P2 POLICY REPORT DEVELOPMENT AND BUILDING Date: June 12, 1996 Dept. File No: 95003-PEM TO: Vancouver City Council FROM: Director of Land Use & Development in consultation with the Director of Community Planning SUBJECT: Proposed Rezoning of 245-295 Alexander Street RECOMMENDATION A. THAT the application by Chandler Rasmussen Architects Inc. to rezone the site at 245-295 Alexander Street (Lots 51-54 and A and B, Block 1, District Lot 196 and 4281, Plan 4759 and 4766) from M-2 to CD-1, to permit an industrial and artist 'live/work' studio development, be referred to a Public Hearing, together with: (i) revised plans received April 10, 1996; (ii) draft CD-1 By-law provisions, generally as contained in Appendix A; and (iii) the recommendation of the Director of Land Use and Development to approve the application, subject to conditions of approval listed in Appendix B. FURTHER THAT the Director of Legal Services be instructed to prepare the necessary CD-1 By-law for consideration at Public Hearing, including: (i) an amendment to the Sign By-law to establish regulations for this CD-1 site in accordance with Schedule B (M-2); and (ii) an amendment to the Noise By-law to include this CD-1 site in the activity zone established in Schedule A. GENERAL MANAGER'S COMMENTS The General Manager of Community Services RECOMMENDS approval of the foregoing. COUNCIL POLICY Existing Zoning: The M-2 (Heavy Industry) Zoning District Schedule permits a wide range of industrial activities (Manufacturing, Wholesaling, Transportation and Storage, and Utility and Communications Uses), with a maximum floor space ratio (FSR) of 5.0 and a maximum height of 30.5 m (100 ft.). The M-2 District also permits some non-industrial uses, including artist 'live/work' studios, but limited to an FSR of 1.0 on any site. Policy on Rezoning in Industrial Areas: In July 1990, Council approved that most industrial lands be retained for industrial use pending completion of an Industrial Lands Review. Several small industrial areas (270 acres) not fully-suited for continued industrial use were designated to be released for new uses, after completion of land use plans and determination of appropriate development cost charges for required services and amenities. North-of-Hastings-Street and Railway Street Industrial Areas: These areas were designated in July, 1990 to be 'let go' for other uses. After staff study and public input, they were re-designated in September 1994 as areas to be retained for industrial use under their long-standing M-2 zoning. Industrial Lands Strategy: On March 14, 1995 Council adopted a policy framework to guide City decisions on industrial land. The objective of the Strategy is to "retain most of the City's existing industrial land base for industry and service businesses to meet the needs of port/river related industry, and city-serving and city-oriented industries". The strategy includes prerequisites and criteria for considering the rezoning of industrial land. In one of the Strategy's area-specific policies, the North-of-Hastings-Street and Railway Street areas were confirmed as areas to be retained for industrial use. Artist 'Live/Work' Studios: The Zoning and Development By-law was amended in 1987 to encourage the provision of affordable and appropriate artist 'live/work' studios. Artist studios and associated residential units have been permitted in industrial districts as conditional approval uses and limited to an FSR of 1.0 (3.0 in the IC-3 District). On March 28, 1995, Council adopted policies to encourage the provision of legal, safe, functional and affordable artist 'live/work' studios. While the maximum FSR for artist 'live/work' studios in industrial districts was not changed, artist studios are now restricted to rentals in existing buildings and to 'high-impact' art production (i.e., art production which uses toxic or hazardous materials or processes, or which involves amplified sound). To achieve the latter, a proposed By-law distinction between Artist Studio - Class A and Artist Studio Class B (High-Impact) was referred to Public Hearing by Council on April 18, 1996. PURPOSE AND SUMMARY This report assesses an application to rezone the site at 245-295 Alexander Street from M-2 to CD-1. The proposed development includes one storey of industrial floorspace at grade, and 153 artist 'live/work' studios in an L-shaped six-storey development above and fronting Alexander Street and Gore Avenue. Loading and underground parking would have access from Gore Avenue. When staff undertook a review of the North-of-Hastings-Street and Railway Street 'let go' industrial areas to prepare a plan for future non-industrial development, discussions were underway regarding a proposed rezoning of this site. When staff later recommended to Council that these areas be retained for industrial use, the Director of Community Planning advised that a rezoning application for this site was anticipated and that it would be processed within the context of continued industrial zoning on adjacent M-2 lands to the east. Submitted in January 1995, this application pre-dates Council adoption of the Industrial Lands Strategy in March 1995. However, in 1990 Council had established a policy to not favourably consider applications to rezone industrial lands prior to conclusion of the industrial lands review. Consequently, staff have applied the objectives and rezoning criteria in the Industrial Lands Strategy to this application. Staff have not applied the current artist 'live/work' studio policies because these were adopted after the application was made. Nevertheless, the revised policies were used to identify ways in which the application might better respond to City objectives for artist 'live/work' studios. On the basis of the evolving policy context during pre-application discussions and at the time of application submission, staff have assessed the proposal as a possible 'let go' site in the context of an M-2 area to be retained for industry. Staff have concluded that the site has characteristics which make it suitable to consider for non-industrial development and that the proposed artist 'live/work' studios can be supported given the industrial space which is also proposed, the mitigation measures which are proposed for achieving compatibility with adjoining industry, and the 22 affordable, rental studios to be given to the City as a public benefit that would minimize the land value impact of the rezoning. The Director of Land Use and Development recommends that the application be referred to a Public Hearing and approved. Draft CD-1 By-law provisions and draft conditions of approval are provided in Appendix A and B for this purpose. BACKGROUND Site, Surrounding Zoning and Development: The site is located at the western end of the Railway Street M-2 industrial area. A small 15.2 m (50 ft.) property immediately west of the site is also zoned M-2, as is some of the land on which the Main Street overpass is built. CP Rail