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.