms:

· a density bonus of approximately 3 370 m² (36,285 sq. ft.), required to be transferred off-site;
· the Central Area be considered an appropriate location for a receiver site(s) with the process to follow Council's policy on Transfer of Density;
· future additions be limited to no more than one storey, set back from Water Street;
· the building be rehabilitated to standards consistent with those required for other buildings receiving a density bonus; and
· the building exterior be municipally designated.

GENERAL MANAGER'S COMMENTS

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

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 Taylor Building in the "C" category. In addition, the building was designated by the Province in 1971.

Council has also approved the preparation of the Gastown Heritage Management Plan. In advance of this plan, Council has supported Heritage Revitalization Agreements for 211 Columbia, 65 Water and 345 Water.

PURPOSE

This report recommends approval in principle of a Heritage Revitalization Agreement (HRA) for the Taylor Building, located at 310 Water Street. It is proposed to secure the rehabilitation of the building and provide a density bonus of approximately 3 370 m2 (36,285 sq. ft.), provided that it is transferred off-site. If Council approves this recommendation, staff will prepare an HRA and a draft designation bylaw for Council consideration at a Public Hearing.

BACKGROUND

Heritage Value: The subject building was constructed in 1911 as a warehouse for Walter Taylor to the design of architects Grant & Henderson. It replaced an earlier building, the Oriental Hotel, which was built around 1886. The 6 storey building is clad in beige brick and has its original wood windows. The lower cornice is original, but the upper cornice is a foam replacement from the 1990s. The building is unusual in that its main retail floor is raised some 6 feet off Water Street and it also has a floor of retail partially below Water Street - both of which are accessed by a central open stairway. A site plan and photo of the exterior are included in Appendix A.

Description of Project: A development permit application has been submitted to use the upper 4 floors for self-contained residential accommodation and to continue to use the lower two floors for retail/restaurant.

Gastown Heritage Management Plan: The consultant study has now been completed and Planning staff are preparing recommendations for Council's consideration based on the consultants' report and community input. The Council report will recommend a comprehensive set of incentives for Gastown buildings, including a policy for density bonuses and transfers. The Plan is expected to be reported to Council this spring. The proposed development at 310 Water Street is consistent with the directions emerging from this Plan. It was not intended that the preparation of the Plan would delay consideration of meritorious Gastown projects.

DISCUSSION

Rehabilitation Work: The Development Application proposes to restore the configuration of the original windows to the lower retail level. The exterior brick would be cleaned, the wooden windows repaired, where necessary, and repainted. The building would be seismically upgraded using a system of central spine columns and knee bracing.

Heritage Revitalization Agreement: It is anticipated that there would be the following provisions and terms which have been applied to previous Gastown projects:
· secure the rehabilitation and continued maintenance of the exterior of the building;
· establish a heritage density bonus of approximately 3 370 m² (36, 285 sq. ft.);
· establish the Central Area as the receiver site(s) for the transferred density;
· permit the City to install a plaque on the building; and
· municipal designation of the exterior.

The owner has asked for two variations on typical HRA provisions. Staff are willing to support both of the following:
· permission to add one storey, set-back from Water Street; and
· provision that, should a replacement building be permitted, the new building would not have to replicate the current retail configuration, but would be required to meet the design guidelines in place at the time.

The estimated bonus amount has been determined on the basis of the marginal heritage cost principle. This is consistent with other Gastown buildings.

Status of the Density Bank: The Planning Department has retained a consultant to forecast the potential supply and absorption of transferrable density and to make recommendations for managing the transfer policy so that it remains an effective heritage tool. The consultant's report is expected in May; staff recommendations will follow.

At this time, there is approximately 210,000 sq. ft. of approved, unsold density. This is less than 322,000 sq. ft. which was the historic maximum balance in the "bank". There is a further 178,000 sq. ft. that has been approved in principle by Council, as noted below:

"Unsold" density 210,000 sq. ft.

Additional amount approved "in principle" by Council
- 345 Water (Greenshields Building) 37,000 sq. ft.
- 101 West Hastings (Woodwards)   40,000 sq. ft.
- 144 East Hastings (Pantages)         28,299 sq. ft.

- 690 Burrard (Christ Church)*        73,170 sq. ft.

* (before Council on March 28, 2002)

178,370 sq. ft.

Total "unsold" and "approved in principle"     388,370 sq. ft.
proposed amount for 310 Water                     36,285 sq. ft.

Given that none of the projects listed under "approved in principle" are proceeding immediately to construction, it is expected that much of the bonus density will come onto the market in phases over a period of a few years. Staff anticipate the 310 Water Street project and its transfer of density to occur prior to most of these "approved in principle" projects. Secondly, the owner of 310 Water has prospective purchasers for his bonus density, should it be ultimately approved at Public Hearing. Based on these factors, staff support the proposed density bonus for the Taylor Building.

Comments from GHAPC: On March 20^th, 2002, the Gastown Historic Area Planning Committee supported the development application, noting that it favoured the use of laminated glass to improve residential livability.

CONCLUSION

The revitalization of the Gastown historic area is a City priority. While the Gastown Heritage Management Plan is being prepared, support has been given to rehabilitation projects on a case-by-case. In the past few years this has included 211 Columbia, 65 Water, 345 Water. The proposed HRA for 310 Water would achieve the rehabilitation and re-use of this Gastown building and assist with the revitalization of the historic 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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(c) 1998 City of Vancouver