P2
POLICY REPORT
URBAN STRUCTURE
Date: May 3, 1996
Dept. File No.: HW/PF
TO: Vancouver City Council
FROM: Director of Community Planning, in consultation with
General Manager of Engineering Services
Manager of Housing Centre
Director of Social Planning
Director of Legal Services
General Manager of Parks and Recreation
Director of Financial Services
Director of Permits and Licenses
SUBJECT: Dundas-Wall Neighbourhood - Implementation of Development Cost
Levies
RECOMMENDATION
A. THAT if Council approves the rezoning of the Dundas-Wall area
to C-2, the area shown in Figure 1 be established as the
Dundas-Wall Development Cost Levy (DCL) District.
B. THAT the levy proceeds be spent in the following proportions:
(i) 53.1 percent for street improvements; and
(ii) 46.9 percent for park development.
C. THAT the policies in Appendix A be adopted to guide
administration of DCLs in this District.
D. THAT the 1996 rate for collection of Development Cost Levies
be set at $20.45 per square metre ($1.90 per square foot) for
all uses, except for daycare space which will be set at $5.49
per square metre ($.51 per square foot).
E. THAT the General Managers of Community and Corporate Services
report back as soon as possible on the staffing needs to
administer the existing and future DCLs, CACs and the regional
DCCs if introduced.
F. THAT the Director of Legal Services be instructed to prepare
the necessary by-laws and that the Associate Director of
Community Planning report back with the DCL By-law at the time
of enactment of the C-2 District Schedule.
GENERAL MANAGER'S COMMENTS
The General Manager of Community Services RECOMMENDS approval of A,
B, C, D, E and F. He notes that the incremental addition of
Development Cost Levy areas, as well as the possible implementation
of Development Cost Charges by the regional district, has the
potential of creating administrative difficulties. A general
strategy on this matter will be reported back to Council in future.
COUNCIL POLICY
On May 16, 1991, Council adopted the Downtown South DCL By-law and
related policies including the policy "that development cost levies
outside the Downtown South be considered as part of area-wide rezonings
based on a community plan."
On April 21, 1994, Council established a DCL District in the Burrard
Slopes Neighbourhood, without an area-wide rezoning.
On December 12, 1995, Council adopted a DCL By-law for the Arbutus
Neighbourhood, which was subject to an area-wide rezoning.
SUMMARY
In 1990, Council requested staff to review the future land uses in the
Dundas-Wall "let-go" industrial area. Staff have now completed this
review, and in a separate report have recommended a portion of the area
be rezoned from M-1 to C-2. If this rezoning is approved, based on
Council's policy in other "let-go" areas, staff recommend that a
Development Cost Levy (DCL) be adopted for the Dundas-Wall area. If
Council approves this report's recommendations, affected owners will be
notified that they may address Council on the subject of DCLs at the
Public Hearing on the rezoning.
The proposed DCL boundary is shown in Figure 1. Staff are recommending
a general DCL rate of $20.45/m2 ($1.90/sq. ft.) and a reduced rate for
daycare $5.49/m2 ($.51/sq. ft.). This will result in the collection of
about $433,000 as the area develops.
Under the Vancouver Charter, DCLs can be spent on replacement housing,
daycare, engineering works (such as street improvements), park land
acquisition, and park development. In this small area, there is no
justifiable demand for replacement housing, nor additional park land.
The demand costs for daycare, street improvements, and park development
total $774,000. However, because it is impractical to build six daycare
spaces, and not legal to use DCLs outside the area, DCLs cannot be used
for the daycare demand. This leaves park development and street
improvements (total cost $447,000) as the two recommended benefits to be
funded by DCLs.
The allocation recommended is 53.1 percent to street improvements and
46.9 percent to park development. Council retains the flexibility to
re-allocate DCLs in the future.
PURPOSE
The purpose of this report is to:
- establish the boundaries for a DCL district for part of the
Dundas-Wall "let-go" area;
- adopt administrative policies for DCLs;
- set DCL rates;
- establish how the levy proceeds should be allocated; and
- request the necessary by-laws be brought forward for enactment.
