P4
                                                        POLICY REPORT
                                URBAN STRUCTURE

                                           Date: June 12, 1996
                                           Dept. File No. PN

   TO:       Vancouver City Council

   FROM:     Director of City Plans, in consultation with
             Director of Land Use and Development

   SUBJECT:  Proposed I-2 Light Industrial Zoning


   RECOMMENDATION

        A.   THAT the Director of Land Use and Development be instructed to
             make application  to amend  the Zoning and  Development By-law
             to:

             (i)   create  a   new  I-2  District   Schedule  generally  in
                   accordance with Appendix A;

             (ii)  amend other industrial  District Schedules, the C-7  and
                   C-8  Districts  Schedule,  and  other  sections  of  the
                   Zoning and  Development By-law  generally in  accordance
                   with Appendix B;

             (iii) amend the  CD-1 (249)  Still Creek  By-law generally  in
                   accordance with Appendix C; and

             (iv)  repeal  the CD-1  (6) 1300-1598  S.E.  Marine Drive  and
                   CD-1 (166) 1570 Kootenay Street By-laws.

             FURTHER  THAT the  Director  of Land  Use  and Development  be
             instructed to make  application to  rezone to  I-2, the  areas
             generally shown as shaded on Figure 1  that are now zoned M-1,
             M-2, CD-1 (6) 1300-1598 S.E. Marine Drive, and CD-1 (166) 1570
             Kootenay Street.

             FURTHER THAT the Director of  Legal Services be instructed  to
             prepare  the necessary  by-laws  for consideration  at  Public
             Hearing, including amendments to:

             (i)   the   Parking  By-law   to  1)   apply  the  regulations
                   pertaining to  the M-1 District to  the I-2 District and
                   2)  include "Work  Shop" as  a  service use  in Sections
                   4.2.5.7, 5.2.4, and 6.2.5.1 of the Parking By-law; and
             (ii)  the Sign By-law  to apply regulations pertaining  to the
                   M-1 District  to the I-2  District and remove  reference
                   to the CD-1 (6) and CD-1 (166) Districts;

             AND FURTHER THAT  the applications and by-laws  be referred to
             Public Hearing.

        B.   THAT, subject to approval of the rezoning at a Public Hearing,
             the  Subdivision By-law  be amended  to apply  the regulations
             pertaining to the M-1 District to the I-2 District;

             AND FURTHER THAT the Director of Legal Services be  instructed
             to bring  forward the amendment  to the Subdivision  By-law at
             the time of enactment of the Zoning By-law.

        C.   THAT, if approved at Public Hearing, the by-law be accompanied
             at time of enactment by:

             (i)   an amendment to the Noise Control  By-law to include the
                   I-2 District  and  remove the  CD-1 (6)  and CD-1  (166)
                   Districts from Schedule A: Activity Zone; and

             (ii)  an  amendment to  the License  By-law  to include  "Work
                   Shop"  in  Schedule  A and  apply  fees  as for  "Repair
                   Shop".

        D.   THAT the Director of Land Use and Development be instructed to
             permit,  on a trial basis in the Mount Pleasant I-1 Industrial
             District, manufacturing uses in buildings existing as of (date
             of  enactment) without  requiring additional  parking up  to a
             limit  of four  spaces  exempted  per  15.24  m  (50  ft.)  of
             frontage.

             AND FURTHER  THAT the General Manager  of Engineering Services
             be instructed to report back to Council on the impacts of  the
             parking  pilot project after a period of one year to recommend
             further course of action.


   GENERAL MANAGER'S COMMENTS

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

   COUNCIL POLICY

   On  March 14, 1995, Council adopted the Industrial Lands Strategy, which
   seeks to retain  most of  the city's existing  industrial land base  for
   industry   and  service  businesses  in  order  to  meet  the  needs  of
   city-serving,  city-oriented, and  port/river related  industry. Council
   also approved a work program for updating industrial district schedules.

   On June 6, 1995, Council adopted CityPlan: Directions for Vancouver as a
   broad  vision  for the  city. Included  in  CityPlan, are  directions to
   increase job  diversity, concentrate major  job growth in  the downtown,
   maintain industrial lands, and focus  other job growth in  neighbourhood
   centres.  CityPlan directions  also include a  commitment "to  make sure
   decisions about increasing retail space in the city support the creation
   of   neighbourhood  centres,   strengthen  the  downtown,   and  protect
   industrial land."

   On  June 6,  1995, Council  endorsed the  Livable Region  Strategic Plan
   objectives  to protect the GVRD  Green Zone, build Complete Communities,
   achieve  a  compact  Metropolitan  Region,  and  increase transportation
   choice.


   PURPOSE AND SUMMARY

   This  report recommends a new I-2 light industrial district schedule and
   consequential   amendments  to   other  industrial   district  schedules
   (see Appendices A, B and C). This report also  seeks Council approval to
   rezone to I-2  the industrial lands shown as the  shaded areas in Figure
   1.  The areas  proposed for  rezoning include  False Creek  Flats, Clark
   Drive, Grandview/Boundary, and  Marine Drive north  of Kent Avenue.  The
   areas along the  Burrard Waterfront  and the Fraser  River would  remain
   zoned M-2, for water-dependent and heavy industrial uses.

