P2 POLICY REPORT DEVELOPMENT AND BUILDING Date: January 21, 1997 Dept. File No. MG C.C. File: 5300/8007-4 TO: Vancouver City Council FROM: Director of Central Area Planning SUBJECT: Policy for Residential Rezonings in the Central Business District and Related Zoning Amendments RECOMMENDATION A. THAT the Director of Land Use and Development be instructed to make application to amend the Downtown Official Development Plan to provide revised density provisions for residential and non-residential uses in the Downtown District, generally in accordance with Appendix A; and FURTHER THAT the application and draft by-law provisions be referred to a Public Hearing, together with design guideline amendments attached as Appendix B, and the recommendation of the Director of Central Area Planning that the application be approved; AND FURTHER THAT the Director of Legal Services be instructed to prepare the necessary by-laws for consideration at the public hearing. B. THAT the Central Area Plan, adopted by Council on December 3, 1991, be amended to include the policy for Residential Rezonings in the Central Business District, attached as Appendix C. C. THAT staff report back with a Development Cost Levy By-law for Triangle West and adjacent Alberni Street sites. CONSIDERATION D. THAT as a condition of development permit approval, covenants be placed on the title of dwelling units where they are located on development sites on the east side of the 800 and 900 blocks of Howe Street, the purpose of the covenant being to forewarn the ppurchaser that there is an entertainment district on adjacent blocks of Granville Street and there may be noise impacts. GENERAL MANAGER'S COMMENTS The General Manager of Community Services RECOMMENDS approval of A, B and C, and submits D for CONSIDERATION. COUNCIL POLICY The Downtown Official Development Plan (DODP) permits residential in the Central Business District (CBD) up to a floor space ratio (FSR) of 3.00. It also provides a bonus (i.e. the housing bonus) of additional commercial density if residential is provided, with the amount of bonus varying in different sub areas. The 1991 Central Area Plan includes policies to delete housing as a permitted use in the defined CBD and not thereafter consider residential rezonings in this area except for heritage retention. Housing has not yet been deleted from CBD zoning. In 1993 these policies were amended to occasionally consider residential rezonings in the CBD up to current allowable densities for retention of significant business support facilities in addition to heritage. At the same time, Council emphasized that the CBD is primarily for office commercial development (see Appendix D for policy statements). The 1991 Plan also called for removal of the housing bonus provisions near the CBD and to replace this with a 'choice of use' zoning. The housing bonus remains in some sub-areas. However, there has been little interest in the mixed-use buildings permitted in this zoning. Within the CBD, there have been very few rezonings. In housing bonus sub-areas, most housing has occurred through rezonings to allow single use high density buildings, rather than through the bonus. Since 1989, City Council has been requiring payment of community amenity contributions in the Central Area for privately-initiated, site-specific residential rezonings that will increase the population. Starting in 1992, development cost levies, enabled by a by-law and collected through the development approval process, have been invested in new neighbourhood areas to pay for facilities. SUMMARY This report recommends the referral of zoning amendments to public hearing, that will: delete residential as a permitted use in the core of the Central Business District (CBD); delete the housing bonus in areas of the CBD surrounding the core; and introduce choice of use zoning in the Triangle West district and for sites on the south side of Alberni Street between Bute and Burrard Streets and along Burrard Street, generally south of Smithe Street. 'Choice of use' zoning allows an owner to choose between residential and non-residential uses. Office uses will not be permitted to exceed current limits in the zoning due to the limited capacity of the city s transportation infrastructure to handle increased numbers of commuters. Residential use in areas of the CBD, outside the core, will remain under the current limit of 3.0 FSR. In other 'choice of use' areas, the density allowance will be increased for housing. These zoning changes implement the policies approved by Council in 1991 as part of the Central Area Plan. They have been discussed in a public meeting and with Downtown business groups, property owners and tenants. A residential rezoning policy is also recommended that provides direction for the evaluation of residential rezonings for sites located in the CBD that are outside the 'Core CBD'. Among other criteria, it indicates that