SUPPORTS ITEM NO. 3 P&E COMMITTEE AGENDA NOVEMBER 28, 1996 POLICY REPORT DEVELOPMENT AND BUILDING Date: November 6, 1996 Dept. File: PEM-95017 TO: Standing Committee on Planning & Environment FROM: Director of Land Use & Development SUBJECT: Proposed Rezoning of 6691-6699 Victoria Drive RECOMMENDATION THAT the application by Edward de Grey, Architect, to rezone the site at 6691-6699 Victoria Drive (Lots 24 to 26, Block 2, D.L. 735, Plan 3421) from RT-2 to CD-1, for a three-storey, mixed-use development providing commercial floor area at grade and dwelling units above, be REFUSED. GENERAL MANAGER'S COMMENTS The General Manager of Community Services RECOMMENDS approval of the foregoing. COUNCIL POLICY - RT-2 Two-Family Dwelling District Schedule and RT-2 Multiple Dwelling Guidelines, - C-2 Commercial District Schedule, and - RS-1 and RS-1S One-Family Dwelling Districts Schedule. PURPOSE AND SUMMARY This report assesses an application to rezone the three lots at 6691-6699 Victoria Drive from RT-2 to CD-1, to allow a mixed-use, three-storey development containing commercial uses at grade and dwelling uses above. (Additional information is provided in Appendix A, plans in Appendix D and statistical information in Appendix E.) Planning staff recommend that the application be refused, for the following reasons: - there is no acceptable justification for increasing commercial potential in this area, - the proposed floor space ratio and residential unit density are too high for this location, - the proposed form of development is incompatible with the adjoining RS-1S and RT-2 Districts, and - neighbours who telephoned, or came in to look at the plans of proposed development, did not indicate any support for the application but expressed various concerns about it. The application and drawings reviewed in this report were submitted in April, 1995 by Kenneth King, Architect who requested in September, 1995 that the application be put on hold while he and the property owner considered staff s non-support. The application is now represented by Edward de Grey, Architect, who wishes to significantly revise the plans (see Background information in Appendix A and Applicant s Comment in Appendix B). However, staff are reluctant to assess a revised application from Mr. de Grey as it would still propose commercial floor space at grade and because it would have to be reviewed anew, as if a new application, but with no fee being collected to recover staff costs. Because Planning staff recommend that the application be refused, draft CD-1 By-law provisions and conditions of rezoning approval have not been prepared for referral to a Public Hearing. DISCUSSION Land Use As the city generally has an over-supply of commercially-zoned land, staff advised the original applicant, and earlier enquirers, that a rationale for additional commercially-zoned land in this neighbourhood would have to be demonstrated. The original applicant provided information and analysis about the adjoining C-2 commercial district and stated that the proposed commercial space is "supported by population estimates and the review of existing and potential development". (see Further Discussion in Appendix B) Staff concluded that there was not a good case for increasing the potential for commercial space in this district: - The observed 7.6 percent vacancy rate for grade-level commercial space is a healthy one. The additional commercial floor area would almost double that rate, to 13 percent. This would likely delay the assembly and redevelopment of under-utilized or redevelopable sites in the C-2 District. - The original applicant identified redevelopment potential on under-utilized sites and sites with buildings in poor condition. However, staff think the two gasoline station sites are also redevelopable. On this basis there is a total potential to increase grade-level commercial space in this area by about 25 percent, without any rezoning required. The available data indicate there is vacant space and redevelopment potential for almost three times as much grade-level commercial space as the application proposes. This should be more than adequate for a neighbourhood whose population has been growing at a rate of just 1.2 percent per year. Therefore, no public benefit would be achieved by enlarging the local-serving commercial district in this area. Density and Form of Development The proposed FSR of 1.7 is almost three times the maximum (0.60) in the adjoining RT-2 and RS-1S Districts. Staff have concluded that this is unacceptable, for at least two reasons: - The proposed development would have significantly more bulk than buildings in the adjoining RS-1S and RT-2 Districts, resulting in a form of development which is not in scale and character with surrounding residential buildings. - The proposed development would not maintain the open space character of the surrounding neighbourhood (the site coverage would far exceed the maximum permitted in the RT-2 District and most of the undeveloped site area would be used for surface parking rather than providing landscaped open space). The Urban Design Panel did not support the application