URBAN STRUCTURE

                                           Date:  March 27, 1996
                                           Dept. File No.  RJ

   TO:       Vancouver City Council

   FROM:     Director of Central Area Planning, in consultation with the
             Directors of City Plans and Community Planning, and the
             General Managers of Engineering Services, Human Resources, and
             Board of Parks and Recreation, as well as the Managers of the
             Housing Centre and Real Estate Services

   SUBJECT:  False Creek Flats Planning Overview and Preliminary Concept


        A.   THAT  the  False Creek  Flats  Preliminary  Concept Plan  with
             adjusted study area boundaries (Appendix A) be adopted;

        B.   THAT in accordance with  the Proposals for Updating Industrial
             Zoning  (February 6,  1996 discussion  paper) the  False Creek
             Flats M-1 and M-2 zoned areas be included in the proposed  I-2
             zoning initiative, subject to further review as recommended in
             the Preliminary Concept Plan; and

        C.   THAT  the funding to  finalize the  False Creek  Flats Concept
             Plan and complete the Trillium rezoning as set out in Appendix
             B be approved for a 20-month  period at a cost of $441,300, of
             which $155,000 will be offset by Trillium's rezoning fees with
             further offset rezoning fees likely forthcoming;

             FURTHER  THAT the  1996  portion of  this,  in the  amount  of
             $284,000,  come  from the  Contingency  Reserve  Fund and  the
             balance be included in departmental regular  operating budgets

             AND  FURTHER  THAT  Planning,   Engineering,  Parks,  and  Law
             Department staff  for the  concept  plan/Trillium rezoning  be
             approved as set out  in Appendix B, subject to  job evaluation
             by the General Manager of Human Resource Services:


        The General Manager of Community Services RECOMMENDS  approval of A
        and B.

        Instead of C, the General Manager of Community Services recommends:

        D.   THAT funding to complete  the Trillium rezoning as set  out in
             Appendix B  be approved for  a 10  month period at  a cost  of
             $253,000,  of  which $155,000  will  be  offset by  Trillium's
             rezoning fees;

             FURTHER  THAT the  1996  portion of  this,  in the  amount  of
             190,000,  come  from  the  Contingency Reserve  Fund  and  the
             balance  of  $63,000  be   included  in  departmental  regular
             operating budgets in 1997;

             AND  FURTHER  THAT Planning,  Engineering  and Law  Department
             staff  for the  Trillium rezoning  be approved  as set  out in
             Appendix B, subject  to job evaluation by  the General Manager
             of Human Resources.

        I do not believe  that additional detail, beyond that  contained in
        the  Preliminary  Concept  Plan  and in  the  proposed  I-2  zoning
        initiative,  is required at  this time; and  I do not  believe that
        additional  work  in  False  Creek  Flats  is  a planning  priority
        relative  to  alternative uses  of  scarce  City  dollar and  staff
        resources (for example, an accelerated program to maintain CityPlan
        momentum, a more  rapid response to RS-1  neighbourhood demands for
        design  control, a  more concerted  effort on  the problems  of the
        Downtown  Eastside or  re-engineering  of the  planning process  to
        reduce the time and resources it  consumes currently).  As well,  I
        must note the competing uses for  half a million dollars across the
        entire  City  organization.   There are  many of  these, especially
        responses to  public safety concerns  (for example,  review of  our
        seismic requirements), which I would rank above taking the plan for
        False Creek Flats to  a higher level of detail.  In my opinion, the
        current  level  of detail  is  sufficient  to respond  to  specific
        development  proposals which  may or  may not  arise over  the next
        several years.


   -    On March  14, 1995, Council  adopted the  Industrial Land  Policies
        which  supports  retention of  the  False  Creek  Flats for  mainly
        city-serving   industry,  transport,  and  service  uses,  and  the
        development of a  sub-division plan  to deal with  such issues  as:
        services, amenities, compatible uses,  and interface with  adjacent

   -    On  March 28, 1995, Council approved changes to policies for artist
        live/work studios in industrial  zones to limit them to  rentals in
        existing  buildings at a maximum  floor space ratio  of 1.0, except
        for  the  Brewery  Creek  area  which  allows  strata-title  artist
        live/work studios.


