POLICY REPORT DEVELOPMENT AND BUILDING Date: July 12, 1996 Dept. File No. 96014 LC TO: Vancouver City Council FROM: Director of Land Use and Development SUBJECT: Proposed Rezoning of 2750 Granville Street (Stanley Theatre) RECOMMENDATIONS A. THAT the application by the Stanley Theatre Society to rezone the site at 2750 Granville Street [Lots 3-5, Block 391, DL 526, Plan 991] from C-3A Commercial District to CD-1 Comprehensive Development District to provide a heritage density bonus available for a density transfer for the retention of the existing Stanley Theatre be referred to a Public Hearing, together with: (i) plans received July 12, 1996; (ii) draft CD-1 By-law provisions, generally as contained in Appendix A; and (iii) the recommendation of the Director of Land Use and Development to approve the application, subject to conditions contained in Appendix B; B. THAT a by-law to designate the Stanley Theatre building (2750 Granville Street) as protected heritage property, and provide for its addition to Schedule "A" of the Heritage By-law, be referred to a Public Hearing; and C. FURTHER THAT the Director of Legal Services be instructed to prepare the necessary by-laws for consideration at the Public Hearing, including a consequential amendment to the Sign By-law to establish sign regulations for this CD-1 in accordance with Schedule "B" (C-3A) and an amendment to Schedule "A" of the Heritage By-law. GENERAL MANAGER'S COMMENTS The General Manager of Community Services RECOMMENDS approval of the foregoing. COUNCIL POLICY Relevant Council policies for this site include: Transfer of Density Policy and Procedure (adopted January 25, 1985) makes provision for the transfer of density from heritage sites to aid in their preservation. Heritage Policies and Guidelines (adopted May 13th and September 23, 1986) require that legal designation be a prerequisite to accepting certain bonuses and incentives. - On January 19, 1995, Council approved that: (a) the heritage bonus provisions of the Heritage Policies and Guidelines be extended to the Stanley Theatre site at 2750 Granville Street; (b) approval of any heritage bonus for the Stanley Theatre be contingent upon the designation of the building as protected heritage property, noting that preservation of certain features of the interior of the building are eligible for bonusing if they are restored, visible and listed as part of the designation; and (c) the Arts Club of Vancouver Society and Vancouver TheatreSports League be advised to submit a rezoning application for the Stanley Theatre site for the purposes of: preserving the building as a theatre venue; and seeking a transfer of density to other sites, consistent with the Transfer of Density Policy and Procedure, of an amount of density not to exceed 4 087.6 m2 (44,000 sq. ft.). PURPOSE AND SUMMARY This rezoning application is a consequence of a proposal to preserve, restore and designate the Stanley Theatre at 2750 Granville Street (see map next page). The proposed rezoning would preserve the building, which is listed as an 'A' category building on the Vancouver Heritage Register, as a venue for two live theatres and would permit a density of 4.53 FSR (3.00 FSR permitted under C-3A and 1.53 FSR heritage bonus density), providing 4 087.6 m2 (44,000 sq. ft.) of allowable density avail- able for future sale and transfer. This approach is similar to that used for the former B.C. Hydro building at 970 Burrard Street and the former Vancouver Public Library Main Branch building at 750 Burrard Street. Staff support this application as the proposed rezoning would promote the preservation and re-use of a landmark building which has been highly rated for its architectural merit and its cultural value as one of the last big screen movie houses in the City, and would retain the building as a cultural and entertainment resource. Staff recommend that the application be referred to a Public Hearing, with a recommendation that it be approved subject to conditions. MAP GOES HERE DISCUSSION Transfer of Density: This rezoning is proposed to allow a transfer of density which would assist in the preservation and restoration of the Stanley Theatre. The application is unusual as a result of the low floor space ratio (FSR) of the Stanley Theatre relative to the high cost of the land, combined with the high cost of restoration of the building for cultural use. Real Estate Services has determined that for the project to be economically viable all of