SUPPORTS ITEM NO. 3 P&E COMMITTEE AGENDA DECEMBER 12, 1996 POLICY REPORT DEVELOPMENT AND BUILDING Date: December 5, 1996 Dept. File No. 96043 - LC TO: Standing Committee on Planning & Environment FROM: Director of Land Use & Development SUBJECT: CD-1 Rezoning - 5605 Victoria Drive (Former Safeway Site) RECOMMENDATION A. THAT the application by the Director of Land Use and Development, to rezone 5605 Victoria Drive (Lots 1 and 2, DL 707 South Half, Plan 13918) from C-2 to CD-1, to permit the uses included in the C-2 District Schedule and to establish the form of development as approved by Development Permit Nos. 49894 and 73721, be referred to a Public Hearing, together with draft CD-1 By-law provisions, generally as contained in Appendix A and the recommendation of the Director of Land Use and Development to approve the application; FURTHER THAT the Director of Legal Services be instructed to prepare the necessary CD-1 By-law for consideration at Public Hearing, including a consequential amendment to the Sign By-law to establish regulations for this CD-1 in accordance with Schedule "B" (C-2). B. THAT the Director of Land Use and Development be instructed to report any development applications for this site to Council for possible withholding pursuant to Section 570 of the Vancouver Charter. GENERAL MANAGER'S COMMENTS The General Manager of Community Services RECOMMENDS approval of A and B. COUNCIL POLICY On October 22, 1996 Council approved the selection of Kensington-Cedar Cottage as one of two communities selected for the CityPlan Community Visions Pilot Project. PURPOSE AND SUMMARY This report advises Council of the potential impacts of redevelopment under existing zoning of a former Safeway site and recommends that the Director of Land Use and Development's application to rezone this property from C-2 to CD-1 be referred to a Public Hearing. MAP BACKGROUND History of the Property A recently vacated Safeway grocery store and parking lot currently occupies two individual parcels separated by a City lane. Previously, a Safeway store was located on five C-2 zoned parcels fronting onto Victoria Drive, and the parking was on nine RS-1 parcels west of the lane. In 1970, fourteen RS-1 parcels were rezoned to C-2 to allow the development of a new Safeway grocery store, located west of the lane, and with revised parking. The 1970 rezoning included as a condition of enactment the closure of a portion of East 40th Avenue and its consolidation with the fourteen parcels into a single parcel (Lot 1) west of the lane and the consolidation of five parcels into a single parcel (Lot 2) east of the lane. A further condition of the 1970 rezoning required approval by the "Technical Planning Board" of the detailed scheme of development. This condition reflected the intent of the rezoning only to develop the grocery store and its associated parking. The approach used in 1970 is similar to how Council presently approves CD-1 By-laws, except that the procedure employed in 1970 did not preclude future redevelopment of the site under C-2, whereas future CD-1 redevelopment generally requires an amendment to the by-law. Potential Redevelopment Canada Safeway recently closed this grocery store and put both parcels up for sale. Planning staff have now received inquiries about potential redevelopment of the property. Under the existing C-2 District Schedule, either parcel could be redeveloped outright with uses which include office, retail and service (or conditionally with residential) at a height of up to 12.2 m (40 ft.), a density of 3.00 floor space ratio (FSR) and with no required yards or setbacks. This could result in a development proposal including up to 20 190 m2 (217,000 sq. ft.) of retail or office development with no landscaped setbacks, no control over the form of development, and a legal obligation to issue a development permit. DISCUSSION Staff are concerned about the potential scale and impact of redevelopment which could occur on this property, immediately adjacent to a single-family area. Staff also believe that redevelopment of the site to maximum C-2 potential is not consistent with the original intent of rezoning Lot 1. Charter Authority Under Section 570 (2) of the Vancouver Charter, Council is empowered to withhold development applications submitted under existing zoning, where approval of the application would allow development in conflict with a rezoning or zoning by-law amendment "in the course of preparation". By making the CD-1 rezoning application, the withholding provisions of the Charter are available to Council. Of course, Council could choose to instruct me to withdraw the rezoning application, if it believes site redevelopment under current C-2 zoning is in the public interest. Cedar Cottage Neighbourhood Visioning Program On October 22, 1996 Council endorsed Kensington-Cedar Cottage as one of two communities selected for the CityPlan Community Visions Pilot Project. The Safeway property falls within the boundary of Kensington-Cedar Cottage. The project provides an opportunity for each community to prepare a vision that moves CityPlan directions in a way that fits the community. Staff are concerned that redevelopment of this large, assembled site under the existing zoning could preclude options for the visioning program. It is anticipated that the Vision for this area will be completed by late 1997. Rezoning to CD-1 Because of concerns about potential redevelopment of the property, I have applied to rezone the property from C-2 to CD-1 not only to accommodate the presently permitted uses, but also to ensure that the City's concerns about scale and compatibility are addressed. This approach would allow for the existing building to be used for a full range of outright approval uses permitted under current C-2 zoning, as well as all C-2 conditional approval uses. This approach would also preserve a large redevelopment site until after either: the neighbourhood visioning has been completed; or a comprehensive redevelopment scheme, meeting community objectives, has been proposed. Any new development proposal would then be considered by way of a new CD-1 rezoning application. There are at least two previous occasions when City Council approved similar rezoning applications submitted by the Director of Planning. The first was in July 1984 when staff learned that the site of the former B.C. Transit "bus barns" at Cambie Street and West 16th Avenue was for sale, and the second was in August 1984 when the Pacific GMC site at Broadway and Nanaimo Street was for sale. As with the Safeway property, both of these sites contained large portions previously rezoned to C-2 to accommodate very specific uses, offered significant redevelopment potential and raised concern about the impacts of redevelopment. Property Owner's and Prospective Purchaser's Concerns Staff have been in contact with both the property owner, Canada Safeway Ltd., and the prospective purchaser/developer who recently met with staff. Both have indicated that there is a binding contract of Purchase and Sale for this site (see Appendix B - letters). Although Council can take this into consideration, normally this is not considered a factor when making a decision on a rezoning application. Director of Legal Services Comments "The Director of Legal Services is of the opinion that rezoning of this parcel does not give rise to an action for damages against the City by the property owner or third parties contracting with the property owner". CONCLUSION Due to the size and location of the property and concerns about potential redevelopment, it is recommended that the application be referred to Public Hearing, with a recommendation from the Director of Land Use and Development that it be approved, subject to draft CD-1 By-law provisions generally as shown in Appendix A. * * * * * APPENDIX A DRAFT CD-1 BY-LAW PROVISIONS Use - According to the C-2 District Schedule. Density - Maximum floor space ratio of 0.30 FSR (in total across Lots 1 and 2), based on calculation provisions of the C-2 District Schedule.