Vancouver City Council |
CITY OF VANCOUVER
ADMINISTRATIVE REPORT
Date:
March 2, 2005
Author:
Z. Jankovic/ K. Hemmingson
Phone No.:
6448/ 6077
RTS No.:
04964
CC File No.:
1401-79
Meeting Date:
March 15, 2005
TO:
Vancouver City Council
FROM:
Director of Current Planning
SUBJECT:
Heritage Revitalization Agreement and Designation for
522 Beatty Street (DE408442)RECOMMENDATION
A.) THAT Council authorize the City to enter into an Heritage Revitalization Agreement, to be drawn up by the Director of Legal Services in consultation with the Director of Current Planning and executed by the Director of Legal Services on behalf of the City of Vancouver, for the site at 522 Beatty Street to:
- secure the rehabilitation of the Marquise building which will be renamed the Bowman Block, and its perpetual repair and replacement;
vary provisions of the- Downtown District District Schedule of the Zoning and Development By-law to permit an onsite total floor space ratio increase from 5.0 FSR to
8.7 FSR, and to not apply the 3.0 FSR residential maximum;
- grant a density bonus of 43,517 sq.ft. available for transfer offsite which includes 20,000 sq.ft. if this project does not receive a Historic Places Initiative grant from the Federal Government.
B.) THAT Council require a covenant to secure the timely rehabilitation of the heritage building and to ensure that the density bonus not be available for transfer until the rehabilitation is complete unless the owner secures completion of the rehabilitation by another agreement.
C.) THAT subject to approval of RECOMMENDATION A, Council authorize a façade grant for a total of $50,000, source of funding to be the Façade Grant funding in the Capital Budget. Approval of this recommendation requires 8 affirmative votes.
D.) THAT the Bowman Block Building at 522 Beatty Street listed in the " C" category on the Vancouver Heritage Register, be designated as Protected Heritage Property.
E.) AND FURTHER THAT the Director of Legal Services bring forward for enactment a by-law to authorize the Heritage Revitalization Agreement and a by-law to designate the heritage building.
GENERAL MANAGER'S COMMENTS
The General Manager of Community Services RECOMMENDS approval of A, B, C, D, and E.
COUNCIL POLICY
Council's Heritage Policies and Guidelines state that the resources "identified in the Vancouver Heritage Register have heritage significance", and that "the City's long-term goal is to protect through voluntary designation as many resources on the Vancouver Heritage Register as possible" and that legal designation will be a prerequisite to granting certain bonuses and incentives.
PURPOSE
This report seeks Council's approval to designate and enter into a Heritage Revitalization Agreement (HRA) with the owner to secure long term protection of the building at 522 Beatty Street.
BACKGROUND AND SUMMARY
The site is located in Victory Square area of the City and is zoned Downtown District (see site map below). Gair Williamson Architect has submitted a Development Application (DE408442) proposing to rehabilitate the building as part of the redevelopment of the site and is seeking floor area and parking variances, a façade grant and transferable density in order to make the project economic.
Figure #1: Site, Surrounding Zoning
DISCUSSION
Development Proposal: A development application has been received by Gair Williamson Architect to make interior and exterior alterations to the existing heritage building. The proposal includes converting the existing manufacturing, office retail use to residential use with parking on the lowest level, commercial use on the Beatty Street frontage and a two-storey penthouse addition. The lane façade as well as the Beatty Street façade will be rehabilitated, maintaining this building's significant contribution to the Beatty Street Streetscape. The heritage elements of the building will be preserved and restored under a Heritage Revitalization Agreement. (See Appendix A).
The east side of the 500 block of Beatty Street is a fully intact, historically significant streetscape with all buildings exhibiting distinctive heritage character. The northerly end of this block is completed by the Sun Tower building. Staff believe that selective increases in density accomplished through appropriately scaled rooftop additions, will extend the building life of each respective site while building upon the prevailing scale and character of the block. As such, additions should be setback from the front facade to minimize their presence when viewed by pedestrians and should be distinguished in their character from the more robust existing façade qualities. New additions should also distinguish themselves in their architectural character by appearing as a more delicate intervention through appropriate selection of wall and fenestration systems, as well as in their color and detailing. A consistent approach to the additions of all buildings in the 500 block of Beatty Street will ensure that the importance of the historic street is not compromised.