rezonings will only be considered in cases where there are sufficient development sites in the CBD to accommodate new office development over a 20-year period into the future. The overall affect of these zoning and policy changes will be more efficient handling of development proposals with fewer rezonings and faster processing of applications based upon updated policies. PURPOSE AND BACKGROUND This report recommends updated residential zoning and refinement of policy for residential rezonings in and around the CBD. The zoning changes will implement the approved Central Area Plan. Several views on CBD housing are prevalent within the business community. Some want no housing in the CBD because it reduces opportunities for the development of head offices but others want more flexibility to consider housing proposals. Staff have facilitated a process with business organizations to reconcile differences and frame updated policies. The Downtown Vancouver Association, the Urban Development Institute, the Vancouver Board of Trade and the Vancouver Building Owners and Managers Association, in consultation with City staff have been involved with reassessing the rezoning policies and finalizing conclusions on the zoning. These organizations also support the deletion of the housing bonus provisions as envisioned in the Central Area Plan. DISCUSSION For policy purposes, a distinction is made between the 'Core CBD' and the rest of the CBD, sometimes called the 'fringe' of the CBD (see map in Appendix C). The 'Core CBD' is the area generally between Thurlow and Seymour from Robson Street north to the waterfront where most of the major office buildings are located and much of the City's major business is conducted. The rest of the CBD has some office buildings, many support uses and much of the capacity for further office development in the Downtown. Proposed CBD Residential Zoning and Rezoning Policies The deletion of the residential density allowance in the 'Core CBD' is proposed. The existing permitted residential density of up to 3.00 FSR will be retained in the rest of the CBD. This will ensure that there are opportunities for the development of head offices in the Downtown, while leaving some potential for residential development in other CBD areas surrounding the core. Should Council approve the following proposed policies, rezonings will only be considered in the CBD as follows (see full policy in Appendix 'C'): - in the 'Core CBD', a residential rezoning will generally not be considered; - in other areas of the CBD, a residential rezoning will only be considered when it is confirmed that the unused inventory of development sites in the CBD is adequate to accommodate the current profile of demand for new office space over a 20-year period; - such residential rezonings shall be primarily targeted for adult-oriented housing, and will be considered where: the combination of proposed uses is supportive of the precinct character; the character of the precinct is conducive to residential livability; and the proposed housing is compatible with adjacent land uses; - notwithstanding the above, residential rezonings will be considered throughout the CBD in the case of heritage retention or the provision of key business support facilities that are essential for the CBD business community (e.g. a business club such as the Terminal City Club); - the current 3.00 FSR density for housing will be retained in areas of the CBD outside the Core generally located east of Seymour Street, south of Robson Street and west of Thurlow Street. Establishing an Inventory of Office Development Potential Staff are currently working with the Downtown Vancouver Association, on behalf of the Downtown business groups to prepare and maintain an inventory of office development potential. The intent is that this inventory will be the responsibility of the private sector, in liaison with City staff. Staff are currently working with the private sector on the completion of the inventory. In the interim, staff can provide what information is available should a rezoning application come forward in the CBD. Proposed 'Choice of Use' Areas Zoning Outside the Core CBD in 'choice of use' areas, the following zoning amendments are proposed to implement the Central Area Plan: generally, in the new zoning, set density allowances that do not increase the overall density allowed or the office density allowed beyond that currently permitted; specifically, delete the housing bonus provisions currently in place for the following sub-areas of the Downtown, and in some areas, replace with zoning that permits a mixture of these uses: - Alberni Street between Burrard and Bute streets: residential and other uses will be permitted up to 7.00 FSR (office use limited to 6.00 FSR); - Triangle West (two clusters of blocks, west of Bute Street): residential and other uses will be permitted up to 6.00 FSR (office uses limited to 