   The proposed  I-2 district  schedule aims to  better meet  the needs  of
   contemporary   industry  while   improving  compatibility   with  nearby
   residential  districts. The I-2 district  schedule differs from the more
   traditional M-1 and M-2 district schedules in a number of ways:

   -    The maximum floor space ratio is increased from 1 FSR to  3 FSR for
        utility  and  communication  uses,  wholesale  uses,  and   service
        industrial uses  such as laboratories, cleaning  plants, production
        studios, and repair shops;

   -    Software manufacturing is recognized as a manufacturing use;
   Map
   -    Vehicle dealers are no longer limited to 1 000 m2 and are no longer
        required  to  locate  on  an  arterial  street and  provide  repair
        services on site;

   -    The  allowable General Office space is increased from 25 percent to
        33 1/3 percent of total floor area;

   -    The  outright height of a building is reduced from 30.5 m (100 ft.)
        to  18.3 m (60 ft.), with provisions  for a conditional increase up
        to 30.5 m (100 ft.);

   -    The maximum  floor space ratio is  reduced from 5 FSR  to 3 FSR for
        manufacturing   uses,   transportation   and  storage   uses,   and
        Wholesaling - Class A;

   -    Conditions of use are  added to control the storage  of potentially
        harmful or dangerous goods; and

   -    A number of heavy industrial uses, such as sawmills and pulp mills,
        now permitted in the M-2 district schedule as conditional uses, are
        not permitted in the I-2 district schedule.

   Some of the above changes  are also proposed as amendments to  the Mount
   Pleasant  I-1  and  Still Creek  CD-1  (249)  district schedules.  Other
   proposals include  separate definitions  for  "Paper Manufacturing"  and
   "Pulp  Manufacturing",  and separate  definitions  for  "Work Shop"  and
   "Works Yard".

   In addition to  the above  initiatives, staff are  proposing a  one-year
   parking  pilot  project  to  facilitate  change  of  use  in  inner-city
   industrial  areas. For the Mount Pleasant I-1 industrial area, staff are
   proposing to permit greater flexibility in parking standards for changes
   of use to  manufacturing in  buildings having uses  with lesser  parking
   requirements  (e.g. warehouse). The results of the pilot project will be
   used to consider amendments to parking regulations.

   BACKGROUND

   On March 14,  1995, Council  adopted the Industrial  Lands Strategy  and
   approved a work program to update industrial zoning to meet the needs of
   contemporary industry.  Some industrial  zoning changes are  proposed in
   this report.

   Council  has also approved  a number of  industry-related programs which
   are now underway:
   -    A  preliminary concept plan for  False Creek Flats  was approved by
        Council on  May 28, 1996.  The main  objective of this  plan is  to
        preserve   the  Flats   for  city-serving,   Downtown,   Port,  and
        transportation related industry. The plan recommends that the Flats
        be included in the proposed I-2 zoning initiative;

   -    The City  transportation planning  program is  reviewing provisions
        for  goods movement,  including adequacy  and impact  of designated
        truck routes in the city;

   -    Rezonings are under discussion for  the Trillium property in  False
        Creek Flats and the Mclean property in the Grandview/Boundary area.
        Proposals  for these  areas  involve a  combination of  industrial,
        commercial, and industrial work/live uses.

   In addition, Council has referred to Public Hearing two industry-related
   policy initiatives:

   -    It  is  proposed  that  artist  live/work  studio  developments  in
        industrial areas  be  restricted to  studios which  are rentals  in
        existing buildings  and involve industrial processes  or have noise
        impacts. This  proposal applies to all  industrial districts except
        the Brewery Creek IC-3 district.

   -    It is proposed that (1) Wholesale Club be defined in the Zoning and
        Development By-law as  a retail use and (2) accessory  retailing in
        conjunction with wholesaling  be made a conditional approval use in
        industrial  districts. Floor area for retail uses is now limited to
        1 000 m                         2 on any site in industrial districts.

   PUBLIC CONSULTATION PROCESS

   On February 6, 1996, planning staff released a discussion paper inviting
   public comment on  a proposed  new I-2 industrial  district schedule.  A
   copy  of  the  discussion  paper  is  included  in  Appendix G  (limited
   distribution - on file in the City Clerk's Office). The discussion paper
   was  distributed to  1,400  industrial property  owners, 3,000  business
   owners, and to various land investors, neighbourhood groups, and unions.
   A  total of 25 written submissions were  received. A copy of all written
   submissions  is also included in  Appendix G (limited  distribution - on
   file in the City Clerk's Office).

   Overall,  the comments  are supportive  of the  changes proposed  in the
   discussion paper. In particular, the proposal to increase provisions for
   service industrial uses is widely supported.

   A  description  of issues  raised and  staff  responses are  attached as
   Appendix  F.   In  summary,  concerns  with  respect   to  outright  and
   conditional uses, as well as concerns related to conditions of use, have
   largely been addressed  through revisions to the  proposed I-2 schedule.
   Several suggestions for  the use of  industrial land for  non-industrial
   uses  such as "big box  retailing" and a broad  range of office uses are
   not recommended.

   DISCUSSION

   The overall objective of the Industrial Lands Strategy is to retain most
   of  the city's  industrial land  base for  industrial and  service uses.
   Retaining land for industry  also meets a number of  objectives approved
   in CityPlan and the  Livable Region Strategic Plan. It  reduces the need
   for travel by providing jobs and services close to workers and customers
   in  the city;  contributes to  the economic  vitality of  the city;  and
   improves  the regional  jobs-housing  balance by  maintaining a  greater
   variety of jobs for city residents.

   Another objective  of CityPlan is to create  neighbourhood centres which
   provide shops and neighbourhood-based services close to home. Therefore,
   an  increase in retail uses is not recommended for industrial districts.
   CityPlan  also seeks to  locate jobs  in areas  that are  well-served by
   transit  or are  close  to  where  people  live.  Therefore,  while  the
   Industrial  Lands Strategy  seeks to  increase employment  in industrial
   areas, the majority  of job  growth, including office  jobs, will  occur
   Downtown and in neighbourhood centres.

