POLICY REPORT BUILDING AND DEVELOPMENT Date: May 7, 1996 Dept. File No. F635 TO: Vancouver City Council FROM: Director of Land Use and Development and Manager of the Housing Centre SUBJECT: Floor Space Relaxation, Heritage Designation and Low Cost Housing Proposal 577 Richards Street RECOMMENDATION A. THAT Council approve the designation of the principal facade of 577 Richards Street, currently listed on the Vancouver Heritage Register in the "B" evaluation category, as a Protected Heritage Property; FURTHER THAT Council instruct the Director of Legal Services to bring forward the by-law for enactment. B. THAT Council approve, in principle, for this site a Housing Agreement, to be drawn to the satisfaction of the Director of Legal Services and Manager of the Housing Centre, which would, in part, for 20 years, have all residential accommodation rented on a monthly basis, have 56 rooms rented at the shelter portion of social assistance for a single person to those receiving government assistance, and have the remaining 76 rooms available to anyone at market rates to a maximum monthly rent of $375.00; C. THAT Council support a residential floor space relaxation of approximately 1,090.6 m2 (11,739 sf.) from 3.0 FSR to 5.1 FSR and a total floor space relaxation of approximately 462.6 m2 (4,980 sf.) from 5.0 FSR to 5.83 FSR as proposed in Development Application DE217368. GENERAL MANAGER'S COMMENTS The General Manager of Community Services RECOMMENDS approval of A, B, and C noting that these recommendations are presented as a package which should be wholly adopted or wholly rejected. COUNCIL POLICY Council policy on heritage designation states, in part, that legal designation will be a prerequisite to accepting certain bonuses and incentives. The Downtown ODP states that "the Development Permit Board may, for any development which includes low cost housing, permit an increase in floor space ratio, subject to prior approval by City Council and the securing of a Housing Agreement to ensure the inclusion of the low cost housing". Council heritage and low cost housing policies both state that where a floor space increase exceeds 10% of the allowable, Council approval is required. Council policy is for staff to give priority processing to development applications which include heritage or rental housing. PURPOSE This report seeks Council's support for an increase in the maximum permitted residential and maximum permitted total density at 577 Richards Street, in exchange for the restoration and heritage designation of the principal facade and the securing of low cost housing units (see map Appendix A). BACKGROUND A development application, which included a request for a floor space relaxation, was initially submitted in February 1994. It was refused because there was no heritage retention component and at that time the provisions did not exist in enabling legislation for by-law relaxations based on provision of low cost housing. A second application, DE217368, was made on December 6, 1994. Following modifications to the project, the current proposal can be supported by staff. The development application proposes to retain the principal facade and the first structural bay of the Hotel St. Clair and to demolish the rest of the building. This is to be replaced with a newly constructed rooming house with 129 sleeping units and a ground floor commercial component. DISCUSSION Compatibility with Community Planning Objectives The intent section of the Downtown District (DD) Official Development Plan includes the following goals: "to improve the general environment of the Downtown District as an attractive place in which to live, work, shop and visit"; and "to encourage more people to live within the Downtown District." The proposed commercial and residential uses for this development meet these goals. Heritage Value 577 Richards was built in 1911 for Captain H. Pybus and was designed by Samuel B. Bird, who was also the architect for Chalmers Church. The four storey building is wood frame and the front facade is clad in concrete that has been cast to appear like stone. An articulated parapet, large brackets over the first floor and keystones above the upper storey windows are some of the decorative features of the building. It is listed in the 'B' evaluation category on the Vancouver Heritage Register. Zoning and Related By-law Considerations Based on the hardships of heritage retention and the provision of low cost housing, the applicant is requesting a relaxation of the maximum permitted residential floor space from 3.0 FSR to 4.96 FSR. This includes the conversion of 1.13 FSR permitted commercial floor space to residential plus a bonus of 0.83 FSR. The applicant is also requesting a total floor space relaxation from 5.0 FSR to 5.83 FSR. Since the proposed floor space increase will exceed 