   This  report provides an overview  of the False  Creek Flats Preliminary
   Concept Plan,  attached as Appendix A.  It also outlines further work to
   be  undertaken  and  recommends resources  to  complete  this  work.   A
   companion report  entitled, "Live/Work and Work/Live" describes findings
   of  research and analysis of  industrial live/work.   A second companion
   report  provides   preliminary  assessment  of  the   Trillium  rezoning
   application based  on the policies  proposed in the  Preliminary Concept


   The False  Creek Flats has approximately  32 ha (80 acres)  of land that
   will become available  for redevelopment  in the next  10 years.   Along
   with more intense industrial use of other sites in the Flats, this could
   result in the  area's worker  population going from  3,000 employees  to
   10,000  to  15,000  employees.   Large  amounts  of  traffic (85%  cars)
   currently travel  through the Flats on the way to and from the Downtown.
   Railyards,  which  will  stay  for  the  foreseeable  future,  currently
   restrict the ability to provide access to the interior of the Flats.

   For  the most part, the  overview and the  resulting Preliminary Concept
   Plan  (Appendix  A),  reaffirm  the  need  to  preserve  the  Flats  for
   city-serving and Downtown-related industry.  At the same time, there has
   been support for  a cleaner (low-impact), lower scale industrial zoning,
   as a  buffer to adjacent neighbourhoods.   For most of  the Flats, these
   concerns will be accommodated by the proposed I-2 zoning.  However, with
   several  large sites  currently  considering redevelopment,  there is  a
   unique  opportunity  to  create  comprehensively  planned  precincts for
   low-impact, high-tech industry that  would include amenities and provide
   a better transition to adjacent communities.  In the
   south, on the Finning  and adjacent sites, this could take the form of a
   high amenity,  urban industrial park.   In  the north,  on the  Trillium
   site, a similar zoning could be pursued.  Should Council wish, this site
   could also incorporate an industrial work/live pilot project, subject to
   criteria  outlined in the  Preliminary Concept  Plan.   More traditional
   transportation and open storage  uses should remain in the  interior and
   eastern end of the Flats.

   It  is recommended that some  commercial uses for  industrial workers be
   focused on Main Street and to  some extent Terminal Avenue.  In addition
   to  providing for  day-to-day needs  of  workers, Terminal  Avenue could
   include  larger recreational  and entertainment  uses under  pressure to
   relocate  from  emerging  residential neighbourhoods  in  the  Downtown.
   Big-box  retail  is  not  recommended,  due  to significant  impacts  on
   existing businesses, neighbourhood centres, traffic, and industrial land
   availability and value.

   The extension of  surrounding local  street systems  is recommended  for
   area access.    In  addition,  most future  transportation  options  are
   maintained by preserving a  corridor along the southern edge  of the new
   park, works yard,  and Trillium site, which is integrated with the local
   street system.  

   While preliminary options are presented, detailed planning of the roads,
   services, and open  space system will be completed in  the next phase of
   planning.  Servicing costs will be examined for cost sharing between the
   City and new developments and soil stability and contamination will need
   to  be studied as  part of  the final concept  plan.  A  public benefits
   strategy will also be finalized in the concept plan.

   Staffing for  the completion  of a  final concept plan,  as well  as the
   further  evaluation of the  Trillium rezoning and  possible rezonings on
   Finning and  CN lands, is identified  in Appendix B and  recommended for
   Council approval.


   Figure 1.  False Creek Flats


   In June  1995, Council approved  a planning overview of  the False Creek
   Flats  and instructed staff to undertake a study of industrial live/work
   as it pertains to the Trillium Corporation (980-990 Station Street), and
   the  McLean  Group (Grandview  Highway and  Boundary  Road) sites.   The
   overview  was to be done  in conjunction with  the City's transportation
   plan and to address the need for a connection through the Flats.

   To guide staff in  the overview, Council adopted general  principles, as

   -    Capacity should be maintained for City-serving industry.

   -    An analysis of industrial live/work should be undertaken subject to
        a number of conditions.

   -    Residential as a separate use should not be considered.

   -    An analysis of  increased allowances for retailing  and office uses
        should be undertaken, subject to a number of conditions.

   The public was to be involved  throughout the process and in determining
   the recommended directions.


   Area Description

   General Area Role and Land Use

   False Creek Flats is a 125  ha (308 acre) area that comprises about  20%
   of  the  city's  industrial land  and  accounts  for  about 3,000  jobs,
   representing about 6%  of the City's industrial jobs.   The Flats serves
   as  a freight  receiving and  distribution centre  for Downtown  and the
   Port.   About half of the area is involved in transportation and storage
   activities, with wholesaling/ distribution as the largest component.