Figure 1. Proposed Dundas-Wall Neighbourhood DCL By-law Boundary
Upon Council's decision on these matters, the Director of Legal Services
will prepare the DCL By-law for Council's approval at the time that
Council enacts the new C-2 District Schedule for the area.
BACKGROUND
In 1990, Council designated the Dundas-Wall area as one of ten "let-go"
industrial areas, and requested staff to review the future land uses in
the area. Staff have now completed the review for this area and are
recommending part of it be rezoned from M-1 to C-2 to provide an
opportunity for additional housing and local serving commercial uses as
discussed in a companion report. Staff have reviewed new demands
resulting from future development in this area and the most appropriate
funding sources. Based on this review, staff are recommending DCLs be
used to fund a portion of these needs and that a DCL By-Law be adopted
if the rezoning occurs.
DISCUSSION
1. DCL By-law Boundaries
The proposed DCL boundary is shown in Figure 1 on the preceding page.
The boundary includes the portion of the area proposed to be rezoned to
C-2, Cambridge Park, Oxford Park and an adjacent property to the east
(recently acquired for park), proposed to be rezoned to RS-1.
2. DCL Rates and Potential DCLs Collectable
Staff have conducted an economic analysis based on current M-1 zoning
and the anticipated future value under C-2 zoning. Based on this, and
the demand for public benefits discussed later in this report, staff
recommend a DCL rate of $20.45/m2 ($1.90/sq. ft.). Staff also recommend
a reduced rate for daycare uses of $5.49/m2 ($.51/sq. ft.), consistent
with the daycare rate set for the other DCL areas. All DCL rates in the
city are subject to an annual review and a rate adjustment if warranted.
The $20.45/m2 is lower than the $43.06/m2 ($4/sq. ft.) rate set recently
in Arbutus C-7/C-8 District. This is because the package of benefits
for which demand is generated, and which can practically be delivered
through DCLs in this small area, is smaller.
Assuming future development at an average 2.50 FSR, approximately
$433,000 is collectable at build-out of the developable sites in the DCL
area.
3. Public Benefit Demands
Under the Vancouver Charter, DCLs can be spent on replacement housing;
daycare; engineering works such as road, sidewalk and sewer
construction; park land acquisition; and now also park development. (An
amendment to the Charter, approved in July 1995 added park development
expenditures, such as landscaping and construction of washroom
facilities, to the list of fundable items.) DCLs still cannot be
allocated to other needs, such as community centre facilities, although
it is possible that this Charter authority will be provided in the
future.
It is estimated that about 200 new residents and 25 to 50 new employees
will occupy the area at build-out. This increased population will
generate demand for increased public benefits totalling $774,000, as
summarized below. (See Appendix B for details.)
(a) Replacement Housing
There is no current housing in the area and therefore no demand for
replacement housing.
(b) Daycare
Estimated daycare demand (ages 0 to 5) is 6 spaces. Based on the cost
of purchasing land and building a 37-space daycare, the pro-rated cost
for 6 daycare spaces would be approximately $327,000.
(c) Engineering Works - Street Improvements
Street improvements are needed both to address pedestrian comfort and
safety, and to enhance access from this area to the future Harbour
Greenway along Wall Street.
Pedestrian access and movement around the Wall/Dundas intersection is
now difficult and uncomfortable because of the high traffic and truck
volumes, and the intersection's configuration. As the area houses more
residents and workers, street improvements will be required, including a
pedestrian-activated signal to allow safe access across Dundas, and to
the future Harbour Greenway along Wall Street. There is also a need to
improve the pedestrian link between Oxford and Cambridge Parks.
The extent of these improvements will be beyond the level normally
charged directly to individual developers. Staff estimate the following
total costs:
- Dundas Street - general pedestrian improvements $110,000
including a pedestrian signal,
corner bulges on intersecting
streets and pedestrian scale
lighting
- Wall Street - general improvements including $120,000
road narrowing, special pavement
treatment to link parks and
pedestrian lighting
Total $230,000
(d) Park Land
Within the DCL area, the existing Cambridge and Oxford Parks, together
with a small triangular-shaped parcel recently acquired for park, total
.35 ha (.89 ac.) (including a lane closure). No additional park land
acquisition is justified.