because it "had serious concerns about the form of development and the density being proposed". The Panel "felt that a reduction in density would lead to a more interesting form that would be more responsive to the residential neighbourhood". The original applicant stated that rezoning would complement adjacent retail and service uses and consolidate the blockface, that a three- or four-storey building would be more in scale with the width of the street and with adjoining C-2 zoning, and that proposed development could more properly interface with the blank wall of adjoining development. Staff fail to see how the proposed development addresses the fact of a 0.76 m (2.5 ft.) sideyard on the abutting site to the north. More importantly, correcting a mid-block C-2/RT-2 zoning boundary is a questionable benefit and does not outweigh the potential negative impacts of proposed development. Mid-block zoning boundaries are not unusual in the city and result in a variety of mid-block changes in land use, density and building height. There is no unique factor on this site to justify extending the commercial district to the south end of the block. Proposed Revisions The new applicant requests that Council refer the application to a Public Hearing with the following revisions that he proposes to make beforehand: - reduction in commercial floor area (amount unspecified), - reduction in FSR (amount unspecified), - revision of form of development according to Urban Design Panel advice, and - provision of a dwelling unit with modifications to accommodate persons with special needs . Both the original applicant and then the new applicant requested an opportunity to revise the application after the staff report was completed. Staff did not support these requests because the revisions would not address the issue of increased commercial potential. Furthermore, a revised application would have had to be reviewed anew, as if a new application, including renotification of surrounding neighbours and a review by the Urban Design Panel but with no fee being collected to recover staff costs. If Council is prepared to consider some commercial floor space on this site, staff suggest that the applicant should submit a new application which staff would then process in the usual manner. (Note: A new application which proposes little or no commercial space, a significantly reduced floor space ratio, increased open space, and an adaptable dwelling unit would be sufficiently different from the present application that Council would have the legal authority to consider it within a year s time of its refusal of the present application.) CONCLUSION Planning staff do not support the commercial use, density and form of development proposed in this rezoning application and therefore recommend that it be refused. If Council wishes to consider a revised application, as requested by the present applicant, staff suggest that Council refuse the present application, as recommended in this report, and that it indicate that it is prepared to consider a wholly new rezoning application by the present applicant. * * * * * APPENDIX A Page 1 of 2 ADDITIONAL INFORMATION Background An earlier rezoning report was completed and given to the original applicant for comment on September 8, 1995. The application was subsequently on hold for more than a year awaiting an applicant comment that was received on October 16, 1996 (preliminary comments were received on October 1, 1996). In April 1996, the original applicant and the property owner met with staff to propose some revisions to the application, but with commercial space retained at grade. A Retail and Occupancy Study was also submitted in an effort to provide further support of the proposed commercial space. After a review of this study, staff concluded there was no basis for changing the conclusion and recommendation of the 1995 staff report. (see Further Discussion in Appendix B) In August 1996, staff were informed that another architect would take over the application. This was confirmed in a letter dated September 24, 1996 from Edward de Grey, Architect, and a letter dated October 23, 1996 from the original applicant, Kenneth E. King, Architect. Site, Surrounding Zoning and Development The site consists of three lots, each being 7.9 m (26 ft.) by 34.4 m (113 ft.) in size, with a total width of 23.8 m (78 ft.). The site is developed with two one-family dwellings. The site is at the north-west corner of Victoria Drive and East 51st Avenue. It abuts a C-2 district which extends north, to East 48th Avenue on the east side of Victoria Drive and East 47th Avenue on the west side (see map on page 3 of Appendix B). The surrounding area is generally zoned RS-1 east of this corridor, and RS-1S to the west. South Vancouver Neighbourhood House is located at 6470 Victoria Drive. Gordon Park is located one block to the west between East 49th Avenue and East 53rd Avenue. The abutting site to the north, which occupies the balance of the block-face, was rezoned from RT-2 to C-2 in 1959 and developed with a two-storey building containing commercial uses at grade with dwellings above and surface