5.00 FSR); - several sites on Burrard Street south of Smithe Street: residential and other uses will be permitted up to 6.00 FSR (office use limited to 5.00 FSR); and - site at Davie Street and Harwood: residential will be permitted up to 5.00 FSR and commercial up to 1.00 FSR, total density 5.00 FSR (a reduction in the current total density of 6.0 FSR; the density of CD-1 zones on adjacent sites and the density of Downtown South is 5.0 FSR). A description for each zoning change is provided in Appendix A and in the map below. Development Cost Levies Following Council's general instructions, a development cost levy (DCL) by-law will be drafted for the Triangle West district and along Alberni Street where increased demands for capital projects (parks, daycare, replacement housing or transportation, sewer and water infrastructure) are anticipated. DCL's will contribute to the cost of community amenities and other infrastructure needed to serve the new development and replacement housing for low cost rentals lost through redevelopment. DCL s for the Triangle West district will be the subject of a separate report presented to Council prior to the enactment of the zoning. Triangle West is the only area where residential densities are being increased and there is significant development potential. In other areas, only a handful of small development sites will receive increased residential density through the text amendments recommended in this report. Most sites have recently been developed for high density or have stable institutional uses or heritage buildings. For miscellaneous isolated sites in the south end of the perimeter (one site at Harwood and Burrard and two sites at Davie and Burrard) that will have increased residential density, staff will report back on their inclusion in the Downtown South DCL By-law. The Urban Development Institute opposes the introduction of DCL's unless it can be clearly proven that infrastructure is missing within the immediate area of a development. Comments on the Proposals The proposed zoning changes and the rezoning policy are supported by the Downtown Vancouver Association, the Urban Development Institute, the Building Owners and Managers Association and the Board of Trade (see letters in Appendix E). The policy and zoning proposals have also been reviewed by other groups. The Urban Design Panel does not support the deletion of residential as a permitted use in the Core CBD. But it does support the deletion of residential from Granville Street in the core CBD. There was a small difference of opinion, between the Urban Development Institute and the Downtown Vancouver Association on the boundaries of the 'Core CBD'. The Urban Development Institute favours the exclusion of the blocks bounded by Granville Street, West Georgia Street, Seymour Street and West Pender Street from the 'Core CBD', thus permitting residential to be considered on these blocks. The Downtown Vancouver Association supports the inclusion of these blocks in the 'Core CBD'. As explained below, staff support the inclusion of these blocks in the 'Core CBD'. Staff held a public information meeting attended by approximately 35 people. There was general support for the zoning change, but the following issues were raised: - some individuals were concerned that deleting residential as a permitted use in the core CBD would result in a lack of people on the streets after the offices are closed; - concern was raised that noise complaints will result from permitting residential on Howe Street between Robson Street and Nelson Street because it is immediately adjacent to the Council-approved entertainment district on Granville Street. Staff do not believe that a lack of residential in the core CBD will lead to no activity on the street. Retailing and hotels are major functions in this area and will generate foot traffic. Also, the area is relatively small and enjoys pedestrian traffic from nearby residential areas and major facilities. In particular, residential use on Granville Street, north of Robson Street in the Core CBD, is not supported because it is a bus transit spine and may be designated as part of an entertainment district. The character of these blocks is better suited for offices, entertainment and retail, rather than housing. In response to the concern with residential uses on Howe Street between Robson Street and Nelson Street, staff are presenting, for the consideration of Council, a recommendation that covenants be placed on the title of dwelling units through the development approval process, notifying owners that they are nearby an entertainment district and that noise may be an impact on their unit. Further Changes to be Considered The business groups have also requested new provisions that would permit general or commercial work/live uses in fringe areas of the CBD and in 'choice of use' areas. Council has already instructed staff to examine such