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.

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   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.