POLICY REPORT
DEVELOPMENT AND BUILDING
Date: November 17, 2003
Author/Local: D. Thomsett/7796
M. Lee/6034
RTS No. 3568
CC File No. 5305/8009
Meeting Date: December 2, 2003
TO: |
Vancouver City Council |
FROM: |
Director of Current Planning in Consultation with Director of Social Planning and General Manager of Engineering Services |
SUBJECT: |
CD-1 Text Amendment - 2901 East Hastings Street (Hastings Park) |
RECOMMENDATION
THAT the application by Hastings Entertainment Inc. and British Columbia Lottery Corp., to amend CD-1 By-law No. 3656 for 2901 East Hastings Street (Hastings Park) to permit slot machines at Hastings Racecourse, be referred to a Public Hearing together with:
(I) draft CD-1 By-law provisions, generally as presented in Appendix A; and
(ii) the recommendation of the Director of Current Planning to approve, subject to conditions, including arrangements to ensure that the proponents will not submit a development application until Council has approved a new concept plan for the Pacific National Exhibition in Hastings Park, generally as presented in Appendix B;
FURTHER THAT the Director of Legal Services be instructed to prepare the necessary CD-1 amending by-law generally in accordance with Appendix A for consideration at Public Hearing.
CITY MANAGER'S COMMENTS
The City Manager RECOMMENDS approval of the foregoing, noting that the introduction of slot machines into Vancouver is a controversial issue. If Councilchooses to refer the application to a Public Hearing, that venue will provide an opportunity for members of the public to speak directly to Council on the matter. The holding of an Open House prior to the Public Hearing will provide an opportunity for local residents to receive all the information available on this rezoning application. As well, polling will provide further information to Council on the views of both Vancouverites and the local community.
A recommended condition that a development application for the proposed use not be submitted until a new concept plan for the PNE/Hastings Park is completed will allow for resolution of all the identified issues prior to the issuance of a development permit. The completion of the concept plan is scheduled for July, 2004. It should be noted that the City is the owner of the site and as such is in control of all development.
COUNCIL POLICY
Starting January 27, 1987, Council has passed a number of resolutions outlining its position on a variety of gaming policy issues. Some resolutions have dealt with the need to recognize the municipal role in defining gaming policy matters as they affect local communities, a role now defined under the Gaming Control Act (2002), as well as in the Memorandum of Agreement (signed in 1999) with the Union of British Columbia Municipalities (UBCM). A detailed chronology of policy decisions is presented in Appendix C.
The rezoning application for Hastings Park was submitted following the Council resolution of July 31, 2003 requesting staff to report back on the procedural and other issues relevant to the introduction of slot machines at the Hastings Racecourse.
PURPOSE AND SUMMARY
A rezoning application to amend the CD-1 By-law pertaining to Hastings Park to permit 600-900 slot machines at the Hastings Racecourse was submitted by Hastings Entertainment Inc. and the British Columbia Lottery Corporation (BCLC). This report assesses the application in the context of the broader issues identified by Council, and concludes that on balance, the proposal is supportable. Staff recommend the application be referred to a Public Hearing and be approved.
MAP
BACKGROUND
Historical Council Policy on Slot Machines: Slot machines were first introduced in B.C. in 1997. On October 7, 1997, Council adopted amendments to the Zoning and Development By-law to permit casinos without slot machines. The five casinos located in the City of Vancouver remain without slot machines.
Historically, Council's concerns with gaming expansion, including the introduction of slot machines, have included issues related to the need for comprehensive provincial gaming legislation, recognition of a municipal role in determining location and scope of gaming facilities, concerns of the negative impacts and the lack of services for those affected by gambling addiction, protection of charities' revenues, and sharing of gaming revenues with local governments. Most of these issues have been positively addressed, either through thesigning of a Memorandum of Agreement with UBCM in 1999, the enactment of the Gaming Control Act of 2002, or the implementation of government sponsored problem gambling programs and other programs.
Provincial Policy on Slot Machines at Casinos and Racetracks: Currently, slot machines are only installed at casinos. Recently, however, the BCLC, which is in charge of conducting and managing electronic gaming in British Columbia, has indicated its interest in authorizing the introduction of slot machines at two racetracks, namely Hastings Racecourse and Fraser Downs in Surrey.
The BCLC has indicated to the City its desire to place slot machines at the Hastings Racecourse and in one Vancouver casino. However, it has also indicated its willingness to accept and respect the City's position to approve or refuse slots at either location.
Rezoning Application Approach: On July 24, 2003, staff brought forward a report to Council presenting the option of further considering the introduction of slot machines at Hastings Racecourse. This consideration has been the subject of discussion since the operators of the Racecourse wrote a letter to Council on March 10, 2003 requesting approval for the introduction of slot machines at the Racecourse.