the density otherwise permitted under C-3A zoning (3.00 FSR) plus an additional 1.53 FSR should be made available for sale for transfer away from the site. On January 19, 1995, Council resolved that the building is eligible for a heritage density bonus and could seek a transfer of density of up to 4 087.6 m2 (44,000 sq. ft.), which is the total 4.53 FSR as supported by Real Estate Services. The transferable density would be available for transfer to one or more recipient site(s) within the Central Area, noting that the Development Permit Board now has the authority to permit up to a 10 percent increase in density on sites receiving heritage density. Planning staff note that while this is an unusual case which would permit the transfer of all the allowable density plus a bonus from a heritage donor site, the rezoning is nevertheless supported because the Stanley Theatre is considered a significant and well-loved heritage landmark and the economics require the proposed amount of transferable density. A condition of rezoning approval (Appendix B) is also recommended, limiting the maximum density on the site to 1.81 FSR, in the event that the building is destroyed. Heritage Designation: Staff recommend the Stanley Theatre building be designated as a condition of rezoning approval. For additional information on heritage designation, refer to Appendix C. CONCLUSION Staff support the proposed rezoning of the Stanley Theatre to provide a heritage bonus that may be transferred away from the site as it will promote the preservation of a landmark heritage building. Staff further recommend that the Stanley Theatre building be designated as a condition of rezoning. Staff recommend that the rezoning application be referred to a Public Hearing with a recommendation from the Director of Land Use and Development to approve it, subject to draft CD-1 By-law provisions generally as shown in Appendix A, and to proposed conditions of approval as listed in Appendix B. * * * * * APPENDIX A DRAFT CD-1 BY-LAW PROVISIONS 2750 Granville Street Uses Theatre. Restaurant - Class 1. Accessory Uses customarily ancillary to the above uses. Floor Space Ratio The maximum floor space ratio will be 4.53, generally based on the calculation provisions of the C-3A District Schedule. Height The maximum height will be 12.9 m (42 ft.). Off-street Parking, Loading and Bicycle Parking Off-street parking, loading and bicycle spaces must be provided, developed and maintained in accordance with the Parking By-law, except that the building existing on the site as of (date of enactment) will not require provision of any parking, loading or bicycle spaces. APPENDIX B PROPOSED CONDITIONS OF APPROVAL (2750 Granville Street) (a) THAT the proposed form of development for 2750 Granville Street (Stanley Theatre) be approved by Council in principle, generally as prepared by Waisman Dewar Grout Carter Inc. Architects/Planners, and stamped "Received City of Vancouver Planning Department, July 12, 1996". (b) THAT prior to enactment of the CD-1 By-law, and at no cost to the City, the registered owner shall: (i) execute a legal agreement satisfactory to the Director of Planning and the Director of Legal Services, limiting development on the site to a maximum of 1.81 FSR as defined in the CD-1 By-law; (ii) execute a legal agreement satisfactory to the Director of Legal Services, to provide that the density bonus of 4 087.6 m2 (44,000 sq. ft.) shall accrue entirely to the Stanley Theatre Society; and (iii) designate the building at 2750 Granville Street (Stanley Theatre) under Schedule 'A' of the City s Heritage By-law, including those interior fixtures and features as determined by the Director of Planning and the Stanley sign and marquee. [NOTE: Prior to enactment of the CD-1 By-law, the registered property owner will provide a letter waiving future compensation demands for this designation.] APPENDIX C Page 1 of 3 ADDITIONAL INFORMATION Site and Surrounding Area: The site at 2750 Granville Street includes three legal parcels with a total area of 903 m2 (9,720 sq. ft.), and is located on the east side of Granville Street between West 11th and 12th Avenues. The site is zoned C-3A which permits a maximum height of 9.2 m (30 ft.) and an FSR of 3.00. The existing building has a density of 1.57 FSR. The area to the north, south and west of the site along Granville Street is zoned C-3A. The majority of buildings range from one to three storeys in height and include retail, office and