Staff intend to apply this strategy to the entire block.Heritage Value: The Bowman Block building (presently known as Marquise Building) was built in 1906 as a seven-storey structure and expanded in 1913 with two additional full stories. This Edwardian era neo-classical building was likely the first large warehouse to be built on Beatty Street and it is valued as a representation of wholesaling activities in downtown Vancouver in the early twentieth century. The building is also valued for its past use by local businesses and manufacturers. The tripartite composition, massing, symmetry, fenestration pattern and architectural detailing represent the prevailing design approach to Vancouver's commercial / warehouse structures of the era. The building contributes to the ambiance of the Beatty Street industrial streetscape.
Rehabilitation Plan: The plan is to restore exterior heritage character-defining elements including masonry and the main cornice. The windows will be repaired, rehabilitated and/or replaced. The original components of the building that were replaced earlier will be faithfully replaced according to archival photographs. Wherever possible, interior heavy timber elements and wooden floors will be retained and exposed. The building's structure will be seismically upgraded.
Compatibility with Community Planning Objectives: The intent of the Downtown District Official Development Plan and the accompanying guidelines is as follows:
· to improve the general environment of the Downtown District as an attractive place in which to live, work, shop and visit;
· to ensure that all buildings and developments in the Downtown District meet the highest standards of design and amenity for the benefit of all users of the Downtown;
· to provide for flexibility and creativity in the preparation of development proposals;
· to encourage more people to live within the Downtown District;
· to support the objectives of the GVRD as referred to in the Liveable Region Plan;
· to create a distinctive public realm and a unique and pleasing streetscape in the Downtown District.The DD Official Development Plan also authorizes the Director of Planning to relax any of the provisions of the Plan resulting in unnecessary hardship in rehabilitating buildings or sites on the Vancouver Heritage Register.
The rehabilitation of this Beatty Street building with an adaptive re-use approach and strong conservation delivery is seen as being compatible and fully supportive of all objectives listed above. In addition, the successful rehabilitation of key buildings in this easterly downtown precinct contributes to the City's revitalization objectives for the area.
The Parking Bylaw requires 50 spaces for the 38 units proposed; there is no requirement for the retail space. As this is an existing building, it is not possible to excavate for a parking garage for the residential units. Instead, the owner has used existing floor area to accommodate 13 parking spaces. The Director of Planning is able to consider the relaxation of 37 residential parking spaces under provisions of the Parking By-law. Staff are supportive of relaxing the balance of the required parking due to the high level of heritage rehabilitation and the owner's willingness to designate the building.
Economic Viability: To make the rehabilitation of this building economic and revitalize the area, the owner has requested conversion of the existing floor area to residential use. In addition, shortfall cost analysis was used to calculate the compensation to the owner for the extraordinary costs of heritage preservation.
The City's Heritage Building Rehabilitation Program (HBRP) and shortfall cost analysis has been in place in Gastown, Chinatown, and Hastings corridor for over a year. Used in heritage areas to provide compensation to individual property owners for preserving heritage buildings, shortfall costs are defined as the amount required to make project economical to undertake a major building upgrade.
Shortfall cost analysis was applied to this project in advance of Council reviewing and approving the Victory Square Plan, which recommends extending the HBRP to this area. It is consistent with the City's normal practice to try to accommodate projects that are currently in process, and with Council's objectives of revitalizing the downtown area.
Staff reviewed the applicant's shortfall costs calculation and undertook an independent analysis. Staff conclude that a total shortfall cost of $2,225,832 is justified for compensation in the following manner:
Category
Value / $
Bonus Density Implication / sq.ft.