   In support  of the above  objectives, this report  proposes a  number of
   initiatives  to  update  industrial  zoning in  Vancouver  and  increase
   opportunities for  modern industry. These initiatives  also address many
   of the concerns raised  during the public process leading to adoption of
   the Industrial Lands Strategy. The report makes the following proposals:

   1.   Expand provisions for service industrial uses;

   2.   Create new definitions to recognize types of contemporary industry;

   3.   Increase  the   amount  of  office  space   allowed  in  industrial
        developments;

   4.   Reduce height  and bulk provisions  to ensure  that new  industrial
        development is more compatible with nearby residential areas;
   5.   Replace "heavy" industrial zoning with "light" industrial zoning in
        some areas; and

   6.   Facilitate  "change  of  use"  in inner-city  industrial  areas  by
        allowing greater flexibility in reducing parking requirements, on a
        trial basis, in the Mount Pleasant I-1 industrial district.

   There are  presently several industrial district  schedules covering the
   industrial lands in the City, including:

        M-2: Heavy industrial uses, water and port-related uses;
        M-1: Light industry;
        M-1A: Light  industry zoning for city-owned land  in the south-east
        corner of the city;
        I-1: Light industry zoning for Mount Pleasant neighbourhood;
        IC-1, IC-2: Mix of light industry and commercial;
        IC-3 (Brewery  Creek):  Light  industry,  commercial,  and  special
        provisions to encourage artist live/work studios.
        Still  Creek CD-1: Industrial zoning  based on M-2, with provisions
        for the protection of Still Creek; and
        Port CD-1  (east  of Victoria  Drive):  Heavy industry  (M-2)  with
        height restrictions.

   To implement the above  initiatives and broaden the range  of industrial
   district  schedules,  staff are  proposing  a new  I-2  light industrial
   schedule. Some  of the changes  are also proposed  as amendments to  the
   Mount  Pleasant I-1  and  Still Creek  CD-1  district schedules.  It  is
   further  proposed that  industrial areas  no longer  required  for heavy
   industry and located near  residential areas, shown as shaded  on Figure
   1, be  rezoned  from M-1  and  M-2 to  I-2.  The proposed  I-2  district
   schedule is attached  as Appendix A. Other amendments  to the Zoning and
   Development By-law are in Appendices B and C.

   The City now has 1,700 acres of industrial land zoned mostly M-2. If the
   proposed I-2 rezoning is approved, the City will  have about 1,000 acres
   zoned  I-2, 500 acres  zoned M-2, and  200 acres zoned  I-1, IC-1, IC-2,
   IC-3, or M-1A.

   There are a number of  reasons for proposing a new schedule.  Unlike the
   "M"  zones, which focus on  manufacturing, the "I"  zones better reflect
   the broad range of industrial uses proposed. By contrast, it is proposed
   that the Port and  Fraser River industrial  areas remain zoned M-2,  for
   water-dependent and heavy industry.

   The proposed  I-2  district  schedule  differs  from  the  existing  I-1
   schedule  in one fundamental area.  Although both are  intended as light
   industrial schedules,  the I-2 schedule  permits outdoor activity  as an
   outright use whereas the I-1 schedule does not. In this respect, the I-2
   schedule is more like the M-1 and M-2 schedules. However, unlike the M-2
   schedule, the I-2 schedule  controls the storage of hazardous  goods and
   does not permit certain "heavy" industrial uses. Differences between I-2   and  the M-1  and  M-2  schedules  are  shown in  Appendixes  D  and  E,
   respectively.

   The  following  sections  provide  details  of  the  recommended  by-law
   revisions. References to appropriate appendices are also provided. 

   1.   Expand provisions for service industrial uses.

   Currently,  the total floor space ratio for  all service uses is limited
   to 1 FSR in  industrial areas. This means, for example,  that a research
   laboratory  which now  utilizes 1 FSR  cannot expand  on the  same site.
   Also, no other  service use may  locate on  the same site  if the  1 FSR
   limit has been reached.

   To  expand the definition of  industry, staff are  proposing to increase
   the maximum floor area for uses that  are compatible with industry. This
   will also  help intensify the  use of industrial  land by  encouraging a
   greater  mix of traditional and contemporary industrial uses on the same
   site.

   a) Service Industrial Uses

   Service  industrial   uses,  such  as  cleaning   plants,  laboratories,
   production studios, and repair shops, provide services to businesses and
   residents in the city.  These services are well-suited to  an industrial
   location  because   they  provide  mainly  business   services,  can  be
   incompatible  with commercial  and residential  areas, or  require space
   that is not readily available in commercial areas. 

   Action: Proposed By-law Revisions [Appendix A, Section 4.7.1(a-b)]
        It is recommended  that the  maximum allowable floor  area for  the
        following service uses  be increased to 3 FSR in the  I-1, I-2, and
        Still  Creek   CD-1  district  schedules:  Laboratory,  Laundry  or
        Cleaning  Plant, Production Studio, Repair Shop - Class A, and Work
        Shop.

        Other service uses, while  suitable for industrial areas,  could be
        incompatible  with  industry  if  permitted the  full  floor  space
        provisions.  It is  recommended  that the  following service  uses,
        which have a stronger retail component, each be permitted a maximum
        of  1 FSR: Catering  Establishment,  Motor
        Vehicle Repair Shop, Photofinishing  or Photography Laboratory, and
        Sign Painting Shop. This would allow each use to occupy up to 1 FSR
        on the same site, up to a total of 3 FSR.

   Staff  also propose that all  the above service  industrial uses be made
   outright  uses  in  the  I-1  and  I-2  district  schedules.  This  will
   facilitate applications for a change of use.

   b) Other Industrial Uses

   A  number of  industrial uses  are now  limited to  1 FSR  in industrial
   districts, i.e. utility and communication uses, and wholesale uses other
   than Wholesaling - Class A. Uses such as radiocommunication stations are
   similar to production studios and are compatible with industry.

