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.                                               
                        






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