On July 31, 2003, Council requested staff to report back on the procedural and other issues relevant to the introduction of slot machines at the Racecourse. Council also requested an outline of an appropriate public consultation process to be implemented prior to any Council decision. This is provided in this report.
Since the appropriate procedure for introducing slot machines is through a rezoning, and since issues related to this are specific to each site proposed for rezoning, proponents were asked to make rezoning applications that would be taken through the normal review and public process. This report deals with the Racecourse proposal. A rezoning application for a consolidated casino proposal is dealt with in a separate report.
DISCUSSION
Project Description: Proposed is an electronic gaming area accommodating 600 to 900 slot machines on level two of the existing Hastings Racecourse building. The floor area for this use would be 4 722 m² (50,828 sq. ft.). A new entrance lobby would be added to the south side of the building along with a vehicular driveway and other exterior improvements, although staff note that these improvements are outside of the applicant's current lease area. Renovation plans include upgrades to public spaces, kitchen and dining facilities, security, building systems and safety.
The initial request is for 600 machines, with the declared intention to increase the number of machines to a maximum of 900 if conditions allow it at a future date. Conditions for this rezoning are recommended such that only the initial 600 machines would be approved. Thereafter, before an increased number of slot machines, beyond the initial 600 can be approved, it would require a new Development Permit application which would be reviewed by the Development Permit Board, and it would also require Council's approval of an amended form of development. The public would have the opportunity to express their opinions through this process and whatever conditions are felt to be appropriate can be required at that time.
Use: Under the existing CD-1 By-law various entertainment type uses (e.g., racetrack) are permitted under the Council-approved form of development where Council can make changes without the need for a rezoning/public hearing process. Notwithstanding the fact that wagering activity is a longstanding part of the racetrack operation at Hastings Park, because the introduction of slot machines is a significant policy issue, it should be considered through a rezoning process. Having said this, from a land use perspective slot machines are compatible with the fair and with the other entertainment activities on the site.
Density: With only a new entrance foyer addition planned, and the slot machines occupying existing building space, building density is not an issue.
Form of Development: Council is being asked at this time, only to approve the change to the CD-1 By-law to permit 600-900 slot machines in the racetrack. All of the details pertaining to building form, access, parking, mitigation measures, signage and community amenity issues will be dealt with at the development permit stage, after which Council will be required to approve an amendment to the approved form of development that currently applies to Hastings Park. All of the identified issues will then have been resolved to the satisfaction of Council.
Staff recommend this approach in light of the pending process for the development of a new concept plan for the PNE in Hastings Park. This process is scheduled to commence once the City acquires ownership of the PNE in January, with community consultation through the spring, and concluding with a Council recommendation by July 2004. This planning exercise is site specific and therefore different from the recently-finished City Plans' Hastings-Sunrise Community Vision (not yet adopted by Council) that applies to the whole local area.
If Council approves the amendment to the CD-1 By-law to permit slot machines at the racetrack, that land use element will be a component of the new concept plan for the PNE in Hastings Park. The applicant will then work with the planning program, including with the community, to try to satisfactorily resolve impacts and other issues. Staff are further proposing a rezoning condition requiring that arrangements be made to ensure that adevelopment application for slot machines not be submitted until Council has approved the new concept plan for the PNE in Hastings Park after which time Council will be in a position to consider significant changes to the approved form of development.
Number of Slot Machines: The application is for 600-900 slot machines. Staff recommend that Council amend the CD-1 By-law to permit no more than 900 slot machines along with a condition of rezoning to initially permit no more than 600 slot machines following adoption of a new concept plan for the PNE in Hastings Park and a development permit process after which all the issues pertaining to 600 machines will be satisfactorily resolved. Council will thereafter be asked to approve an amendment to the approved form of development for Hastings Park to accommodate 600 slot machines at the racetrack. In the further future, and depending on the policies adopted in the concept plan for the site, it may be possible for the proponents to submit a new development application for no more than 900 slot machines which would require all then-pertinent issues to be adequately resolved and the approved form of development again amended by Council.
Upon hearing representation at a Public Hearing on the current rezoning application, Council, at it's discretion, could decide to amend the draft by-law to reduce the permitted slot machines to no more than 600, with no possibility of additional machines without another rezoning and public hearing process.