   Action: Proposed By-law Revisions [Appendix A, Section 4.7.1(a)]
        It is recommended that the maximum allowable floor area for utility
        and communication uses, and wholesale uses be increased to 3 FSR in
        the I-1, I-2, and Still Creek CD-1 district schedules.

   c) Vehicle Dealer

   Vehicle Dealer is  defined in the By-law as a retail use for the purpose
   of  selling or renting motor vehicles,  boats, or recreational trailers.
   Compared  to  most  other  retail  activity,  vehicle  dealers  are  not
   compatible with pedestrian-oriented retail. 
   They  do  not sell  frequently  purchased  goods and  noise/paint  fumes
   associated  with   their  repair  services  can   be  incompatible  with
   residential and commercial districts.

   As  a retail use, vehicle dealers are limited to 1 000 m2 of floor space
   in industrial districts.  Also, vehicle  dealers are  permitted only  on
   arterial streets and, to maintain service employment, must have at least
   half of their floor space in repair services.

   The 1 000 m2 limitation on  retail floor area constrains vehicle dealers
   and the requirement  for service space  can be onerous  for auto  rental
   companies or  small dealerships. To enhance retail  and service activity
   on the city's commercial streets, staff recommend removing obstacles for
   vehicle dealers to locate in industrial districts.

   Action: Proposed By-law Revisions [Appendix A, Section 4.7.1(d)]
        It is  proposed that  vehicle dealers be  permitted throughout  the
        I-1,  I-2, and Still Creek  CD-1 districts and  that vehicle repair
        space  no longer  be required.  The Mount  Pleasant I-1  industrial
        district has smaller lots and higher density development than other
        industrial areas. Consequently,  staff recommend that  the 1 000 m2
        size limit  remain in the I-1 district  schedule and be removed for
        the I-2 and Still Creek CD-1 district schedules.

   It is proposed that Vehicle Dealer  remain as a conditional use to allow
   staff to review  proposals for outdoor storage  and display. It is  also
   proposed  that  the maximum  floor area  for  vehicle dealers  remain at
   1 FSR. With full development rights, a vehicle dealer would place upward
   pressure on industrial land prices.

   2.   Create New Definitions.

   a) Paper Manufacturing

   Paper manufacturing is now  included in the By-law under  the definition
   for  "Paper  or Pulp  Manufacturing,"  which  is  considered  a  "heavy"
   industrial use  and is permitted  as a conditional  use only in  the M-2
   district schedule.

   Action: Proposed By-law Revisions [Appendix B, Page 1]
        To allow for clean,  small-scale manufacturing of specialty papers,
        staff  are  proposing  separate  definitions  for  paper  and  pulp
        manufacturing. Paper  manufacturing could then be  permitted in I-2
        and M-2  districts while  pulp manufacturing would  continue to  be
        permitted   in  the   M-2  district.   The  definition   for  paper
        manufacturing does  not distinguish  between large and  small scale
        operations.   Consequently,   it   is   recommended    that   paper
        manufacturing be a  conditional use  to allow staff  to review  its
        suitability for a particular location.

   b) Software Manufacturing

   Computer software manufacturing has created some difficulties because it
   is not defined in the Zoning and Development By-law. 

   Action: Proposed By-law Revisions [Appendix B, Page 1]
        It is  recommended that a definition for  software manufacturing be
        added  which includes  activities,  such as  copying and  packaging
        computer diskettes, that require space for processing, storage, and
        loading.  Software  Manufacturing would  then  be  permitted as  an
        outright manufacturing  use in all   industrial  districts. On  the
        other hand, computer programming,
        which   requires   only  office   space,   is   now  permitted   in
        industrialdistricts as  an accessory  office use  or as  a separate
        General Office use. Provisions for office space are discussed below
        in section 3.

   c) Work Shop

   Many  businesses  require  industrial   space  for  activities  such  as
   electrical,   security,  or   audio/visual  equipment   maintenance  and
   installation.  At  present,  these   uses  are  accommodated  under  the
   definition for "Works Yard or Works Shop", which is a transportation and
   storage use. Because of the potential for noise associated with a "Works
   Yard", these are conditional uses.

   Action: Proposed By-law Revisions [Appendix B, Page 1]
        It is recommended  that a  separate definition for  "Work Shop"  be
        added as  a service use.  It is also  proposed that "Work  Shop" be
        permitted  outright and that the maximum floor space ratio be 3 FSR
        in the I-1,  I-2, and Still Creek  CD-1 district schedules, as  for
        service industrial uses above. "Work  Shop" would also be permitted
        as a service use in all other districts that now permit "Works Yard
        or Works Shop."

   3.   Increase the amount of office space allowed.

   The  City  limits the  amount of  office  space in  industrial districts
   because  there is  ample capacity  for offices  in commercial  areas and
   commercial areas are  better served  by transit. Also,  by zoning  areas
   primarily for industry, industrial uses are protected from uses that can
   place upward pressure on land prices. However,  it is necessary to allow
   some office space to meet the needs of industry.

   During the public review of  the Industrial Lands Strategy, participants
   raised two issues regarding office space in industrial areas:

   a)   Accessory Space: Existing  limits on floor area for  accessory uses
        can restrict business operations; and

   b)   General Office: The  types of office uses  and the amount  of floor
        area that may be allowed are too restrictive.

   a) Accessory Space

   Businesses frequently require space for accessory uses such as office or
   retail.  In M-1 and M-2 districts, accessory  uses are limited to 33 1/3
   percent of the floor area of  the principal and accessory uses combined.
   The  limit in  the I-1  district is  25 percent  of the floor  area. The
   Director of  Planning may  permit  a greater  amount of  floor area  for
   accessory uses as a conditional approval use.