   Over the  next 10  years, about 32  ha (80  acres) of  land will  become
   available for  redevelopment, including  the Trillium site,  the Finning
   site, and CN and other residual  rail land.  More intense industrial use
   of these  and other sites  could result  in an increase  from the  3,000
   existing jobs  to between 10,000  to 15,000 jobs.   Rail operations  are
   vital  to  the  Port  and  will stay  for  the  foreseeable  future, the
   exception being the small Burlington Northern yard directly north of the
   Finning site.  Most of the existing industries such as food wholesalers,
   bus  and taxi companies, and freight forwarders, have indicated that the
   Flats   is   the   preferred   location  for   their   city-serving   or
   Downtown-related functions  and that  they  intend to  stay.   High-tech
   industry,  such as the new Sprint Canada  building, is beginning to show
   interest in  the  area.   This  is primarily  due  to its  proximity  to
   Downtown and  educational facilities,  large parcel sizes,  good access,
   fibre optic lines, and a relatively high profile location.

   Terminal Avenue  is the most travelled  route in the area  and, as such,
   has attracted businesses which  benefit from the high visibility.   Most
   of the frontage between Main Street and  Glen Drive is either commercial
   or commercially-oriented industrial uses.

   Study Area Boundaries

   As reported in  June 1995, staff examined the study  area boundaries and
   have concluded that it is appropriate to include  properties on the east
   side  of Main Street.   This is  due to  the heritage merit  of the Main
   Street frontage, the existence of 191 SROs (not including the 88 SROs on
   the west  side of Main  in the Cobalt Hotel)  and the ability  to plan a
   complete neighbourhood in conjunction  with the adjacent southeast shore
   planning program.

   Proposed Directions

   Organizing Principles

   The  False  Creek Flats  Preliminary  Concept  Plan proposes  organizing
   principles important to the future structure of the Flats.  These are:

   1.   Create a mixed-use neighbourhood, focused on Main Street, as a link
        between the  Flats and  False Creek  (applies to  about 10%  of the

   2.   Provide  for city-serving  and Downtown-related  industry in  a way
        which  creates  a  sensitive   transition  between  the  Flats  and
        residential neighbourhoods to the north and south (applies to about
        32% of the Flats).

   3.   Use Terminal  Avenue to "serve" the Flats  (applies to about 23% of
        the Flats).

   4.   Preserve internal sites in the Flats for moderate impact industrial
        uses,  such  as  railyards,  freight forwarding,  and  works  yards
        (applies to about 32% of the Flats).

   5.   Preserve  the  eastern  edge of  the  Flats  near  Clark Drive  for
        moderate impact  industry, such as open storage  or metal recycling
        (applies to about 3% of the Flats).

   Industrial Use

   While  most of the  False Creek Flats  is zoned M-2,  which permits both
   "heavy" and "light"  industry, almost no heavy industry currently exists
   in the Flats.  In fact, almost all of the existing industrial uses could
   be approved under a lighter industrial zoning.

   Creating   this   type   of   zoning  is   consistent   with   Council's
   recommendations  and  a  recent  staff discussion  paper  proposing  the
   rezoning of M-1 and M-2 areas throughout Vancouver to  I-2.  The new I-2
   zoning would: expand  the definition  of industry to  allow for  service
   industrial  uses  such  as   laboratories  and  film  studios;  increase
   allowable floorspace for service industrial uses; recognize the changing
   nature of industry and increase the amount of office in association with
   production  and service uses; and make new industry more compatible with
   nearby  residential by proposing to  lower the permitted  floor area and
   height  for  more traditional  industry.   A  summary of  these proposed
   changes is attached as Appendix  C.  A discussion paper on  the proposed
   changes  is currently circulating for public comment.  Staff will report
   to Council in May on the proposed changes.

   It  is recommended that  all of the  M-1 and M-2  zones in the  Flats be
   rezoned to I-2.  For  most of the interior  and eastern portions of  the
   Flats, including  the rail,  City and  Parks  work yards,  and the  food
   wholesaling on Malkin,  the proposed  I-2 zoning is  suitable and  would
   remain  in  the long  term.    For the  remainder,  the  I-2 provides  a
   short-term  zoning  that  protects   against  large  scale,  high-impact   industrial  activities  which would  create  major  impacts on  adjacent
   residential.  In the long term,  however, the Trillium site in the north
   and the  Finning, BNR, and  CN lands  in the south  are recommended  for
   rezoning/redevelopment  as  CD-1,  Comprehensive Development  Districts.
   These   districts  would   maximize   the   opportunity   presented   by
   incorporating built form solutions tailored to adjacent development, and
   providing  adequate public benefits and amenities.  The final zoning for
   these districts would  be framed as part of the  final concept plan, and
   would  be finalized  upon application  for redevelopment  by major  land

