SUPPORTS ITEM NO. 2
P&E COMMITTEE AGENDA
FEBRUARY 8, 1996
POLICY REPORT
DEVELOPMENT AND BUILDING
Date: January 26, 1996
Dept. File: PEM
TO: Standing Committee on Planning and Environment
FROM: Director of Land Use and Development
SUBJECT: Rezoning Inquiry at 3350 East Broadway (M-2)
RECOMMENDATION
THAT an inquiry to rezone 3350 East Broadway (Lot 26, Block 2, D.L.
735, Plan 3421) from M-2 to CD-1 to allow a 21 832 m› (285,000 sq.
ft.) mixed-use development be discouraged.
GENERAL MANAGER'S COMMENTS
The General Manager of Community Services recommends approval of
the foregoing.
COUNCIL POLICY
CityPlan On June 6, 1995 Council adopted a broad vision for Vancouver
to guide City policy decisions, work priorities, budgets, and capital
plans. CityPlan directions for neighbourhoods include the creation and
strengthening of neighbourhood centres in all neighbourhoods as a place
where people can find shops, jobs, and services close to home.
On January 9, 1996 Council approved a public review process on a
proposed approach to implementing CityPlan in neighbourhoods. On
January 18, 1996 Council approved a policy to discourage rezoning
applications which would be inappropriate to consider before or during
neighbourhood visioning.
Industrial Lands Strategy On March 14, 1995 Council adopted a policy
framework to guide future decisions on industrial lands. The overall
intent of the strategy is to retain industrial land for industry. Among
the area-specific policies, the part of the Grandview-Highway frontage
which has taken on a commercial orientation was designated as a
potential zone for large-scale, highway-oriented retail uses which would
be inappropriate in local shopping districts.
Concerning the rezoning of industrial land, the policy states that if an
inquiry/rezoning application is submitted, it will be reported to
Council with staff's assessment of its merits according to adopted
criteria, resources required to process the application, and a direction
for Council consideration.
Policy on Large-Scale Retail Uses in Industrial Areas The floor space
ratio regulations of the Industrial District Schedules limit floor area
in retail use to 1 000 m› (10,764 sq. ft.). In November, 1987 Council
approved eight criteria for the evaluation of rezoning applications for
large-scale retail uses.
Hastings-Sunrise Plan This local area comprehensive plan approved in
May, 1985 seeks to preserve and improve the residential, commercial,
industrial, recreational and social environments of the Hastings-Sunrise
community. Approved neighbourhood goals include the reinforcement of
the existing district shopping centre on Hastings Street, and
reinforcement of a centrally located secondary shopping centre at First
and Renfrew.
PURPOSE
This report seeks Council advice on an inquiry to rezone an industrial
site on East Broadway for a large, mixed-use, industrial-commercial
development.
BACKGROUND
Site and Surrounding Zoning The site, zoned M-2, is on the south-east
corner of East Broadway and Rupert Street (see map in Appendix A).
Previously developed with a one-storey building, the site has been
vacant since 1989. The inquirer indicates that the site, which is about
1.7 ha (4.23 acres) in size, could be enlarged to 2.1 ha (5.15 acres) by
incorporating the adjoining lot to the east.
The site has a relatively steep fall from north to south and parallel to
the Burlington-Northern rail line which abuts the south property line.
There is a requirement for a 12.1 m (40 ft.) landscaped setback from the
East Broadway property line. The 10-year plan announced by BC Transit
in 1995 recommends a high-capacity light rail rapid transit in the
Broadway/Lougheed corridor.
The surrounding area is generally zoned RS-1S One-Family Dwelling
District north of Broadway and M-2 south of Broadway. Properties on the
other three corners of this intersection are zoned C-1 (Local-Serving)
Commercial District.
Development Application Processing On June 1, 1995, Council considered
a report on Development Application DE400074 for this site which
proposed a Casino (14,000 sq. ft.), Restaurant (8,000 sq. ft.) and
Wholesaling/Manufacturing (26,000 sq. ft.).
While the Social Planning and Police Departments did not object to the
relocation of a casino from 725 S.E. Marine Drive, Planning staff were
concerned that the proposed casino and restaurant would have detrimental
impact on industrial land values in the surrounding area.
After hearing many delegations opposed to the proposed casino, Council
approved a staff recommendation that the application be refused.
