ADMINISTRATIVE REPORT Date: Apr. 25, 1996 Dept. File No. GMcG TO: Vancouver City Council FROM: Director of Land Use and Development SUBJECT: Heritage Designation and Floor Space Increase - 1200 Homer Street (DE 400266) RECOMMENDATION A. THAT the former "Murchies Building", located at 1200 Homer Street, listed on the Vancouver Heritage Register in the "B" evaluation category, be designated as a Protected Heritage Property; FURTHER THAT, Council support a residential floor space increase from 3.0 FSR to 5.10 FSR, as proposed in Development Application DE400266; B. THAT the Director of Legal Services bring forward for enactment an amendment to the Heritage By-law. GENERAL MANAGER'S COMMENTS The General Manager of Community Services notes that this report proposes a residential floor space increase without the normal accompanying economic analysis because: 1. no floor area is being added to the existing building; and 2. the proposed project does not exceed the maximum total FSR permitted for this site. The General Manager of Community Services RECOMMENDS approval of A & B. COUNCIL POLICY Under Section 3.2.6 of the Zoning and Development By-law, the Development Permit Board or the Director of Planning, may relax regulations for heritage conservation. Council policy on heritage designation states, in part, that: legal designation will be a prerequisite to accepting certain bonuses and incentives; and where the floor space increase being considered is more than 10% greater than the maximum permitted under the zoning, prior Council approval is required. PURPOSE This report seeks Council support for a residential floor space increase in exchange for the rehabilitation and designation of the building as a protected heritage property. BACKGROUND The Director of Land Use and Development is prepared to approve Development Application DE400266, subject to various conditions being met. Two conditions are: Council approve the residential floor space increase; and the designation of the heritage building. DISCUSSION Heritage Value This heritage building, known as both the Murchie's Building and the Grey Block, has six above-grade storeys at Homer Street and a basement level accessible from the Hamilton Street dock. It was constructed in 1912 and is a good example of an early 20th Century commercial warehouse. The building is listed in the "B" evaluation category on the Vancouver Heritage Register and is an integral part of both the Hamilton and Homer streetscapes. The notable features on the building include a large cornice and concrete pilasters. Compatibility with Planning Objectives The site is a double-fronting corner lot abutting Hamilton, Davie and Homer Streets in the HA-3, Yaletown Historic Area (see map Appendix A). The intent of the HA-3 District Schedule is, in part, to "...encourage the conversion and renovation of existing warehouse buildings ... and to introduce more activity-oriented uses into the area". Development Application DE400266 submitted for this site is consistent with this intent because it proposes to convert this existing warehouse building to commercial uses at grade and market dwelling units above. Zoning Considerations The proposed development conforms with the total floor space ratio permitted in the HA-3 District, which shall not exceed the greater of 5 FSR or that existing on June 10, 1986. However, the applicant is requesting a 70% increase to the 3.00 FSR maximum residential floor space permitted in the HA-3 District. Below is a comparison of the permitted, existing and proposed floor space: PERMITTED EXISTING PROPOSED FSR AREA FSR AREA FSR AREA Residential 3.0 2 508 m2 - - 5.10 4 269 m2 (27,000 sq. (45,948 sq. ft.) ft.) Commercial 2.0 1 672 m2 5 029 m2 0.91 760 m2 (18,000 (54,129 sq. (8,181 sq. sq.ft.) ft.) ft.) TOTAL 5.0 5,029 m2 6.01 5 029 m2 6.01 5 029 m2 or (54,129 sq. (54,129 sq. (54,129 sq FSR ft.) ft.) ft.) of exis t.bl dg. The Director of Land Use and Development is able to relax the residential floor space regulation by way of Section 3.2.6 of the Zoning and Development By-law after obtaining Council approval. Planning staff recommend the approval of the residential floor space increase for the following reasons: - all of the residential floor area will be accommodated within the existing building; - no new floorspace is being added to the existing building; - the maximum permitted FSR for this site is not being exceeded; - there is no physical impact on the surrounding neighbours; and - the proposed increase will secure the rehabilitation, designation and long-term protection of the heritage building. The proposed development also requires a relaxation to the Parking By-Law to allow garage access from Davie Street. The Director of Land Use and Development is able and prepared to grant this relaxation. The Vancouver Heritage Commission reviewed the proposal on August 21 and on September 18, 1995 and supported the residential floor space increase in exchange for the designation of the building. Condition and Economic Viability The rehabilitation work proposed includes: repairing and cleaning the three facades; replacing the existing windows with windows that will increase the liveability of the proposed residential units; and upgrading the building to conform to the Building By-law (e.g. seismic upgrading). The existing Mainland Street dock paving will be retained and refurbished and a new dock canopy will be constructed in keeping with historic canopies in the district. The applicant is satisfied that the retention, rehabilitation and designation of the building would be economically viable if the proposed relaxations are approved. (Note: A formal economic analysis by staff has not been done. See General Manager's Comments on Page 1). Support Required to Enable Conservation The applicant has submitted a letter (on file with the Law Department) accepting the relaxation to be granted under Development Application DE400266 as just and fair compensation for the designation of 1200 Homer Street and waiving any future compensation demands. Therefore, no further support to achieve appropriate conservation of this building will be required. Notification The Director of Legal Services has prepared the necessary Heritage By-law amendments and the requirements for notification, as specified by the Vancouver Charter, have been met. CONCLUSION The proposed redevelopment of 1200 Homer Street offers an opportunity to retain, rehabilitate and designate a heritage building in exchange for a residential floor space increase. The designation of the building will ensure that it is protected from inappropriate alterations or demolition in the future. Therefore, staff recommend that Council amend Schedule A of the Heritage By-law to designate 1200 Homer Street as a protected heritage property and support the requested residential floor space increase. * * * General Manager Report dated:April 25, 1996 Author: Date: Phone: IRTS Number This report has been Concurring Departments prepared in consultation with the departments listed Law Department - B. Porter to the right, and they concur with its contents. leye\023-1458.cov