   Industrial Work/Live Use

   In response to  Trillium's and other proposals  for industrial live/work
   on  industrial   lands,  analysis  has  been   undertaken,  including  a
   consultant's  study on  industrial live/work in  North America  and some
   cities in Europe.   This study is  on file at  the City Clerk's  Office.
   The  companion Council  report  on Live/Work  and  Work/Live found  that
   industrial work/live (but not industrial live/work)  is a legitimate use
   with  a limited demand that is currently  not accommodated in any zoning
   district.  It concludes  that only industrial work/live, because  of its
   higher  impacts   and  work  orientation,  should   be  accommodated  on
   industrial  land.  The report  also puts forward  locational criteria to
   identify  a limited number of  suitable sites for  this use and criteria
   for unit design.

   Consistent  with  these  policies,  the False  Creek  Flats  Preliminary
   Concept Plan incorporates some of this demand in the Flats.   This issue
   is  further discussed in the  companion report on  the Trillium rezoning

   Commercial Use

   As the number of workers in the Flats increases,  a case can be made for
   providing some  opportunities for local-serving office  and retail uses.
   It is recommended that  focusing commercial activities such as  these be
   encouraged on  Main Street  and to  some extent  on Terminal  Avenue. On
   Terminal Avenue  this could be  expanded to include  larger recreational
   and entertainment  facilities currently under pressure  to relocate from
   the Downtown.  Focusing commercial on arterials away from the industrial
   area is consistent with the Industrial Land Policies.

   A large home improvement centre has been approved at the  eastern end of
   Terminal Avenue, and since  that time, inquiries have been  received for
   large, big-box  retail.  Big-box retail development  in the Flats is not
   supported  due  to  the probability  of  significant  impacts on  nearby
   commercial businesses,  conflict with  the CityPlan direction  to create
   neighbourhood  centres,  potential  traffic  impacts in  the  Flats  and
   adjacent neighbourhoods,  the large sites required,  the consequent loss
   of industrial  land, and the  potential increase  in land  value.   This
   recommendation is also consistent with community preferences.


   1.   Local Access

        A  major focus  in the  planning overview has  been an  analysis of
        future  area access needs.   Possible street layouts,  based on the
        extension  of local streets and  the integration of  the Flats with
        the adjacent  communities, are included in  the Preliminary Concept
        Plan.  Providing  access by  extending the local  streets has  been
        strongly supported by the adjacent communities.

   2.   Transportation Corridor

        In  addition to  local access,  a major  question addressed  by the
        overview has been  whether or  not a corridor  should be  preserved
        through the area  to provide  future options.   This could  include
        links to Clark Drive or a continuous link from the Georgia Viaducts
        to the Grandview Cut.

        Findings  from  the work  being  done  on the  Transportation  Plan
        indicate that a truck  roadway using the  Grandview Cut and a  link
        through the Flats cannot be justified  at this time.  There is only
        a limited  time savings  of between  30 seconds  to 60 seconds  per
        truck, of the 250 heavy trucks per day that proceed to the Downtown
        today  or  the  300  predicted for  the  future.    The  only valid
        justification  would be a  benefit to  the affected  communities by
        reducing truck  traffic on  existing streets.   However, Grandview/
        Woodlands, the  most directly  affected community consulted  in the
        Flats process, would prefer to see  the Grandview Cut retained as a
        green space and greenway.

        Over the longer  term, other transportation options could  become a
        consideration for the Grandview Cut  or as a link across  the False
        Creek Flats.  These include:

        -    Transit needs  for commuter rail, buses, or  potentially as an
             alternative Broadway LRT alignment.

        -    Pedestrian and  bicycle needs, particularly as  an alternative
             to the current Terminal Avenue bicycle route through the Flats
             linking to the B.C. Parkway (7-11 route).

        -    Goods movement if  there are new emerging  needs not currently

        Maintaining a  transportation corridor does provide  flexibility to
        meet  future growth  and  development of  both  the Flats  and  the
        Downtown  (noting  that  Transport  2021  does  not  recommend  any
        increase  in car capacity into  the Downtown).   Development of any
        transportation corridor would  require both a clearly  demonstrated
        need and a broad public consultation process.

        At  this time, the rezoning  application on the  Trillium site, the
        development of the  new park, and the City  works yard does provide
        an opportunity  to preserve transportation options  for the future.
        This can be achieved for a large portion of the Flats at relatively
        low costs.

