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)