   The Vancouver Industry  Survey, conducted  by the City  in 1993,  showed
   that businesses in industrial areas use, on average, 16 percent of their
   space for  office uses and  4 percent for  retail uses. This  20 percent
   total is close to the limit in the I-1 district schedule. Survey results
   also  show  a  trend  toward  increasing  amounts  of  office  space  in
   industrial developments. 

   Action: Proposed By-law Revisions [Appendix B, Page 2]
        It is recommended that  the amount of accessory space  permitted in
        the  I-1 district schedule be  increased from 25  percent to 33 1/3
        percent of the gross floor area of the principal and accessory uses
        combined.  This is  also the  limit proposed  for the  I-2 district
        schedule.

   b) General Office

   Amount of Floor Area Permitted

   Some  General Office  uses are  permitted in  industrial districts  as a
   separate  principal  use.  Examples  of permitted  general  office  uses
   include  building contractors,  shipping agents,  architects, engineers,
   and computer programmers.

   The maximum floor area for  General Office is 1.0  FSR in the I-1,  M-1,
   and M-2  districts. In M-1  and M-2  districts, General  Office is  only
   permitted  in mixed-use developments and cannot exceed 25 percent of the
   total floor area on a site.

   Action: Proposed By-law Revision [Appendix A, Section 4.7.1(e)]
        For  the new I-2 district  schedule, with a  proposed maximum floor
        space ratio of  3 FSR for industrial uses, staff  recommend raising
        the limit for General Office to 33 1/3 percent of  total floor area
        on a site. This will permit General Office uses to attain the 1 FSR
        limit  on an industrial site that is fully-developed to 3 FSR. This
        change is also proposed for the Still Creek CD-1 schedule.

   Office Uses Not Permitted

   The industrial  district schedules do  not permit the  following General
   Office  uses:   accountants,  lawyers,  or  real   estate,  advertising,
   insurance, travel,  and  ticket  agencies.  Financial  institutions  and
   health care offices are also not permitted.

   The  City has  received requests  to  permit the  above  office uses  in
   industrial districts.  In reviewing these uses, staff are concerned that
   their inclusion could potentially change  the industrial areas to office
   districts.  There is now ample provision  for these sorts of office uses
   in existing commercial districts. Industrial areas have commercial areas
   nearby  where these services  can be found.  Consequently, no additional
   office uses are proposed for industrial districts.

   The  restrictions  on  General  Office use  have,  however,  caused some
   difficulties in  determining which uses are not  permitted. For example,
   notary publics provide legal services but they are not lawyers.

   Action: Proposed By-law Revision [Appendix B, Page 2]
        Staff recommend that notary public be added  to the list of general
        office uses  not permitted in industrial  districts. This amendment
        would  apply to the I-2 district and all other industrial districts
        that do not permit offices for lawyers.

   General Office as a Conditional Use

   It is proposed that General Office remain as a conditional approval use.
   As an outright approval  use, staff would have  difficulty administering
   the By-law for a change of  use to General Office. Cost implications are
   involved since the onus would be on staff to search records to determine
   whether the allowable floor area was being exceeded.

   4.   Reduce height and bulk provisions.

   Residents  living near industrial areas have expressed a desire to lower
   the current height and  bulk limits for new industrial  development. The
   M-1  and  M-2 district  schedules permit  a  maximum building  height of
   30.5 m (100 ft.) and a maximum floor space ratio of 5 FSR.  In contrast,
   nearby  multi-family districts have  much lower height  and bulk limits,
   10.7 m (35 ft.) and  1.5 FSR. Nearby commercial districts have limits of
   12.2 m (40 ft.) and 3 FSR.

   The  only uses now permitted  up to 5 FSR  in M-1 and  M-2 districts are
   manufacturing uses,  transportation and storage uses,  and Wholesaling -
   Class A. However, these uses rarely exceed 1 FSR in industrial areas. 

   Contemporary  industrial  buildings in  the  city  rarely exceed  12.2 m
   (40 ft.)  and 2 FSR, and new industrial development is usually less than
   1 FSR.  Therefore, reducing the maximum  height and bulk  is unlikely to
   constrain new industrial development.

   The City has some experience with reducing height and bulk in industrial
   districts.  In 1988, when the Mount Pleasant industrial area was rezoned
   from M-1  and M-2  to I-1, the  height and bulk  limits were  reduced to
   18.3 m (60 ft.) and  3 FSR. These  provisions are working  well for  the
   area.  For example, the height  limit permits full  development with the
   higher ceiling heights desired for industrial buildings.

   In  1993,  a  staff  review  of  the  City's industrial  areas  found  a
   relatively small  number of  buildings exceeding 18.3 m  (60 ft.) and/or
   3 FSR. Examples are grain elevators and older, warehouse-type buildings.
   Most of these buildings are located near the Burrard Waterfront, an area
   proposed to  remain zoned M-2, and  so would not be  affected by changes
   proposed  for the  I-2  district schedule.  Of  the areas  proposed  for
   rezoning  to I-2,  one  recent development  on  Terminal Avenue  exceeds
   18.3 m and 3 FSR.  This development  consists of two  buildings, one  of
   which is still under construction.

   Action: Proposed By-law Revisions [Appendix A, Sections 4.3 & 4.7.1]
        To  make  industrial  districts  more  compatible with  residential
        areas, staff  are proposing an  outright building height  of 18.3 m
        (60 ft.)  and an  outright building  bulk of 3 FSR  in the  I-2 and
        Still Creek CD-1 district schedules. These  limits are identical to
        those  currently found in the I-1 district schedule and are similar
        to those in nearby commercial districts.