        Within the Flats it was  originally proposed that a 30 m  (100 ft.)
        corridor  with large radius curves be maintained in order to ensure
        maximum flexibility.  However, this is not supported by the work of
        the  Transportation  Plan  to date,  nor  is  it  supported in  the
        community consultation process.

        Instead, it is recommended  the option for the future  be preserved
        as follows:

        -    Connections  to Main and Prior through the Trillium site would
             each  be secured by a 20 m  (66 ft.) right-of-way with a 2.1 m
             (7 ft.)  setback of  building lines  to meet  potential future

        -    Along the southern section of the  Park and City works yard, a
             24.4 m (80 ft.) right-of-way would be provided.

        The actual width of the streets and the use of any setbacks will be
        determined during the preparation  of the final concept plan.   Any
        future use of the  setbacks within or adjacent to the Trillium site
        would be done in light of  clear needs and in consultation with the
        adjacent communities.

        In summary,  while the proposed  corridor does not  accommodate all
        future  options, it  does  make provision  for  most, in  a  manner
        sensitive to new development and the adjacent communities.


   Area  servicing   has  also  been   analysed  with  respect   to  future
   development, with requirements included in the Preliminary Concept Plan.
   Because  of  the limited  services  in the  area  and the  high  cost of
   providing  those services needed for the future, a funding strategy will
   be a  significant element in the preparation  of the final concept plan.
   Initial  cost   estimates  indicate  approximately  $7,000,000  will  be
   required  to  provide  future sewer  and  water  services.   This  could
   increase  depending  upon  soil  conditions or  amount  of  development.
   Projections are based  on staff estimates of approximately 7,000,000 sq.
   ft.  of new  floorspace  over the  next  20 years,  in  addition to  the
   existing  3,000,000 sq.  ft.   City and  developer cost-sharing  will be
   examined as part of the final concept plan.   However, in the long term,
   these  costs,  plus  street  infrastructure costs,  would  be  recovered
   through  the  increased  property  taxes  generated  by  the  additional

   Public Amenities

   An adopted  east-west greenway (the  Parkway Greenway) needs  to connect
   through the Flats  to False  Creek.  Neighbourhood  plans for  Grandview
   Woodlands  and  Mt.  Pleasant  call  for  park  space  to  help  address
   shortages.   Any  new parks  should  be used  to  complement a  greenway
   network  through   the  area   as  well   as  to   provide  recreational
   opportunities  for  Flats  employees.   The  daylighting  of  historical
   streams and the creation  of small wetland environments is  possible and
   should  be accommodated in parks, open space, and redeveloped industrial
   sites.   A  possible open space  layout is  included in  the Preliminary
   Concept Plan.  Details of this scheme and ways and means to implement it
   will be resolved in the final concept plan.

   The provision of amenities should be part  of the intensification of the
   Flats.  In  principle, the  developer is expected  to provide  amenities
   required by new employees  and residents.  In  comprehensively developed
   and  mixed-use areas, amenity requirements will be negotiated as part of
   major  rezonings based upon  standards set in  future detailed planning.
   In areas  remaining as I-2, amenity  needs will be much  lower; even so,
   amenity costs  could be  difficult for  modest industrial  activities to
   bear.  Balancing amenity objectives,  with the obligation to  facilitate
   industrial jobs and then  settling on an amenity strategy,  will be done
   as part of finalizing the concept plan.

   Public Consultation

   The  Public Consultation process and findings are summarized and on file
   with the City  Clerk.   Approximately 40 public  meetings, open  houses,
   workshops, focus  group meetings,  and informal "coffee  table" meetings
   have been held throughout the process.  These have involved the adjacent
   community associations,  business owners and operators,  and the general
   public.  Formal public input has been received in the form of a workbook
   and a questionnaire.

   The  results of  the public  consultation were  surprisingly consistent.
   There   was  overall  support  for  retaining  most  of  the  Flats  for
   Downtown-serving  and  transportation  related  industry.   Rather  than
   opening the area up for commercial  uses, focusing it on Main Street and
   to a lesser extent on  Terminal Avenue, was generally supported.   There
   was  little support for big-box retail and  a great deal of concern over
   potential impacts on nearby commercial areas, particularly from adjacent
   residents and business owners.

   Industrial live/work was seen as an interesting idea, although there was
   concern over the reality of the  work component and the preservation  of
   industrial  jobs.   Some Strathcona  residents were  very  supportive of
   industrial  work/live on  the Trillium  site as  a better  transition to
   their neighbourhood.  The work/live  user focus group provided  valuable
   input on unit and  building design as well as how  many units are needed
   for a compatible community.