DE400074 was consequently refused, and an appeal of this decision to the
Board of Variance in December, 1995 was unsuccessful.
Contemplated Development An inquiry has been received requesting a
rezoning of the site (see attached as Appendix B a copy of an inquiry
letter, dated December 21, 1995, from Mr. John Combs).
Rezoning is requested to accommodate mixed-use development of
approximately 26 477 m› (285,000 sq. ft.). The floor space ratio (FSR)
would be approximately 1.55 on this 17 118 m› (184,259 sq. ft.)
industrial site. Proposed four-storey development includes a deck for
parking (not counted in FSR). On this sloped site, development would
rise two storeys above grade on East Broadway.
Most of the contemplated floor area, 20 903 m› (225,000 sq. ft.) or 79
percent, would be for President Asian Enterprises Ltd. Among its
several business undertakings in Greater Vancouver are a growing number
of food stores (T & T Supermarkets), including one which will open in
International Village. President Group proposes to relocate,
consolidate and expand on this site its wholesale distribution,
warehousing, and servicing operations, its food processing and cold
storage facilities, and its head office.
President Group seeks up to 8 897 m› (85,000 sq. ft.) of retail space in
conjunction with a 13 000 m› (140,000 sq. ft.) industrial operation.
This combination of uses would be similar to the "Real Canadian
Superstore" at 350 S.E. Marine Drive. The proposed retail area would
represent 37 percent of President Group's operation, and 30 percent of
the total floor area on the site.
The inquirer contemplates an additional 5 574 m› (60,000 sq. ft.) on the
top storey. Possible tenants being considered for this space include
Manufacturing, Laboratory, General Office, Restaurant - Class 1 and
School (Secondary and College) uses.
Rationale for Proposed Rezoning Rezoning would be needed because
Grocery or Drug Store is not a permitted use in the M-2 Industrial
District, and floor area in Retail Uses cannot exceed 1 000 m› (10,764
sq. ft.), including floor area for ancillary retailing. In addition,
two elements of contemplated development are conditional approval uses
which staff would generally not support:
- proposed School uses, both Secondary School and College, because
they are likely to conflict with industrial operations on the site
or in the surrounding area and are better located in more
accessible commercial districts; and
- restaurants, unless they are limited in size and are intended to
serve industrial workers from the surrounding area.
DISCUSSION
No Industrial Policy Basis for Supporting Rezoning
The Industrial Lands Strategy seeks to retain the city's industrial land
base for industry and service businesses. On this basis, an inquiry to
rezone an industrial site for other uses should not be encouraged if it
does not satisfy any of the circumstances in which Council is prepared
to consider the rezoning of industrial land.
This inquiry does not meet Council-adopted criteria and on that basis
should not warrant further consideration. It is not
(a) based upon CityPlan or other City-initiated planning process;
(b) located in a "let go" industrial area;
(c) located in a designated highway-oriented retail/industrial district
(i.e. portions of Marine Drive and Grandview Highway where zoning
for large-scale retail uses is to be developed);
(d) located within the False Creek Flats and in the context of the
City-initiated overview planning study.
The amount of floor area which is contemplated for retail and other non-
industrial uses, up to 13 470 m› (145,000 sq. ft.), is substantial.
Council's policy and evaluative criteria for assessing the potential
impacts of large-scale retail use identify a broad range of concerns
which are raised by this magnitude of non-industrial development (see
Appendix B). The likely negative consequences for industry include
increased industrial land values, traffic impacts on industrial
activities in the surrounding area, and destabilization of the
industrial land base.
Concern about the impacts of large-scale retail uses on industrial land
led to the designation of portions of the Grandview Highway and Marine
Drive frontages to accommodate retail-industrial uses. The East
Broadway and Boundary Road frontages were considered but it was
determined that Grandview Highway and Marine Drive could provide ample
capacity for highway-oriented retail uses and that the rest of the
industrial land base be preserved.
CityPlan and Neighbourhood Planning Considerations
CityPlan encourages the creation or strengthening of neighbourhood
centres as places where people can find shops, jobs, and services close
to home and accessible by foot or public transit. The development which
is contemplated on this site, particularly the large amount of retail
floorspace, could have serious implications for CityPlan implementation
-- depending on the neighbourhood visions which are developed for
Hastings-Sunrise (to the north) and Renfrew-Collingwood (to the south).