and Port lands to the north of the site, and west of Gore Avenue, are zoned Central Waterfront District (CWD). Portside Park is the principal use of this part of the CWD (Sub-Area 4). Lands to the south of the site, across Alexander Street, are zoned Downtown-Eastside Oppenheimer District (DEOD) which permits light industrial uses, residential uses, and some commercial and other uses. (Additional information is provided in Appendix C on the proposed development, the surrounding zoning and development, and the staff study and Council decision on the Railway Street industrial area. An aerial photo of the site and surrounding area is provided on page 2 of Appendix C). DISCUSSION The land uses proposed in this rezoning application are permitted in the M-2 district, and the total FSR of 4.5 is below the maximum permitted (5.0). The reason that a rezoning is requested, and the principal issues raised by the application, stem from the proposed FSR of 3.7 for artist 'live/work' studios which significantly exceeds the maximum of 1.0 permitted for non-industrial uses on industrial sites. 1.0 INDUSTRIAL REZONING PREREQUISITES: The Industrial Lands Strategy lists the following circumstances which may warrant consideration of an application to rezone industrial land: 1.1 the application is based upon CityPlan or other City-initiated planning process; 1.2 the site is in a 'let go' area, and area policies have been established for land use and public requirements; 1.3 if the site is located in an area designated for highway-oriented Retail/Industrial, the application is consistent with the retail uses that would be permitted there; and 1.4 if the site is located within the False Creek Flats, a rezoning decision would be made within the context of the City-initiated planning study. The application does not satisfy any of these prerequisites. However, given a commitment to process the application, staff have concluded that the site may best be viewed as a possible 'let go' site in the context of an adjacent M-2 area which is now to be retained for continued industrial use. 2.0 INDUSTRIAL REZONING CRITERIA: Before industrial land is rezoned for non-industrial use, the Industrial Lands Strategy requires that three conditions be considered: 2.1 Compatibility with Industrial Activity: The proposed non-industrial use should not affect the operations of adjacent existing and potential future industrial activity and should not increase the value of surrounding land. 2.2 Land Use Suitability: The proposed non-industrial use should comply with relevant planning policies such as the Central Area Plan and Artist "Live/Work" Studio Policies. 2.3 Environmental Impacts: The proposed development should comply with relevant legislation concerning environmental impacts and mitigation measures. 2.1 Compatibility with Industrial Activity: This criterion involves three factors: site suitability, land use compatibility, and land value impact. (a) Site Suitability: Rezoning approval sometimes leads to the expectation that rezoning can also be obtained on a similar site elsewhere. However, the unique characteristics and location of a rezoned site can avoid its being perceived as a "precedent". The site, and the adjoining small property to the west at 235 Alexander Street, have a unique attribute which sets them apart from sites to the east of Gore Avenue which also abut the CP rail line: the abutting lands to the north of the site are zoned Central Waterfront District (CWD), not M-2. Gore Avenue, and its northward extension to the harbour headline in Burrard Inlet, forms the western boundary of the M-2 industrial district and the eastern boundary of the site. This feature is significant because lands west of Gore Avenue are not intended for heavy industry. The Central Waterfront Port Lands Policy Statement, approved by City Council and also the Vancouver Port Corporation in February 1994, organizes the Port lands east of Canada Place to Gore Avenue into three areas: a downtown-oriented area at the western end, a community-oriented area at the eastern end where Portside Park is to be maintained as a local amenity, and a transition area between the two which is compatible with the park and may include housing. The site and the small neighbouring site to its west are thus situated in an unusual circumstance. In comparison to other M-2 properties to the east, they do not actually abut any port or rail lands which are zoned M-2. Staff therefore conclude that additional non-industrial use can be considered on this site without setting a precedent for other sites. Furthermore, all sites, including the small site to the west, are subject to new policies not in effect when the application at 245-295 Alexander Street was made. (b) Land Use Compatibility: The proposed development addresses the site's opportunities and constraints in relation to industrial land uses in the surrounding area. The FSR of 0.76 for proposed industrial space exceeds the size of the obsolete cold storage plant on the site, and also the average of 0.55 on other industrial sites in the city. This element of the proposal recognizes that industrial use remains an appropriate land use abutting the rail line, the Main Street overpass, and the industrial district east of Gore Avenue. It also responds to City objectives to retain industrial land for city-serving and city-oriented industrial uses. The site's convenient access to Port lands and the downtown area should enable the proposed development to perform a useful function in this respect. While the site's location characteristics, described in (a) above, present an opportunity to consider some additional artist 'live/work' studios, the site is nevertheless likely to be affected by the noise, odours, and other impacts of nearby port activities. These potential impacts on studio livability could lead occupants to complain about and seek restrictions on surrounding industry. Several measures are proposed to minimize incompatibility with the neighbouring industrial uses: i) The site is large enough, with a depth of 61 m (200 ft.) along Gore Avenue, that the artist 'live/work' studio floor area can be massed in L-shaped six-storey development above the podium of industrial space, and fronting Alexander Street and Gore Avenue, i.e., on the south and east parts of the site. This massing puts some distance between the proposed studios and the Main Street overpass to the north-west and port activities to the north-east. The double-height storey of industrial space at grade also helps to buffer the artist 'live/work' studio development above from the abutting rail line. ii) All artist 'live/work studios would be constructed to an F2 (Medium Hazard Industrial Occupancy) Building Code land use classification, which requires noncombustible, i.e., concrete, construction for a building of this height. iii) The noise impacts from adjoining port and rail operations identified by an acoustic consultant would be mitigated