SUPPORTS ITEM NO. 3 P&E COMMITTE AGENDA JULY 20, 1995 POLICY REPORT URBAN STRUCTURE Date: June 20, 1995 Dept. File No. IS TO: Standing Committee on Planning and Environment FROM: Associate Director of Planning - Central Area, in consultation with General Manager of Engineer Services, Director of Social Planning, General Manager of Parks and Recreation, and Manager of Housing Centre SUBJECT: Concord Pacific's Request to Remove the Unit Cap in False Creek North RECOMMENDATION A. THAT Concord Pacific be advised that Council is prepared to consider applications to amend the False Creek North Official Development Plan (FCN ODP) and previously approved rezonings to increase the number of dwelling units permitted to a maximum of 10,000, subject to no change in the overall building area, the submission of applications, and full public consultation as part of the review process. B. THAT Concord Pacific be advised that the ODP standards for all public requirements will be applied to any increase in units, although a payment-in-lieu to be secured at the sub-area rezoning stage will be considered for amenities not previously planned for in current development plans and not practical to provide within the site boundaries. GENERAL MANAGER'S COMMENTS The General Manager of Community Services RECOMMENDS approval of A and B. COUNCIL POLICY Relevant Council policy includes: - False Creek Policy Statement, approved by Council in August 1988. - False Creek North Official Development Plan approved by Council in November 1989. SUMMARY Concord has requested that the maximum unit limitation or Unit Cap be removed from the False Creek North Official Development Plan (FCN ODP). This would give them complete flexibility to adjust the size of units to respond to both present and future market conditions. At minimum By-law unit size, this could result in a total of 13,000 units on site. Staff are supportive of increasing housing close to the downtown providing that it does not compromise public objectives. Recognizing that increasing the number of units has significant implications on both unit diversity and on urban design, rather than removing the cap entirely, staff recommend that a new maximum be set at 10,000 units. Increasing the unit total past this point would start to endanger the overall principle of unit diversity set out in the Policy Statement and the ODP by increasing the number of smaller units to more than 50% of the unbuilt total, or limiting the number of unit types. In addition, as the unit count increases, urban design objectives could be compromised, resulting in larger floorplates affecting views, higher street-wall (a particular concern adjacent to parks and the waterfront), longer sections of unbroken street-wall, less usable on-site open space, and could lead to a request for more and/or higher towers. As the public requirements for False Creek North were based on population, any increase in unit count increases the requirements for amenities and facilities. Some items are adequate as now planned, even with 1,500 additional units. These include community space, which would still be at an excess, the school sites, and the infrastructure. Other requirements such as market family housing can probably be planned into a more densely developed site. This may also be the case with the non-market adult and family requirements; however, this will have to be verified during the rezoning processes for the sub-areas. Should providing stand-alone sites become a problem, a pay-in-lieu could be considered for some or all of the additional non-market units. Should it become necessary, options for deploying this payment-in-lieu will be presented in a separate report. For requirements such as child care, the extent of the take-up of additional units will determine whether the projected increase in children justifies an additional facility. Until this becomes clear, a payment-in-lieu should be accepted and held in reserve for future capital or operating costs. The largest and most contentious requirement is the increase in park. As it is impossible to provide additional park without a major replotting, which would impact development sites, staff recommend that a payment-in-lieu be considered instead, to secure additional parklands in the vicinity. Noting that there has been a variety of approaches used in determining both park and payment-in-lieu requirements (as set out in Appendix 'B'), Council is asked to authorize staff to negotiate with Concord and report back prior to, or at the referral of the required zoning amendment. In accordance with present policy, public requirements will be determined and secured at sub-area rezoning; delivery, however, could occur at development application or building occupancy. Concord believes that the public amenities already required are extensive and that they should be allowed to develop the market floor area established in the ODP with flexibility to respond to the marketplace, without further additions to park, social housing, or other public requirements. A detailed description of their position is included as Appendix 'C'. If Council is prepared to consider an application to increase the Unit Cap, Concord will be advised to submit an ODP text amendment. This will initiate full public consultation and a report on the status of negotiations of the pay-in-lieu for park and possibly other public benefits as part of the Public Hearing referral report. If they wish to adjust unit counts in areas already zoned, text amendments to sub-area rezonings will also be necessary. BACKGROUND AND PURPOSE In 1989 Council approved the FCN ODP with a maximum of 7,650 units. At Concord's request in 1993, Council amended the ODP to increase the number to 8,500. Due to an excess of park and community facility space and