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