through various sound attenuation techniques, including construction, glazing, and ventilation, to comply with Zoning By-law acoustic requirements. iv) The potential odours identified by an environmental consultant would be mitigated through ventilation techniques. v) The developer proposes to provide legal assurances, through disclosure statements and restrictive covenants, to protect surrounding industrial property owners and businesses from complaints and interference by owners, tenants and strata corporation on the site. The proposed impact mitigation measures are comprehensive in scope, although the last (v) is untried. While it cannot be concluded that potential incompatibility between artist 'live/work' studios and industry will be totally avoided, the proposed development would incorporate all the known mitigation measures which have been effective on other sites and the use of disclosure statements and restrictive covenants promises to address the unmitigated incompatibilities which might remain. Staff recommend that the proposed mitigation measures be assured through CD-1 By-law provisions and conditions of rezoning approval, contained in Appendices A and B. The small 15.2 m (50 ft.) property immediately to the west of the site would remain zoned M-2, but staff note that the most potentially dangerous and environmentally incompatible industrial uses are conditional approval uses in the M-2 district and probably would not be supported at this location and adjoining the portion of the CWD where community-oriented uses are encouraged. The developer has advised that the owner of this small site is neither opposed to the application nor interested in selling his property to form a larger rezoning site. (c) Land Value Impact: A site which obtains an increase in maximum FSR from 1.00 to 3.71 for artist 'live/work' studio use could obtain a significant economic gain for the developer, and could stimulate speculative increases in the land value of other industrial sites. This potential land value impact of rezoning could be minimized by providing a public benefit on the site as part of the proposed development. The developer initially proposed to maintain 20 percent of the 153 studios as rental studios for a period of 20 years. The developer has since agreed that 22 studios be given to the City, a City agency or a City-designated co-op, for providing affordable, rental 'live/work' studios to low-income, working artists. Provision of this on-site public benefit is recommended as a conidition of rezoning approval in condition (i) of section (c) in Appendix B. The Manager of the Housing Centre supports this element of the application and will report to Council separately on the matter. The Manager of Real Estate Services has confirmed that the value of the 22 artist 'live/work' studios approximately offsets the market value of the additional density requested in the rezoning application and that the price paid for the site is comparable to surrounding land values (see Comment on Page 2 of Appendix D). Based on the foregoing, it is unlikely that surrounding industrial land values would be increased by approval of this application. 2.2 Land Use Suitability: The non-industrial use proposed in a rezoning application should comply with relevant planning policies such as the Central Area Plan and Artist 'Live/Work' Studio Policies. The application was made two months prior to Council adoption of revised policies which encourage the provision of legal, safe, functional and affordable artist 'live/work' studios. While these policies do not apply to this application, staff have nevertheless reviewed the proposal in terms of the new policies to ensure an appropriate response by the proposed development to City objectives (see further discussion in Appendix C). The application does respond in part to most of the artist 'live/work' studio objectives, and staff have identified some additional ways in which the functionality and livability of the proposed artist 'live/work' studios might be improved. Staff recommend that such improvements, including additional workshop areas and additional, separate storage space, be obtained through CD-1 By-law provisions and conditions of rezoning approval contained in Appendices A and B. 2.3 Environmental Impacts: The proposed development is expected to comply with relevant legislation concerning environmental impacts and mitigation measures, such as the Noise By-law, Health By-law, and GVRD Air Quality Management By-law. CONCLUSION This rezoning application seeks an increase in the maximum floor space ratio permitted for artist 'live/work' studios on this site, from 1.00 to 3.71. This is a substantial increase which raises issues with respect to precedent, land use compatibility, land value impacts, and City artist 'live/work' studio objectives. Given the date on which the application was made, the location attributes of the site, the industrial floor space which would be developed, the comprehensive impact mitigation measures which are proposed, and the 22 studios which would be given to the City to provide affordable, rental 'live/work studios to low-income, working artists, staff support the proposed development. The Director of Land Use and Development recommends that the application be referred to a Public Hearing and approved, subject to CD-1 By-law provisions and conditions of rezoning approval listed in Appendices A and B. * * * APPENDIX A Draft CD-1 By-law Provisions 245-295 Alexander Street USES Artist Studio - Class A and Artist Studio - Class B, Residential Unit associated with an Artist Studio, Retail and Service Uses, but not exceeding 112 m2 (1,206 sq. ft.), Industrial Uses, including manufacturing, storage, wholesaling, provided that these uses are wholly undertaken within a completely enclosed building, and Accessary Uses customarily ancillary to the foregoing. FLOOR SPACE RATIO The maximum floor space ratio will be 4.5, based on the calculation provisions of the M-2 District Schedule, including mezzanine area in double-height space, and excluding amenity areas (such as meeting room, laundry area, and recreation facilities accessory to dwelling use) and storage space which is provided below grade. (Note: Common workshop areas, such as music room, kiln room, wood shop, metal shop, dark room, or painting studio, are considered to be ancillary to the principal use, Artist Studio, and will be included in the FSR calculation.) BUILDING HEIGHT The height of a building will not exceed 32.3 m (106 ft.) from the base surface. OFF-STREET PARKING, LOADING AND BICYCLE SPACES As per Parking By-law, except that a minimum of one space shall be provided for every studio, which can be relaxed to one space for every two affordable and assured rental studios. OR As per Parking By-law, except that a minimum of one space for every studio of 75 m2 or less of gross floor area, 1.3 spaces for every studio over 75 m2 of gross floor area and one additional space per 12 