Concord's agreement to pay-in-lieu for daycare and provide additional family and non-market housing units, the standards for public requirements in False Creek North were maintained mostly on-site. In May 1994, Concord wrote to the City (see Appendix A) advising that it wishes to eliminate the restriction on the maximum number of dwelling units (Unit Cap) in the FCN ODP. This does not involve an increase in building area. Concord is seeking maximum flexibility to respond to market conditions. Initial analysis was done by the City, however Concord requested further dialogue on outstanding issues which led to more detailed analysis. Following these further discussions and with agreement on the basic parameters, it is now timely to report on their request. DISCUSSION Unit Cap In preparing the ODP, the maximum number of units and the resulting population determined the required public goods, including park dedication, community facilities, infrastructure, daycare, and school sites. As well, the Unit Cap ensured a range of unit sizes, both family and non-family, to accommodate a diversity of households as set out in the False Creek Policies and the ODP. If the Unit Cap was removed and all market non-family (65% of the total) units were built at the 37.2 m› (400 sq.ft.) minimum by-law requirement, up to 13,000 units might be developed on False Creek North. While this is a "worst case" scenario, even a lesser increase would limit unit mix and diversity on the site. Unlimited increases in units could also compromise the ODP's urban design objectives and result in a form of development markedly different from and likely worse than that intended in the ODP's Illustrative Plan and approved sub-area zonings. However, recognizing that increasing housing close to the downtown is an important civic goal, and flexibility to respond to market conditions is supportable, staff believe that an increase in units is worthy of consideration, providing that it does not compromise public objectives. Accordingly, staff feel that while an increase can be supported, a Unit Cap remains an absolute requirement. To determine an upper limit, staff have undertaken a comprehensive analysis of unit mix and urban design. Unit Mix The False Creek North ODP and the earlier Policy Statement were built upon a broad and extensive public process. One of the key principles was that FCN should be an inclusive community and a diversity of people should be accommodated in each neighbourhood including seniors, families with children, special needs, singles and couples. The ODP's requirements for both family and non-market units (representing 35% of all units) stem from this principle. However, the policy of diversity and inclusion went much further. For the balance of market units (representing 65% of the total) a broad range of sizes was facilitated by the average unit size. For example, at the current maximum of 8,500 units the average net unit size of 90.5 m› (975 sq.ft.) provides a great deal of latitude to accommodate both larger and smaller units. As the unit count goes up, so does the percentage of smaller units, increasingly polarizing or limiting diversity in unit mix across the site and within individual projects. To provide a variety of unit sizes in order to encourage a diverse population, unit mix options were analyzed ranging from two or more bedrooms to studios at minimum by-law requirements. The preferred option would allow about 10,000 units, at an average net unit size of about 80 m› (810 sq.ft.). Increasing the unit count substantially above this point would increase one-bedroom or smaller units above 50 percent of the unbuilt total and start to seriously impact diversity on the site. When faced with the same concern in the Arbutus and Collingwood Village rezonings, Council limited units smaller than two-bedroom to 50% of the total. The Unit Cap recommended by Staff for False Creek North would lead to a similar result. At 10,000 units when ODP requirements are considered across the site, about one-third of the units would be large, one-third medium and one- third small. Of the unbuilt units one-half would be large and one-half small. Built Form and Urban Design There are numerous urban design objectives incorporated into the Illustrative Plan and the Guidelines for the approved sub-areas. Buildings along parks and the waterfront should be lower in scale, with heights generally limited to four storeys. Towers should be slim and heights varied to respect identified public views and to provide a diverse, interesting skyline. Upper floors of towers should be stepped to provide a sense of slimming and interest. As well, housing for families with children should be of a minimum size and located in lower buildings with good physical and visual access to grade-level play areas. Unit configurations that provide many doors and windows along the street facilitate safety and security and provide positive, interesting streetscapes. In analysing urban design implications, where sub-areas were rezoned, but not built, the approved form of development was used and where sub- area rezonings have not occurred, the ODP's Illustrative Plan was used. In low-rise buildings flexibility is constrained by the family requirements. In towers, floor plate limitations and view considerations determine the maximum number of units which can practically be provided. Staff conclude that about 9,900 units could be developed without significantly compromising the ODP's urban design objectives. Beyond this threshold, changes in form become increasingly necessary such as: larger floorplates affecting views, higher street-walls (a particular concern adjacent to parks and the waterfront), longer sections of unbroken streetwall, fewer row houses with direct sidewalk access, less usable on-site