Hours of Operation: Currently, the racetrack is open from 9:00 a.m. to approximately 11:00 p.m., seven days per week, and until 2:00 a.m. or 4:00 a.m. on 42 weekend nights per year for Hong Kong simulcast racing. The applicant is proposing to open the floor with slot machines between 9:00 a.m. and 4:00 a.m., or 21 hours per day, seven days per week. This matter will be addressed at the development application stage, with consideration given to community impacts and impact mitigation.
Traffic and Parking: The applicant has commissioned a traffic and parking study that will be completed prior to the Public Hearing. To date, the applicant has provided a general concept of how traffic and parking will be handled.
The applicant notes that in the past, the PNE has controlled through its operating agreement with the City, most of the parking in Hastings Park that is used by racetrack patrons, except for the horsemen's parking lot at the northeast corner that is controlled by the racetrack. The proponents contend that with the addition of 600 slot machines, additional parking would not be required (over and above the parking lots surrounding the racetrack, which are currently used on a non-exclusive basis). They further advise that in the future, should the racetrack wish to increase the number of slot machines to 900 (as they wish the CD-1 By-law to permit), there may be a need for additional parking and they would work with the City and the community to determine the compatibility of additional parking in relation to the new concept plan for the PNE/Hastings Park.
Staff will review the applicant's parking proposal, and the parking study in the context of the PNE/Hastings Park planning process and will assess impacts on neighbours as well as other uses within the Park.
The racetrack proposes no changes to the existing entrances to Hastings Park. For exits, the racetrack is considering restrictions on late-night exiting to ensure that all traffic would flow to the Cassiar, Hastings and McGill corridors. They will await the opinion of their traffic consultant prior to making plans for this element which will also be reviewed in the context of the larger PNE/Hastings Park planning process and with advice from the community.
The racetrack would also work with the City to improve the lighting, paving and lining of the parking areas to improve safety. Additional landscaping may also be needed.
All traffic and parking matters will be reviewed and resolved at the development permit stage and be reported to Council as part of the proposed changes to the approved form of development.
Neighbourhood Impacts and Mitigation Measures: The impacts on the local community from this proposal are expected to pertain mainly to traffic generation, especially night traffic, on-street parking and noise. Local residents may be concerned about the potential for increased prostitution activity and street drug trafficking in the neighbourhood. More clarity on these probable or perceived impacts will come from the traffic and parking study, the planning process for the PNE/Hastings Park and the development application process. Appropriate on- and off-site mitigation measures will be developed through these processes and any costs will be borne by the applicant as a condition of final approval of the form of development by Council.
Public Process and Community Issues: The Council resolution of July 31, 2003 requested staff to outline a public consultation process to be implemented prior to any Council decision. Outlined below is the proposed consultation process.
The potential introduction of slot machines at Hastings Racetrack is a controversial issue. Feedback received by City staff from members of the public (letters, e-mails, and informal conversations with neighbours) indicates concerns about the process of decision-making as well as concerns regarding community impacts that may arise if slot machines are introduced to the Racetrack.
The community surrounding Hastings Racetrack has actively participated in the recently completed Community Visions for Hastings-Sunrise (CityPlan). The community was alsoactive in the Hastings Park Restoration Plan that was completed in 1997. Therefore, there is a similar expectation on the part of many residents that the discussion related to the introduction of slot machines into the racetrack should involve opportunities for residents and members of the public-at-large to express their views and opinions.
Prior to holding the Public Hearing, staff will organize an Open House at a community facility in the Hastings-Sunrise area. Information related to the rezoning application will be presented to the public, and members of City staff and representatives from the applicant will be present to answer any questions and to gather feedback from those attending the Open House. During the same period, City staff will commission a public poll to measure levels of understanding among Vancouverites in relationship to the introduction of slot machines at the racetrack. In accordance with usual cost recovery policies, the applicants will pay for the costs of the Open House and the public poll.
The referral of this report to a Public Hearing will provide an opportunity for members of the public to speak to this issue. If Council chooses to approve a text amendment to the CD-1 to permit slot machines at the racetrack, it is recommended that no development application be processed until such a time when the planning process for the PNE/Hastings Park is complete. This will provide further opportunities for public input into issues of local impacts and mitigation related to the introduction of slot machines into the site.
The process associated with the issuing of a development permit will provide additional opportunities for public input. Staff will report back to Council to seek formal approval of the form of development, at which point Council can deal with specific mitigation measures and conditions that members of the public would have an opportunity to speak to Council about.