studios on sites with 12 or more studios. ACOUSTICS The City's acoustical criteria shall apply, and an Acoustical Consultant's report shall be required which assesses both off-site and on-site noise impacts and recommends noise mitigating measures. (Note: An amendment to the Noise By-law will include this CD-1 site in the activity zone established in Schedule A.) APPENDIX B Page 1 of 3 Proposed Conditions of Approval 245-295 Alexander Street (a) THAT the proposed form of development be approved by Council in principle, in revised plans generally as prepared by Chandler Rasmussen Architects Inc. and stamped "Received City Planning Department, April 10, 1996", provided that the Director of Planning may allow minor alterations to this form of development when approving the detailed scheme of development as outlined in (b) below. (b) THAT, prior to approval by Council of the form of development, the applicant shall obtain approval of a development application by the Director of Planning, who shall have particular regard to the following: (i) Design development to improve the functionality of the artist studios and the building's common facilities, including but not limited to the provision of: 1) additional common workshop areas, such as music room, wood shop, metal shop and painting studio, these areas to be suitably sound-proofed and ventilated; 2) maximize the opportunity for combining workshop space in a large multi-purpose room with movable partitions; 3) extra-wide doors, over-size elevators, and corridor dimensions which enable large or heavy works of art or art materials to be easily moved between the loading area, storage spaces and studios; 4) adequate acoustic measures, ventilation, plumbing and electrical service in every studio to facilitate high-impact art production; 5) additional storage space, separate from the studios, to provide adequate space for the storage of art materials and works of art; and 6) gardening and/or amenity areas on the rooftops. (ii) Further design development to respond to previous Urban Design Panel advice, subject to further review by the Urban Design Panel at the development application stage, including but not limited to the provision of: 1) durable exterior materials suitable to the area, such as brick, on the lower storeys; APPENDIX B Page 2 of 3 2) more transparency and contemporary industrial appearance on the upper storeys; 3) more consistency of design between the south and east elevations; 4) design and amenity of the rooftop court; and, 5) improved layout of the smaller studios to increase the livability of their associated residential space. (iii) Implement principles of crime prevention through environmental design (CPTED), through measures such as the following: 1) reduce or remove all exit alcoves at grade; 2) reduce opportunity for break-and-enter and mischief on roof decks; 3) clarify internal access from artist studios to common amenity areas and workshops; 4) provide a comprehensive security plan; 5) reduce opportunities for graffiti on blank walls; 6) provide a locked overhead gate and doors, possibly with electronic access, to loading and garbage areas, 7) provide adequate lighting to all areas to reduce mischief opportunities and fear, and 8) paint parking area walls, ceilings and utility pipes white to reduce fear. (c) THAT, prior to enactment of the CD-1 By-law, the registered owner shall, at no cost to the City: (i) Execute an agreement, to the satisfaction of the Director of Legal Services and the Manager of the Housing Centre, by which 22 artist 'live/work' studios, or 1 312 m2 (14,125 sq. ft.) of floor area, plus 11 parking spaces, shall be conveyed to the City at no cost to the City, such studios to provide non-market, rental 'live/work' space for low-income working artists. Such agreement may allow for the transfer of all or a portion of these studios to a City agency or City-designated co-op. (ii) Execute and register against property title of all strata units a restrictive covenant, satisfactory to Director of Legal Services and the Director of Land Use and Development, providing that owners, including eventual strata lot owners and the strata corporation(s), acknowledge and accept: APPENDIX B Page 3 of 3 1) that the building is located near a heavy industrial district (M-2) in which industrial activities, including rail and port operations, have primacy of use; 2) that nearby industrial activities should not be subject to complaints or legal actions, directly or indirectly, for any operating characteristics and environmental impacts which conform to the relevant regulations, including noise, odours, light, vibrations, and 24-hour operations; and 3) that they have a duty to forewarn all prospective studio occupants, both purchasers and tenants, of (1) and (2) above; (iii) Make arrangements to the satisfaction of the General Manager of Engineering Services and Director of Legal Services, for the provision of: 1) curb, gutter and sidewalk on the west side of Gore Avenue and north side of Alexander Street abutting the site, and asphalt pavement for half the street width on Gore Avenue from Alexander Street to the lane north; 2) street trees adjacent the site; 3) consolidation of the site; and 4) the undergrounding of all utilities from the closest existing suitable service point. * * * * * SITE, SURROUNDING ZONING AND DEVELOPMENT, PROPOSED DEVELOPMENT AND NON-MAJOR ELEMENTS Proposed Development The application proposes to replace the obsolete cold storage plant on the site with a mixed-use development containing industrial space and artist 'live/work' studios. Development would have a one-storey, double-height podium of industrial floorspace (FSR 0.76), a very small amount of space for a retail or service use (FSR 0.03), and six storeys of artist 'live/work' studios (FSR 3.71) in an L-shaped development on the south and east parts of the site, fronting Alexander Street and Gore Avenue. The total FSR proposed is 4.50. (Plans are provided in Appendix E and additional statistics in Appendix F.) A total of 153 artist 'live/work' studios are proposed. At least 123 would be strata studios, an average of 75 m2 (806 sq. ft.) in size. As many as 30 studios, 20 percent of the total, could be rental, an average of 47 m2 (506 sq. ft.) in size. The developer has agreed to give 22 studios to the City, or City-designated co-op, to provide affordable studios to low-income, working artists. The proposed land uses are permitted in the M-2 district, and the total FSR of 4.5 is below the maximum permitted (5.0). The reason that a rezoning is requested, and the principal issues raised by the application, stem from the proposed FSR of 3.7 for artist 'live/work' studios which significantly exceeds the maximum of 1.0 permitted for non-industrial uses in industrial districts. Site, Surrounding Zoning and Development: The site is located at the western end of the Railway Street industrial area which is zoned M-2 (see earlier map on page 4 and