open space and very likely a request by the developer to increase the height of towers and/or their number. "Natural" Cap Unit diversity and urban design considerations were combined to determine a "natural" cap for the site. As the numbers were close, and to permit some flexibility, staff recommend that should Council wish to consider an increase, it should be limited to a site total of 10,000 units, or an additional 1,500 units. At maximum build-out, this would increase the site population by about 2,600 people for a total projected at about 17,500. This total only reflects an internal reconfiguration of the current residential floor area allowance. The conversion of commercial space to residential, as is being proposed in International Village, is a different issue, as it could substantially increase the residential building area. This proposed conversion is the subject of a separate report on International Village replanning. Such conversion would generate an increase in units over this suggested maximum. Public Requirements If an increase in units is considered, staff recommend that public amenities be required in accordance with existing standards for False Creek North, at 10,000 units these would be: 1. Park - Based on the FCN ODP requirement of 2.75 acres/1,000 population, there is currently an excess of 0.49 ha (1.2 acres) of dedicated park space on the site. If all 10,000 units were built, the park requirement would increase by 2.92 ha (7.2 acres), resulting in a deficiency of about 2.43 ha (6.0 acres). While the Park Board would still prefer to provide additional park on-site, as the overall site has been comprehensively planned, it would be impossible to include this additional park space without a major replotting affecting urban design and other public objectives, as well as resulting in significantly higher net densities for the remaining development parcels. Rather than requiring the park to be provided on-site, staff recommend that a payment-in-lieu be considered to help secure additional park in the vicinity. In the downtown, where a payment-in-lieu for park has been accepted, it has been based on adjacent land values and the cost of park development. On the Bosa (East False Creek) site, adjacent industrial land was close to the value of the site itself. On the Bayshore, adjacent land values were much higher, but the cost was discounted by park provided on the site and by the amount of land provided outside the dedicated parks for the waterfront pedestrian/bicycle system. On major projects outside the downtown area, a different standard for park was required. In Collingwood Village, 1.5 acres/1,000 population of park was provided on site and in the Arbutus Industrial Lands 1.24 acres/1,000 of population was required. Based on past policy both the amount of park and the value could be set in a variety of ways. If a full park requirement and adjacent land value were considered, along with park development costs, the total payment-in-lieu could be as much as $41 million. If a reduced park standard is considered for the additional units, the total would be between $14 and $19 million, and if a discount for the pedestrian/bicycle system was factored in, the payment could be eliminated. Perhaps the only consistency in these options is that they were very much negotiated deals to provide the maximum amount of park, or funds possible without jeopardizing the development economics. A range of options, based on past payment-in-lieu and park requirements approved by Council is included in Appendix B. Concord is adamantly opposed to a requirement for any additional park whether on-site or through a payment-in-lieu. They argue that the site has more than adequate park space, that the park standard is a generalized estimate with a margin of error within the range of any unit increase they may propose, and that the requirement should be based on the particular nature of downtown demand rather than general City demands. Rather than decide upon a figure at this time, staff suggest Council confirm that a park provision relative to the new population will be required, that it may be provided through payment-in-lieu, and authorize continued negotiations with the developer to set the value of such payment. The results would be presented to Council before or at the same time as consideration of any application to amend the ODP to increase the unit count. 2. Community Facilities - The FCN ODP requires 4,273 m› (46,000 sq.ft.) of community space to be provided in the Roundhouse Community Centre and in association with International Village School. At maximum unit take-up there would still be in excess of 550 m› (5 925 sq.ft.) of community space on site. This was part of the original negotiated deal. Concord has not been credited for this extra provision in regard to other requirements. 3. Non-market and Family Housing - With an increase of 1,500 units, 375 additional family units would be required, of which 150 would be non-market. An additional 150 non-market adult units would also be required. The additional non-market requirements would reduce the overall market building area. While these increases and their locational requirements were considered in the development of the "natural" cap, the provision of additional non-market sites could affect overall urban design and constrain the size of market parcels leading to higher net densities. This will be carefully reviewed as zonings based on the new Unit Cap are proposed. The additional requirement for market family units can probably be met on-site as it requires only subtle adjustments to built form. This may not be so easy for non-market units. While the intent should continue to be to accommodate non-market units within the site, with families given a high priority, if providing stand-alone sites becomes a problem, pay-in-lieu might be considered for some of the additional non-market units. If necessary, possibilities on how to deploy this payment-in-lieu will be presented in a separate report. 