        It is proposed that the I-2 and Still Creek CD-1 district schedules
        allow the  Director  of Planning  or  Development Permit  Board  to
        permit an increase in the maximum height of a building up to 30.5 m
        (100 ft.). This  provision would  allow for taller  buildings where
        they are required and where impacts on residential  areas are not a
        factor. This would also  accommodate existing buildings that exceed
        18.3 m (60 ft.).

        While  provisions are  proposed  to conditionally  permit a  height
        increase  up to  30.5 m (100 ft.),  no provisions  are proposed  to
        permit  an increase in  the maximum  FSR. Therefore,  two buildings
        over 3 FSR  on Terminal Avenue would  become legally non-conforming
        and would be permitted to remain.

   5.   Replace "heavy" industrial zoning with "light" industrial zoning.

   A new  I-2 light industrial district schedule  is being proposed in this
   report.  To  complete the  industrial  zoning  updates,  3  actions  are
   proposed:

   a)   Set conditions of use to control the  storage of hazardous goods in
        I-2 districts;

   b)   Do not permit certain "heavy" industrial uses in I-2 districts; and

   c)   Rezone  industrial  areas, adjacent  to  residential districts  and
        which no longer function for "heavy" industry, to I-2.

   a) Conditions of Use

   Storage of Goods and Materials   Conditions  of use are included in all industrial district schedules and
   are found in most  other district schedules. This section  proposes that
   the  new  I-2  district schedule  have  conditions  for  the storage  of
   hazardous  goods  and  materials,  similar  to  those  in  I-1  and  M-1
   districts.

   The  intent of  the proposed  conditions of  use is  to help make  I-2 a
   "light"  industrial  district schedule  by  reducing  the potential  for
   harmful impacts  from industry. In  contrast, the M-2  district schedule
   can permit the storage of any hazardous good or material.

   The  proposed conditions  of use  should  not affect  transportation and
   storage  uses such as rail  yards or truck  terminals. Also, the outdoor
   storage of goods such as machinery or lumber should not be affected.

   Action: Proposed By-law Revisions [Appendix A, Sections 2.3 & 3.3]
        Staff  are proposing  that  the I-2  district  schedule permit  the
        outdoor  storage of goods and materials as a conditional use. Since
        a  storage yard is now a conditional  use in M-1 and M-2 districts,
        no additional impacts are anticipated due to this condition of use.
        As  a conditional use, staff  can require that  suitable fencing be
        installed.

        Staff  are  proposing  that  the  bulk  storage  of  the  following
        hazardous  goods be prohibited except in cases where they are being
        trans-shipped:

             explosives, fireworks, ammunition, matches, or flares;
             radioactive material; and
             coal tar products or derivatives.

        Storage of small quantities  of the above goods would,  however, be
        allowed. For uses other  than a gasoline station, the  bulk storage
        of  petroleum or compressed gas would be permitted as a conditional
        use. Similar conditions exist in I-1 and M-1 districts.

        Staff are also proposing that the bulk storage of other potentially
        dangerous  or  noxious goods  be  only  permitted inside  buildings
        unless suitably  packaged for  distribution. Making such  storage a
        conditional  use  will permit  staff to  review  changes of  use to
        ensure that safety requirements are met. A similar condition is now
        included in  the  I-1 district  schedule.  The proposed  goods  are
        listed in Appendix A, section 3.3.2.

   Objectionable Impacts

   The City and the  Greater Vancouver Regional District have  by-laws that
   set  standards   for   regulating  objectionable   impacts  of   various
   activities. Examples of  such by-laws  are: the Noise  By-law, the  Sign
   By-law,  the Parking  By-law, the  Health By-law,  the Fire  By-law, the
   Building  By-law,  the  Standards  of  Maintenance  By-law,  the  Untidy
   Premises  By-law, the GVRD Air  Quality Management By-law,  and the GVRD
   Source Control By-law.

   Action: Proposed By-law Revisions [Appendix A, Sections 2.3 & 3.3]
        Staff are  proposing that a statement be  added to the I-2 district
        schedule reminding  businesses of their  responsibility to  operate
        within  the  standards  established  by  City  and  other  relevant
        by-laws.  This statement would be added as a non-regulatory note to
        the conditions of use sections.

        The following statement is proposed:

        "All  uses  listed in  Section 2.2/3.2  of  this Schedule  shall be
        expected to be in accordance with standards established in relevant
        by-laws with respect to impacts due to unsightliness, noise, glare,
        odour, fumes, smoke, dust, effluent, or health or safety hazard."
   b) Heavy Industrial Uses

   The  M-2 district  schedule  permits  a  number of  conditional  "heavy"
   industrial  uses which  the City  is unlikely  to approve  in inner-city
   industrial areas.  Consequently, staff are proposing  that these "heavy"
   industrial uses not be permitted in the I-2 district schedule. With  the
   exception of junk yards,  staff are not aware of any uses,  in the areas
   proposed  for rezoning to I-2, that would  no longer be permitted. Staff
   intend to  "grandfather" any  legally conforming  uses brought to  their
   attention prior to enactment of the I-2 rezoning.

   Industrial uses such as rail yards and truck terminals would continue to
   be permitted in the I-2 district just as they are now in the M-1 and M-2
   districts.  Appendixes  D and  E  show  how  the  M-1 and  M-2  district
   schedules, respectively, would be amended in order to become the new I-2
   district schedule.