photo on following page). A site at 405 Alexander Street, on the north side of Alexander Street, was rezoned from M-2 to CD-1 in 1991 for non-market multiple dwelling use. Lands to the north of the site, and west of Gore Avenue, are zoned Central Waterfront District (CWD). CWD Sub-Area 4, encompassing CPR and Port lands west of Gore Avenue to Seymour Street, and including Portside Park at the east end, permits continuing port and rail uses, new marine and commercial uses, and some commercial uses on CPR lands after relocation of the CP railyard. The Central Waterfront Port Lands Policy Statement approved by City Council, and also the Vancouver Port Corporation, in February 1994, organizes the Port lands east of Canada Place to Gore Avenue into three areas: a downtown-oriented area at the western end of the site near Canada Place, a community-oriented area at the eastern end, and a transition area between the two which is compatible with the park and which may include housing (Policy 1.5). The Policy Statement preserves Portside Park as a local community-oriented amenity (Policies 6.1 and 1.4). Aerial Photo of the Site and Surrounding Area Lands to the south of the site, across Alexander Street, are zoned Downtown-Eastside Oppenheimer District (DEOD) which permits light industrial uses, residential uses, some commercial uses, and artist 'live/work' studios. DEOD Sub-area 1 (east and west of Main Street) has a maximum FSR of 5.0 and a maximum height of 30 m (98.4 ft.) and Sub-area 4 has a maximum FSR of 2.5 and a maximum height of 15 m (49.2 ft.). Properties along the south side of Alexander Street are developed with a mix of industrial, residential and institutional uses. West of Main Street, lands south of port and rail lands are zoned HA-2, a district in which dwelling uses are permitted, to a maximum FSR of 3.0. Multiple dwelling use has been developed at 131 Alexander Street (approved in October, 1993). North-of-Hastings Street and Railway Street Industrial Areas: In July 1990, City Council approved that several small industrial areas in the city be considered for new uses, particularly housing. City policy for such 'let go' industrial areas required that individual rezonings not be considered until a land use plan had been prepared for the area in question, and development cost charges established for the provision of services and amenities. The 270 acres designated 'let go' included the North-of-Hastings-Street and Railway Street industrial areas. Staff initiated a review of these areas in 1993 and discussed the results with property owners in February, 1994. The narrow 12.76-acre Railway Street area lies between the CP rail line to the north and Alexander Street to the south and extends for five blocks between Main Street and Heatley Avenue. The area was found to be primarily in industrial use (76.8 percent). While the small lots and narrow streets in the area hampered the manoeuvring of large trucks, the area remained viable for light industry and provided a buffer between the residential development south of Alexander Street and 24-hour rail and port operations. The area has sites which abut the CP Rail line and Port of Vancouver lands to the north, and sites on Alexander Street which are across the street from a mix of industrial and non-market residential developments in the DEOD. The sites on the 300, 400 and 500 blocks of Alexander Street were identified as "marginally more suitable for residential use" because they are across the street from a district which permits residential uses, and because they are buffered from port and rail operations by development on the north side of Railway Street. One of these sites, at 415 Alexander Street, had in fact already been rezoned to CD-1 (270) in January, 1991 for a seven-storey non-market multiple dwelling development at FSR 3.7, and has since been purchased by the City and is now developed with the "Jim Green" residential development. Staff observed several elements in the area which made it unsuitable for purely residential use: - noise from industrial, port, and rail operations, - odours from food processing operations and fumes from trucks and rail equipment, - the storage and use of hazardous substances including paints and flammable gases, - the rail transportation of hazardous materials (estimated to range between 20-25 movements daily), and - visual impacts (i.e. unsightliness) of open storage and port and rail activities. Relatively high land costs, a lack of residential amenities, and difficult social conditions were also observed. The economics of residential development were also found to be unfavourable and staff reported that little interest was expressed in developing residential uses. Staff concluded that the area was not suitable for converting to purely residential use and they recommended, in a report dated June 30, 1994 (on file), that the area be retained for industry. In a letter dated July 19, 1994, the property owner of the site at 245-295 Alexander Street disagreed with several observations in the staff report, particularly that there was little market interest in developing residential uses in this area. The property owner felt that a rezoning application for the site, in preparation since March, 1994 and based on Council's earlier 'let go' designation for the surrounding area, would be jeopardized if Council approved the staff recommendation to retain the area for industrial use. By memo to Council dated September 1, 1994, the Director of Community Planning acknowledged that the site's location at the western tip of this industrial area presented a somewhat different circumstance and had been the subject of several inquiries. It was further stated that unless Council advised otherwise, staff were prepared to process a rezoning application, if one was submitted, "taking into account the land use objectives for the area, as well as any site specific site opportunities and constraints". On September 15, 1994, Council's Committee on Planning and Environment approved that the 'let go' designation be removed from the North-of-Hastings Street and Railway Street areas, and that any future land use review be guided by the Industrial Land Strategy once it is approved. Council received the staff memo about the site at 245-295 Alexander Street but offered no advice to staff. The rezoning application was submitted in January, 1995 under the assumption by the applicant and developer that it would be processed in accordance with pre-September, 1994 policies. The following summarizes the sequence of principal events pertaining to the Railway Street industrial area, industrial policies, Artist 'Live/Work' Studio policies, and the rezoning inquiry and application at 245-295 Alexander Street. INDUSTRIAL ARTIST 245-295 DATE LANDS LIVE/WORK STUDIOS ALEXANDER STREET Feb. 02, 1994 Public Information Meeting on Railway Street area Feb. 17, 1994 Council & Port Feb. 22, 1994 adopt Central Waterfront Port Lands Policies Mar. 