   Most  of the  public felt that  the area  could be  adequately served by
   extending the local  streets and  not providing a  corridor between  the
   Georgia Viaduct and  Grandview Cut.   There was support for  a corridor,
   particularly from Strathcona residents, if it was dimensioned as a local
   street and would reduce the traffic on Prior/Venables.

   There was strong support for providing parks and greenway connections in
   the Flats.   Opportunities to  recollect the past  and introduce  water,
   particularly daylighting  streams, was given  a high priority  by nearby
   residents and environmental groups.

   Downtown  Eastside groups and  some Strathcona residents  also wished to
   see  limited residential use incorporated  along Main Street  and on the
   northern  edge of  the Flats.    This is  because of  their interest  in
   non-market housing  and not due to  a lack of support  of the Industrial
   Lands Policies.

   Major Landowners

   1.   Trillium

        Parameters for development of the 6.8 ha (16.8 acres) Trillium site
        in  the  north-west  corner  of  the  Flats  are  set  out  in  the
        Preliminary  Concept  Plan.    The  existing  rezoning  application
        (980-990 Station Street),  as well  as more recent  ideas from  the
        developer, are  evaluated against  these parameters in  a companion
        report.   This  is  a key  transition  area, for  which  low-impact
        industry  is  supported.   Inclusion of  a component  of industrial
        work/live is also supported,  as outlined in a companion  report on
        live/work  and  work/live.     In  any  event,  a   tailored  plan,
        comprehensive  zoning,  and  an  appropriate  amenity  package  are
        essential  for  the  benefit  of on-site  uses  and  for  sensitive
        adjacent  areas.    This  would  be  achieved  through  the  City's
        cooperative planning process for larger projects.

   2.   Finning and Canadian National

        The 12.1 ha (30 acre) Finning  site on Great Northern Way  adjacent
        to  Mt. Pleasant,  along  with the  6.5 ha  (16  acre) of  Canadian
        National lands to  the north,  and perhaps the  abutting BNR  lands
        [approximately  4.0 ha (10 acres)], comprise a major portion of the
        high-tech,  urban  industrial  park  proposal  in  the  Preliminary
        Concept Plan for  this southerly  area.  The  site size,  location,
        image, and  access suggest  this potential.   Rezoning applications
        have not yet been submitted,  but this primary use is in  line with
        some ideas  from the land owners  in the past.   Several other uses
        mentioned by these owners, such as big-box retail  and residential,
        are  not  compatible  with  the  Preliminary  Concept  Plan.    The
        importance of these  sites and their adjacency to residential areas
        requires a tailored plan,  comprehensive zoning, and an appropriate
        amenity  package  coordinated  among  the owners.    This  would be
        achieved  through  the  cooperative   planning  process  for  major
        projects at the developers' initiatives in applying for rezonings.

   3.   City of Vancouver

        While City of Vancouver ownership includes the works yards and some
        parcels along Terminal Avenue, with respect to City land, the major
        focus has  been on the land  between Station and Main  Streets.  In
        the Preliminary Concept Plan,  this land is seen as  an opportunity
        to complete  the Thornton Park mixed-use neighbourhood,  as well as
        to provide clear definition and a buffer  between this area and the
        industrial  development to the east.   This would  be undertaken as
        part of the final concept plan. 

   Outstanding Work Items 

   The next  step recommended in the  planning of False Creek  Flats is the
   completion of the concept plan.  This plan would involve  all interested
   and  affected  parties  in  developing   recommendations  for  detailed,
   specific  land use,  building envelopes,  street  patterning, servicing,
   open space design, and parks and greenways, based upon Council direction
   in  adopting  the  Preliminary   Concept  Plan.    Parallel   work  also
   recommended is the cooperative planning of the Trillium rezoning through
   the major projects rezoning  process.  Should rezonings for  Finning and
   CN be  submitted, cooperative planning for  them would be  added to this
   work,  for  which  incremental resource  needs  would  be  reported.   A
   significant element  in the final  concept plan  will be a  strategy for
   public  benefits  and  amenities   within  the  context  of  maintaining
   industrial viability.   A significant element in the rezoning evaluation
   will  be securing these services, benefits, and amenities.  Further work
   on soils, including stability and contamination,  will also be required.

