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