Agenda Index City of Vancouver

 


CITY OF VANCOUVER

SPECIAL COUNCIL MEETING MINUTES

JULY 22, 29 and 30, 2002

A Special Meeting of the Council of the City of Vancouver was held on Monday, July 22, 2002, at 7:30 p.m. in Council Chamber, Third Floor, City Hall. The meeting was reconvened on Monday, July 29, 2002, and Tuesday July 30, 2002, at the same time and place, with the same members present except for Councillor Kennedy.

PRESENT:

Mayor Philip Owen
Councillor Fred Bass
Councillor Jennifer Clarke

*Councillor Lynne Kennedy

Councillor Daniel Lee
Councillor Don Lee
Councillor Tim Louis
Councillor Sandy McCormick
Councillor Gordon Price
Councillor Sam Sullivan

ABSENT:

Councillor George Puil [July 22 (Sick Leave), July 29 and 30]
Councillor Lynne Kennedy (July 30)

CITY CLERK'S OFFICE:

Diane M. Clairmont, Meeting Coordinator (July 22 and 29)
Nancy Largent, Meeting Coordinator (July 30)

* denotes presence for a portion of the meeting

Although speakers were heard on three separate evenings, for ease of reference, they have been minuted concurrently.

COMMITTEE OF THE WHOLE

MOVED by Councillor Clarke
SECONDED by Councillor McCormick

THAT this Council resolve itself into Committee of the Whole, Mayor Owen in the Chair.

CARRIED UNANIMOUSLY
1. Retail Impact Study - Proposed Wal-Mart and Ancillary Space

Council had before it a Policy Report dated July 9, 2002 entitled "Retail Impact Study -Proposed Wal-Mart and Ancillary Space 86 S.E. Marine Drive/101 East 69th Avenue" in which the Director of City Plans presented results of the first phase of review of the rezoning application at 86 S.E. Marine Drive and 101 East 69th Avenue for a Wal-Mart discount department store and ancillary retail space and sought Council approval to continue processing the Wal-Mart rezoning application.

Pat Wotherspoon, Assistant Director of City Plans, reviewed the report and responded to questions. He advised 740 letters and e-mails have been received - 83% in support, 17% in opposition. This is more than the numbers indicated in the staff report as all correspondence to date has now been tabulated.

Richard Wozny, Vice-President/Manager, Royal Lepage Advisors, advised the retail study was a joint effort by five independent firms. In a brief review of the study, he advised results which have compared studies in other North American cities indicate the project will not threaten the economic viability of neighbourhood shopping areas. Mr. Wozny reviewed demographics and financial statistics for the project and acknowledged Fraser Street would experience moderate impact.

Lynda Challis, Rezoning Planner, reviewed recommendation and consideration items.

Dr. Ann McAfee, Director of City Plans, in response to a question relating to CityPlan, clarified the relationship of policies regarding a diverse economy, land use and development of the highway oriented retail (HOR) concept.

Chuck Brook, President, Brook Development Planning, representing the Applicant, with aid of a power point presentation, reviewed the application. He also provided information from the Ryerson report. Mr. Brook submitted a petition of 10,500 signatures (on file) and acknowledged 80% of the signatures were Wal-Mart shoppers. He also agreed to provide a copy of the Ryerson study to Council.

Mr. Brook responded to questions relating to the financial impacts on neighbourhood shopping areas.

The following spoke in opposition to the recommendations:

Anne Roberts, Building Better Neighbourhoods (petition of 8,914 signatures submitted - on file)

John Irwin, Southeast False Creek Working Group and West End Residents' Association (brief submitted - on file)

Speakers comments included:

· the proposal contradicts the goal of CityPlan and community visioning to shop within one's own neighbourhood and to create pedestrian and transit-friendly centres; it does not reflect the spirit or intent of CityPlan to maintain sustainable communities;
· major malls and big-box stores have forced out many general merchandise stores in Vancouver;
· neighbourhood shopping areas have been largely reduced to include food and personal services only; for other items, shoppers must go to big-box stores;
· better shopping is needed in South Vancouver, but not big-box;
· Highway-Oriented Retail (HOR) is not a good option as it encourages increased car use as well as contributing to urban sprawl;
· public participation in creating City policy is futile as previously-approved policies are often ignored;
· general merchandise is available in Vancouver; no need for big-box stores;
· money going to Wal-Mart will not find its way back into Vancouver economy;
· neighbourhood shopping is not necessarily more expensive;
· Wal-Mart is a controversial corporate citizen e.g. utilizing sweatshops in developing countries, hiring at low wages; refusing to have unionized employees and not providing benefits or pensions;
· BIAs are concerned Wal-Mart will undermine neighbourhood improvement objectives and the Wal-Mart proposal is not strictly a South Vancouver issue;
· consultant comments made to Board of Trade indicating a bias are a concern;
· other municipalities have approved Wal-Mart operations, but with a size restriction;
· report suggests a moratorium be put in place subsequent to approval of Wal-Mart; this would provide Wal-Mart with a monopoly and should not be an option;
· study methodology is questionable; there is no measurement of sales transference; no comment of impact Wal-Mart will have on large urban centres and minimum impact considered, not actual;
· no objection to Wal-Mart; objection to asking for zoning that does not conform with what Vancouver citizens have decided;
· increased traffic, including influx of semi-trailers, will be detrimental to neighbourhood, both as safety and health factors;
· Wal-Mart makes no positive contribution to the GVRD Regional Plan or CityPlan, regarding protection of green zone;
· impact of Great Canadian Superstore is typical of big-box stores; detrimental to local small businesses;
· rather than mitigation suggested for Fraser Street, use allocated funds now to enhance area and improve damage done by existing big-box stores;
· Wal-Mart has unfair advantage over small businesses; they do not pay same tax rates;
· economic sustainability has to be a factor in decision-making; keeping money and jobs within community is accomplished by supporting small business;
· neighbourhood shopping centres are most convenient for seniors and families;
· Vancouver is ranked as one of most liveable cities in world; continue this vision;
· Council is urged to send message to Wal-Mart and similar companies that ethics and morality mean something to Vancouver; Council is urged to delay decision until staff investigate allegations of sweatshop labour;
· part-time and minimum-wage jobs are not beneficial to the community;
· concern expressed as to whether heritage and archeological studies of the proposed site have been conducted;
· approval of Wal-Mart will discourage opening of new local businesses;
· thousands of hours have been spent on developing neighbourhood plan by volunteer labour and a workable community has been achieved;
· 50% of businesses in Kerrisdale struggle to make ends meet; introduction of Wal-Mart would have adverse effect;
· Kerrisdale worked diligently with London Drugs' planners to achieve a store that fits into the community; it is a good example of appropriate size for a big-box style store that fits into the neighbourhood;
· process of CityPlan and community planing has been a democratic, open and inclusive process; citizens decide how they want the City to look; all community visions stated they do not want big-box stores that would threaten local shopping;
· despite recommendations of consultant and staff, Council should listen to citizens who say no;
· value judgements in study are wrong; Wal-mart will take approximately $12 - $18 million from local shopping areas; this is not minimal, it is excessive and will have a great impact on local neighbourhoods;
· Oakridge representative advised they are in favour of retail in existing zoned areas; therefore, cannot support this application as it is spot rezoning;
· Wal-Mart should work with City and community on CityPlan to ensure it provides what the community needs and wants;
· Vancouver doesn't have a city-wide retail strategy and one is necessary;
· entry of Bay/Zellers at Oakridge did not cause great concern for local retailers as it replaced Woodwards and did not add additional retail;

·since the study has not revealed how many stores will be closed or jobs lost, it is not possible to state the impact will be minimal;
· concern was expressed that large multi-national retailers have applied, or may apply, to the World Trade Organization under the General Agreement on Tariffs and Trade (WTO/GATT) to be exempted from municipal regulations;
· the retail study does not adequately deal with the question of what constitutes a negative impact and how it might be quantified, or how a Wal-Mart might affect different existing stores in different circumstances;
· the study should not have focussed on neighbourhood retailing only, but should have taken national retailers, the whole city and and planned retail space into account;
· Wal-Mart is a private corporation under no obligation to report sales; the study grossly underestimates projected sales as it is based on an aggregate for the province;
· the Canadian Sun Wholesale Vitamin Centre, a local company which has been in business for thirty-three years and employs over forty people, currently occupies a facility on the site, and will be wiped out if this proposal is allowed to proceed;
· the Canadian Sun Wholesale Vitamin Centre and its neighbours on the site were not asked what the impact would be on them to move;
· there are very few retail sites available to accommodate grocery stores, and they should not be prohibited from this zone;
· Wal-Mart is trying to pick up cheap industrial land for retail purposes.

The following spoke in favour of the Wal-Mart proposal:

Speakers' comments included:

· Winnipeg Chamber of Commerce monitored Wal-Mart impact over 3 years; there was no negative impact; acknowledged that while the Chamber's membership did not include `mom and pop' stores, it did include a Wal-Mart competitor;

·Wal-Mart employees are judged by performance in community as well as performance in stores;
· Wal-Mart is a good corporate citizen contributing to many community causes;
· job creation will benefit middle-class community of Sunset;
· Wal-Mart provides much-needed jobs and general merchandise to new immigrants and is well-located to serve this community;
· Wal-Mart will provide one-stop shopping; its proximity to Canadian Superstore provides more competition and more affordable shopping;
· better sales income will provide better economy;
· there will be jobs for young people in the community;
· shopping will involve less travel time and greater convenience;
· the retail study provides a clear picture of what the impacts will be;
· the clear majority of people in the area want to shop locally;
· people who shop at Wal-Mart will also continue to patronize local stores;
· Wal-Mart will bring more shoppers to the area, benefiting other local businesses;
· the proposed rezoning would include mitigation measures such as street beautification, a high priority in Sunset;
· Wal-Mart will attract other businesses and encourage rebuilding the infrastructure;
· the Great Canadian Superstore did not kill the Punjabi Market, as feared, but brought new customers to the area;
· clean stores in the area will help to drive away sex trade workers;
· the proposed location is central, will be safe and will provide a good buffer for the residential area;
· concern expressed that special-interest groups are trying to curtail freedom of choice.