service uses. Areas to the east and west of the Granville Street corridor are zoned RM-3 and developed with low- and high-rise multiple dwellings. Background: The Stanley Theatre building was constructed as a movie theatre in 1930. In the Spring of 1991, the owner, Famous Players (now Paramount) put the building up for sale. Shortly thereafter the City received a proposal to convert the building to retail use. Although Council endorsed the proposed change of use, the proposal did not proceed and the building has been vacant since the theatre was closed in October, 1991. Since 1993, staff have been dealing with proposals by the Arts Club Theatre and Vancouver TheatreSports, two non-profit organizations, to reuse the Stanley Theatre for live theatre productions. In January 1995, Council approved incentives for preserving the building which included a heritage density bonus, density transfer and a capital grant of $100,000. Proposed Development: The applicant has received a development permit to convert the movie theatre into two live theatres and a restaurant. The majority of the main floor space will be for the Arts Club Theatre s Revue Theatre, with the remainder of the main floor being used for a lobby and a coffee bar. The TheatreSports space will be upstairs. The building s FSR will increase to 1.81 due to the addition of floor area on the mezzanine level. Parking and loading requirements have been relaxed because the existing building, which covers 100 percent of the site, provides no on-site parking. A height relaxation was requested on July 12, 1996 to allow a building height of up to 12.9 m (42 ft.) to permit the addition of a fly tower above the existing stage. APPENDIX C Page 2 of 3 Heritage Designation: Staff recommend, as a condition of rezoning approval, that the Stanley Theatre building be designated under the City s Heritage By-law. As a result of recently enacted provincial legislation and amendments to the Vancouver Charter, it is now necessary to hold a Public Hearing for any heritage building proposed to be designated. The legislation also requires staff to include the appropriate assessment of the building in terms of heritage value, compatibility of conservation with lawful uses, condition and economic viability of the property, and the need for financial and other support for conservation. (a) Heritage Value: The Stanley Theatre was built in 1930 for the Granville Theatre Company and is one of the City's landmark buildings. Designed by architect H. H. Simmonds, the Stanley is regarded as a very good example of the Art Deco style. Although the theatre was originally built as a neighbourhood theatre, in later years it developed into a regional theatre, drawing patrons from throughout the Vancouver region. It is listed in the A evaluation category on the Vancouver Heritage Register, rating highly for its architectural merit and its cultural value as a big screen movie house in the city. The building's heritage value is evident in both its exterior and interior finishes and detailing. Evidence of Mission and Moorish design motifs are visible in the arches and central tower which embellish the facade. The arch motif is repeated along the walls within the theatre and in the foyer. Art Deco ornamentation is continued in the illuminated ceiling dome, with incised geometric detailing, and the gilded shells, containing recessed lights, which extend along the walls above the arches within the theatre. Protection of the interior features will make the Stanley Theatre the first designated heritage interior in Vancouver. Other notable features of the building are the vertical "Stanley" sign added in 1940 and the addition of the current marquee in the 1950s. (b) Compatibility of Conservation with Lawful Uses: The proposed uses of theatre and restaurant - Class 1 are consistent with the uses permitted in the C-3A District and a Development Permit (No. DP217712) has been approved for the uses in this proposal. APPENDIX C Page 3 of 3 (c) Condition and Economic Viability: The building is in good condition considering that it has been vacant for about five years. The work approved in the Development Permit will restore the building facade (retaining the Stanley sign and marquee) and upgrade the building for the two-theatre usage with related seismic, mechanical, elevator and acoustical upgrading, while retaining many original decorative features of the interior. The theatre use is economically viable with the