4. Daycare - The extent of take-up of additional units should determine how the daycare requirement is met. At 9,500 units, the projected increase in children would not justify an additional facility and this should be accepted as a payment-in-lieu held in reserve for future capital or operating costs. If units are fully taken up, an additional 55 daycare spaces would be required. This would justify an additional facility on-site which is not expected to present a site planning problem. As it is unlikely that we will know the final unit total until late in the development process, reserving the funds now will keep future options open. 5. School - The School Board has confirmed that school needs can be accommodated on the two sites already set aside. 6. Library - The Library Board has requested a payment-in-lieu for the additional population. At their standard rate, this results in up to $123,000 at maximum unit take up. This could be considered a change of policy from the provisions of the ODP, which requires Concord to provide a site and half the construction costs of a new library facility, should such a facility be deemed necessary on- site. This requirement, however, was set for the original unit and population count. 7. Infrastructure - the street, water, sewer and other services systems as now planned will be able to serve the needs of the additional population. The exception is area 6A which has no potential for increase due to street access limitations. This area was excluded from the analysis. Concord believes that the public amenities established in the ODP are extensive and that they should be allowed to develop the permitted market floor area in a manner which responds to the market without further additions to park, social housing or other public requirements. A more detailed explanation of their position is included as Appendix 'C'. Timing of Public Requirements Staff recommend that should Council wish to consider an application to increase the Unit Cap, that Concord be advised that any additional public requirements will continue to be generally determined and secured at the sub-area rezoning stage, as per existing policy. The timing of any pay-in-lieu payments, however, could be set at either development permit or building occupancy stage. CONCLUSION Council's advice is sought as to whether it is prepared to entertain a further amendment to the FCN ODP to permit an increased number of units in False Creek North. Rather than removing the Unit Cap entirely with no additional public requirements, as Concord proposes, staff recommend that a maximum unit cap be set at 10,000 units and that existing standards for public requirements be maintained and secured through the sub-area rezoning process with options for payments-in-lieu. Further negotiations on the value of payment-in-lieu for additional park requirements is needed to determine an equitable amount. If Council is prepared to consider an application to increase the Unit Cap, Concord will be advised to submit an ODP text amendment. This will initiate full public consultation and a report on the status of negotiations on the park payment-in-lieu as part of the review, followed by referral of the amendment to a Public Hearing. * * * * * * * APPENDIX B Page 1 of 2 OPTIONS FOR DETERMINING THE PAYMENT-IN-LIEU OF PARK BASED ON PREVIOUS 1. WITHIN THE DOWNTOWN MAJOR PROJECTS (a) City Gate BOSA was required to make a payment-in-lieu for park based on: - the park requirement based on 2.75 acres per 1,000 population. For 1,500 additional units the park requirement would increase by 2.92 ha (7.2 acres). As there is currently an excess of 0.49 ha (1.2 acres) on site, the resulting shortfall would be about 2.43 ha (6.0 acres); - adjacent land value, which in the vicinity of the western end of Concord's site, where most of the units would be added, is approximately $150 per sq.ft.; and - the cost of developing the land for park which is about $7.50 per sq.ft. Using the City Gate approach a payment-in-lieu for park shortfall in False Creek North would be about $41M. (b) Bayshore The park requirement on the Bayshore, as was the case with City Gate, was calculated at 2.75 acres per 1,000 population. It was then reduced by the amount of park provided on the site and by the area of the waterfront pedestrian bicycle system, which was not included in the park. As was the case with City Gate, adjacent land value was considered along with a park improvement cost. If the Bayshore approach was used no park payment-in-lieu would be required in False Creek North. 2. MAJOR PROJECTS OUTSIDE THE DOWNTOWN (a) Collingwood Village While a payment-in-lieu was not calculated for park in the Collingwood Village redevelopment, a lesser park standard was required, set at 1.5 acres per 1,000 population. If this approach was used in False Creek North: i) over the entire site the cost would be $0.00; ii) for the additional units at maximum build-out (10,000) the shortfall on the site would be 1.1 ha (2.74 acres). A payment-in-lieu based on the City Gate approach would be about $19M. APPENDIX B Page 2 of 2 (b) Arbutus Industrial Lands A lesser park requirement of 1.24 acres per 1,000 population, was also required in the Arbutus Industrial Lands. If this requirement was used in False Creek North: i) over the entire site the cost would be $0.00; ii) for the additional units at maximum build-out (10,000 units) the shortfall on site would be 0.8 ha (2 acres). Using the City Gate approach for adjacent land value and park development, the required payment-in-lieu would be about $14M.