   Recommended Staffing and Resources

   Recommended staffing in Planning, Engineering, and other departments, as
   well  as associated  resources for  a 20-month  program to  complete the
   Concept Plan  and the  Trillium rezoning  now in  hand, are  detailed in
   Appendix  B.  This  represents a continuation  of a Planner  and a Civil
   Engineer from  the phase  one  Overview Study  and new  positions for  a
   Planning  Assistant and part-time Planning  Clerk for the  next phase of
   planning.   Consultant  funds for  addressing potential  Building By-law
   work items  as a result of  work/live proposals, is included  as part of
   Trillium consultant funds  and can be supplemented  by funds anticipated
   for  this work and already set  aside in the Planning Department budget.
   Projected incremental timing and resources that will be needed to handle
   the Finning and CN rezonings, if they are forthcoming, are also outlined
   for information.  These will be requested only if necessary.

   Expenditures to date, along with projected expenditures to  complete all
   work, will be about 50% cost recoverable from fees required from all the
   potential rezonings.    This  is  detailed  in  Appendix  B.    This  is
   consistent with City  policy on costs and  fees for large  rezonings and
   related  planning activities.   All  budget and  fees are  in line  with
   projections reported in June 1995.

   There is no capacity to undertake this work now with existing  resources
   and there  are no offsets beyond the 50% recovery from anticipated fees.
   Accordingly, if Council wishes this work to commence, $284,000 will need
   to be allocated from Contingency Reserve  in 1996 and $157,300 will need
   to  be included in  1997 departmental budgets for  the completion of the
   work.  Otherwise,  staff will not be free to  commence area concept plan
   work until  1998, subject  to no  other  emerging City  priorities.   If
   Council wishes to continue with the Trillium rezoning and defer the area   concept  plan,  $190,000  will need  to  be  allocated from  Contingency
   Reserve   in  1996  and  $63,000  will  need  to  be  included  in  1997
   departmental budgets for the completion of the work.

   Staff believe it  is prudent to continue  with concept planning for  the
   Flats due to public expectations and the ability to share resources with
   those  potentially allocated to the various rezonings.  Public input has
   indicated a  desire to see comprehensive  planning of an  open space and
   linkage network, a streets and  utilities system with traffic mitigation
   included, and  area-wide land  use concepts with  adjacent neighbourhood
   interfaces focused upon.


   Staff  note that  there will  be a  number of  planning programs  coming
   before  Council in 1996 that will be requesting funding from Contingency
   Reserve.   These  programs  include CityPlan  Neighbourhood Visions  and
   interim  character guidelines  for RS-1  neighbourhoods.   All of  these
   programs will  extend into 1997, with  the balance of the  funding to be
   added to  the Operating Budget.   These programs are in  addition to the
   normal workload of the Planning Department.

   The Director of Finance  advises that development of the  1996 Operating
   Budget is nearing completion, with  reports scheduled to Council  during
   April.  Staff  continue to work to  Council's instruction that  the 1996
   general purposes tax  increase be capped at 1% and  that the increase be
   brought as close to zero  as possible.  The current estimates  include a
   Contingency  Reserve provision  that  has taken  into consideration  the
   funding  for the False Creek Flats planning study, should Council choose
   to proceed, and for  others being developed by the  Planning Department.
   However, it  is noted  that the costs  go beyond 1996  and will  have an
   impact on the 1997 general purposes tax increase.


   The Preliminary Concept Plan is expected to benefit air and soil quality
   through intensification of industry over the  next 20 years.  This would
   provide more  services close to  the Downtown,  minimizing the  distance
   travelled  to  the  services, and  result  in  soil  remediation in  new
   developments.   It may also  improve water quality  and drainage through
   providing  water  courses,  minimizing  erosion,  and  preventing  toxic

   CityPlan Implications

   Development under the Preliminary  Concept Plan could have  a beneficial
   effect  of protecting  existing  jobs and  increasing  the diversity  of
   industrial and city-serving jobs leading to a stronger, more diversified
   economy.  Safety and security problems will be addressed in the upcoming
   planning  process.   Not  allowing big-box  retail  would safeguard  the
   City's objective of developing and strengthening neighbourhood centres.


   It is recommended that  Council adopt the False Creek  Flats Preliminary
   Concept Plan and approve the program and staffing to finalize  this plan
   and one rezoning application now in hand.