Incidence and Costs of Gambling Addiction: Citizens have long expressed concerns about social impacts arising from the introduction of slot machines in the city. Local residents have echoed these concerns regarding the racetrack in specific. The main concern relates to gambling addiction and expanded gambling enticement for those who suffer from this condition. Information related to this issue was an important component of the Administrative Report "Introduction of Slot Machines at Hastings Park Racetrack" presented to Council on July 24, 2003, which is available online at:
http://www.city.vancouver.bc.ca/ctyclerk/cclerk/20030724/pe6.htm
In the above mentioned report, it is indicated that in the province of British Columbia, the current prevalence for problem gamblers is at 4.6% of the adult population. Other addiction studies conducted in other provinces during the last few years, indicate that an estimated 3% to 6% of the adult population suffer from problem gambling (Gambling in Canada, An Overview, Canada West Foundation, August 2001).
There is evidence that for addicted gamblers their behaviour has potentially both a financial and an emotional price. It is difficult to assess the costs that are directly and exclusively associated with gambling behaviour. According to a recent study published by the Canada West Foundation: "Policy makers need to be aware of the impacts of gambling to balance the trade-off between the desire to provide gambling opportunities and the desire to minimize the harm to individuals." (Triumph, Tragedy or Trade-Off? - Considering the Impacts of Gambling, Canada West Foundation, August, 2001).
Policing issues: The introduction of slot machines to the Hastings Racecourse will bring increased pedestrian and vehicular traffic to the area. This increase in traffic may bring additional pressures on the Police that will have to be monitored. There could also be increased criminal activities in the surrounding neighbourhood and throughout the city that can be linked to this expansion of gaming activity. The Police Department will need to assess the potential increased demands for policing services. The analysis of these demands will have to be carried out during the development permit process.
FINANCIAL IMPLICATIONS
Benefits to the City of Vancouver: The City of Vancouver, similar to other municipalities hosting casinos in British Columbia, receives a portion of casino revenue. At present, the City receives ten percent of the net casino revenue, which in 2002 generated $3.7 million. It is projected that this year the City will receive $3.9 million from casino revenue. As more casinos with slot machines became operational in the Greater Vancouver region (casinos in Richmond and Langley are scheduled to open in the near future), the revenue generated by Vancouver's table-only casinos will likely diminish, and some casinos may close.
If slot machines are introduced into Vancouver, the BC Lottery Corporation has indicated that the City will also receive ten percent of the net revenue generated by slot machines, which in the case of Hastings Racetrack with 600 machines, is projected to generate an additional $6.5 million a year for the City of Vancouver (BCLC estimates).
The City, as owner of the site, also collects rent from the racetrack operators. At present, the City receives $750,000 a year in rent. This funding is presently dedicated to the restoration of Hastings Park.
Other Stated Economic Benefits: In their submission, the proponents have indicated that the upgrades to the racetrack will require an investment of $30 to $45 million, with the creation of 1,079 person years in construction jobs, plus the potential creation of up to1,400 on-going new operational jobs (there are 800 employees now).
APPLICANT'S COMMENTS
Normal practice is for staff to seek comments from rezoning applicants on the final report. Comments from the joint applicants, Hastings Entertainment Inc. and British Columbia Lottery Corporation, are attached as Appendix D.
CONCLUSION
The application to install 600-900 slot machines at Hastings Racecourse raises several controversial issues ranging from concerns about potential gambling addiction, the relationship of the facility to the pending planning program for the PNE/Hasting Park and the amount of traffic generated and parking required for the 21 hour per day, seven day a week operation. The proposal would, however, breathe new life into the racecourse. The proposal is expected to maintain the existing employment plus create ongoing new jobs. The revenue share to the City could also pay for public benefits nearby and elsewhere in the city on an ongoing basis.
Traffic, parking, access and noise mitigation measures, as determined by further studies, would be paid for by the proponents. Prior to the submission of a development application for the initial 600 slot machines, the new concept plan for the PNE in Hastings Park would have to be first approved by Council and part of that planning work would include resolution of issues associated with the racetrack renovation proposal and neighbourhood impacts. Additional slots, up to a maximum of 900 would only be approved after a public process involving the Development Permit Board and Council.
On balance, staff recommend the amendment to the CD-1 By-law to permit slot machines at Hastings Racetrack subject to conditions to limit the number of slot machines to be initially approved and to deal with traffic, parking and design concerns.
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APPENDIX A
DRAFT CD-1 AMENDING BY-LAW PROVISIONS
Note: A By-law will be prepared generally in accordance with the provisions listed below, subject to change and refinement prior to posting.
CD-1 By-law No. 3656 for 2901 East Hastings (Hastings Park) is amended as follows:
Use:
Introduce a Use section to include the following uses:
1. Uses existing as of (date of by-law enactment); and
2. In the racetrack facility, slot machine use to no more than 900 slot machines and a maximum floor area of 4 800 m² (51,668 sq. ft.) for slot machines and circulation related to slot machines*.