14, 1994 Written rezoning enquiry June 30, 1994 staff report on Railway Street industrial area July 19, 1994 Written objection to report on Railway St. area Sept. 15, 1994 Council retains Railway St. area for industry Jan. 30, 1995 REZONING APPLICATION Mar. 14, 1995 Council adopts Industrial Lands Strategy Mar. 15, 1995 1st Urban Design Panel review Mar. 28, 1995 Council adopts new A.L/W.S. policies Jan. 30, 1996 2nd Urban Design Panel review Mar. 17, 1996 3rd Urban Design Panel review April 18, 1996 Councils refers proposed By-law amendments to Public Hearing Artist 'Live/Work' Studio Policies: Council adopted new Artist 'Live/Work' Studio Policies in March 1995 to encourage the provision of legal, safe, functional and affordable artist 'live/work' studios. As the application was made two months prior to Council adoption of those policies, the policies do not strictly apply to this application. Staff have nevertheless reviewed the proposal in terms of the six main elements of the new policies to ensure that the proposed development generally responds to City objectives for artist 'live/work' studios: (1) New policies continue to limit artist 'live/work' studios to a maximum of FSR of 1.0, but they also provide for density bonuses in the DD and IC-3 Districts to encourage the provision of artist 'live/work' studios that are affordable for low-income artists. 123 strata studios are proposed, and possibly up to 30 rental studios. 22 rental studios would be given to the City for the provision of affordable low-income artist studios, i.e., studios rented at less than market rents. The total floor area of these studios, 1 312 m2 (14,125 sq. ft.), is 11.5 percent of total artist 'live/work' floor area proposed on the site. (2) New policies limit artist studios to existing buildings. The application proposes to demolish obsolete cold storage buildings on the site and undertake new construction to provide a mixed-use development for industrial and artist 'live/work' studio uses. The amount of new industrial floorspace (FSR 0.76) would exceed the existing FSR on the site, and also the average FSR (0.55) of industrial development on industrial sites in the city. (3) New policies limit artist 'live/work' studios to rental tenure, with no strata-titling allowed. The application proposes 153 artist 'live/work' studios, of which 22 to 30, i.e. up to 20 percent, would be rental studios, as described above (2). (4) New policies limit artist 'live/work' studios to "high-impact" art production, i.e. involving electronically amplified sound, toxic or hazardous materials, or processes such as welding, woodworking, spray painting, silk screening and fired ceramics (referred to as Artist Studio - Class B). The application proposes that all studios be constructed to meet the requirements of the F2 (medium hazard industrial occupancy) classification in the Building By-law. This is proposed so that both low- and high-impact art production can co-exist in the same building. Common workshop areas, which are separate from the 'live/work' studios, are also proposed so that activities using toxic or hazardous materials, or having other objectionable impacts, can be pursued in separate space designed to mitigate the impact of hazardous production processes (i.e. ventilated and sound-proofed). About 643 m2 (6,921 sq. ft.), 5.3 percent of the net floor area, is proposed for this purpose. Staff recommend the provision of additional common workshop areas, and that such areas be sound-proofed and ventilated [Appendix B(b.ii)]. (5) New policies specify a minimum and maximum floor area for artist 'live/work' studios, 47 m2 (506 sq. ft.) and 500 m2 (5,382 sq. ft.) respectively. The size of the proposed artist studios would generally range from 47 m2 (506 sq. ft.) for the rental studios to 75 m2 (806 sq. ft.) for the strata studios. Ensuite storage is proposed, but not any separate storage area. Staff recommend some additional features to improve studio functionality, to be ascertained or provided at the development application stage, including: extra-wide doors, over-size elevator, and corridor dimensions to enable the movement of large or heavy art and art materials between the loading bay, storage space, and studios; appropriate ventilation, plumbing and electrical service in every studio to permit high-impact art production; and additional storage space, separate from the studios, to ensure adequate space for the storage of art materials and completed works of art [Appendix B(b.ii)]. (6) New policies provide that development permits may be limited in time for the use and occupancy of artist studios where the scale of proposed development (12 studios or more) or increased parking may impact on the viability of surrounding industrial activities. Time-limited permits will assist in By-law enforcement and ensure that the use of industrial land is limited to artist studios which require an industrial location. Surrounding landowners and businesses would be consulted, as well as the advice of a panel of artists, before approving or renewing permits. It is also intended that all artist studios will be inspected on an annual basis. A time limitation on development permit approval would frustrate the proposed development and sale of strata artist 'live/work' studios. However, the artist studios in this development could be inspected on an annual basis, as the City intends for other artist 'live/work' studio developments in the city, to ensure that they are used as intended. The application does not fully meet any of these six artist 'live/work' studio objectives, however it does respond in part to most of them. The review has also enabled staff to identify several aspects of the proposed development which might be revised to improve functionality and livability, as set out in CD-1 BY-law provisions (Appendix A) and conditions of rezoning proposal (Appendix B). Assessment of the rezoning application, utilizing the new artist 'live/work' studio policies, is summarized in the table on the following page. ENVIRONMENTAL IMPLICATIONS The proposed change of use of this existing building, for artist 'live/work' studios, would have few environmental impacts. SOCIAL IMPLICATIONS Increased activity on this site would help to reduce safety and security problems in the surrounding area. The provision of some rental artist 'live/work' studios would help to achieve City objectives to increase the supply of affordable artist 'live/work' studios. There are no implications with respect to the Vancouver Children's Policy or Statement of Children's Entitlements. CONSEQUENTIAL AMENDMENTS If the application is approved at Public Hearing, an amendment to the Sign By-law is needed at the time of enactment to establish regulations for this CD-1 site in accordance with Schedule B (M-2), and an amendment to the Noise By-law is needed to include this CD-1 site in the activity zone established in Schedule A. Summary Assessment of Proposed Rezoning at 