   Action: Proposed By-law Revisions [Appendix E, Section 3.2]
        Staff  are proposing  that the  following conditional  uses not  be
        permitted in the I-2 district schedule:

             Animal Products Processing (e.g. processing of animal hides);
             Metal Products Manufacturing - Class A (e.g. raw ore foundry);
             Petroleum Products  or Coal  Products Manufacturing  (e.g. oil
             refinery);
             Pulp Manufacturing (e.g. pulp mill);
             Wood Products Manufacturing - Class A (e.g. milling of logs);
             Grain Elevator;
             Stockyard;
             Waste Disposal Facility (recycling depot is allowed);
             Bulk Fuel Depot (e.g. selling fuel in bulk quantities); and
             Junk   Yard  or   Junk  Shop   (but  not   including  existing
             businesses).

        It  is  also  proposed  that  "Brewing  or  Distilling,"  which  is
        permitted outright in the  M-2 schedule, be made a  conditional use
        in the I-2  district schedule, as  is now the case  in I-1 and  M-1
        schedules.  No  other  outright use  in  the  M-1  or M-2  district
        schedules is proposed to become conditional.

   c) Rezone to I-2

   Background  studies for the Industrial Lands  Strategy included a review
   of land use  in industrial areas.  While most of  the city's  industrial
   lands are still  zoned M-2,  for heavy industry,  heavy industrial  uses
   remain primarily on the  Burrard Waterfront and along the  Fraser River.
   It  is  recommended  that  these  areas  be  retained  for  "heavy"  and
   water-dependent industry.

   Staff are  proposing that  industrial areas  next to  residential areas,
   that are no longer appropriate for heavy industry, be rezoned to I-2. As
   discussed in the previous section, staff are not aware of any uses other
   than  junk yards  that  would  be made  non-conforming  as  a result  of
   rezoning to I-2.  Buildings over  18.3 m (60 ft.) and  less than  30.5 m
   (100 ft.) would still be permitted conditionally. However, two buildings
   over 3 FSR on Terminal Avenue would become legally non-conforming.

   Action: Areas Proposed for Rezoning to I-2
        The following industrial  areas are proposed for  rezoning from M-1
        and M-2 to I-2 (see Figure 1, shaded areas):

             Clark Drive;
             False Creek Flats;
             South East False Creek "let-go" industrial area;
             Grandview/Boundary;
             Marine Drive, north of Kent Avenue and the CPR right-of-way;
             Marine Drive, west of Granville and north of 75th Avenue;
             the lands zoned M-1 on Bridgeway Street; and
             the lands zoned M-1 on Semlin Drive and Wall Street.

        In addition, the CD-1 area  located at the north end of  the Knight
        Street  bridge (CD-1 (6) 1300-1598 S.E. Marine Dr.) is proposed for
        rezoning  to I-2.  This  area was  zoned  CD-1 to  facilitate  land
        assembly  for  bridge  access  ramps.  The  area  now  permits  all
        industrial uses and would be better served by the I-2 zoning.

        Glenayre  Electronics,  has a  CD-1  zone  covering their  existing
        operation  [CD-1  (166)  1570   Kootenay  Street].  They   recently
        purchased  the adjacent M-2 site (1590 Kootenay Street) in order to
        expand their facilities.  Their development application for the new
        building,  which they  expect  to submit  in  July, would  then  be
        processed  under the existing M-2 zoning.   It is proposed that the
        two sites be included in the rezoning to I-2 and then consolidated.

        Amendments  are proposed to the Still Creek CD-1 (249) By-law which
        was  adapted  from the  M-2 district  schedule  and is  designed to
        protect Still Creek from encroachment. The proposed changes are the
        same as those for I-2, including provisions for  service industrial
        uses, office uses, and height and bulk limits. These amendments are
        shown in Appendix C.

        The False Creek Flats Preliminary Concept Plan  recommends that the
        Flats be rezoned  from M-1 or  M-2 to I-2.  The rail and  transport
        facilities in the area provide an important back-up service to Port
        activity on the Burrard  Waterfront. Railway, trucking, and storage
        uses  would still be permitted as they  are under M-2 zoning. Also,
        the  conditions of  use proposed  above for  I-2 should  not affect
        goods transport.  As  the  Flats  continues  to  be  developed  for
        city-serving industry, further rezoning can occur, if needed.

        South East False  Creek was approved as a let-go industrial area in
        1990, and  is about to  be planned  as a residential  community. We
        could  defer  any action  on  this area  pending the  outcome  of a
        planning review.  On the other  hand, during the  planning process,
        applications can be  made for outright uses to  the full height and
        floor  area permitted  in  the M-2  district. Consequently,  in the
        interim, staff recommend rezoning this area to I-2.

        The  Industrial   Lands  Strategy  proposed   new  highway-oriented
        retail/industrial  zoning  along  the Marine  Drive  and  Grandview
        Highway  frontages. Rezoning these areas to I-2 will not preclude a
        future rezoning to other uses.

   Areas to Remain Zoned M-2

   Industries such as the  port, grain elevators,  and saw mills depend  on
   the water  and rail  access  provided by  the  areas along  the  Burrard
   Waterfront  and the  Fraser  River. The  Powell  Street industrial  area
   contains heavy industry such as metal foundries and provides port backup
   activities.  Staff  recommend that  all  industrial  lands fronting  the
   Fraser  River as far  north as Kent  Avenue, and all  the Port lands and
   Port back-up  lands extending as far south as the lane north of Hastings
   Street remain zoned M-2 and CD-1.

   Hastings Street "Let-Go" Industrial Area

   It is proposed that  the Hastings Street "let-go" industrial  area, from
   Heatley  Street to  Semlin  Drive, remain  zoned  M-1 until  a  planning
   program  can be completed. Staff  have determined that  the proposed I-2
   zoning  is   not  appropriate  for  the  Hastings  Street  area  because
   development under the proposed I-2  zoning could preempt future rezoning
   for housing.