parking at the rear. This development has provided a 0.76 m (2.5 ft.) sideyard setback from the south property boundary which may need to be gated for crime prevention purposes if development on the proposed rezoning site does not provide a setback from its north property boundary. Proposed Development A three-storey, mixed-use development is proposed, containing commercial floor area at grade for retail, service, and office uses and 12 dwelling units in two upper storeys. A building height of 9.2 m (30 ft.) is proposed and a floor space ratio (FSR) of 1.7. Underground and surface parking would provide 31 parking spaces. APPENDIX A Page 2 of 2 About 36 percent of the total floor area, or 509.4 m2(5,483 sq. ft.), would be for commercial uses. This floor space would be oriented to Victoria Drive while the dwelling units on the upper two floors would have their street entrance on East 51st Avenue. The commercial floor area would be occupied by the property owner who presently operates two retail premises in the adjoining development, Teemway Seafood Co. and Teemway Meat Market Ltd. at 6645 and 6653 Victoria Drive respectively. A 2.43 m (8 ft.) sideyard setback is proposed on East 51st and a 6.1 m (20 ft.) setback at the rear. The rear yard would provide surface parking as would a portion of the sideyard near the lane. No sideyard from the north property line is proposed although the adjoining development has a 0.76 m (2.5 ft.) sideyard. Proposed Revisions In April 1996, the original applicant and property owner met with staff to propose some revisions to the original application: commercial floor area reduced to 371.6 m2(4,000 sq. ft.), FSR reduced from 1.7 to 1.5, form of development revised according to Urban Design Panel Advice, including a reduction in surface parking and increased underground parking so as to provide increased open space, and provision of an assured rental, accessible/adaptable dwelling at grade for the physically disabled (entry on East 51st Avenue). As these proposed revisions still included commercial floor area and did not address other staff concerns described in the 1995 report, staff were not prepared to reassess the application. In October 1996, the new applicant requested an opportunity to make the following revisions: reduction in commercial floor area (amount unspecified), reduction in FSR (amount unspecified), revision of form of development according to Urban Design Panel and staff advice, and provision of a dwelling unit with modifications to accommodate persons with special needs . Staff did not support this request because the proposed revisions would not address the issue of increased commercial potential and because a revised application would have had to be reviewed anew, as if a new application, including renotification of surrounding neighbours and a review by the Urban Design Panel but with no fee being collected to recover staff costs. * * * * * APPENDIX B Page 1 of 4 FURTHER DISCUSSION: COMMERCIAL SPACE Commercial Feasibility Study (1995) To assess the potential impact of the proposed rezoning on the adjoining commercial district, the original applicant was requested to submit information and analysis which justified a need for additional commercial space in this neighbourhood. Staff reviewed the material submitted with the original rezoning application and make the following observations. 1. Existing Commercial Space: The original applicant identified 9 935 m2 (106,943 sq. ft.) of commercial floor area in the small C-2 commercial strip centered at East 49th Avenue and Victoria Drive (see map on page 3 of this Appendix). As shown in the table below, most of the space is occupied by retail uses. Supply of Commercial Space Retail/Service 7 026.1 m2 (75,630 sq. ft.) 70.7 % Office/Other 2 253.0 m2 (24,252 sq. ft.) 22.7 % Vacant 655.9 m2 ( 7,060 sq. ft.) 6.6 % TOTAL 9 935.0 m2 (106,942 sq. ft.) 100.0 % Most of the commercial space (87 percent), or 8 656.6 m2 (93,181.9 sq. ft.), is provided at grade. About 43 percent of the office space, or 974.6 m2 (10,491.0 sq. ft.), is provided at grade. South Vancouver Neighbourhood House and Elizabeth Fry Society Family Support Services are included in the estimate of office space, occupying 782.3 m2 (8,421 sq. ft.) or 35 percent of the office space in this area. Most of the commercial space consists of small premises providing convenience retail or services catering to the daily needs of surrounding residents. These include pharmacy, grocery stores, produce stores, delicatessen, barber shop, beauty salon, coffee shop, restaurant, drycleaning, and video store. Also included are two gasoline stations and a large, 1 384 m2 (14,900 sq. ft.), Value Village second-hand store which serves a wider city area. 2. Existing Commercial Potential: The original applicant identified 655.9 m2 (7,060 sq. ft.) of the commercial space at grade as being vacant and available for lease. This is 7.0 percent of the total commercial floor space at grade in this C-2 District. He also identified two sites which have good potential for redevelopment, enabling a net increase of 800 m2 (8,611 sq. ft.) in grade-level commercial floor space. APPENDIX B Page 2 of 4 The total amount of vacant space and redevelopment potential identified by the original applicant is 1 455 m2 (15,672 sq. ft.), representing about 16.8 percent of existing grade-level commercial floor area. This is almost three times as much floor space as the rezoning application proposes. 