245-295 Alexander Street Rezoning Detailed Conditions Criteria Criteria or Criteria Met (š) COMPATIBILITY no precedent-setting š WITH impact INDUSTRIAL no impact on adjacent comprehensive mitigation ACTIVITY existing and potential measures; and future industry restrictive covenants to maintain the primacy of adjoining industry no increase in š industrial land values LAND USE maximum FSR of 1.0; proposed FSR 3.71 for SUITABILITY artist 'live/work' 10% bonus FSR for studios; 22 studios (compliance with affordable studios in would be given to City relevant DD and IC-3 (secured by to provide affordable, policies, Housing Agreement) rental studios e.g., Artist change of use and obsolete building would 'Live/Work' renovation of an existing be demolished; a greater Studio Policies) building amount of industrial floorspace would be provided limited to rental tenure at least 22, and possibly up to 30 rental studios are proposed limited to high-impact both low- and art production, separate high-impact studios are workshops provided proposed, all designed to F2 Building Code classification; common workshop areas proposed functional considerations additional, separate e.g.adequate storage area storage space needed time-limited x development permit ENVIRONMENTAL compliance with Air š IMPACT Quality Management By-law MITIGATION (GVRD), Health By-law, and Noise By-law COMMENTS FROM THE PUBLIC, REVIEWING AGENCIES AND THE APPLICANT Public Input: Planning staff mailed a notification letter on February 22, 1995 to 82 property owners and 125 business license holders in the surrounding area. The applicant installed an information sign on the site on March 3, 1995. Several phone calls and letters have been received. Five organizations and groups are prepared to support the application for increase FSR if concerns are addressed: - the artist 'live/work' studios should serve a mix of income groups, including affordable studios for low-income artists; - the developer's promise to provide rental studios or affordable studios should be guaranteed; - appropriate efforts should be given to providing affordable studios for low-income, working artists; - the sale of market studios and rental of the other studios should give preference to artists presently living in the Downtown-Eastside or other nearby neighbourhoods; - common workshop areas should provide enough space, and different types of workshops, to serve working artists' needs, including one large, multi-functional space; and - if market and non-market studios are expected to share common workshop areas, the fair access by non-market studio occupants should be guaranteed. Letters of opposition have been received from B.C. Maritime Employers Association and the Vancouver Port Corporation. Their concerns include the following: - proposal is contrary to the Industrial Lands Strategy and its policy to retain the Railway Street area for industrial use; - proposal is contrary to new Artist 'Live/Work' policies; - proposed development is incompatible with adjacent industry; - approval of rezoning will lead to land speculation in the surrounding area; - small amount of proposed industrial floorspace is unlikely to attract traditional industrial users; and - buffer zone should be maintained between residential use and noisy, 24-hour port and industrial activities. Staff note that the application was made prior to Council adoption of the Industrial Lands Strategy and the new Artist 'Live/Work' Studio policies. Staff also note the boundary between the CWD and M-2 districts on Port lands is not Main Street but Gore Avenue one block to the east. The other matters, particularly the concern about incompatibility between artist 'live/work' studio use and industry, are addressed in the report. Housing Centre: The Manager of the Housing Centre confirms that 22 artist 'live/work' studios are proposed to be given by the developer to the City at no cost, as set out in condition (i), section (c) of the rezoning approval conditions (Appendix B). The Manager of the Housing Centre will report to Council on this matter in a separate report. Real Estate Services: The Manager of Real Estate Services has advised that "the value of the additional density (2.71 FSR) for artist live/work use us approximately off-set by the market value of the 22 units proposed to be turned over to the City free of charge and to remain on the site as a housing benefit in the form of City-owned affordable and rental artist live/work units. The amount of developer's profit would increase due to the increase in floor area and the corresponding risk. However, the profit as a percentage on costs, after taking into account the 22 free units to the City, is considered reasonable. The Manager of Real Estate Services is of the opinion that the price optioned by the developer for the site is comparable to surrounding industrial land values". Principles of Crime Prevention Through Environmental Design: Police Department staff comment as follows: This development is located in a high crime impact environment. Safer environmental design should be focused at all types of property theft, mischief and nuisance associated with prostitution and drugs, and fear of residents. The infusion of a diversity of residential use above the ground level is considered positive in this location. Issues to be addressed at the development permit stage are listed in rezoning approval condition (iii) in section (b) of Appendix B. Comments of the General Manager of Engineering Services: The General Manager of Engineering Services has no objections to the proposed rezoning provided that the applicant complies with condition (iii) in section (c) of Appendix B. The General Manager of Engineering Services also recommends that parking and loading spaces be provided as required by the Parking By-law. Planning staff note that new, higher requirements have recently been referred to Public Hearing, and that they should perhaps be considered for this application. The Railway Street industrial area is generally developed with older, parking-deficient buildings. Increased parking demand in this area, if not satisfactorily met, would affect access, circulation, and on-street parking by local truck traffic and workers. This alternative requirement is provided in the draft CD-1 By-law for consideration at Public Hearing (see Appendix A). Urban Design Panel: The application was supported in a third review by the Panel on March 13, 1996, but with remaining concerns listed in rezoning approval condition (ii) in section (b) of Appendix B. Applicant's Comment: The applicant has been given a copy of this report and provides the following comments: "Pemcor Development Corporation concurs with the Recommendations and Analysis of this Report and we generally agree with most of the proposed Conditions. However, we will be studying the proposed Conditions further, and will provide additional response, if necessary, at the Public Hearing. We would also like to