Phil Daum, Sunset Community Association, spoke regarding the report in general, without taking a specific position. He advised that Sunset is a diverse, albeit not vocal, community closest to and most directly affected by the proposal. He urged Council to consider the feelings and wishes of Sunset residents.

Over the course of the three evenings, the applicant's comments included:

· Mr. Brook agreed to ask Wal-Mart if they intend to proceed with a WTO/GATT application, and subsequently advised Council he is satisfied that Wal-Mart is not pursuing any action which would remove the regulatory authority of Council;
· asked whether Wal-Mart would accept a condition not to use such provisions, if available, Mr. Brooke agreed this request would be taken under consideration;
· reviewed how sales figures are determined; acknowledged these are not reported in Canada; Mr. Brook agreed to find out why Canadian figures are not published;
· regarding land cost; retail use is already contemplated in the zoning for the area, and assessment of the site's value would be based on its highest possible use, not industrial use;
· Wal-Mart has assured the Punjabi Market and the Fraser Street BIA that Wal-Mart has no intent to change its product mix to compete with vendors of ethnic products; Wal-Mart products are standard across all its stores;
· other business associations have expressed a mix of opinions; however, except for the Kerrisdale BIA and several large retailers such as the Hudson's Bay Company, there have been no formal statements of opposition.

Consultants Mr. Wozny, Peter Hume, President, Hume Consulting, and Lewis Silberberg, President, Commercial Marketing Inc., responded to issues raised by the speakers and answered questions, summarized as follows:

· sales figures in Canada have been monitored for some time, by diverse sources, and the Wal-Mart estimates are reasonable and not under-estimated;
· the method for calculating earnings per square foot was explained;
· steps taken to ensure that the impact was not under-represented were reviewed;
· long-term and short-term impacts were taken into account, noting that the growth of this community has been relatively static;
· the neighbourhood shopping area is largely complementary to Wal-Mart rather than competitive with it;
· small stores do not compete with big-box stores; Wal-Mart competes with other large national chains carrying comparable merchandise, which should be able to absorb the impact;
· businesses with potential for limited impact by Wal-Mart were reviewed by category; only two businesses with the potential for significant impact were identified;
· anchor and destination stores will not be affected, and will continue drawing customers to the neighbourhood;
· Council was assured that the study was carried out impartially, by independent consulting firms, in accordance with professional standards.

Over the course of the three evenings, staff comments included:

· Dr. McAfee advised that staff have not been able to ascertain, yet, whether or not Wal-Mart has applied to the WTO to eliminate the ability of municipalities to regulate hours of operation and zoning of Wal-Mart stores, but that Wal-Mart has written to Council to say it will not; staff will follow up on the issue;
· how sale of apparel and food services at Wal-Mart impact local shopping areas;
· review of Terms of Reference for the consultant study and hiring process for consultants;
· steps to be taken if the application continues to be processed, including reviews of traffic and landscaping requirements;
· rationale was provided for the recommendation to amend the HOR Rezoning Policies and Guidelines: Marine Drive Industrial Area to remove the sale of food (i.e., grocery store) as a possible retail use, and the area boundaries were described.

At the conclusion of the meeting, Mr. Wotherspoon provided a summation, noting numbers of speakers for and against. The history of zoning in the area was recalled, with particular reference to the Sunset and Victoria-Fraserview/Killarney Neighbourhood Visions, which do not support big-box retail if there are negative impacts on existing retail. The retail study has been completed, and indicates that only a small number of stores are likely to be impacted. Mr. Wotherspoon also reviewed the choices before Council.

MOVED by Councillor Sullivan

A. THAT the application by Brook Development Planning, to rezone 86 S.E. Marine Drive and 101 E. 69th Avenue (Lots 1 & 2, Block 13, DL 322, Plan 12653) from I-2 to CD-1, to permit highway oriented retail uses, continue to be processed in the normal manner.

CARRIED
Councillors Bass and Louis opposed to A)

RISE FROM COMMITTEE OF THE WHOLE

MOVED by Councillor Price

CARRIED UNANIMOUSLY

ADOPT REPORT OF COMMITTEE OF THE WHOLE

MOVED by Councillor Price
SECONDED BY Councillor Don Lee

CARRIED UNANIMOUSLY

Council adjourned at the following times on these three evenings:

July 22, 2002 at 10:00 p.m.
July 29, 2002 at 10:00 p.m.
July 30, 2002 at 11:25 p.m.

* * * * *

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