3. Additional Potential Identified by Staff: Staff have identified some additional potential. First, office uses at grade might be relocated to upper stories. Second, there are two gasoline service station sites in the district, at 49th & Victoria, which could be redeveloped. Potential Vacant and Additional Commercial Floor Area at Grade Existing Vacant Space 656 m2 ( 7,060 sq. ft.) Redevelopment Potential 800 m2 ( 8,611 sq. ft.) Sub-Total (applicant estimate) 1 455 m2 (15,672 sq. ft.) Office Space 975 m2 (10,493 sq. ft.) Redevelopment Potential* 1 139 m2 (12,260 sq. ft.) Sub-Total (staff estimate) 2 114 m2 (22,754 sq. ft.) TOTAL 3 569 m2 (38,418 sq. ft.) *Assuming an FSR of 0.5 and 50 percent site coverage on a total site area of 2278 m2 (24,521 sq. ft.), or, alternatively, an FSR of 1.0 and 100 percent site coverage on only one service station site. Staff have identified a potential for an additional 2 114 m2 (22,754 sq. ft.) of grade-level commercial space. This is equivalent to 26.5 percent of existing occupied space and might be expected to materialize as the immediate potential identified by the applicant is absorbed. 4. Retail Demand: Census data for the years 1981, 1986 and 1991 indicate that population and households in the census tract (14) surrounding the site have increased at a rate of about 1.2 percent per year. Given this growth rate, the vacant space and immediate redevelopment potential should be sufficient to address neighbourhood needs for the next decade or two. Over the longer term, the maximum FSR of 3.0 and 100 percent site coverage permitted in the C-2 District represent a potential of approximately 60 000 m2 (645,000 sq. ft.) in this area. While it is both likely and preferred that most of this potential will be developed in multiple dwelling use (in upper storeys of mixed-use developments), the overall potential is so large that rezoning to increase commercial development potential is very difficult to justify at this time. APPENDIX B Page 3 of 4 West 49th Avenue and Victoria Drive C-2 Commercial District (showing building outlines) APPENDIX B Page 4 of 4 Retail and Occupancy Study (1996) In April 1996, the original applicant submitted a study by Burgess, Austin & Associates (Real Estate Appraisers and Market Analysts) to provide further justification for the proposed commercial space (on file in Planning Department). The study s main conclusion follows: While it may be fair to observe that the area in question is not fully developed with regards to the available retail/commercial space which could be constructed, there is very little opportunity ... to construct a modern contiguous retail unit of some 4,000 sq. ft., given the patterns of ownership, present property usage and the general economic viability associated with existing uses. Staff think that the study s criteria were overly restrictive as it deemed any site less than 6,000 sq. ft. to be unsuitable for commercial redevelopment and also any site with near 100 percent site coverage. These criteria removed from consideration all but three of the 25 sites in this C-2 district. These three sites in turn were judged to be uneconomical to redevelop for at least 10 years. Staff believe there is opportunity in this area of predominantly small one-storey commercial buildings to assemble small lots for redevelopment, as was recently achieved at 6201-6255 Victoria Drive for a four-storey development having commercial uses at grade and dwelling units above. By using the criteria in this study, it could be argued that virtually all small, local-serving commercial areas throughout the city should be enlarged by rezoning adjoining residential sites to commercial use. Staff also question the study s observation about vacancy rates. These are reported to have declined from 7 percent in May, 1995 to 4.7 percent in November, 1995. The study states that the vacancy rate should be between 5 and 8 percent to be considered healthy and balanced . Staff think that the amount of vacant commercial space in the area will naturally fluctuate, from year to year, and possibly on a seasonal basis as well. Staff also note that the property owner presently rents commercial space at 6645 and 6653 Victoria Drive. If rezoning is approved and the proposed development is undertaken, this 167 m2 (1,800 sq. ft.) would be added to the supply of vacant space in the area, which was 656 m2 ( 7,060 sq. ft.) as of November, 1995. Based on the foregoing concerns, Planning staff concluded there was no basis for changing the conclusion and recommendation of the September, 1995 staff report. * * * * * APPENDIX C Page 1 of 2 COMMENTS FROM THE PUBLIC, REVIEWING AGENCIES AND THE APPLICANT Urban Design Panel In its review of the application on June 7, 1995, the Urban Design Panel felt that commercial uses at grade could be compatible