changes for these and other commercial and mixed-use areas and this will be reported when the work is completed. ENVIRONMENTAL CONSIDERATIONS Retaining a strong office core in the CBD with housing in and around the area will encourage people to walk to work and thereby reduce auto emissions. CONCLUSION Downtown business groups, working with City staff, have developed an updated Central Area Plan policy that emphasizes the regional importance of the CBD and provides for its continued growth, while at the same time providing some flexibility for a limited amount of CBD housing. The recommended referral of zoning amendments to public hearing meets the intent of the Central Area Plan to delete housing as a permitted use in the Core CBD. Also, new 'choice of use' zoning will reduce the number of rezonings required to pursue residential in areas outside the CBD. * * * * * Recommended Amendments to the Downtown Official Development Plan Text Amendments Note: All amendments are in bold and deletions are crossed out. 1. Amendments of Section 1 (a) This amendment explains that residential is not encouraged in all areas of the Downtown. Amendment Amend the introductory paragraph of Section 1 as follows: For many years only commercial (with some light industrial) uses have been permitted throughout the Downtown. In order to increase the variety, amenity and safety of Downtown, well-designed residential uses will be both permitted and encouraged throughout the Downtown , except for the Central Business District. In the core of the Central Business District, residential use will not be permitted. In other areas of the Central Business District, a A mix of uses within single developments or in neighbouring sites is permitted and encouraged. (b) The amendments will delete housing as a permitted use in the core of the CBD, specifically sub-areas A and B (also see Map in Appendix A, p. 6) Amendments (i) Renumber subsections 1 and 2 to subsections 2 and 3 and insert the following new subsection: "1. In the areas denoted by the letters 'A' and 'B' on Map 1 the following uses may be permitted, subject to such conditions and regulations as may be prescribed by the Development Permit Board: (a) Office Commercial; (b) Retail Commercial; (c) Other Commercial, including a Body-Rub Parlour; (d) Hotel; (e) Light Industrial; (f) Public and Institutional; (g) Social, Recreational and Cultural; (h) Parks and Open Space; (i) Parking Area and Parking Garage, subject to the provisions of section 5." (ii) Amend the new sub-section 2 as follows: 2. In the areas denoted by the letters 'A', 'B', 'C', 'E', F , G , H', 'J' and O , on Map 1 the following uses may be permitted, subject to such conditions and regulations as may be prescribed by the Development Permit Board: (a) Office Commercial; (b) Retail Commercial; (c) Other Commercial, including a Body-Rub Parlour; (d) Residential; (e) Hotel; (f) Light Industrial; (g) Public and Institutional; (h) Social, Recreational and Cultural; (i) Parks and Open Space; (j) Parking Area and Parking Garage, subject to the provisions of section 5. 2. Amendments of Section 3 (a) This amendment will allow for more flexibility for development in sub-area F . The current maximum permitted density of 7.00 FSR will remain in place. Office use is currently limited to a maximum density of 6.00 FSR. Currently, a development must include residential (i.e. the housing bonus provision) to reach the maximum permitted density. The new provision would eliminate the housing bonus and permit 6.00 FSR office use without housing. A 3.00 FSR limit on residential use would be retained because this area is in the Central Business District. Amendment Amend sub-area F of sub-section 1 as follows: F in the area denoted by the letter 'F', the maximum total density for any non-residential use all permitted uses shall be floor space ratio 5.00 7.00, except that office uses shall not exceed floor space ratio of 6.00, and residential uses shall not exceed floor space ratio 3.00; however, for every square foot of residential floor area, an additional square foot of non-residential floor area shall be permitted up to a maximum additional floor space ratio of 1.00 for residential use and a maximum additional floor space ratio of 1.00 for non-residential use; (b) This amendment, in concert with the amendment of Map 1 in the Downtown District Official Development Plan, designates as sub-area G , two sites currently designated H at the corner of Davie and Burrard Streets and under the Burrard Street bridge. These and other sites currently designated G , will be able to achieve the maximum site density of 6.00 FSR, minus any requirements for ground floor retail, for housing, hotels and other uses. Office uses will be limited to 5.00 FSR, similar to the current zoning provisions. All these sites are outside the Central Business District. Amendment Amend sub-area G of sub-section 1 as follows: G in