10% of the allowable, Council's approval is required. Table 1 below describes the approximate floor space calculations: Table 1 PERMITTED PROPOSED Floor Res. 1672.2m2 (18,000 sf.) - max. allowed 1672.2m2 (18,000 sf.) Area - conv. from comm. 629.5m2 ( 6,776 sf.) - bonus 461.1 ( 4,963 sf.) Total Res. 2762.8m2 (29,739 sf.) Comm. 1114.8m2 (12,000 sf.) 485.3m2 ( 5,224 sf.) Total 2787.0m2 (30,000 sf.) 3248.1m2 (34,963 sf.) FSR Res. 3.0 (max.) 4.96 Comm. 2.0 (max.) 0.87 Total 5.0 (max.) 5.83 The residential parking requirements for low-income SRO units are not specifically listed in the Parking By-law. The proposed 11.1 m2 (120 sf.) sleeping units are designed for 129 low-income singles. The site lies within easy walking distance of transit. The proposed development provides three parking spaces and one loading bay for the retail/commercial area as required by the Parking By-law. One additional space is provided for the manager of the residential portion of the project. A relaxation is requested based on the type of tenancy that the SRO units accommodate, and on the site location and financial hardship. The number of residential parking stalls would be reduced from the 39 required to 1. The Director of Land Use and Development is able and prepared to approve the parking relaxation. The Zoning and Development By-law requires that 43 hand basins be provided. The proposal is for 40 hand basins as well as 10 additional sinks provided in two food preparation areas on each floor. The Housing Centre believes that the additional sinks and food preparation areas enhance the livability for the tenants and warrant relaxing the hand basin requirement. The by-law also requires 11 bath tubs and is silent on showers. The proposal is for 2 bath tubs on the upper two floors and 22 showers throughout the floors, which staff believe will better suit the residents' needs. On the advice of the Manager of the Housing Centre, the Director of Land Use and Development is prepared to approve these relaxations. Economic Viability and Support Required to Enable Heritage Conservation and Low Cost Housing The relaxations to the maximum residential floor space, maximum total floor space, parking, hand basins and bath tubs, if approved, will enable the restoration and designation of the principal facade and the secured (20-year) provision of low cost housing. The financial analysis by Real Estate Services supports the requested floor space relaxations. The analysis attributed approximately 60% or greater of the value of the relaxations to the securing of low cost housing for 20 years and 40% to the heritage facade retention and restoration. a) Heritage Conservation The property owner has submitted a letter (on file with the Law Department) accepting the relaxations to the floor space to be granted under DE217368 as just and fair compensation for the designation of 577 Richards Street and waiving any future compensation demands. Therefore, no additional support to achieve appropriate conservation of this building is required. b) Low Cost Housing There are currently 35 residential units on site, most of which rent for $350 per month without hot plate or fridge. The rooms are about 93 m2 (100 sf.) and common bathrooms are "down the hall". The new units would be approximately 11.1 m2 (120 sf.) with outlets provided for cooking facilities, fridge and cable. In the basement, laundry and locker space will be available. The rooms will be on floors two through seven. A typical floor will contain 22 sleeping units, 4 toilets, 2 urinals, 4 showers and 2 small food preparation areas with double sinks. On the second floor there will be a small lobby/lounge and on the fifth floor there will be a 30.7 m2 (330 sf.) lounge overlooking the street. The side lightwells are 3.4 m (11 ft.) deep. This proposal is the first opportunity to use the low cost housing provisions which were incorporated into the Downtown District ODP in 1995. This is also an example of the private market building new SRO units. The application has been the focus of much discussion among staff and the applicant resulting in modifications to the plans. The proposal is for basic accommodation which will increase supply of much-needed affordable housing in the downtown core. Over one-third of the rooms will be secured for a 20 year period at rents affordable to welfare recipients. The quality of the accommodation will be an improvement over the existing residential hotel. In general discussions with people from the Downtown Eastside on small living spaces, concerns have been expressed that housing standards, particularly social housing standards, will be reduced if projects such as this become the norm. Housing Centre staff suggest that the priority for low-income housing should continue to be self-contained apartments (i.e., dwelling units as opposed to