   6.   Facilitate Industrial Development.

   During  the  public  consultation  process,  property  owners,  business
   operators, and  developers expressed concerns  regarding difficulties in
   developing industrial land in Vancouver. This section proposes a parking
   study to help facilitate change of use. Other concerns are presented for
   Council's information.

   a) Parking Study

   A  change of  use in  inner-city industrial areas  can be  difficult. In
   particular, when the  use changes  from storage warehouse  to any  other
   industrial use, such as manufacturing or wholesaling, additional parking
   is  required.  The change  of use  could create  a higher  generation of
   parking demand in such cases, though the difference varies case by case.
   In  inner-city  industrial  areas,  it is  often  difficult  to  provide
   additional  on-site  parking. As  a  result, development  permits  for a
   change of use may not be approved  and portions of a building can remain
   vacant for a period of time.

   The parking standard for storage warehouse is one  space for each 185 m2
   (1,991 sq.ft.)   of   gross   floor  area.   Parking   requirements  for
   manufacturing,  wholesaling,  and  service  industrial  uses  are  about
   double, one space for  each 93 m                                                           2 (1,001 sq.ft.) of gross floor area. At
   present, the Parking  By-law exempts  two spaces (or  10%, whichever  is
   greater) of parking for changes of use.  However, without further relief
   from parking requirements, otherwise desirable changes of use  are being
   rejected.

   Action: Undertake a Parking Pilot Project
        As  a first  step  toward facilitating  change  of use,  staff  are
        proposing  a parking  pilot  project  for  the Mount  Pleasant  I-1
        district. It is proposed that a change of use to manufacturing uses
        be  permitted  on  a  trial basis  in  existing  buildings  without
        requiring  additional  parking,  as long  as  the  increase in  the
        calculated requirement does not exceed four spaces for  every 15.24
        m (50 ft.) of  site frontage. This would cap  potential shortfalls,
        theoretically,  at  about  80  spaces per  block.    Realistically,
        cumulative  shortfalls  over time would
        be much less than  this. Mount Pleasant has  been selected for  the
        pilot project because  it is well served by public  transit and any
        parking overflows are unlikely to impact residential areas.

        The  increased  parking exemption  can  be  implemented through  an
        Administration   Bulletin  under   section   3.2.1  (dealing   with
        relaxations)  of the  Parking  By-law. Staff  will monitor  parking
        impacts  for  one year  and then  report the  results of  the pilot
        project  to  Council. Depending  on  the  outcome, changes  to  the
        Parking  By-law could  be recommended  following an  examination of
        parking needs in  other industrial areas.  If the results  indicate
        that parking  requirements should  not be reduced,  current parking
        standards will be reinstated in the Mount Pleasant industrial area.
        Any change of use permitted  during the pilot project would not  be
        required to provide additional parking. However, subsequent changes
        of use would be subject to the provisions of the Parking By-law.

   b) Change of Use Process

   People consulted during  the preparation  of this report  said that  the
   process of obtaining approval for a change of use is often confusing and
   overly  time-consuming.  Stakeholder  groups  such  as  NAIOP  (National
   Association of  Industrial and Office Properties)  expressed an interest
   in  sharing  their  ideas  for  improving  the  development  application
   process.  Their concerns can  be considered through  the Development and
   Building Regulation Review (DBRR) which is underway.

   c) Business Advocate

   Many of those applying for permits in the city own small businesses, are
   infrequent  visitors to City Hall, and  are not familiar with the Zoning
   By-law and  other regulations. Consequently, they  can become frustrated
   with the permit application process.

   The City  has in the  past had a staff  person who acted  as a "Business
   Advocate."  The responsibilities  of  this  position included  assisting
   business operators  through  the  development  application  process  and
   ensuring that regulations are applied fairly and consistently. A  number
   of people have requested  that this service be reinstated.  This request
   will be referred to the Development and Building Regulation Review team.

   d) Property Taxes

   People commenting on  the proposed industrial zoning updates continue to
   remind staff that  businesses in Vancouver pay  a disproportionate share
   of city  taxes. There are  also concerns  that industrial tax  rates are
   higher than commercial tax  rates, and that businesses in  Vancouver pay
   higher property taxes than businesses elsewhere in the Lower Mainland.

   e) Comprehensive Industrial Developments

   Several landowners expressed concerns  that zoning schedules which limit
   the amount of office and retail space on a "site" basis do not work well
   on very large sites being considered for "urban industrial parks." It is
   difficult to  cover all possible instances or combinations of uses in an
   outright  schedule  like  I-2.  For  large-site  redevelopment,  a  CD-1
   rezoning may be a more appropriate way to customize uses.

   CONCLUSION

   The changes proposed  to be referred to  public hearing are  intended to
   make the industrial schedules work better for contemporary industry. The
   effect of these changes will be to:

   -    Expand  the   definition  of  industry  to   include  more  service
        industrial  uses. This  will help  intensify the use  of industrial
        land   by   encouraging   a   greater   mix   of   industrial   and
        quasi-industrial uses in  the same  building. It  will also  enable
        some low-intensity uses, such as vehicle dealers, presently located
        in  commercial areas, to  move into industrial  areas and therefore
        intensify the use of commercial districts;
    
   -    Clarify the  provisions  for office  uses in  industrial areas  and
        ensure that flexibility is applied where appropriate;

   -    Help  ensure that  new  industrial development  is compatible  with
        adjacent residential districts; and

   -    Explore solutions  to accommodating  changes of use  in inner  city
        industrial areas by reducing parking requirements.

                                     * * *

        APPENDIX G:


        1.   Discussion Paper on Updating Industrial Zoning

        2.   Comments on Proposed Industrial Zoning Changes



          (Limited Distribution - on file in the City Clerk's Office)