proposed density bonus, the City s capital grant of $100,000 and a contribution of $2.6 Million from the Canada/B.C. Infrastructure Works Program. (d) Support Required to Ensure Conservation: The requested bonus density of 4 087.6 m2 (44,000 sq. ft.) would compensate for heritage restoration and designation of the existing building and, according to the Manager of Real Estate Services, can be justified by the development economics. Staff recommend, as a condition of rezoning approval, that the bonus density be dedicated to the Stanley Theatre Society, who will be undertaking the restoration of the building, instead of the property owner, Paramount Communications. The property owner is agreeable tothis condition, and ultimately, the property will be owned by the Society. The owner has also agreed that, in exchange for designation, the FSR bonus is considered to be full and fair compensation. The letter waiving further compensation is to be submitted to the Director of Legal Services, prior to enactment of the CD-1 By-law, if the rezoning application is approved at Public Hearing. Social and Environmental Implications: There are no implications with respect to the Vancouver Children's Policy or Statement of Children's Entitlements. The proposed rezoning neither contributes to nor detracts from the objective of reducing atmospheric pollution. APPENDIX D COMMENTS FROM THE PUBLIC, REVIEWING AGENCIES, AND THE APPLICANT Public Input: On May 23, 1996, staff mailed a notification letter to 217 surrounding property owners. An information sign was installed on the site on June 3, 1996. Residents and nearby property owners have telephoned (2 calls), written (2 letters) or visited (3 visitors) staff at City Hall with questions about the application. The major question has been related to clarification about the transfer of density, such as the where the density may be transferred. One resident was concerned about a loss of safety due to increased traffic, parking and street people in the area. General Manager of Engineering Services Comments: The General Manager of Engineering Services has no objections to the proposed rezoning. Applicant's Comments: The applicant agrees with the contents of this report. "The Stanley Theatre Society, the applicant, is structured so that its members will be representatives of the Arts Club and Vancouver TheatreSports League, both not-for-profit societies. The Arts Club, which was formed in l964, operated three stages for approximately eight years, losing its original site on Seymour Street in 1991 when the building was demolished for development. The Stanley Theatre site allows the Arts Club to again operate three stages. The Stanley stage will offer a unique venue which will establish a high calibre "Broadway West" ambience in Vancouver - presenting musicals, comedies, mysteries and popular works originating on Broadway and in London's West End, highlighted by premieres from world class Canadian talents. The Vancouver TheatreSports League has been a prominent presence in the theatre community since its inception in l980. The organization is dedicated to the growth and exploration of exceptional improv-based work for the purpose of challenging and inspiring the community. TheatreSports activities include school tours, workshops, benefits and corporate events, as well as operating a theatre 52 weeks a year. Through these activities the organization is directly exposed to over 150,000 people per year. The Stanley Theatre represents a very important factor to the survival of the Vancouver TheatreSports League. After losing its home, in the heart of the Robson Street district due to high overhead, the Stanley Theatre will become an affordable and unique venue, as TheatreSports' new home." APPENDIX F APPLICANT AND PROPERTY OWNER INFORMATION APPLICATION BY Stanley Theatre Society PLANS BY Waisman Dewar Grout Carter Inc. Architects/Planners PROPERTY OWNER Paramount Communications (Canada) Limited DEVELOPER Stanley Theatre Society SITE INFORMATION AND STATISTICS STREET ADDRESS 2750 Granville Street LEGAL DESCRIPTION Lots 3-5, Bl 391, DL 526, Pl 991 SITE AREA 903 m2 (9,720 sq.ft.) WIDTH 24.7 m (81 ft.) DEPTH 36.6 m (120 ft.) DEVELOPMENT STATISTICS DEVELOPMENT PROPOSED PERMITTED UNDER DEVELOPMENT EXISTING C-3A ZONING MAXIMUM FLOOR SPACE 3.00 Stanley Theatre: RATIO 1.81 Available for transfer: 4.53 MAXIMUM HEIGHT 9.2 m (30 ft.) 12.9 m (42 ft.) PARKING AND LOADING 53 parking spaces 0 spaces and l loading space