the area denoted by the letter 'G', the maximum total density for any non-residential all permitted uses shall be floor space ratio 6.00, except that office uses shall not exceed floor space ratio of 5.00; however, for every square foot of residential floor area, an additional square foot of non-residential floor area shall be permitted up to a maximum additional floor space ratio of 1.00 for residential use and a maximum additional floor space ratio of 1.00 for non-residential use; (c) This amendment, in concert with the amendment of Map 1 in the Downtown District Official Development Plan, designates as sub-area H two areas, the first is on Howe Street between Robson and Nelson Streets and the second includes the block bounded by Burrard Street, Robson Street, Smithe Street and Hornby Street. These areas are currently designated sub-area G . The current maximum density allowance of 6.00 FSR for these blocks will remain in place. These new provisions will allow for more flexibility for development by allowing for the achievement of the total density allowance in non-residential uses without requiring the provision of housing. Office use will be limited to the current maximum FSR of 5.00. Housing will be limited to 3.00 FSR. These sites are in the Central Business District. Amendment Amend sub-area H of sub-section 1 as follows: H in the area denoted by the letter 'H', the maximum total density for any non-residential use for all permitted uses shall be floor space ratio 2.00 6.00 except that office use shall not exceed floor space ratio of 5.00 and residential uses shall not exceed floor space ratio 3.00; however, for every square foot of residential floor area, an additional square foot of non-residential floor area shall be permitted up to a maximum additional floor space ratio of 2.00 for residential use and a maximum additional floor space ratio of 2.00 for non-residential use; (d) This amendment creates new sub-area O for those blocks fronting on Alberni Street between Bute and Burrard Streets. In this sub-area, the housing bonus will be deleted and replaced with choice of use zoning. Office uses will be limited to the current limit of 6.00 FSR. Hotel, residential and other uses may be developed up to a density of 7.00 FSR, minus any density requirements for the provision of ground oriented retail. Amendment Insert the following sub-area O in sub-section 1 of section 3, following sub-area N : O in the area denoted by the letter O , the total density for all permitted uses shall be floor space ratio 7.00 except that office use shall not exceed floor space ratio 6.00; (e) This amendment specifies that residential floor space cannot be substituted for non-residential floor space on sites within the core CBD (i.e. sub-areas A and B ). Residential is being deleted as a permitted use in an amendment recommended above. Amendment Amend sub-section 3 as follows: 3. Except in the areas denoted by the letters A , B , 'K1', 'K2', 'K3', 'L', 'M' and 'N' on Map 1, residential floor area may be substituted for non-residential floor area. (f) This amendment clarifies that the 3.00 FSR limit on residential use does not apply in choice of use areas (i.e. sub-areas G and O ). In the choice of use areas, residential use may exceed 3.00 FSR, except in the case of blocks located in the Core CBD. Amendment Amend sub-section 4 as follows: 4. Notwithstanding subsections 1 and 3, in no case shall the density of residential use exceed floor space ratio 3.00, except in the areas denoted by the letters G , 'K1', 'K2', 'K3', 'L', 'M', and 'N', and O on Map 1. 3. Amendments to Map 1 (Boundaries of Downtown District Sub-areas) (a) Map 1, which identified the boundaries of sub-areas in the Downtown District,is amended as follows: redesignation of one portion of sub-area F to sub-area O as previously discussed; redesignation of portions of sub-area G to sub-area H ; redesignation of sub-area H (sites at Davie and Burrard, and under the Burrard Street Bridge) to sub-area G ; and redesignation of one portion of sub-area H (site at Harwood and Burrard Streets) to sub-area N . The Harwood and Burrard Street site currently has a maximum of density of FSR 6.00, but residential is limited to FSR 3.00. By including this site as part of sub-area N , the site will have a maximum density of FSR 5.00. However, the full density allowance may be residential (i.e. 5.00 FSR). Cultural, office and institutional uses are permitted up to FSR 1.00 and up to 20,000 square feet of retail is permitted. Although there is a reduction in the total density allowance, staff have concluded that the significant increase in residential density compensates for this reduction. Residential is a more appropriate use on this site than a hotel or office building because this use reflects the current character of the area and its location on the fringe of the West End. Council approved 2 CD-1 rezonings to the north on