The local area plan adopted in 1985 for the Hastings-Sunrise
neighbourhood has goals and policies for neighbourhood commercial areas
already. They seek:
- to reinforce the existing district shopping centre on Hastings
Street,
- to reinforce a centrally located secondary shopping centre at First
and Renfrew,
- to encourage development of one or more high volume food stores,
and
- to maintain the smaller commercial centres for local convenience
shopping.
Since 1985, not only has a mid-size grocery store and shopping centre
been developed at 1st Avenue and Renfrew Street, but a Real Canadian
Superstore was developed at 3185 Grandview Highway, and Price Club at
3585 Grandview Highway. Local convenience shopping is said to have been
seriously affected by these developments, and would be jeopardized even
more by yet another large food store in the area.
The commercial uses contemplated on this site appear to conflict with
neighbourhood goals and Cityplan directions. At best the rezoning
inquiry is premature and would be better considered after neighbourhood
visioning is completed in the larger area surrounding the site and
encompassing both Hastings-Sunrise and Renfrew-Collingwood. This would
be consistent with Council's decision of January 18, 1996 to discourage
rezoning applications which are inappropriate to consider before or
during neighbourhood visioning.
Alternative Consideration The Industrial Lands Strategy states that
"there is a need for flexibility to allow for changes as required." On
this basis the inquirer wishes that Council be willing to consider a
rezoning application for this site (see copy of letter in Appendix B).
The inquirer offers three observations in support of the mix of uses and
development contemplated on the site:
- considerable industrial space is contemplated -- a minimum of
13 000 m› (140,000 sq. ft.), and potentially 18 580 m› (200,000 sq.
ft.), for manufacturing and wholesaling uses. FSR would range
between 0.76 and 1.1, which is higher than the average intensity of
industrial land use in the city;
- proposed retail space would be no more than 37 percent of the total
floor area and would be an integrated element, both functionally
and physically, of President Group's large
wholesaling/manufacturing operation consolidated on this site;
and- the physical characteristics of the site, particularly its
configuration and topography, and the requirement for a 12.1 m
(40 ft.) landscaped setback, constrain the economic
feasibility of development, by contrast to the other
industrial sites along East Broadway which are larger,
flatter, longer and wider, and thus easier to develop.
Staff confirm that the CD-1 zoning approved in 1988 for Westfair's "Real
Canadian Superstore" on the 5.2 ha (12.8 acres) site at 3185 Grandview
Highway permitted 10 290 m› (110,770 sq. ft.) of retail space but
required a minimum of 5 247 m› (56,500 sq. ft.) of industrial space,
only 34 percent of total floor area. The present inquiry contemplates a
minimum of 63 percent industrial space.
Staff also note that the contemplated President Group facility would be
similar to Westfair Food's "Real Canadian Superstore" at 350 S.E. Marine
Drive. Approved prior to the 1 000 m› (10,764 sq.ft.) limit on retail
floor area, a 13 935 m› (150,000 sq. ft.) Grocery and Drug Store was
combined with 7 870 m› (300,000 sq. ft.) floor area for manufacturing
and wholesaling to serve both this and other Westfair stores in Greater
Vancouver.
While the inquirer's observations have some merit, staff do not believe
they are so compelling as to take precedence over the Industrial Lands
Strategy, CityPlan directions or Hastings-Sunrise Plan goals.
Resources Required to Process the Application If Council is prepared to
consider a rezoning application on this site, and if such an application
is made, staff would process it in the usual manner. Assessment of the
application would include consideration of the eight criteria set out in
the Policy on Large-Scale Retail Uses in Industrial Areas, the
principles underlying the Industrial Lands Strategy (e.g., minimize
industrial land value impacts), the Hastings-Sunrise Plan, and CityPlan
directions.
While it would be the applicant's responsibility to demonstrate how
these criteria and principles will be met, this is not expected to
diminish staff work. (Consultant assistance was required in assessing
the rezoning applications for home improvement centres on industrial
land at 900 Terminal Avenue and 2750 Slocan Street.)
CONCLUSION
On the basis of City Plan directions, and given that a portion of the
Grandview Highway frontage has been designated to accommodate retail-
industrial uses, Planning staff recommend that this rezoning proposal
for a large, commercial-industrial development on the industrial site at
3350 East Broadway be discouraged.
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