with surrounding uses but the Panel did not support the application because it "had serious concerns about the form of development and the density being proposed" and "felt that a reduction in density would lead to a more interesting form that would be more responsive to the residential neighbourhood." Specific improvements were recommended: provision of a dwelling unit at grade off 51st Avenue, provision of a larger setback from 51st Avenue, removal of parking from this setback area, and setting back the third storey from the front property line. Interior dens and bedrooms without windows must also be avoided. Public Input An application information sign was installed on the site on June 8, 1995. On June 14, 1995, staff mailed a notification letter to 256 property owners in the surrounding area. The original applicant undertook some public consultation prior to submitting the application, including interviews with immediate neighbours and an Open House on April 4, 1995. The application states that results indicate generally that the neighbourhood is supportive of the proposal. Planning staff have received telephone calls from several residents and some have come in to look at the plans of proposed development. All have expressed concerns about the increased traffic and on-street parking which they anticipate from the proposed commercial and residential development. Planning staff have not received any communication from neighbours in support of the application. Applicant's Comment Planning staff completed this report and provided it to the original applicant, Mr. Kenneth King, Architect, for comment on September 8, 1995. Written applicant s comment for inclusion in the report was received from the new applicant, Mr. Edward de Grey, Architect, on October 8, 1996. (Note: The original applicant, Mr. King, confirmed on October 23, 1996, that he was no longer the applicant representing this application.) APPENDIX C Page 2 of 2 The following comment is from Mr. de Grey s letter of October 8, 1996: The applicant and the owner believe that it is reasonable to request the opportunity to go to Public Hearing for this rezoning application on the basis of the cumulative number of factors which together act to favour the obtaining of specific direct evaluation of neighbourhood response to the proposed rezoning. That is to say that while each of the factors considered favourable may not tip the balance unquestionably when considered only individually, but all of the cumulative factors when considered together appear as a package to be sufficiently compelling to support the request for the application be forwarded to a Public Hearing. The application includes commercial use space at grade level in a mixed-use residential building. In response to the concerns of the Planning Department about the commercial use, the owner hired Burgess Austin & Associates, consultant land use economists, to review the commercial district around Victoria Drive and East 49th Avenue. In his report of November 24, 1995, Geoffrey Burgess concludes that there are no suitable suites available within the survey area for this client s needs, and that, if the clients needs are to be accommodated, the proposed additional commercial spaces will have no impact on the commercial viability of this neighbourhood retail node. On October 16, 1996, Mr. de Grey provided a five-page letter of additional comment. (Copies will be made available to the Committee.) * * * * * APPENDIX E APPLICANT AND PROPERTY OWNER INFORMATION APPLICATION BY Edward de Grey, Architect PLANS BY Kenneth E. King, Architect (Original Applicant) PROPERTY OWNER Teemway Holdings Ltd. DEVELOPER Teemway Holdings Ltd. SITE INFORMATION AND STATISTICS STREET ADDRESS 6691-6699 Victoria Drive LEGAL DESCRIPTION Lots 24 to 26, Block 2, D.L. 735, Plan 3421 SITE AREA 827.5 m2(8,904 sq. ft.) WIDTH 23.8 m (78 ft.) [3 lots x 7.9 m (26 ft.)] DEPTH 34.4 m (113 ft.) DEVELOPMENT STATISTICS DEVELOPMENT PERMITTED PROPOSED RECOMMENDED UNDER RT-2 ZONING DEVELOPMENT DEVELOPMENT (see NOTE 3) FLOOR AREA Commercial (At Grade) 509.4 m2( 5,483 ft2) STAFF Residential (Above) TOTAL 902.9 m2( 9,719 ft2) 1412.3 m2(15,202 ft2) RECOMMEND MAX. FLOOR SPACE RATIO 0.60 (see NOTE 1) 1.7 THAT DWELLING UNITS 3 (see NOTE 2 12 THIS MAXIMUM SITE COVERAGE 45 % 61.5 % APPLICATION MAXIMUM HEIGHT 9.2 m (30 ft.) BE FRONT YARD SETBACK 7.3 m (24 ft.) 0 m ( 0 ft.) REFUSED REAR YARD SETBACK 7.6 m (25 ft.) 6.1 m (20 ft.) SIDE YARD SETBACKS from south property line 3.7 m (12.1 ft.) 2.43 m (8 ft.) but with surface parking near lane 0 m (0 ft.) although from north property line 1.5 m (4.9 ft.) abutting site provides 0.76 m (2.5 ft.) PARKING 31 NOTES: (1) The maximum FSR is 0.75 for multiple dwellings, but the site does not meet the requirements for approval of this conditional approval use as set out in the RT-2 Multiple Dwelling Guidelines. (2) The three individual lots are restricted to one-family dwelling development as they do not meet the minimum site area requirements in the RT-2 District for two-family dwellings. (3) These statistics represent the application as submitted in 1995 by the original applicant.