compliment the thoroughness of this report, given the many complex policy and context issues involved with this site and this proposal. The property is currently zoned M-2; has existing vacant/derelict buildings, with no functional nor historic merit. Prior to Council's adoption of its current industrial land use policies, the Planning Department agreed in the course of early inquiries that the site had different context circumstances from its industrial neighbours to the east. The application itself predates both the new industrial land use policies and the new artist live/work policies. In support of your Report, we would like to summarize for Council's consideration this rezoning application in four ways: how the proposal addresses the industrial needs of the site; how the proposal addresses the needs of Alexander Street at this location; how the proposal poses no threat to surrounding industrial uses in the area; and, how the proposal creates an unprecedented "public benefit" for this type of use. How The Proposal Addresses Industrial Needs Of The Site: The proposal has almost a full floor of light industrial uses at grade, which is equal to, or exceeds the amount of market industrial that would be constructed on this site in a solely industrial development. This amount of industrial is very reasonable given this site is considered to be a fringe industrial site at best. The proposed artist live/work uses are industrially compatible to surrounding industrial uses. Although artist live/work uses are conditionally permitted in the M-2 zone, this proposal has a greater density for these studios than is specified in the M-2 By-Law; this is the reason for this rezoning. A significant benefit of the market live/work studio density is its ability to subsidize the number of proposed City-owned artist live/work studios (22), which are to be given to the City as a "public benefit" exaction. How The Proposal Addresses The Needs Of Alexander Street: The proposal serves to assist in "mending" Alexander Street. The communities of Gastown, west of Main Street, and the Downtown Eastside Oppenheimer, east of Main Street, are physically separated in the 100 and 200 blocks of Alexander Street due to the Main Street overpass "breaking" through the north side of Alexander Street. This gap in Alexander Street is unfortunate, as Alexander is an unusual live/work street with Downtown Eastside vitality: within two blocks to the east and west of this site are well over 600 residential-type units, as well as industrial, institutional and office uses. This proposal orients a large portion of its industrial uses and artist live/work studios to Alexander Street, which fills in or mends this gap in the street, provides work uses at grade; and, provides 24-hour activity and security to this block with its above-grade artist live/work uses. How The Proposal Poses No Threat To Surrounding Industrial Uses: Both the proposed light industrial use and the artist live/work programme are industrially compatible uses. The project has been designed to place as much massing as possible away from its north property line, which is the most sensitive industrial property line, due to the presence of the rail lines and the Vancouver Port operations to the north. The artist live/work studios have also been designed to function with their windows open or closed, which will increase the ability of the studios to co-exist with all nearby industrial uses. The proposal is also offering a full range of legal disclosures of the surrounding industrial users; and, an unprecedented set of restrictive covenants to benefit surrounding industrial uses. These covenants will be binding upon both individual tenants/owners and the strata corporation(s) and will provide legal assurances to the rail and port operations that will protect their current operations. Our discussions with the City's Housing Centre and Real Estate Division, have also confirmed that the proposed selling price of this site is 'price neutral' in its impact on neighbouring industrial land prices. Public Benefit: The proposal offers 22 studios to be gifted to the City as its "public benefit" exaction. There are also an additional 8 studios offered to the City with an option to purchase at below market rates for a combined package of 30 studios. These studios are intended to be used by the City, or City-designated co-op, and create the opportunities to provide accommodation for truly economically deprived artists. The ability to deliver such a large number of economically viable studios to those who have the greatest need is a major breakthrough for a new artist live/work project. All occupants of this project, including both strata and rental occupants will also have access to the numerous project artist amenities, including: a metal/wood work shop, a music/dance room, a pottery/kiln room, an equipped dark room, a lounge and a special storage space associated with these work rooms." APPENDIX F APPLICANT, PROPERTY OWNER AND DEVELOPER INFORMATION APPLICANT Chandler Rasmussen Architects Inc. PROPERTY OWNER Transport Holdings Ltd. DEVELOPER Pemcor Development Corporation SITE INFORMATION AND STATISTICS STREET ADDRESS 245-295 Alexander Street LEGAL DESCRIPTION Lots 51-54 and A and B, Block 1, District Lot 196 and 4281, Plan 4759 and 4766 SITE AREA 3 424 m2 (36,857 sq. ft.) WIDTH (Alexander Street) 61.110 m (200 ft.) DEPTH (Gore Avenue) 69.747 m (228.8 ft.) DEVELOPMENT STATISTICS DEVELOPMENT DEVELOPMENT PROPOSED PERMITTED IN PERMITTED IN D.E.O.D. DEVELOPMENT M-2 DISTRICT DISTRICT LAND USES Industrial Uses, Light Industrial Uses, Artist Studios and Other Uses including Multiple Dwellings, associated Artist Studios and Some Commercial, Residential Units, associated Cultural, Recreational Industrial Uses, Residential Units and Retail Uses and Institutional Uses Service Uses MAX. FLOOR SPACE RATIO Industrial 5.0 0.76 Industrial Other 1.0 0.03 Retail/Service TOTAL 5.0 1.0 [up to 2.50] 3.71 Artist Studios 4.50 TOTAL FLOOR AREA Artist Live/Work Studios 12 054 m2 (129,752 sq. ft.) 82 percent Retail/Service 112 m2 ( 1,206 sq. ft.) 1 percent Industrial Uses 2 588 m2 ( 27,858 sq. ft.) 18 percent TOTAL 14 642 m2 (157,610 sq. ft.) Note: These figures include floor area of mezzanines in double-height spaces, and common workshop areas, but not residential amenity areas. ARTIST STUDIOS Common Workshop Areas 643 m2 ( 6,921 sq. ft.) 0.19 FSR Market (Strata) Studios 10 265 m2 (110,495 sq. ft.) 3.00 123 units 80 percent Rental Studios 1 789 m2 ( 19,257 sq. ft.) 0.52 30 20 percent TOTAL 12 054 m2 (129,752 sq. ft.) 3.71 FSR 153 units MAXIMUM HEIGHT 30.5 m (100 ft.) 15.0 m (49.2 ft.) 32.3 m (106.0 ft.) 7 storeys (4 with mezzanines) PARKING Existing Requirement New Requirement Proposed Spaces Artist Studios Market 1.0/studio 1/studio =/< 75 m2 123 (Market) Rental 0.5/studio 1.3/studio > 75 m2 15 (Rental) 1/12 studios Commercial 1/50 m2 3 Commercial Industrial 1/93 m2 28 Industrial TOTAL 169 + 10 extra