housekeeping or sleeping units). However this project represents a type of housing that meets the needs of a small portion of the low-income population and should be approved on that basis. It is important the supply of low-income housing be increased to counter both homelessness and gentrification of the existing low-income housing stock. This specific proposal has been discussed with the Downtown Eastside/Strathcona Coalition and a development permit application sign has been posted. No letters have been received. In return for density and other by-law relaxations, the owner has agreed to enter into a housing agreement containing the following conditions for 20 years: - all rooms to be rented on a monthly basis; - no fewer than 53 rooms will be rented at a maximum of the shelter portion of welfare ($325 per month) to tenants who are receiving War Veterans Allowance, Canadian Pension Commission Disability Pension, Guaranteed Income Supplement, Spouses Allowance or income from Guaranteed Annual Income for Need. Rents would escalate according to increases to the shelter portion of welfare; - no more than 76 rooms will be rented for a maximum of $375. Rents would escalate with the Consumer Price Index (CPI); - the residential accommodation and ancillary facilities will be well-managed and meet all City by-laws; and - the existing tenants displaced during site redevelopment will be offered other comparable accommodation. When the new building opens, previous tenants will be given the first opportunity to move back in. The 53 rooms represent the floor space approximately equal to 2,301.7 m2 (11,739 sf.) which is the total of the density bonus of 461.1 m2 (4,963 sf.) and residential conversion from commercial of 629.5 m2 (6,776 sf.) above the 3.0 FSR permitted. The current owner has discussed the possibility of management by a non-profit society but no firm arrangements have been made. The owner has said that if he cannot make such arrangements, the rooming house will be managed by a private operator. Condition The existing building is in stable condition but cannot structurally support additional storeys added on top of it. The principal facade and first structural bay are to be retained and restored and existing wood frame windows are to be refurbished. The new structure to be constructed beside, behind and above it, will have its front facade angled back from the street to offset the original facade. The new facade has been designed to complement the existing, but with simplified detailing to create a neutral backdrop for the highly decorative facade of the Hotel St. Clair. Notification The Director of Legal Services has prepared the necessary Heritage By-law amendments and requirements have been met for notification as specified by the Vancouver Charter. The Charter permits Council, by by-law, to enter into a Housing Agreement. The by-law will be prepared for Council approval once the Housing Agreement is finalized. Comments of the Vancouver Heritage Commission The Vancouver Heritage Commission considered the proposal on December 5, 1994 and on July 10, 1995 and supported the revised retention and restoration treatment of the heritage facade and the design of the new addition. The Commission is also on record as supporting the floor space relaxations provided that the total relaxation granted be distributed equitably between heritage and social housing goals. Staff believe this request has been met. CONCLUSION Council's long term goal is to protect heritage resources through designation and to encourage affordable low-income housing. The owner of 577 Richards Street has agreed to the heritage designation of the principal facade and to maintain the SRO units for 20 years in return for relaxation of: the maximum permitted residential and total floor space; and requirements for parking, hand basins and bathtubs. The owner has agreed the retention of the principal facade and first structural bay of the heritage building is economically viable and has agreed that he will not seek any compensation from the City in the future. Designation will ensure protection from inappropriate alterations or demolition in the future. It is recommended that Council support relaxation to the maximum permitted residential floor space and the maximum permitted total floor space. It is also recommended that Council approve the designation of the principal facade and, in principle, a housing agreement for this site. * * * * * General Manager/Dept. Head Report dated May 7, 1996 Authors: Jill Davidson Gerry McGeough Date Phone:873-7670 IRTS Number General Manager/Dept. Head Concurring Departments Date Law - Brian Porter - 7501 Manager of Real Estate - Bruce Maitland - 7420 This report has been prepared in consultation with the departments listed to the right, and they concur with its contents. HP2-7155.COV