                                     * * *
                                                                                            APPENDIX                                                                                             B


         COSTS                                CONCEPT PLAND    TRILLIUMD      FINNINGE        CNE         TOTALS

    1.   PlannerA (cont. from phase I)            46,500        60,000        53,000        26,500       186,000
    2.   Planning AssistantA                      33,200        40,000        36,400        18,200       126,800
    3.   Planning ClerkA                          12,300        15,000        28,000        14,000        96,600
    4.   Consultants                              10,000        20,000        20,000        15,000        65,000

    5.   Overtime                                  3,000         4,000         4,000         3,000        14,000
    6.   Public ConsultationB                     15,000         7,000        10,000         3,000        35,000
    7.   Planning Furniture/Computers              5,500         5,500         2,700         2,700        16,400
    8.   Civil EngineerA (cont. from phase I)     41,600        53,500        48,200        24,100       167,400

    9.   Engineering Furniture/Computers           5,500         5,500         2,700         2,700        16,400
    10.  SolicitorA                                             34,600        34,600        34,600       103,800
    11.  Law Computer contribution                               1,400         1,400         1,400         4,200
    12.  Park Board Staff/Consultants             12,200         5,000        10,000         3,300        30,500

    13.  Research Assistance                       3,500         1,500         2,500         1,000         8,500
                                                $188,300      $253,000C     $253,500      $149,500      $844,300
         PHASE ONE COSTS $90,000                                                                        $                                                                                    90,000

         FEES                                                 $155,000      $252,000      $146,000      $553,000

    Footnotes:    A. Newor                         continued                                 staffpositions                                              will                                                 be                                                  subjectto                                                          evaluation                                                                   bythe                                                                       GeneralManager                                                                                    of                                                                                     Human
                     Resources - estimates are based upon Departmental judgement of need.
               B. Public                      consultation                                 costs                                    include                                         facility                                               rentals,                                                      refreshments,                                                                 printing,                                                                         translation,                                                                                   mail                                                                                     drops,
                  and postage costs.
               C. If                   the                     Concept                           Plan                              is                               deferred,                                      the                                        Trillium                                               rezoning                                                      would                                                          require                                                                $190,000                                                                       from                                                                          Contingency                                                                                    Reserve
                  in                   1996                      and$63,000                               will                                  need                                     tobe                                        included                                               in                                                1997                                                   departmentalbudgets.                                                                      Staffing                                                                             would                                                                                 comprise10
                  months of newstaff plus 2 months of existing staff overa 12 month period.
               D. The                    total                        cost                           of                            $441,300requires                                           $284,000                                                  for                                                    1996                                                       (funded                                                             fromthe                                                                   Contingency                                                                             ReserveFund)                                                                                        and
                  represents                           approximately50%                                          of                                           theConcept                                                    Plan                                                       workand                                                             75%of                                                                 the                                                                   Trilliumrezoning                                                                                  work,                                                                                      andis
                  recommended for approval now.
               E. Processing                           aCN                             or                              Finning                                    rezoning                                           while                                               ConceptPlan                                                         work                                                            is                                                             underwaywould                                                                         each                                                                            add                                                                              approximately                                                                                          3
                  months                       of                        resources                                incrementally.                                                                                         This                                              could                                                  increase                                                         depending                                                                 upon                                                                    the                                                                      complexity                                                                               of                                                                                the                                                                                  rezoning.

    Other Notes:  Required                         rezoning                                fees                                   canbe                                       expectedto                                                cover                                                    about                                                        50%of                                                            all                                                              City                                                                 costsfor                                                                        planning                                                                               andrezonings
                  ofthe                      False                          Creek                              Flats.                                   City                                      costsinclude:                                                  phaseone                                                         costs,                                                              new                                                                andexisting                                                                          resources                                                                                  projected
                  aboveplusexisting                                  staffalso                                          engagedinthework                                                         butat                                                             alesserextent.                                                                          IfFinningand                                                                                     CNdo                                                                                        not
                  submitrezonings                                in                                 the                                   near                                      future,                                            costs                                                attributed                                                         to                                                          theireventual                                                                      rezonings                                                                              could                                                                                  be                                                                                   higher                                                                                        due
                  to                   the                     inabilityto                               shareresources                                            withthose                                                    allocatedfor                                                               the                                                                 conceptplan.                                                                            This                                                                               budget                                                                                    doesnot
                  include                        future                             potentialrezoning                                             of                                              approximately                                                          3.5                                                            ha                                                             (8.5                                                                acres)                                                                     of                                                                      City-owned                                                                               lands                                                                                   east                                                                                      of                                                                                       Main
                  Street,                       between                             Terminal                                    and                                      Industrial                                              Avenues                                                    (which                                                         could                                                             result                                                                  in                                                                  approximately                                                                              a                                                                              further                                                                                    $75,000
                  in fees).