Burrard Street and set the maximum FSR at 5.00 FSR. A rezoning at Pacific and Burrard Streets set the maximum FSR at 6.00. APPENDIX B Page 1 of 1 RECOMMENDED GUIDELINE AMENDMENTS Rationale Amend the DD (except Downtown South), C-5, C-6, HA-1, and HA-2 Character Area Descriptions to indicate that residential use is encouraged west of Bute Street in Character Area F and throughout Character Area H. Amendments Amend Section 6.3.1 (a) of Existing Character Area F - Golden Triangle as follows: after the word "encouraged" insert "west of Bute Street". Amend Section 2.2.1 of Existing Character Area H - Alberni Street by deleting 2.2.1 (b) and inserting the following: "2.2.1 (b) Develop a commercial/mixed-use character." APPENDIX C Page 1 of 2 POLICY AMENDMENTS Policies on Residential Rezoning in the CBD Amend the Central Area Plan Policy 1.5 in the Office Policy section by adding the following to Policy 1.5: "1. It will be of paramount importance that the economic significance of the CBD (see map) be maintained through a consolidated compact Downtown office area. 2. There should be an inventory of office zoned land in the entire CBD that is sufficient to meet an ongoing projected 20 year new office space demand. This should be based on an inventory method which will be established to allow the City, the development community and representatives of the office building industry a way of measuring this inventory from time to time. The inventory should be an assessment of future office development potential reflecting the zoning, configuration and size of development sites. The inventory requirements should be reviewed each year. 3. In the Core CBD (i.e. that area between Thurlow and Seymour extending north from Alberni-Robson to the waterfront - see map) residential rezoning should generally not be considered. 4. Elsewhere in the CBD (i.e. other than in the Core CBD), residential rezoning should only be considered when it is confirmed that the unused office inventory in the CBD is maintained for the projected 20 year office space demand. 5. Notwithstanding policies 3 and 4 above, throughout the CBD, residential rezoning should be considered where the rezoning also facilitates retention of a heritage building or provision of essential business support facilities (i.e. business clubs) that reinforce CBD business. 6. Consideration of residential rezoning in the CBD should recognize the CBD as a place for working, shopping, cultural events and leisure activities that occur within existing precincts, each with a distinctive character. Such residential rezoning should be primarily targeted for adult-oriented housing, and should be considered where: APPENDIX C Page 2 of 2 the combination of proposed uses is supportive of the precinct character; the character of the precinct is conducive to residential livability; and the proposed housing is compatible with adjacent land uses. NOTES: 1. In addition to the above recommendation that represents a consensus between the business community organizations and with staff at this time, the organizations further suggest that new policies, and if necessary, by-law changes, should be considered for the following issues: Permitting commercial work/live premises (i.e. combining residential and office uses in suites) adjacent to the Core CBD as a complementary use and transition to residential areas by establishing a clear definition in zoning and design guidelines for urban adult-oriented 'work/live' use. Phasing out the existing housing bonus provisions in the Downtown District as envisioned in the Central Area Plan. (Note: Downtown Business Groups requested that this be done as soon as possible) 2. In CBD areas that are not in the Core CBD, the 3.00 FSR density allowance for residential will remain in place. APPENDIX D Council Policies for Residential Rezonings in the CBD THAT when reviewing applications proposing increases in residential FSR in the CBD, the maximum density that will be considered is the existing maximum density for all uses specified in the Downtown Official Development Plan, including bonusing provisions. (Approved June 10, 1993). THAT rezoning applicants for housing in the Central Business District be advised that office commercial is the preferred primary use throughout this area and predominantly residential projects are not generally favoured, but that applications proposing increases in residential FSR may be occasionally considered, on a case-by-case basis, depending on the following factors: - facilitating heritage or significant business support facilities; - compatibility with surrounding land uses (where office commercial is the predominant use now in place, residential will generally not be favoured); - the impacts on nearby development now and in the future; - residential livability; and - proximity of other existing housing or residential amenities. (Approved June 24, 1993). R:\CC\REPORTS\COUNCIL\FEB4\P2.