POLICY REPORT BUILDING AND STRUCTURE Date: April 4, 1996 Dept. File No. RGL TO: Vancouver City Council FROM: Director of Land Use and Development SUBJECT: Heritage Designation and Bonus for 1228 Richards Street - former Canadian Linen Supply Building RECOMMENDATION A. THAT Council support a heritage floor space relaxation of 3 312 m2 (35,650 sq. ft.), representing (1.25 FSR), as proposed in Development Application DE400814 and a relaxation of the retail floor space to 2 787 m2 (30,000 sq. ft.); B. THAT Council support a Heritage Revitalization Agreement to allow the heritage relaxations and a development limitation covenant to preserve the density bonus for transfer off-site; C. THAT the Director of Legal Services bring forth the by-law to authorize the Heritage Revitalization Agreement. GENERAL MANAGER'S COMMENTS The General Manager of Community Services RECOMMENDS approval of A, B and C. COUNCIL POLICY The Transfer of Density Policy and Procedure allows for the transfer of density from heritage sites in the Central Area. PURPOSE The purpose of this report is to seek Council's support for a Heritage Revitalization Agreement (HRA) to secure the conservation and protection of the former Canadian Linen Supply Building. BACKGROUND The former Canadian Linen Supply Building is located at the corner of Richards and Davie Streets in Downtown South (see map below). DE400814 has been submitted by Stuart Howard Architects on behalf of Lintall Properties Ltd. Map 4 1/2 inches Constructed in 1928-29, the building was designed in the Art Deco style by architects Townley and Matheson. Alterations and additions were made in 1947 and 1974. On June 20, 1995, Council passed the following resolution: "THAT the former Canadian Linen Co. Building at 1200 Richards Street, listed on the Vancouver Heritage Register in the B category, be eligible for a heritage density bonus to be used on site or transferred elsewhere, subject to the Transfer of Density Policy and rezoning." The new owner submitted preliminary development application DE400814 in January 1996 to retain the building and rehabilitate it as a food retail facility and develop a 29-storey apartment building beside it. On March 11, the Development Permit Board granted preliminary approval to the project, as submitted, at a density and with a building form approvable under the current DD zoning. To assist with the rehabilitation of the heritage building, the applicant has requested a heritage density bonus of 1.25 FSR beyond the site's allowable density, but which would not be used on-site. It would be "banked" on-site until sold and transferred elsewhere, consistent with the Transfer of Density Policy. This bonus density is the subject of the request for Council's approval. DISCUSSION Heritage Density Bonus The bonus amount of 3 312 m2 (35,650 sq.ft.) is to compensate the owner for the costs of retaining and upgrading the heritage building. In return, the building will become a protected heritage property. The Manager of Real Estate has reviewed the applicant's pro forma and concluded that the bonus amount is justified. Transfer of Density Policy The Transfer of Density Policy requires rezoning of a heritage site to CD-1 to reduce the site's density to that of the existing building. The remaining density is available for sale and is frozen by a development limitation covenant until it is sold. When all the density is sold, the covenant is cancelled and the heritage site remains zoned CD-1 with the permitted density being that of the existing building. The Canadian Linen Co. application is unusual in that its rehabilitation and the new tower could be approved under the current zoning. It is only the heritage bonus density that would be added to the site. Once the bonus floor space is sold, the site would remain at the density of the DD zone. For this reason, staff note there is merit in using a covenant to freeze the bonus density on-site (without rezoning), because the development proposal will use, on-site, all the density available under the current ODP. In this case, a covenant, without site rezoning, will meet the intent of the Transfer of Density Policy. Heritage Revitalization Agreement The HRA recommended to Council would achieve the following: protect the building, including its restoration and continued maintenance; confirm the retail area relaxation and establish the bonus density of 1.25 FSR for future sale and transfer. The agreement would also permit the City to install a bronze heritage plaque on the building. The HRA provides protection equal to that of designation and will be considered at a Public Hearing, after the requisite notification is met. Notification As part of the development review process, Planning staff sent notification letters to the neighbours. The primary concern of the neighbours, who responded and who spoke at the Development Permit Board meeting, was the presence of yet another residential high-rise in the area. They also objected to their views being obstructed. Consent to Designation The owner has agreed that the heritage bonus requested is adequate compensation for the protection of the building as a heritage property and a letter to that effect is on file with the Law Department. Comments of the VHC The Vancouver Heritage Commission passed the following resolutions at their February 6, 1996 meeting: "THAT the Vancouver Heritage Commission commends the applicant for the retention and designation of the Canadian Linen Co. Building. AND THAT the Vancouver Heritage Commission supports the application as presented." CONCLUSION The proposed Heritage Revitalization Agreement would enable an important heritage building to be preserved, restored and maintained, in exchange for a corresponding heritage density bonus. A development limitation covenant would bestow the density bonus and limit its use to sale and transfer off-site, consistent with the Transfer of Density Policy and Procedure. * * * * * General Mgr./Dept. Head: Report dated: April 4, 1996 Author: RGL\GMG Date: Phone: 7582 IRTS Number: CC96089 This report has been Concurring Departments prepared in consultation Joe Stubbs - Law Department with the departments listed to the right, and they Bruce Maitland _ Real Estate concur with its contents. LEMR\023-1444.cov