(e) Park Development
The two existing parks are not very usable because of minimal
landscaping and facilities. The newly acquired park land is not
developed at all, and requires a lane closure to be integrated with the
existing park space.
Staff recommend that DCLs be spent on developing the park land recently
acquired and improving Cambridge and Oxford Parks so they become more
usable. The estimated cost of this work is as follows:
- Cambridge Park - landscaping, sport court, berm $ 61,000
- Oxford Park - additional landscaping, $ 71,000
playground, benches
- Newly acquired park - pavement removal, landscaping, $ 85,000
and lane closure lighting, benches
Total $217,000
4. Recommended Allocations of DCL Proceeds
Council must decide on the proportions for spending DCL proceeds before
the DCL By-law can be enacted. Council's decision must be expressed as
a percentage of the anticipated $433,000 in proceeds and may choose any
percentages totalling 100 percent.
The daycare demand is less than the number required to justify the
actual construction of a new daycare facility in the area. Since DCL
funds may not be spent outside the DCL area, and there are no likely
supplementary sources of funding to pay for the remaining larger portion
of a new daycare within the area, staff are recommending that none of
the DCLs be allocated to daycare.
Staff recommend that Council allocate the proceeds to pay for 100% of
the street improvements cost, with the remainder to go for park
development.
The following allocations would result:
Funds Allocated % Allocation
Street improvements $ 230,000 53.1%
Park development $ 203,000 46.9%
Total $ 433,000 100.0%
5. Future Flexibility to Re-allocate Proceeds
Council should be aware that $433,000 is staff's projection of what
might reasonably be generated by DCLs over the next 25 years or so. The
total amount eventually collected could be higher or lower, depending on
the extent of redevelopment.
Council legally retains the flexibility to change the allocations in the
future, should the need arise, provided the funds continue to be spent
on projects that are required as a result of development in the DCL
area.
6. DCL By-law Authority and Administration Policies
Under the Vancouver Charter, if the total demand from the DCL area
(estimated at $774,000) is greater than the DCLs collectable at
build-out (estimated at $433,000), then the City has the authority to
enact a DCL By-law. This has been established in the discussion above.
Therefore, staff recommend that Council establish the DCL district as
shown in Figure 1. Staff also recommend adoption of the administrative
policies appearing in Appendix A. The Director of Legal Services will
then draft the DCL By-law according to Council's directions, and staff
will report back with the By-law for Council adoption at the time of
zoning enactment.
7. Public Input
Staff held a public open house in June 1995 to get opinions from area
owners and business operators regarding the possibility of rezoning to
C-2 and DCLs. Comments were generally supportive. Notification letters
will be sent out prior to the Public Hearing on the rezoning, which will
also remind owners and tenants of their opportunity to address Council
regarding the DCLs if they wish.
SOCIAL IMPLICATIONS
DCL funds will be available to develop and enhance existing park space
and provide improved public space. These actions will have a minor
positive impact for some of the social objectives contained in Council's
Children's Policy and the Statement of Children's Entitlements.
PERSONNEL IMPLICATIONS The Director of Permits and Licenses notes that this area is very small
and probably does not present a large workload for staff. However, he
is very concerned that we continue to add DCL and CAC areas/agreements
without addressing the issue of staff resources to property administer
these functions. It is his opinion that if we continue to add DCLs,
etc., and with the possible introduction of regional sewer DCCs in the
new year, without additional staffing these programs will be
unmanageable and in disarray. Therefore, he recommends that the General
Managers of Community and Corporate Services report back on the staffing
implications of administering these types of programs as soon as
possible.
CONCLUSION
The implementation of DCLs as outlined and recommended will provide
public benefits to meet some of the demands created by new development
in the Dundas-Wall area.
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