Total Shortfall Cost
$2,225,832.00
Federal Government Incentive
Federal Historic Places Initiative (FHPI)
$1,000,000.00
20,000.00
Shortfall Cost after FHPI (To be matched by COV)
$1,225,832.00
Heritage Facade Rehabilitation Program
Façade Grants
$50,000.00
Heritage Building Rehabilitation Program (HBRP) Incentives
Property Tax
$0.00
Bonus Density (to meet the Shortfall Cost)
$1,175,832.00
23,517.00
Additional Incentive
Notional Residual Density
$0.00
0.00
Total Compensation
$2,225,832.00
43,517.00
(*Should the applicant not receive the federal grant or only part of the grant applied for, the HRA is structured to compensate applicant accordingly.)
Incentives for projects falling under the HBRP are determined through site-specific analysis and compensation is given to the owner through various tools in the following order:
· Federal Historic Places Initiative (HPI) grant
· Façade Grant
· Property Tax Exemption
· Transferable Bonus Density
Historic Places Initiative (HPI) is a Federal Government heritage building incentive program that awards building owners 20% of the total rehabilitation costs, up to a $1,000,000 maximum, in the form of a cash grant after the work is completed. This project has been put forward for consideration under the HPI program; however, approval for the Federal Grant is not known at this time. The recommended HRA has been structured to allocate an equivalent value of transferable bonus density if the owner is not successful in receiving a federal grant. The Property Tax Exemption component of the incentive package was not applicable in this case.
Inventory of Unsold Density: The balance of available heritage density on December 24, 2004 was 98,214 sq. ft. If Council were to approve the recommended HRA for 522 Beatty Street, the amount of 43,517 sq. ft. will be added to the inventory.
Council recently approved 35,334 sq.ft. of transferable density for 5 W Pender and Council is reviewing two other projects at this Public Hearing that propose approximately 68,400 sq.ft. and 18,640 sq.ft. of transferable density. If all three projects are approved, the density bank will total 264,105 sq.ft. This amount may be reduced through the securing of federal grants. Staff support the balance as presented.
REVIEW AND NOTIFICATION
Public Consultation: Following standard notification procedures, 564 surrounding property owners were notified and invited to comment on the proposal. Staff received 8 responses. Two in favour, noting the added value to the neighbourhood in keeping and restoring this historic building, and 6 were opposed, noting a variety of concerns including the two storey addition not being compatible with the heritage building, a potential increase in lane traffic, and the amount of parking. Two responses in particular indicated their concern with the loss of privacy and natural light through their glass block windows in the party wall as a result of the addition.
Staff extensively reviewed the addition to the existing building and concluded that the addition will be setback from the street wall so as to not be seen from the street, which will protect the integrity of the heritage streetscape.
Staff support a reduced number of parking spaces for this project as it is a heritage building, and excavating for a parkade is not economic. The parking entry from the lane is supported given that lanes are generally the required location for site access to preserve pedestrian ambiance and safety along the sidewalk, and any parking entry from Beatty Street would compromise the heritage character of the building and streetscape. By converting to residential use, the project will generate less traffic from larger trucks, and this should help limit traffic in the lane. In future when development occurs at the north end of the lane, special attention will be paid to the design at the lane and especially how it interfaces with the street.
Staff are also researching the circumstances with respect to the windows in the northerly party wall. If warranted, the Director of Planning will work with the applicant and neighbour to mitigate the affect of the two storey addition.
Comments from the Vancouver Heritage Commission: The Vancouver Heritage Commission reviewed this project on September 13, 2004 and on October 25, 2004. They indicated their support for this project including the two-storey penthouse addition.
CONCLUSION
The Bowman Block building is valuable to the history of the area and merits conservation. Its retention is an objective of the Downtown District zoning and is supported by the Vancouver Heritage Commission. The requested floor space variance, façade grant and transferable density represent fair compensation to the owner for the hardship of conservation. Staff recommend that Council support the HRA and designate the Heritage " C" building as Protected Heritage Property.
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